When selling your home, the For Sale By Owner route may seem like an
attractive way to save money. By cutting out the middleman, you could
keep the entire profit of the sale for yourself. However, choosing to
sell your home yourself comes with certain risks, and it may not be the
most effective approach in todayâ€™s challenging market.
As a homeowner, there are several areas you should consider before
taking the For Sale By Owner route. First of all, the over-saturated
housing market likely has you at a disadvantage. Sales may be starting
to pick up, but in most areas, it is generally still a buyerâ€™s market.
This means that homebuyers are often in a great bargaining position and
sellers may have to work a bit more to seal the deal.
If you want your home to stand out in the sea of other homes for
sale, it must be marketed properly. This includes making minor changes
that will make it more appealing, setting a competitive sale price and
getting the word out to potential buyers. With their years of
experience, Realtors can offer recommendations for making your home more
buyer-friendly, and do a thorough analysis of the area before setting a
competitive sale price.
Most importantly, Realtors know how to draw buyers to your home.
Remember, there is more to marketing than placing an ad in the newspaper
or online. In fact, overexposure through the wrong marketing approach
can backfire. When a home is over-advertised, potential buyers may
think there is something wrong with the home, or assume that the owner
is desperate to sell.
According to studies by The National Association of Realtors, 82
percent of real estate sales are the result of agent contacts through
their previous clients, referrals, friends, family and personal
contacts. Homeowners who choose the For Sale By Owner route will miss
out on all of these powerful contacts that a Realtor could bring.
Choosing to sell without a real estate agent also opens a homeowner
up to many potential legal problems. The rules for buying and selling
real estate are complicated. It can be easy to make a mistake that will
lead to costly legal fees.
For example, many of the offers a seller receives will be contingent
upon the potential buyer first selling their own home. While this is
common in real estate, it can make the transaction more
complicatedâ€”particularly if more than one buyer is interested in the
home. Handling this situation incorrectly could land you in a lawsuit.
When it comes to negotiating the sale, there is much more to consider
than the price of your home. All of the associated fees for home
inspections, warranties and other closing costs must also be settled.
Trying to go it alone makes you more vulnerable to either losing out
against the buyerâ€™s more savvy agent or scaring off the buyer in your
attempt to protect your interest.
For homeowners with real estate expertise, the For Sale By Owner
route may be a viable option. However, most homeowners will benefit from
having an experienced Realtor help them negotiate the sale. In fact,
according to the National Association of Realtorsâ€™ Donâ€™t Try This at
Home public awareness campaign, â€œsellers who use a real estate
professional make 16 percent more on the sale of their home than do
sellers who go it alone.â€
This article originally appeared onÂ 55Places.com. For more
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