Advantages and Disadvantages of For Sale by Owner
There are advantages and disadvantages of selling a house for sale by owner. The first advantage, and the most appealing to anyone looking to sell their house is that you get to keep all the money. But is it really worth it? Let’s check out the pros and cons of for sale by owner.
Adavantages of For Sale By Owner
1. You Get to Control Everything
Selling your home for sale by owner allows you control over the entire sales process. You get to decide your price, stage your home however you like and you get to do all the marketing yourself. Everything is in your hands.
2. You Get to Schedule the Showings and Open Houses
If you’re living in the house while trying to sell it, it’s difficult to keep clean all day every day. Selling your home by owner allows you to schedule showings on your own time, when it’s convenient to you. In addition, you don’t have to wait for an agent to be available to show your house. You get to do it yourself.
3. You Can Sell Your Neighborhood
No one knows your neighborhood better than you. Thus, you can sell the potential buyer on the neighborhood, how great the park across the street is, and how great your neighbors are. If the buyers are a family, you can let them know about the school district it is in, and how much your children love the school. It is a lot more personal hearing first hand from someone who knows the area that they potentially may spend most of their lives in than having to guess from an agent. Selling your house yourself is the best way to tell the sellers all about why they should buy your house.
4. You Will Make More Money
When selling a house with the help of a realtor, you have to pay between 4-6 percent of the home’s purchase price to an agent. Selling your home by owner will save you a pretty chunk of change. Therefore, this is the biggest reason why people try to sell their home on their own.
5. Sell for a Cash Offer
If you don’t use a real estate agent, you have the option to sell to a cash buyer, which can have many benefits. Some of these are that you get to keep more money, you save time, and you can sell the house as-is. Read here for more great benefits of selling for cash.
Disadvantages of For Sale By Owner
1. You May Not Get as Much as You Want
Although you won’t be paying a real estate agent, it may be more difficult to get top dollar. An experienced agent is an expert, and knows how to price your home, and how to market to interested buyers.
According to Zillow, the number one reason for sale by owner homes do not sell is because of price. It is difficult to figure out what your home is worth without having experience in real estate.
2. Marketing Is Hard Work, and Time Consuming
Another con of selling your home for sale by owner is that you are not likely to have the marketing experience and expertise of an agent. Anyone can list their home online, but marketing is an art and a science.
Agents also have the resources to be able to list your home in places that you can’t. The MLS (Multiple Listing Service) is the most widely used service for listing homes, and only licensed real estate agents can get access to it. Appropriately marketing your home is a sure-fire way to get it recognized so you can get those buyers coming.
Most realtors already have potential buyers they are usually working with and have relationships with other agents. Selling by owner may not get as many people to look at the house, in turn, means less offers. Hence, less offers means less money.
3. Selling a Home Is A Lot of Work
Selling your home takes time and money. Aside from having to stage the house, there are always repairs that need to be made. Whether doing them yourself or hiring it out, there’s a cost to it. If you’re lucky, you’ll only need to do minor maintenance such as cleaning and painting. However, if your house is older, it’s likely that there will be more major repairs needed, such as replacing cabinets, updating the bathroom and replacing the carpet or hardwood. This is both expensive and time-consuming.
While an agent will not directly assist in the repairs and maintenance, they can tell you exactly what needs done to get the most money out of your home.
4. Not all Buyers are Created Equal
Finding qualified buyers can be difficult without an agent. Agents make sure their clients are pre-approved before spending their time showing homes, which will greatly improve the probability that you will get qualified buyers in to see your home. This ensures that that the buyer is serious about purchasing a home, and that they can get a loan to buy it.
After reading over the advantages and disadvantages of selling a home for sale by owner vs. selling it with a real estate agent, it’s possible that you don’t think either of these options are great. After all, you’ll still need to clean the house and do the repairs and have buyers walking through your house for weeks or months. If you are still looking for a quicker and easier way to sell your house without doing the repairs, we are here to help, and we can get you cash in as little as 7 days.
This is great when you don’t have much time, or just don’t know if you want to go through a huge process while selling. If you would like more information on what a cash buyer is, fill out the form or give us a call! We would love to speak with you today!