Contemplating selling your own house? With the market as hot as it is, some people think that their house will sell itself, after all, supply isn’t meeting the demand, right!
Not so fast. People can be tempted by the thought of saving thousands of dollars on commission, and I don’t blame them, but there are some important things to consider first that might make you think twice.
The downside to going at it alone
- Do you have the time?
Does your day job give you the freedom to come and go as you please? Agents have a lot of questions when they have prospective buyers. This means calls, booking appointments, being there for showings and being prepared to field any and all inquiries.
- Are you aware of all the expenses?
Agents typically spend money to market the property they’re selling – flyers, advertisements, websites, virtual tours etc. That added exposure now comes as an out of pocket cost. When it’s time to get all of the paper work done, a lawyer will need to sift through all of the details to make sure you’ve covered everything correctly – time = money. And, one of the biggest and often forgotten expenses are realtor commission fees. Yes, that’s what sellers are trying to avoid but they’re still on the hook for the buyer’s agent commission, so 2.5% of the sale price.
- Are the buyers for real?
Buyers and their agents might see a “for sale by owner” as an opportunity to exploit your inexperience. That could mean unqualified buyers without proper financing or uninterested buyers who are just curious but not serious. Not only is this a drain on your time, but it takes away from you focusing on serious buyers.
- Are you too emotionally invested?
We’ve talked about this in earlier posts but the sale of your house is an emotional thing. You’ve likely hit a lot of milestones living there and have some great memories. That might cloud your judgment on what your home is actually worth and by overpricing you can drag the sale out and discourage interest. Sometimes feelings can get hurt – it could mean not presenting a counter offer after receiving a low-ball.
- Are you comfortable negotiating – it’s all part of the process!
When you get an offer, there might be an experienced agent sitting on the other side of the table who’s been there, done that. This can lead to not getting the best deal possible and losing out on some potential extra money.
In a worst case scenario, if something goes wrong during the transaction and a buyer wants to take legal action, agents are armed with insurance that protects sellers. Not the case if you’re selling yourself, leaving the potential for hefty legal bills.
The bottom line is that this is one of the biggest transactions of your life. Making sure you get the most out of it and avoid unnecessary hassles will help you come out on top.
