For Sale By Owner Vs. Hiring a Realtor Watch this Video Before You Do Either
Here is a Transcript of the Video For Sale By Owner Vs. Hiring a Realtor in Henderson and Las Vegas
Transcript
Buying a home is a dream for most people. They yearn for ownership so that they can paint the walls sunshine yellow, malachite (vibrant green), razzamatazz (pink or , xanadu grey, turn up the stereo or attach any fixtures they want. And ownership is awesome! However, the day may come when one wants to sell their home because their job transferred them or they decided to move to another area or need to find a bigger or smaller place. When that time comes, the question may enter the minds of some – should I sell my house myself?
Stats show that the biggest reason people try to sell their home themselves is to save money. Listen, I applaud anyone who wants to save money and can appreciate someone doing that, especially on such a large price tag. Hey, I cut coupons and try to save $.50 on hamburger during my weekly grocery run. So, it only makes sense that people will try to save money by selling their homes themselves!
Realtors do charge a commission for selling your home and I should predisclose that I am infact a realtor. The commission varies through states and even within cities. Regardless of the exact percentage, a fee is charged for a realtor to sell your home. You may be saying “I’ll sell my house myself and save that fee.” This is considered a for sale by owner, or also known as the acronym FSBO. According to the National Association of Realtors, in 2014, the average price for a FSBO was $184000 and for a realtor, the average sales price was $230000. This is a difference of $44000. In most cases, you get much more for your money by using a realtor than selling the home yourself.
Just understand that if you decide to sell your home yourself, many things may have changed in the years since you last bought your home. Each year, laws change and new paperwork may be required for any real estate transaction.
Keep in mind that when a prospective buyer sees a for sale by owner outside of your home, this may lead them to think that the house is priced lower to avoid selling a commission. This will lead them to put in a lower offer because they will take into consideration that you will not be paying the realtor. But remember that both the seller and buyer cannot save the commission. So even though you may be saving on the realtor commission, you will ultimately have to split that savings with the buyer.
There is a lot of paperwork involved in any legal transaction. Consequently, the more paperwork involved, the greater the chance of error. When it comes to large transactions, mistakes can become even more costly and a mistake can easily cost you more than the realtor’s commission.
Realtors have access to many marketing tools, like the MLS. Most firms have websites and then Realtors use other onlite sites. Many have a huge internet presence. Selling, like just about anything, in life, is a numbers game. The more people who see your property, the better the chances that it will sell and will sell quicker. Stats from the National Association of Realtors, show that 68% of people who buy a home found in through internet searching while only 1% find it through a newspaper ad. 9% of people found their home through a for sale sign. If a homeowner only puts their home for sale in the newspaper or uses a for sale sign in their front yard, they are missing a large chunk of prospective buying population. This is not to say a FSBO won’t sell but it just may take longer, which means more months of mortgage payments, utilities, taxes and other home ownership costs. Again, consider that this will cut into the average $8000 commission a realtor makes.
This has been your home and you have lived there for any number of years. Consequently, you have good memories and some bad and you have watched your life unfold for that length of time in the home. You become emotionally attached to the home. This usually leads people to not price the home correctly, thinking that it is worth more than it is. If a FSBO puts their home on the market and it is priced incorrectly, someone might think, well why is this priced so low? What is wrong with it? If it is priced too high, you will not even be able to interest someone to come into the home. Realtors know the market and have been trained to do analysis. They can price your home correctly so it sells quickly.
Realtors have experience in the whole selling process. They can look at your home through the eyes of someone who is not attached to the home. They can recommend fixes and quick changes to get you the most for your money. They know about staging and will be able to give you tips to improve the showing of your home to maximize your home.
Realtors can also try to maintain all normalcy for you. They can schedule showings, show the home when you are not available and get feedback from any viewers. Using a lock box can also keep your home secure and ensure that the homeowner does not have to be on top of the potential buyer as they go through the house. Realtors can coordinate open houses and run them, freeing you to do other things.
Realtors can screen visitors so that those who are coming through the home are serious buyers. They can ensure people are preapproved which can save the homeowner time and money. FSBO have no way to do this and some people who are coming through are not at all serious about buying, which wastes time.
Realtors can guide you through the whole process, answer questions and assist at any stage. Do you know what happens during underwriting of your loan, do you know why we need the title company? Realtors know the process and can answer any questions as the deal progresses. They are trained and can usually spot problems before they turn into deal breakers. Again, this can save a lot of money and time.
Realtors also have pledged to uphold a code of ethics and have a certain level of skill, knowledge and attention to detail that the average person who sells one or two homes in their life does not. This ensures the best chance that when you make a large purchase, that everyone is treated fairly and equitably.
Each situation is different and you must look at the pros and cons of selling your home. Just keep in mind that almost 87% of people who try FSBO will ultimately list their home with a realtor. The question becomes do you want to sell your home quickly and with the least possible hassle? If so, you may want to interview some realtors and let them sell your home and of course, in the Henderson and –Las Vegas area, give me a call at 702-274-6006 or check out my website at lynnromano.com.