One question I get asked quite often by homeowners is “Why shouldn’t I sell my house myself?”
Well, the fact of the matter is, a REALTOR® can likely put more money in your pocket, even after paying their commission, than selling it yourself. What many homeowners lose sight of is the amount of money they end up with after their house is sold, because they are concentrating on the amount of commission they are paying.
According to the National Association of REALTORS® 2011 Home Buyers and Sellers Survey, the private sale transactions account for approximately 10% of all sales. The law of supply and demand plays a big part in the value of your home. Everyone knows that the more buyers that are interested in a property the more value it may have. Therefore if your home is only exposed to 10% of the buying market as opposed to 100% of the buying market, there is a greater chance of you not getting top value for your home.
One thing Sellers need to realize is, if buyers pass on all the homes listed on MLS® and all the free services and assistance a Buyer Representative provides, and buy a private for sale home, they do so, because they think they can purchase the house for less money since the seller is not paying a commission. So, as a home seller, you will always be paying a commission. If you sell privately you pay it to the buyer in the form of a reduced price, or to your REALTOR® if you choose to sell it through the MLS®.
What amazes me is that some home owners are willing to risk what is probably their largest investment, and rely on the expertise of someone that has possibly never sold a home before, themselves. Yet they will spend their hard earned dollars to make sure their car is being serviced by an expert auto mechanic.
Statistics show that 7 out of 10 For Sale By Owners end up listing and selling through a REALTOR® or they don’t move forward with their plans. Many home owners add additional expense to their home selling process by attempting to sell on their own first. For example, there are classified advertising costs, printing costs for feature sheets, maybe they buy a do-it-yourself home selling kit from a For Sale By Owner marketing company. These costs can be anywhere from $200 to $2,000.
For all you home owners out there thinking of selling privately, talk to a professional REALTOR® and ask them to show you what your net proceeds will be after all the selling expenses. This is the amount of money you will have available to you to move forward with your plans. When you really think about it, isn’t this one of the first steps you should be doing when selling your home?
Good luck to all the home sellers out there and I hope all your housing dreams come true!