4 aspects to consider before selling your house privately

Ashley Boland and www.investopedia.com | 27 days ago
4 aspects to consider before selling your house privately

Privately selling your home may seem a great way to save thousands of dollars. After all, the standard real-estate agent’s commission is on average 2%—that’s $10,000 on a $500,000 home. Given the size of this fee, you may think that acting as your own seller’s agent will place that money into your own pocket. Before making one of the biggest decisions of your life, we strongly suggest to consider a few of these keys points.

1. Time is Money 

When you decide to sell your home on your own, be prepared to sacrifice a lot of time. From staging the property and taking perfect pictures to getting the description and marketing right. You’ll also spend time showing the property, entertaining  door-kickers, and talking with agents who won’t take you seriously.  

It’s Not Your Full-Time Job. Good real estate agent are some of the most highly trained negotiators in the sales industry. It wont be easy to rush home from work every time someone wants to see your home?  At the end of a long work day, do you have the energy to take advantage of every possible opportunity to market your home? Are you an expert in marketing homes? Do you have any experience doing so? Your answer to all of these questions is probably “no.” An agent’s answer to all of these questions is “yes.”

2. Financial Savings

When you sell by owner you may think you’re saving money but in reality you’re often spending a lot of money up front with no guarantee of any return. Listing agents spend a calculated amount of money up front to make sure a listing sells and ultimately pays both you and them both fairly. 

When you try to private sell you attract investors and low-ballers who see your inexperience and ignorance as a prime opportunity. What may seem like a lot to you may be a steal to them. An experienced agent will understand this and negotiate the most money possible for you.

3. Marketing

You might be ready to post your home on Facebook and Gum-tree a few times, even if you have a large personal or professional network, those people will likely have little interest in spreading the word that your house is for sale. You don’t have relationships with clients, other agents, or a real-estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate to waiting longer to sell your home and possibly not getting as much money as your house is worth.

4. Separating Emotion from the Sale

“Most important, find a broker who has your best interests at heart. Many brokers will spend significant time to educate you, and because of that, they could be one of your most valuable assets. Be fair to them, and most of them will be fair to you. If you don't want to pay for good help, then why would they give it? You wouldn't work for free, and neither should they.”

Agents are experts in what makes homes sell. They can walk through your home with you and point out changes you need to make to attract buyers and get the best offers. They can see flaws you’re oblivious to because you see them every day, or because you simply don’t view them as flaws. They can also help you determine which feedback from potential buyers you should act on after you put your home on the market to improve its chances of selling.

Exert from 'Rich Dad Poor Dad' by Robert Kiyosaki .

“Most important, find a broker who has your best interests at heart. Many brokers will spend significant time to educate you, and because of that, they could be one of your most valuable assets. Be fair to them, and most of them will be fair to you. If you don't want to pay for good help, then why would they give it? You wouldn't work for free, and neither should they.”

Selling your home will likely be one of the biggest transactions of your life. You can try to do it alone to save money, but hiring an agent has many advantages. Agents can get broader exposure for your property, help you negotiate a better deal, dedicate more time to your sale, and help keep your emotions from sabotaging it. An agent brings expertise, which few home sellers have, to a complex transaction with many financial and legal pitfalls.