The Dangers of Selling By Owner
When it comes to selling a property, homeowners sometimes contemplate doing it alone. Just like major home repairs, doing your taxes, or fixing up your car, it can be possible to do it yourself…but usually it may end up costing more money (and time) due to mistakes made in the process.
Technique, knowledge, and expertise are valuable, especially when it comes to selling such a high-priced item. There’s nothing wrong with trying a small “DIY” project, but when you’re talking about hundreds of thousands of dollars being involved, it may be best to hire a professional realtor. Here are some reasons why you should be aware of the dangers of seller by owner.
Pricing Complexities
Setting the correct price can mean the difference between your home selling quickly, or selling for tens of thousands less over a longer period of time. Many homeowners don’t know how to price their home. There is a lot more that goes into pricing a home and really maximizing the value. If you’re off by even just a few percent, it can cost you a LOT in the long run.
Over-pricing may result in wasted time and a much lower selling price when it eventually sells. According to the NAR, in 2016, the average For Sale By Owner (FSBO) home sold for $190,000. The average sale price for a home listed by a realtor was $249,000!
Our agents at 103 Realty understand fluctuations in the market and understand the complexities of setting prices. This is critical not only when your property is initially put on the market but also as time goes by and the seasons fluctuate.
Reaching the Most Buyers via Realtors
Realtors will expand the reach and exposure of your home to a larger amount of prospects. Most home buyers, especially first time home buyers, use Realtors to assist them through the home buying process.
For-sale-by-owner marketing options do not include the network of real estate agents. The selling price is based on supply, demand, and time. By taking more time and limiting exposure (the demand), the end result could be a significantly lower selling price if you choose FSBO.
Evaluating the Quality of Buyers
Not all buyers are qualified, and not many homeowners know how to find the right one and ask the right questions. There are various elements of an offer and pre-approval that must be evaluated beyond price. Taking your home off the market for an unqualified buyer can cause you to lose time, miss out on other offers, or leave your home unfairly stigmatized. Realtors can help you thoroughly qualify buyers and minimize your risk.
Creative Ways to Bring Deals Together
Contracts often stay together or fall apart over very minor items. There are methods of keeping them together that homeowners may not think of simply due to inexperience. Realtors accumulate a wealth of knowledge over the years and usually find alternate terms to facilitate agreement or to accommodate problems.
Keeping Deals Together
Emotions are high in most real estate deals. It is common given the enormity of the investment and the attachment that many homeowners have to their property.
Realtors function as a cushion between parties to maintain civility and communication. This is very important and often overlooked in transactions. Your Realtor can maintain clear thinking and guide you on decisions while promoting your best interests.
Sellers Beware
At the end of the day, Realtors bring a lot of value to the table. There is so much that goes into a listing & sale that the average homeowner doesn’t know. Proper disclosures, correct paperwork, pricing your home properly based on the current market, maximizing your marketing, qualifying buyers, bringing deals together through creative arrangements, maintaining relationships, and so much more than can help achieve successful closings!
Homeowners who take the for-sale-by-owner route to save commission can be faced with lengthy market times, be stressed over problems in the process, and eventually lose more money than they thought. Sellers – it doesn’t matter if you’re selling an Algonquin home, Lake in the Hills home, or anywhere in the surrounding area. Beware of listing for sale by owner, and contact 103 Realty to help get your home sold.
info@103realty.com / 312.217.4398
