Selling Your House Following these Easy Steps
Selling your house for sale by owner (FSBO) to avoid paying a listing agent’s 3 percent commission can be financially appealing, but the process isn’t as easy as you might think. If you want to try selling your own house, preparing yourself for the stressful and turbulent road ahead is a must.
According to a real estate housing report, just 10 percent of sellers who sold in the last 12 months complete the sale of their home without ever engaging an agent. Another 10 percent try to sell on their own but eventually turn to an agent for help.
Interestingly, millennial sellers and sellers in urban areas, who tend to skew younger, are more likely to attempt to sell on their own or succeed in doing so — 36 percent of millennial sellers and 34 percent of urban sellers attempt to or succeed in selling on their own.
If you want to be successful, you’ll have to learn how to sell your own home like a real estate professional would.
1. How does for sale by owner work?
For sale by owner is a home-selling strategy in which the seller lists their home for sale by owner, without the help of a real estate agent, from start to finish.
You’ll avoid paying the 3 percent commission you’d have to pay your listing agent if you used one, which can help you walk away with as much profit as possible.
Control over your listing
When you manage the listing, you have complete control over the listing price, the listing details, and the marketing strategy.
Control over your showing schedule
When you’re in charge of scheduling private tours and open houses, you’ll never be caught off guard by an inconvenient or last-minute appointment set by your real estate agent.
The lowest sale price
Industry research suggests that sellers who use an agent garner a significantly higher profit than FSBO sellers, even after paying commission. There are many reasons why an agent may net you a higher sale price, including their local expertise, marketing strategy, networking connections, and negotiation experience.
Marketing takes time and money
When you sell without an agent, getting your listing in front of potential buyers is entirely up to you. That means you’ll need to juggle getting your home listed online, marketing it via social media, printing flyers and brochures, and thinking up other ways to get buyers through the door.
Managing a listing is labor-intensive
Between answering calls, scheduling showings, and coordinating open houses, it can be very time-consuming to manage your listing on your own — and that’s before you even receive an offer.
You may be susceptible to mistakes
Especially if it’s your first time selling, you may make costly mistakes that a real estate professional wouldn’t — like pricing your home too high and having it sit on the market for a long time.
You may still have to pay a 3 percent commission
Even if you don’t have your own agent to pay, it’s standard practice that the seller pays the buyer’s agent’s 3 percent commission (if they’re using an agent). And according to the real estate report, 74 percent of buyers use an agent, so it’s likely your buyer will too.
2. Set an appealing home listing price
Although every seller wants top dollar for their home, overpricing is never a good idea. In fact, it usually leads to more time on the market and an eventual price cut. Coming onto the market with a reasonable and accurate listing price is a must. By pricing your home correctly, you can avoid it sitting on the market for too long, which can deter potential buyers.