Trulia Naples, Other/Just Looking in Naples, FL

What are the pros and cons of selling your own house rather than using a real estate agent?

Asked by Trulia Naples, Naples, FL Thu Dec 13, 2012

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BEST ANSWER
The ONLY pro is you will not pay a commission...

First, Serious buyers will be working with an agent, so how will you reach them if you are not willing to work with a realtor?

Second, there are many laws and regulations involved in the sale of real estate, why risk making an error that can land you in hot water?

Third, how will you market your home for sale? Agents have the tools needed to market your home for maximum exposure, and get is sold for the highest possible price in the least amount of time.

Fourth, do you like to sleep/ rest and have peace in your life? Attempting to sale your home without the benefit of professional assistance is a headache waiting to happen ,as well as some sleepless nights.

DO YOURSELF A BIG FAVOR,GET AN AGENT!

Much Success to you!
Kawain Payne, Realtor
1 vote Thank Flag Link Thu Dec 13, 2012
To learn more about the pros and cons of using a realtor regarding the sale of a home, please feel free to search my website, http://www.NaplesHomes.com. NaplesHomes.com has all of the latest real estate trends, news, and local community information that prospective buyers and sellers are looking for in southwest Florida! Please feel free to contact me with any questions via email ryan@napleshomes.com or via cell 239.244.1559. I look forward to hearing from you!

Ryan Schwartz, Realtor
239.244.1559
Web Reference: http://www.NaplesHomes.com
2 votes Thank Flag Link Fri Mar 29, 2013
The 'Cons' have been covered extensively. Let's go to the "PROS."
The TOP 25 "PROS" to Selling your own home!

1. The accomplished feeling you have inside
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2. All that potential saved money makes you gleeful....it's the Holidays!
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3. The elite feeling and anticipation of circumventing the 'system."
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4. Your gift of hospitality is perfected. "Welcome to my home. Have a cookie."
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5. Skills and resources created to hide the clutter
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6. The home is perfect..ready to sell...a shame you could not have enjoyed the same.
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7. Develop gracious responses to those who do not understand, "By Appointment Only."
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8. Awareness of how many 'buyers' can not get financing
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9. Developing the skill to spot and avoid the 'assignable' trap.
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10. Realization that unrepresented buyers are sitting ducks.
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11. Being nice leads to being taken advantage of, but you choose nice anyway.
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12. Acquired assertiveness to replace 'Welcome to my home" with "So me your money!"
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13, Life Changing Revelation: There is another reason why buyers are not working with agents.
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14.Acceptance that strangers roaming your house and criticizing your "Kingdom/ is making you stronger.
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15. Crystal Clear knowledge that the neighbor down the street and Uncle Joe who wanted to buy your house are all full of hot air.
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16. Heighten awareness VERBAL AGREEMENT NEVER WORK.
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17. Onset of paranoia that agents are deliberately steering buyers away from your house. It is always easier to rest when there's someone else to blame.
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18. Celebratin of resigned exasperation: I've lowered the price and I can't go any lower.
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19. Celebrate the great idea to offer a BONUS to real estate professionals.
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20. Acceptance that EASY is a brand, not an outcome.
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21. Ability to rejoice when when folks set an appointment and just evaporate!
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22. The 'Ah Ha" moment when you realize most buyers calculate their offer as follows: 60% of market value(Zillow or Trulia or Tax assessed value, which ever is lower) minus the 15% discount for not using an agent, minus $$$ to install ADT security system, equals a fair offer.
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23. Acquire ability toArticule, in a concise manner, that you did not place your house for rent on CraigsList
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24. Expressing empathy to the family in the cab of the Ryder Truck that their $2,700 deposit and rent have been fraudulently stolen by someone who is not YOU.
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25. Realizing there just might be a benefit in using someone who helps in the sale and purchase of homes dozens of times a year.
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Now, keep in mind. many folks get a purchase offer very quickly. Without problem, everyone agrees to terms and conditions. You pack your belongings and head to your new place to which you've switched the utilities and ready to start this new chapter in your life. The buyer has the truck loaded and heading down the interstate. Everyone will convene at the closing table in 36 hours. Then Never Ever Bank of Clearwater Florida calls and states, NOT GONNA FUND. Bye. That doesn't happen all the time, but when it does, that is when the difference between a master craftsman and a hobbyist becomes apparent. A master craftsman makes it appear EASY.
2 votes Thank Flag Link Thu Dec 13, 2012
Realization that unrepresented buyers are sitting ducks, Onset of paranoia that agents are deliberately steering buyers away from your house. It is always easier to rest when there's someone else to blame, The elite feeling and anticipation of circumventing the 'system." ...some of the stupidest comments I ever read!
Flag Thu Jan 17, 2013
OH, so right on many levels. You forgot the one where the owner overprices to over compensate for the fact that they, " don't need an agent". Then wonder after so many months "why didn't my house sell".
Flag Sun Dec 16, 2012
Please find this link helpful in regards to selling your own house vs. using a real estate agent: http://www.napleshomes.com/naples-for-sale-by-owner.php
Web Reference: http://www.napleshomes.com
1 vote Thank Flag Link Wed Feb 5, 2014
I believe my post is best with zero arrogance.
1 vote Thank Flag Link Thu Dec 13, 2012
In every market and every economy, there are always home-owners that opt to market their homes "for sale by owner." As a real estate agent, I pay close attention to the market, including these homes.

In my opinion, I think owners should explore the option of selling their home by owner. The main reason owners try to sell on their own, is to save money on the commission. I understand that this can be an expense someone would like to avoid, but on the average, homes sold by owner sell for more than 10% less than a home sold by a Realtor. Successful home sales by owner make up a very small piece of the entire sales market, so you should know the facts before taking this endeavor head-on.

Here are some statistics for the National Association of Realtors:

For Sale By Owner (FSBO) Statistics

FSBOs accounted for 9% of home sales in 2010. The typical FSBO home sold for $140,000 compared to $199,300 for agent-assisted home sales.

FSBO Methods Used to Market Home:

• Listing on Internet . . . 27%
• For-sale-by-owner Web site . . . 11%
• Yard sign . . . 46%
• Friends/neighbors . . . 39%
• Newspaper ad . . . 12%
• Open house . . . 14%

Most Difficult Tasks for FSBO Sellers:

• Getting the right price . . . 23%
• Preparing/fixing up home for sale: 18%
• Selling within the planned length of time: 14%
• Having enough time to devote to all aspects of the sale: 13%
• Understanding and performing paperwork: 10%

Of that 9% of national home sales, approximately half of those sales are made to a family member or friend. So, unless you know someone close to you that already wants your home, you have your work cut out for you. In fact, even the Founder of ForSaleByOwner.com recently sold his home with a real estate agent.

I don't know how accurate these statistics are on a local level, but from my experience, homes sold without an agent involved are very few and far between. If you do move forward with selling your home by owner, here some tips, insights and advice to give you the best chance of success.

Price your home correctly for the market from the start. Research home sales within a 1-mile radius that are the most similar to yours. Look at your home as a buyer, not as the owner, and give an honest evaluation. It will save you a lot of time and money. Buyers looking at homes in the area, learn the values quickly. If you're over-priced, home-buyers will simply choose another home to purchase.
Advertise! The internet is your biggest source for buyers. Over 90% of home-buyers use the internet to find their home and 87% use a Realtor. That said, you may want to get your home into the MLS. In addition, use as many home sales sites as possible. My real estate team and I advertise on nearly 600 sites! Choosing the right sites, will bring the right kind of inquiries. Newspaper ads produce low response rates for the expense.
Make yourself available to have your home shown at anytime. Turning down a showing could lose a sale and extend the time you'll have to market your home. There are a lot of homes for sale, and buyers will typically just move on to other options.
Pre-qualify your potential buyers. Before you schedule an appointment to show your home, make sure they're approved to finance your home. This will save you time, in addition to ensuring you're working with an actual buyer, and not just letting some stranger into your home with no intent or ability to buy.
Complete the required Residential Property Disclosures and have them ready for buyers to review.
Contact a local title agency and/or real estate attorney to draw up the proper paperwork and complete the transaction. It is imperative you have the proper paperwork to write up the final agreement and account for all aspects of the deal's contingencies. Making a paperwork error can be very costly!

Kevin Rathburn, Realtor
239-269-4575 Direct Line
KRnaples@gmail.com

KevinRathburn.com Integrity-Diligence-Innovation
1 vote Thank Flag Link Thu Dec 13, 2012
Great question! Would you go to court on a felony conviction and represent yourself?
0 votes Thank Flag Link Wed Feb 5, 2014
When selling your home your self. If can feel very empowering and overwhelming at the same time. Here are a few Pros and Cons below for your review.

Pros of selling your self:
1. You can save money
2. Have more control
3. You know more about your home than anyone.

Cons of selling your self:
1. Not having a professional to hold your hand.
2. Not have the proper disclosures
3. Not being available to show the home when your out of town.
0 votes Thank Flag Link Wed Feb 5, 2014
SOLD ANOTHER HOME WITHOUT A RELATOR ON THE SELL SIDE!! I had a home listed in NJ that closed last week without a relator on the sell side and the same in Naples as I just signed contract of sale for a 3 bedroom condo.. Between both listings I saved over $25,000!!! Check out Owners.com and see if it works for you. I am not affiliated with this company, but for the savy seller this is a great option!!! DON'T BELIEVE THE RELATORS HYPE..you can do this yourself!!!
0 votes Thank Flag Link Sun Jan 27, 2013
0 votes Thank Flag Link Sat Jan 19, 2013
That is a joke! If a relator thinks a property is a good value for a buyer and it fits for what they are looking for they are going to show the property. Even if a seller decides to use a full service broker 5% is usually the standard. I JUST SOLD A PROPERTY AT 2%! They buyer's relator tried to negotiate the commision higher I refused and they still agreed. I saved alot of $$$$$!!!
Flag Sat Jan 19, 2013
Over the past few years I have paid realty companies a one time listing fee and pay only a 2 1/2% commission to a buyers realtor. This cuts your commison in half. If you list a home that is worth $350,000 you would save $8,750.00. If a buyer comes to you directly from a listing like Realtor.com (which is included in your listing fee) without a realtor you pay nothing which would mean a savings of $17,500.00. One place to start is Owners.com, they can point you in the direction of local realty companies that would work with you under these circumstance. We have all taken a hit in home values why not save as much as you can by doing your own showings. You can also leave your home and let the buyers realtor do the showing. They are still making the commission so it's not a bad deal for them either.
0 votes Thank Flag Link Thu Jan 17, 2013
All of that is fairly easy as a seller. The buyer is needs to reach out to a bank or someone like yourself to get the ball rolling. As far as the appraisal and closing go, I scheduled that time around the buyer's agent. It all went off without a hitch. Florida real estate contracts are standard and this wasn't as difficult a process as one would think. I have a local attorney who charges $500.00 to handle escrow and general contract related issues but even with this cost the savings are still very substantial. I have been in sales for over 20 years (unrelated industry) so I feel I was better at selling my home than anyone else. I recently had a friend who sold their home using Owners.com listed through a local agency and a buyer came to them after seeing the listing on Realtor.com without a broker and they saved on commison completely. This is a new day and everything is done on the internet, sellers can do this but information is surpressed by realtors.
Flag Sat Jan 19, 2013
How did you handle appraisal, financing, escrow, closing, and the other administrative issues involved in a property transaction?
Flag Sat Jan 19, 2013
Annette and Kawain both gave you all the information you need. I second their advice, do yourself a favor and start interviewing agents and find yourself an experienced agent with a well conceived and funded marketing program.
0 votes Thank Flag Link Fri Jan 11, 2013
Annette,

You are on the mark.....very nice post!

Bill
0 votes Thank Flag Link Fri Jan 11, 2013
Working with a Realtor is the best way to find a serious buyer, despite all the competition in the market.
0 votes Thank Flag Link Fri Jan 11, 2013
In my opinion, selling your own house is like taking on a part-time job. By the time you add up the cost of getting it into the MLS (fee only brokers will do this) and other advertising venues, hosting lookers, answering stupid phone calls, holding open houses, and paying a buyer's agent if he/she brings a deal.....it's WAY cheaper to have a good agent handle the deal all the way through.

If your time isn't worth that much and you'd like a part-time job or new hobby, go ahead and do a FSBO. You may learn alot in the process, but is it cost effective?

Selling property yourself can work well with raw land where there are far fewer legal and regulatory issues.
0 votes Thank Flag Link Tue Jan 8, 2013
Annette, has said it all and has said it very well. If you are a savvy home owner who has sold your previous properties, then you will have an upper hand and save money. Only you can determine if it is worth your time and effort to market and sale your own home. Often a home seller will have a friend or neighbor interested in their home, in such cases, you would be fortunate, as you have a ready buyer.
0 votes Thank Flag Link Thu Dec 13, 2012
Here is a blog I posted about an article on the pros and cons of For Sales By Owners...
0 votes Thank Flag Link Thu Dec 13, 2012
Agents are able to reach thousands of potential buyers. We understand the complexities of a transaction as well as the changing markets in terms of value. Selling your own property can be a stressful undertaking. Using an experienced agent will give your home more exposure, and sell your home faster in less time. Use an agent who is going to represent you and LOOK OUT for your needs. You will be glad you did.
0 votes Thank Flag Link Thu Dec 13, 2012
Due to the complexity of today's real estate transactions, it is wise to have the guidance of an experienced real estate professional.

Selling a home entails not only the marketing aspects, but detailed follow-through on all of the potential mine fields that you may encounter!

The age of our housing stock in many areas contains built-in problems that must be dealt with at the point of sale. Inspections, estimates, certifications and myriad paperwork are all handled by your broker or agent.
0 votes Thank Flag Link Thu Dec 13, 2012
As agents we are able to reach thousands of potential buyers which gives you a better chance of selling your home in less time at or above market value. We take the quess work out of the transaction for you. Selling your own home can often be a stressful experience. Allow a professional to help you, In the end, you'll be glad you did.
0 votes Thank Flag Link Thu Dec 13, 2012
In a nutshell, the pros of selling it yourself is that you may, in fact, get lucky and sell it right away if it is priced competitively and possibly save the commission, but there are many more cons:

1) Between Naples & Bonita Springs, there are approximately 5,000 sales people trying to sell your home for you.

2) Statistics show that homes listed by professional REALTORS sell for more than For Sale By Owner (FSBO) homes.

3) A REALTOR should be an experienced negotiator.

4) A REALTOR will know the market statistics to help you price it properly to begin with, so that it doesn't sit on the market until it becomes stale.

5) Most potential customers are not comfortable working directly with the homeowner and wants representation.

6) A REALTOR will already have a marketing plan in place so that it can be marketed quickly in the right places to help it sell more quickly.

Let me know if you still have questions.
0 votes Thank Flag Link Thu Dec 13, 2012
This is a very good question. To the average consumer it would seem to make sense, cut out a realtor and do it yourself with your own marketing skills and local market knowledge, saving thousands of dollars on commission to a Realor. However, there are some serious flaws in this theory.
1) the time and money it takes just to begin to expose your property in the market place....Coldwell Banker promotes their listings on over 550 websites creating a global presence online with high def quality images and virtual tours for the buyer looking from out of the area. (By the way 80% of buyers are from out of the area for the Southwest Florida real estate market. 90% begin their search online.)
2) how to know what to price your home... You cannot trust data online to reflect your local MLS. Only a licensed sales associate can access that data. What if you price too high and your home does not sell? What if you price too low and you left money on the table?
3) the thought of allowing strangers in your home without some protection of knowing they are a serious qualified buyer.
4) a smaller item of concern, realtors are hesitant to show a "For Sale by Owner" home out of fear of not being compensated for their time and efforts. When a seller hires a licensed sales agent, they are acquiring their experience, ability to negotiate for a higher price with the knowledge to navigate a smooth transaction to closing.
These are just a few of the best reasons why you should consider hiring a professional Realtor to represent when selling your property. A home is typically one of your larger assets. Don't trust the big things where you may have an emotional investment.
Please contact me if you are considering selling your home yourself. I can guide you through the steps to best market and sell our home for top dollar today!
Lori Fowler
239-877-3800
0 votes Thank Flag Link Thu Dec 13, 2012
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