For Sale by Owner vs Hiring an Agent

If you ever watched an agent selling your house and thought, I could do better than a Realtor, there probably some things you already know. But there are also some things you may not have thought of that make the job harder than you thought.

First, the benefits of For Sale by Owner (FSBO):

1. You don’t have to pay the listing agent’s commissions, which means you won’t spend as much for commissions on the final sale price of the house.
2. You control the showings and all the advantages that go with that, including no last-minute showings.

But, as with all things, there are drawbacks to FSBOs:

1. Selling you house take a lot of time and energy. You have to stage the home for showings, research the price, take photos, create the listings, make and take the calls and more.
2. Remember, you don’t have to be a lawyer, but you do have to ensure you’re following federal and local laws. If you don’t, a lawsuit may be on your horizon.
3. Sure, you’ll save on commissions, but at what cost? If you don’t know your local real estate market or discover you’re not a good negotiator, you could miss out on selling your home for more money. Suddenly those savings on commission don’t look so great.
4. Your house might stay on the market a lot longer than you bargained for. If you’ve listed your home’s price too high and you can’t get more people through the door because you’re juggling a regular job with selling your home, your listing might languish. In the end, you may just end up hiring a Realtor anyway.

Of course, there are cons with hiring a Realtor. For one, it does cost you more to sell your home. But what you get back in your time and sanity is worth it. Here’s what you get with a Realtor:

1. Guidance and support. They answer questions, provide honest feedback and can guide you through the process of selling your home. Plus, you don’t have to worry about listings, paperwork, marketing or those dreaded showings.
2. You get the most effective marketing. Your home will be listed on the MLS. And did you know Realtors cover the costs of marketing your home? That’s right. They pay for professional photography and putting your listing on popular websites.
3. Buyers’ agents are more likely to show your home. That’s because when you hire a Realtor, other agents know you will pay commissions, which means they get paid.
4. Realtors provide all the required paperwork, so you don’t have to. In addition, your agent will negotiate on your behalf to get you the best price and conditions for your home sale.
5. Typically homes sold by Realtors sell at a higher price point than homes represented by the owner, often offsetting the cost the hire the Realtor

If you have questions about selling your home, feel free to reach out to Coldwell Banker Chesapeake for a string free chat! We love talking real estate.