Selling a house takes money plain and simple. To attract buyers you’ve got to do all the little fix-ups (or not so little) and freshen the place up. The closing costs, as well as moving expenses, are both chunks of money that will come out of your pocket as well.
However, the biggest lump sum is going is going to be the real estate agents commission and that normally is around 5% to 6%. According to stats from the National Association of Realtors (NAR) the average For Sale by Owner (FSBO) home sold for $185,000 last year so that equals about $11,100.
So that begs the question is it worth it to try and sell your home on your own to make the most profit?
What deal is better for you, saving $5,550 or making an extra $60,000?
The biggest investment you’ll likely ever make is your home. You are going to want to make the most of it. Putting that commission the agent would make in your own pocket seems like an easy way to do that but is it? Truth is you may be leaving more money on the table by not using an agent.
So how much more you ask?
Recent stats in the NAR reveal that the average sale made by an agent last year fetched $245,000. Now that is an amazing $60,000 swing!
And that's not all...Just because you are selling your home on your own does not guarantee there will not be an agent involved. No matter what you will still have to pay the agent that represents the buyer and if they get 3%, you can reduce that $11,100 in savings by half, which now becomes just $5,550.
Taking a look at those stats pretty much tells the tale but let's look a little deeper into this picture.
The Numbers have Power
Just as a once famous bank robber once said when asked why he robbed banks stated, “Because that's where the money is,” when you are selling your house you need to go where the buyers are. Stats taken from a recent report in the NAR reveal that 88.9% of buyers utilized the skills of an agent in 2016 to purchase a home.
For Sale By Owner sellers utilized a bit more simple marketing system...A yard sign.
Now, yard signs serve a purpose but they are hardly near the top of the list for the best marketing methods in selling your home. On any given day how many people drive past your house and see that yard sign ya think? Now compare that to the pool of ready buyers that any decent agent has at hand at any time. It’s not even worth comparing.
The only way to instantly gain access to thousands of possible buyers is via a Real Estate agent that utilizes the Multiple Listing Service or MLS. Any good agent already has a pre-set action plan designed to expose your home to as many potential buyers as possible meanwhile they will work with you to guarantee that great first impression your home must give.
Experience Trumps Everything
Ok, it’s time to stop playing around and get to the real point. Selling your home holds another unfortunate guarantee: mistakes will be made. You can take your chances that they will be small ones but the truth is some could cost you...a lot. But that doesn't have to happen!
Paperwork, listing price and general preparation for the sale have been tagged as the main problems FSBO sellers have as reflected in research taken from the NAR. One of the real values of a real estate agent is they will advise you on all these issues based on experience, not emotion.
Some keys an agent can help with are:
- Selecting which if any home repairs or updates are needed
- Using the latest market data to price your home
- Bringing active potential buyers in touch with your home
- Scheduling home showings with potential buyers
- Using proven negotiating tactics to get the best price for you
- Dealing with all the required paperwork to ensure no mistakes
Here’s the best way to think about this: A solid real estate agent has sold more homes in the last week than you’ll sell in your lifetime. This is what they do - period. Doesn’t it just make sense that they can help you get the very best results for your the sale of your home?
Only a Fool Gives Away a Ransom to Save Some Pocket Change
Sure you can save money by selling your home on your own. And in the end, you could lose out on what you are trying to accomplish - making the most on the sale of your home. You might win the battle but lose the war. Finding a high-performance pro who knows what it takes to get top dollar for your home in the shortest time possible is really the only way to go.
For a group of investors and agents who will work to get you the best deal the fastest please visit https://www.sellmyhousequickkc.org/contact-us-1/