An earlier blog post covered selling a property via an auction. This post covers selling a property on your own. This process is just as it sounds. You do the legwork and there is potential to save money if you do everything correctly. I stress potential to save money because people don’t know what they don’t know and in real estate, it can become costly very quickly.
Pros
- You won’t pay commission fees. An average commission fee is 6%. On a house selling for $250,000, that’s $15,000 in savings.
Cons
- You risk losing money. On average, homes sold by the owner are 15% less than homes sold through a real estate agent, making the 6% you gain by not paying commission fees seem more appetizing. (Source: Quicken Loans)
- You’ll have to educate yourself on the market and the probate and inheritance selling process. For example, if you have not educated yourself on laws, processes and other nuances related to the probate sale, you could end up spending more time and money than if you had hired a real estate agent from the start.
- You’ll have to deal with potential buyers and other professionals such as a lawyer and an appraiser on your own.
- You’ll have to research and prepare all of your own legal documents.
- You’ll have to market the house on your own. That starts with taking the pictures yourself or hiring a photographer to do so, then listing it and promoting it online, holding open houses, etc.
CONTACT US TODAY!
For Sale by Owner
Selling a property on your own comes with its own set of pros and cons. On the positive side, you can potentially save money by avoiding commission fees, which average around 6%. For a $250,000 home, that means you could save $15,000. However, it’s crucial to understand the complexities involved in this process. Homes sold by owners typically fetch 15% less than those sold through real estate agents, which can make the commission savings less significant in the long run.
Additionally, you’ll need to take on the responsibility of educating yourself about the market, legal requirements, and the probate process. This includes dealing with potential buyers, preparing all legal documents, and marketing the property effectively. You’ll also need to coordinate with other professionals, such as lawyers and appraisers, on your own.
While the potential to save money is there, the risks and additional work involved can be substantial. We hope this summary has provided you with valuable insights to help you make an informed decision about whether selling a property yourself is the right choice for you.
