For Sale by Owner Nightmares That Prove You Need a Realtor
It’s tempting to do everything yourself. The sense of satisfaction of doing it on your own, whether you’re changing your oil or fixing a fence, is meaningful.
That’s why I completely understand when people want to sell their house on their own. The accomplishment of securing a contract on your own feels great…but it often doesn’t make financial sense.
The commission on selling a home with a Realtor is often 6%, which adds up to $30,000 for a $500,000 house. And while everyone should be keen to save $30k, the reality is that isn’t likely to be what you’re saving. If the buyer is using an agent, you need to cut that in half. What’s more, a good Realtor can often get you a better price that more than makes up for the 3% difference.
The Difference Realtors Make
There are countless anecdotes about how ‘investors’ try to make ‘deals’ with owners selling on their own to get a huge discount from the market rate, as well as disasterous open house horror stories that I won’t bore you with.
While a good Realtor will shield you from those situations, they aren’t the best reason to hire a Realtor to manage the sale of your home. These are:
Marketing. Finding interested buyers is no easy feat. Many DIYers rationalize it away thinking they can put their home on Zillow, Redfin and Trulia and it will all be taken care of.
To take nothing away from those sites (they are a piece of any good marketing strategy), just leaving it there would be missing out on a lot of opportunities. The overwhelming majority of qualified buyers using Realtors search the MLS first, and if they find the right home there, they don’t continue the search. What’s more, good Realtors network with other Realtors and can promote your home to the best prospects more quickly, potentially getting offers before you officially put your home on the market.
Negotiating. A good Realtor will also (likely) be better prepared to negotiate. Homeowners will commonly take part in three to six home sales in their life; a good Realtor will handle that in a month. This frequency provides a wealth of experience that guides the negotiating process and gets you the best price for your home. What does this mean? At times, it will be to take avoid taking the highest offer because the bid is unlikely to be underwritten by a mortgage company, whereas you know the Realtor representing the second-highest offer wouldn’t let them make it unless it would close quickly.
An experienced realtor can handle all the leg work that comes with selling a home. Plus, because they know the market, they can help you get the top price that you deserve.
If you have any questions about listing your home, even if you’re not ready for a while, we’re here to help. Give us a call at 305-329-7744 and come meet us.
