As the title states, selling your house without a real estate agent is actually legal. This can also prove to be financially advantageous if you are able to play your cards well. But if you are not willing to make a little sacrifice by learning about the market and dealing patiently with prospective buyers, selling privately may not be for you. Real estate agents can help you in many ways, although you need to find a good one to make the most out of the sales.
●● Benefits of Selling Your House Privately ●●
Selling your house privately can pose a challenge. But if you know for sure that you can handle all the sweat that comes with it, then you are likely to get the highest profit possible. Below are a few of the many reasons why you should consider selling on your own.
1. Maximize your profit.
By selling your house privately, you will not have to pay commission. An agent can cost you 1 to 3 percent of the total selling price. But if you will not use one, you can have the profit all to yourself. This is usually the primary motivation of owners for deciding to sell a property themselves.
2. Customize promotional strategy.
If you will hire a real estate agent, you do not have control over how your property for sale will be advertised. By selling your house privately, you are in the driver seat and making the final say on the promotional methods to use. There are different marketing tools especially designed for real estate, and you can opt to use them all if that is what you think can make your property sell sooner.
3. Deal directly with prospective buyers.
Many of them prefer to negotiate without a middleman. In some cases, using an agent only delays the process. When prospective buyers have questions, or when they want to bid for a better price, they will have to wait for the agent to deliver the message to you, and then to come back for the answer. By selling your home privately, you and your buyer can come to an agreement more quickly.
●● Disadvantages of Selling Your House without an Agent ●●
Despite the monetary benefit of selling a house online or privately through a For Sale By Owner website, others still think that they are better off using an agent. Selling your house is not the same as selling a commodity. Here are the disadvantages of selling without an agent.
Lack of exposure.You will need enough exposure before you become an expert in handling prospective buyers, or in making the most appropriate decisions regarding the sales. You will need time to study all there is to know about selling a property.
Handle all the legwork yourself.You will have to take care of the inspection, documentation, marketing, transfer of ownership, etc. You don’t have to do all these if there is an agent by your side.
Limited access to information.You may not basically know how to start your search for information. You will have to rely on word of mouth to know how to go about the sales process. But an agent will have access to all resources, even to those that have just been updated.
Conclusion: Both options have their pros and cons but if you are looking for a cost-effective approach, selling your house privately can save you thousands on commission. But then you have to fully prepare yourself since selling can be a lengthy and strenuous process. If you do not have enough time to spare to learn about the real estate market, you can end up selling your home for a lot less than it is really worth.
… written by Michael Atwell is a leading figure in the For Sale By Owner space and has written countless articles on the Real Estate and Finance topics, view his LinkedIn profile today to find out more.