For Sale By Owner vs. Real Estate Agent: The Pros and Cons of Each
In the United States, 5.64 million homes were sold in 2020, making it the highest record since 2006. No doubt, it is a seller’s real estate market!
If you are looking to sell your home, you are faced with a major decision: whether to use a real estate agent or put your house for sale by owner.
This article will consider the pros and cons of each, helping you decide how to sell your home!
Listing a Home for Sale by Owner
Roughly 36 percent of homeowners attempt to sell their homes independently without using a real estate agent. Let’s see some of the advantages and drawbacks of listing your home for sale by owner!
Pros
The main reason that people choose to list their homes without an agent is that they want to save money. Without commission to an agent, sellers end up making a larger profit on their homes.
Nevertheless, other people choose to go this route if they already know a buyer and don’t need an agent’s involvement.
Cons
While selling a home without the assistance of an agent can save you a few bucks, it may end up taking you longer to find a buyer.
Only 11 percent of homeowners end up selling their homes without an agent. That’s a huge difference from the 36 percent who attempt to do so!
Even if you are fortunate enough to sell your home on your own, you’ll have to navigate appraisals, inspections, and negotiations without the expertise or help of an agent. In the end, inexperience can end up costing you more money than hiring a professional.
If you decide to go this route, use these tips!
Using a Real Estate Agent
Using a real estate agent is the best way to sell a home, as they have the needed experience and connections to find a buyer. Overall, the selling process goes a lot smoother.
Let’s look at some specific benefits and disadvantages of using an agent!
Pros
Agents have access to a wide pool of connections and can give your home more exposure through multiple MLS listings. By using their credibility and contacts, they will quickly spread the word about your house.
Another benefit of using an agent to sell your home is that they know the market. They know how much your house is worth and ensure that you get as much as possible for your property.
Furthermore, agents know how to negotiate, file all the paperwork, and avoid legal trouble.
Cons
The main drawback to using an agent is that you will have to pay about four to six percent of your home’s final sale price in commission costs. This amount can really add up!
Moreover, you won’t be your agent’s only client, meaning that they won’t be able to give you their undivided attention. They have other deadlines to work around, and at times you may have to wait for their assistance.
Sell Your Home Quickly
Although it can be challenging to decide whether to use an agent or list a home for sale by owner, this article will help you weigh your options. The bottom line is that using an agent can speed up the process and ease your mind.
However, if you have experience selling homes and are willing to wait for a buyer to come along, selling your home without an agent may be the right choice!
Did this article help you decide how to sell your home? If so, check out more of our informative content!
