For Sale By Owner Vs. Realtor. It’s tempting for those selling a home to handle the transaction on their own. After all, it certainly seems better to keep all the money to yourself than to pay a realtor.
However, things might prove a little trickier in that area than they do at first glance.
A closer look at the finances shows that while going the for sale by owner route could eliminate commissions paid to others, it can result with fewer dollars in your pocket.
For Sale By Owner Vs. Realtor Costs
When taking the for sale by owner path, owners must handle all the costs associated with listing and marketing a house. Some of those costs include MLS listing fees and the cost of hiring real estate attorneys. Also, without the professional opinion of a realtor, it’s easy to overspend on updating a house to improve the chances of selling. The same can be said for costs sunk into providing more curb appeal.
These factors can eat up whatever gain you expected from not paying a commission – and sometimes, even more.
And costs aren’t just measured with dollars. When comparing For Sale By Owner Vs. Realtor there is also a very large time commitment. This includes managing open houses and handling the enormous amount of paperwork needed to finish a selling transaction.
Not Getting the Best Deal
The costs of time and money are both major factors. They also represent just part of the challenges someone faces by deciding to go the for sale by owner route. There are many other ways that not having a professional realtor in your corner could cost you.
Not setting the right price. Overpricing a house will lead to it sitting on the market forever. Underpricing a house is even worse – you could get far less than you would have with a professional helping you set the price.
Not doing the paperwork properly. Real estate transactions are complicated. Those who aren’t familiar with the process can make mistakes that could open them up to future liabilities. A qualified realtor handles all the paperwork for you.
Not reaching as many potential buyers. While you can list your house online, a realtor has a network of people to contact that can widen the pool of potential buyers, including those who are motivated to move into your neighborhood.
In addition to all the above, for sale by owner properties also can lead to many headaches for the owner. Handling all the details of marketing and selling a house takes more effort than many realize.
For all these reasons, it’s usually the best route to hire a realtor. Like many other areas that require a specialized professional, real estate is best turned over to those with expertise in getting the job done properly.
Most importantly, it could also end up putting more cash in your pocket, which is where you want it.