Purchasing a home is one of the biggest decisions one makes in life, and room for mistakes is minimal. The standard practice is to find a real estate agent and let the professionals do the heavy lifting. Alas, agent’s commission goes as much as 7% of the final sale price, which sometimes amounts to a hefty price. Thus, sellers seeking to trim down expenses are inclined to try conducting the sale process without agents’ involvement.
By the owner
The truth is that the majority of tasks performed by the real estate agents can be carried out by owners. Before you hang “for sale by owner” (FSBO) sign, however, make an effort to weigh all the pros and cons. First off, real estate business requires market knowledge, and the success of your efforts is influenced by the type of the real estate and the outlook of the local property ecosystem. Moreover, a high-end investor might not be keen on dealing with the owner directly.
So, the space for maneuvering is already narrowed, and we have not even begun to prepare for investing time and money in the undertaking. This calls for some vigilance: come up with a solid plan and figure out when will you adjust the tactic and lower your price, as well as how low you can afford to go. These decisions must be rooted in a thorough research, and fair market price. See how the local competition is pricing the real property and try not to deviate from the prevailing trends.
Get your real property listed
Another possibility is to let a licensed home appraiser confirm the estimate and help you form a realistic price tag. Once that is sorted out, turn to online resources again to list, advertise and showcase your real property. Many sellers are not aware that 90% of property hunters search for real estate online. So, sell your own home online and you can minimize the agent assistance. Some services feature broad marketing exposure and other services that boost the chances of landing a good deal.
Furthermore, note that well-crafted, high-resolution pictures and virtual tours spark attention and attract online buyers. Also, take advantage of websites that offer free home estimates, or those that charge for in-depth pricing reports. Of course, the good old “for sale” sign still does the trick, as many buyers cruise around the neighborhoods in pursuit for the targets. At last, list the property with the Multiple Listing Services (MLS) and put an ad in the newspaper.
Set the stage
Now, one of the benefits of going alone is that as an owner, you know the property inside out and upside down. No one else can highlight the benefits and downplay the drawbacks so effectively. Yet, other duties include cleaning and de-cluttering the house, as well as fixing any malfunctions. It might be a good idea to hire a home inspector and make sure there are no defects in the real property. These could pose major hurdles in the process of negotiations and make or break a good deal.
Ultimately, you need to calculate whether the commission savings are worth it, and ensure you are able to handle all the stages of the selling process. Some people regret the decision to venture on their own and turn to attorneys to field offers, execute contracts, arrange closing date etc. So, even if you avoid real estate agent commission, there are many instances in which you may have to rely on professional guidance and expertise. Saving money is far from the only guiding light in the tunnel of home selling.
Being in business for yourself has its advantages such as retaining considerably more equity. However, in this scenario, you also have to get a hold of the local market, price the house competitively, list in with various services, advertise it properly, and focus on your property’s selling points. If you go down this road, set aside the emotional attachment and let facts and figures run the show. Play it right and you should be able to sell on your maximize the profit.
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