If you have ever thought about selling your home yourself, I’m sure you have wondered what the positive and negatives points are compared to a real estate agent selling your home for you.
First let’s go over the positive reasons for selling a home on your own.
1. You will not be giving a sellers agent a commission.
2. You will meet any potential buyers yourself. I’m not sure if this is a positive reason, but it might mean a lot to some home owners.
3. You are in control of the entire process. For those of you who like to have their hands in the entire process from meeting buyers to the negotiation process directly with those buyers, this might be a plus.
4. You decide when to show the home and will be present for those showings.
Now, let’s go over the negative aspects of selling your own home.
1. You pay for any advertising. On top of that, you will not have access to the MLS which all agents have access to. That means that instead of agents emailing their clients your home information when it appears on the MLS, you have to find the interested buyers yourself. Agents are also more adept at only showing clients who have a definite interest in the features of your home. You could have people looking at your home that aren’t pre-approved, are just window shopping or truly are not looking for what your home has to offer.
2. You will need to understand all of the paperwork needed to sell your home. It is also highly recommended that you hire an attorney to write-up the paperwork and make sure everything is included. An attorney might be more expensive to use. Another consideration is that an attorney doesn’t typically write-up paperwork to sell homes as part of their job and might miss something along the way.
3. If you aren’t available to show your home, your home won’t be shown if you sell it on your own. When you work with an agent, it doesn’t matter if you are on vacation. The home can still be viewed and an offer can still be made.
4. Knowing what to price your home at. Why waste your time if you price your home to high? You also have to worry about what an appraisal will decide your home is worth. You could get an interested buyer who is willing to pay the price you are offering. If the appraisal comes back and is lower, the bank will not finance the buyer at that price.
5. When a buyer knows you are selling a home yourself, they know you aren’t paying a sellers commission. Because of that, the buyer will typically bid extra low to cover the difference. Meaning you might still be out the same amount of money or more.
6. If you don’t offer a buyer’s agent a commission, many real estate agents won’t be enthusiastic about showing your home verse a home that is similar with a commission included. (Although this is ethically wrong, it has been known to happen quite frequently).
7. It will take much longer to sell your home on your own. This is because of the amount of advertising needed. Also, the less you are available to show your home, the longer it will take to sell.
8. When you take into account fees for advertising and the lawyer, you might end up paying more money, than if you used an agent.
9. You will have to make sure you understand the laws. You aren’t exempt from getting in trouble for lack of knowledge. You must understand the laws regarding who you decide to sell to and why. You will need to understand how to get a clear title before the closing of the home can occur. Some cities require a city inspector to view your home and there is a fee. You must also understand that any defects in the home must be disclosed to anyone who views your home. Not mentioning that there was a flood in the basement several years ago, for instance can result in a lawsuit if the buyer finds out after purchasing your home.
Many people try to sell their home themselves. A good majority of these same people end up using a realtor after a lot of frustration and money spent. If you decide to go it alone, make sure you truly understand what you are getting into before putting up a sign in your yard.
If you are interested in a consultation with Wendy McCance, you can contact her at:
Real Estate One
26236 Woodward Ave
Royal Oak, MI 48067
248-414-1248 ext. 119