In today’s hot seller’s market, it seems like you can put a For Sale sign in your yard and consider it sold! You might even be wondering if you can sell your home without a real estate agent. Why pay someone to sell your home when it looks like homes are selling themselves?
So can you sell your home without an agent?
Legally, yes, anyone can go “For Sale By Owner” (FSBO). The real question is should you try to sell your home without a real estate agent.
Market data consistently shows that homes listed by a real estate agent sell for substantially more money than FSBOs. This often comes down to the subtle talents and knowledge of real estate agents, as well as the many behind-the-scenes tasks agents handle.
But you might still be wondering if you’re an outlier. Other sellers may need a real estate agent, but maybe you could successfully sell your home without a real estate agent.
Here are five questions to ask yourself before you try to go FSBO.
1. Do you know how to value real estate?
Understanding how to value real estate is critical in setting a strategic listing price and evaluating offers. Many buyers try to low-ball FSBOs because they don’t think sellers know how to appropriately value real estate. And, in many cases, they’re correct.
2. Do you have any marketing experience?
Realistically, you can absolutely find a buyer in today’s market without a large marketing budget, marketing experience, or marketing talent. Some buyers are getting resourceful and will find you online even with minimal marketing. But if you’re limiting your audience of potential buyers, are you going to get the best offer?
You could be leaving money on the table if you don’t make your listing appealing to as many qualified buyers as possible.
3. Do you have the time to field calls and conduct showings?
If your pricing and marketing strategies are successful, you’ll be getting tons of phone calls and emails from buyers who want more information. Be prepared to spend hours each day responding to inquiries. And then you’ll need to have time to show the property to all the interested buyers. How much of your time can you afford to invest in selling your house?
4. Do you have strong negotiation skills?
In this market, you might be able to sell your home yourself, but will you be able to maximize your profits and get the best terms? That’s where a real estate agent makes a world of difference! As experienced and skilled negotiators, real estate agents can get you the best price with the best terms.
5. Do you know which real estate contracts and disclosures you need?
Making a mistake with the contracts and disclosures can cost you money and leave you open to litigation. Real estate agents are contract experts. They know which forms to complete and how to fill them out.
Bonus question: will you work with buyers’ agents?
Most FSBOs list without an agent because they want to avoid paying the 5-6% real estate commission. But if you work with buyers’ agents, you’ll still need to pay that agent’s fee of 2.5-3%. In that case, you’re only saving half the fee, and the buyers have a clear edge in negotiations because they have a real estate expert representing them. And if you won’t work with buyers’ agents, you’re limiting yourself to buyers who are willing to purchase without an agent (mostly sophisticated investors and real estate experts who will expect a price discount in exchange for buying without representation).
It’s entirely possible to sell your home without a real estate agent in today’s seller’s market. It’s also almost impossible to maximize your profits or enjoy a smooth process without a real estate agent.
If you aren’t already being represented by an agent, contact us today to consult with one of our exceptional listing agents. We can show you just how profitable and smooth a real estate transaction can be when you have an experienced real estate agent in your corner.