Deciding How To Sell A Home

Homeowners have an array of options available to help sell their homes. While traditional sales securing the help of a Realtor are still the most popular and most convenient, for sale by owner and partnering with non-commission websites are options.

Each option for selling a home has its own unique set of pros and cons. Before putting a home or real estate on the market, sellers should take the time to research their options and decide which avenue is their best option for marketing and selling their home.

Retaining The Benefit of Realtors

A Realtor lessens the work load of homeowners considerably. Market analysis, interpretation, advertising, pricing and assisting with negotiation of the property are all handled by the Realtor when a Realtor helps to sell a home.

Booking and conducting house showings are the Realtor’s job as well. Sellers do not need to do anything but prepare for the home for showing. Of course the Seller has to make the final determination of an offer acceptance.

Realtors are licensed professionals. They are well versed in their real estate industry, the steps involved in a home sale, and applicable real estate laws. Realtors are required in most states to meet requirements for continuing education each year, keeping them updated in changes to real estate law, prevailing market prices and market trends.

Realtors are driven by commission. A Realtor will not get paid if they do not sell a listed piece of property, and so Realtors strive to complete the sale.

A Realtor acts as a liaison between sellers and buyers, and can help diffuse disagreements while keeping a sale moving forward.

Realtors are practiced in the pitfalls common to real estate sale closings; they know what to watch out for and how to handle situations as they arise.

Realtors are trusted community members with access to wide advertising and cross-referencing systems, such as the Multiple Listing Service (MLS). The cost of advertising and listing real estate is assumed by the realtor, paid for by the commission at the conclusion of a sale. There is no cost to the property owner if a realtor fails to sell their home or real estate.

Realtors generally take a commission of five to six percent on the sale of homes. This translates into thousands of dollars on the average home sale but often commissions are negotiable depending upon the particular real estate agent.

For Sale By Owner (FSBO)

Homeowners who choose to sell their homes themselves are responsible for arranging every aspect of the sale, from pricing, to advertising, booking appointments, and arranging the closing.

Homeowners benefit from selling their own properties because the entire proceeds of the sale are theirs. This is particularly beneficial if a buyer is already interested and a long search is not necessary.

A property owner is the most knowledgeable in regards to their particular piece of property, and are able to give detailed, personal information about the home and community. Buyers are offered more intimate information about the property and life there.

Sellers communicate directly with buyers, cutting out confusion and miscommunication resulting from handling of the sale by a middle-man.

FSBO sellers maintain complete control over their listings and how their property is advertised. They can choose only the markets they wish to target, and the format, content, and style of ads.

Scheduling, open houses, and showing are all done at the direct discretion of the seller.

Sellers can set their sale price lower when commissions are avoided.

Homeowners are available to potential buyers at all hours of the day. Scheduling and showings are not limited to office hours.

The drawbacks to real estate sold by the owners are very closely related to the benefits of an FSBO sale.

Selling the home becomes a second job to the owner. The owner must invest large amounts of their time and energy.

Attorneys are relied on more heavily for sales handled by property owners. Attorney fees can increase significantly over sales where a realtor is used, diminishing the profit margin and benefit of not paying a sales commission.

Hidden costs and fees accumulate when sellers do not research adequately. More expense is incurred up-front and out-of-pocket.

Private sellers have less access to popular real estate advertising markets, and are less skilled in marketing homes.

Property owners have less knowledge of prevailing market prices, and risk having few interested buyers or compromising the sale when the asking price of the home is set too high.

All of the liability is incurred by the property owner when sales are poorly handled or disclosures are not made.

Online and Marketing Services

Online services and real estate marketing partners help straddle the divide between selling a home privately and selling property with a Realtor.

Most online real estate services and marketing companies provide avenues for advertising for only a few hundred dollars, and take no commission at the end of the sale.

Other online services handle all advertising and aide in documentation and closing procedures for a set fee. The remainder of the sale (showing, booking, et cetera) is handled by the homeowner.

Marketing services and online real estate companies provide a searchable advertising venue and an online presence for private property sales. It is now estimated that forty percent of real estate transactions originate online.

Some online services and real estate marketing companies publish home sale catalogs which sit alongside those provided publicly by real estate offices.

Online services can provide access to the realtor’s Multiple Listing Service, making a privately sold property available to realtor searches as well (additional costs may apply).

The drawback to using online or real estate marketing services is that there is some cost involved, and it does little to lessen the seller’s workload in the way of showing the property and handling legalities. In most arrangements these tasks remain the responsibility of the seller.

There is no guarantee that an investment in an advertising service will result in a sale, but the cost is charged and paid for up front.

Time and money can be lost if a sale does not result from the partnership.

Homeowner’s Decision.

Which real estate selling venue is right for a homeowner will depend on their knowledge of real estate transactions, willingness to learn, and the time they have to devote to the effort weighed against the cost of the services rendered by others. Profit and expediency of the sale are dependent factors in the choice. Each seller’s situation is unique, and real estate sellers should carefully consider all their options before choosing a selling arrangement.

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