Pros, Cons Of For Sales By Owner
The hope of saving money is what lures most homeowners to forgo using a broker. With the average brokers commission at 6 percent in the United States, owners can "save" thousands of dollars by bypassing real estate agents. But before you begin marketing your home, you should consider the challenges.
1. EMOTIONAL ATTACHMENT: Homeowners tend to believe that their home is better than the average home. Seeing your home for what it is requires objectivity. In order to set a fair price, you must be willing to price it at Market Value. If you price your Home too high, it will linger on the market. An agent can advocate for your home, and remain impartial about the price.
2. BUYERS EXPECT A "DEAL": If you are selling your home without an Agent, buyers realize that you are saving the Commission. As a result, they may make lower offers. According to NAR, homeowners sold their homes for $92 per square foot on 2008, while Agent-Assisted Owners sold theirs for $116 per square foot, on average.
3. SMALLER BUYER POOL. If you refuse to pay a Commission to Agents who are representing buyers, Agents will steer clear of your property. Many buyers insist on using an Agent to view and analyze properties. By putting a no-agents clause in your listing, youll lose Agent-Assisted buyers. And if you dont pay a Broker to list your home through the MLS, most Agents wont even know that your house is for sale.
4. TIME COMMITMENT: When an Agents lists your Home, your only responsibility is to keep it clean for showings. When you list the Home, you must create Ads, screen callers, host Open Houses, show the Home and Negotiate the Sales Price. If your Job isnt flexible, you may not have time to meet with potential buyers at their convenience.
5. EXPERIENCE: Disclosures and Contract are Legal Documents. Agents provide guidance about potential liabilities, helping sellers avoid lawsuits. Agents review and analyze closing documents and ensure that you dont lose money at closing because of an oversight.
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