Is it Smart to Sell Your Own Home in a Hot Market?

We’re in a seller’s market for sure, but does that mean you should sell your own home without the help of a real estate agent?

Probably not.

While yes, going FSBO (for sale by owner) could save you that hefty agent commission, it could also cost you big time on sales price. There’s also all the prep work, legal stuff, and just a whole lot of hassle that comes with selling your home yourself — even in a hot market like today’s.

Are you thinking of selling your own home? Here are a few things to consider first:

• How much you know about your market – Pricing your home correctly is vital if you want it to sell quickly. A too-high price sends buyers running for the hills and a too-low one makes them think something’s fishy. But pricing it right? That takes local market knowledge and access to recent comparable sales. This is an area where an agent would definitely have the upper hand.
• MLS – The MLS (multiple listing service) is the biggest resource for agents, and it’s how they find properties to recommend to their buyers. It’s also what the majority of online tools use to populate their listings. Unfortunately, only agents with a verified real estate license can list homes on the MLS.
• Resources – Agents have a whole slew of resources at their disposal — photographers, videographers, marketing tools, and more. They can also promote your home on their website and social media, host an open house, or tap their network of professional connections to help find the right buyer.
• Legal stuff – Keep in mind, there’s a lot of legal stuff involved when you sell your own home. There are contracts to write, documents to sign and deeds to file, and if you’re not sure what you’re doing, you may need to call in a real estate attorney to help. Often, these cost the same (if not more than) an agent — except they don’t come with all the marketing and listing help, too!

According to a 2017 study, FSBOs sell for almost 6% less than similar properties listed by an agent. In 2016, they sold for about $190,000 versus the agent-listed average sale of $249,000 — a difference of nearly $60K.

Unless more work, more hassle, and less money are on your list of priorities, you may want to think twice before you decide to sell your own home. No matter which route you choose though, reach out to Embrace where you’re ready for your next home. We’ll make it easy every step of the way.