While many of us like to DIY things to save a little money, there are many areas where this can work out well, and somewhere it’s better to hire a professional, like plumbing, electrical, law, and real estate. There are people all over that have gotten lucky and will claim that the professionals aren’t needed, but it’s the little things that come up later that often cause them to regret their decision; the leaky pipe, the shorting wire behind the wall, the lawsuit they didn’t see coming, and the unhappy realization that what they “saved” is often less than what they could have made. Also very valuable, is avoiding the stress and time it takes to DIY something, often much greater than Pinterest would lead us to believe.
A few things to keep in mind
This is an interesting market, and while yes, you will likely be able to sell it within 2-3 weeks, please be aware of these points:
- Buyers are educated enough these days to know that Sellers are expected to cover the Buyer’s agent commission, and with how fast the market is moving right now, they need an agent to help them keep on top of available options. Thus, you will likely pay half of the commission anyway.
- While there are buyers without agents out there, they tend to be those who are looking to save money by negotiating for a significantly lower price simply because they don’t have an agent. These buyers come to my listings periodically, and they tend to be the most aggressive and rude negotiators I ever run into. Thus, even if there is no agent commission to be paid, the net price will be similar.
- Buyers and their agents also know that you are saving money on selling it yourself, and they push for a part of that savings, with lower offers. Thus, you will likely sell it for less anyway.
- Buyers agents know that any for sale by owner home will take more work on their part, keeping both parties informed and educated along the way, and handling paperwork for both. Thus, they will steer their clients towards homes listed on the MLS first, limiting your pool of available buyers.
- Limiting the pool of available buyers also limits the opportunity for a multiple offer scenario increasing the offered sale price (something many MLS listed homes are experiencing lately). This means that you will likely sell for much less than you could have.
In short, while selling by owner seems like a simple way to save money, it most often results in paying half the commission anyway, selling it for less than the list price, and for much less than a Realtor could have done with the competition created by a larger buyer pool and the potential increases of a multiple offer scenario.
In addition to all that, we have, as you noted, the many valuable services of a listing agent, there to represent you, advise you, educate you, negotiate for you, and take the stress off your shoulders, as you’ve already experienced with me.
A few of my recent sales successes just within the last year:
- Sold for $9k more than expected (higher than list price and very low concessions) in 17 days
- Sold within $1500 of the list price in 13 days
- Sold at the list price in 15 days
- Sold $3k above the list price in 12 days
- Sold at the list price in 1 day
- Sold at the list price in 4 days
- Sold at the list price in 1 day
- Sold for $7k more than expected (higher than list price and no concessions) with seller lease back