When it comes to selling a house, there are a number of methods to consider that come with their own advantages and disadvantages. The traditional means of selling residential property is working with a professional realtor that will generate the listings and handle negotiations between all involved parties. In recent years, homeowners have also worked with wholesalers or house flippers as another means of selling their homes. There is also the For Sale By Owner (FSBO) option, in which sellers opt to handle the process themselves. As the choice of which route to take is extremely important, we will be delving into the important differences between selling a home yourself and hiring a real estate agent.
Experience & Time
Real estate experience often matters a lot in terms of achieving the best possible outcome with the home sale. As trained specialists, realtors have in-depth knowledge of the industry as well as ample experience selling houses on behalf of a wide range of clients. In a general sense, these professionals have a firm grasp on what works and what doesn’t. On the other hand, most individuals that look to sell properties on their own have little if any experience to draw on. With that comes a great deal of uncertainty, potential pitfalls, and learning on the job, which can be quite frustrating for the seller and stymie their efforts to secure a good deal.
Selling a home often requires a significant investment of time as well. In addition to preparing and marketing the house, there are also showings for prospective buyers, offer negotiations, and lots of paperwork to manage. Many of those that try selling their homes via FSBO already have a number of commitments, whether work, family, or otherwise, that take up a substantial amount of their time on a daily basis. It can be quite challenging therefore for these sellers to dedicate the time and energy required to handle the process successfully. One of the advantages of hiring a real estate broker is that they will shoulder a majority of the work and responsibility. This allows homeowners to handle their other duties while having peace of mind about the sale as well.
Marketing & Other Resources
Marketing plays an absolutely critical role in selling a house as it helps build awareness of the property while also generating positive impressions and demand. The homes that sell for the highest offers are often those that are expertly marketed to look and feel as appealing as possible. Realtors have effective, results-driven marketing strategies in place that can be modified when needed for particular situations. Through the other professionals they partner with, they’re able to supply enticing imagery, videos, and more that are likely to capture the attention of those in search of a new home. It’s also important to keep in mind that real estate agents can have a lot of industry connections and other valuable resources to draw on which can end up making a big difference.
Homeowners selling through FSBO unfortunately do not have such connections and resources to count on when putting their properties on the market. If the seller isn’t adept at marketing, it will likely be difficult for their listing to stand out, particularly when set against professional listings from brokers. Such situations can quickly become overwhelming and frustrating for those choosing the FSBO path as they become despondent over lack of adequate interest in their houses.
Control & Overall Cost
One of the main reasons that people cite for selling homes on their own is that they feel it gives them far more control over the process than they would have otherwise. While in some ways this may prove true, these FSBOs still have to rely on entities including banks and mortgage companies to complete the transaction. At the same time, they can end up feeling like they lack some control if negotiations do not proceed as they want. The seller-realtor relationship may remove some of that control, but the process ends up being far more fruitful than otherwise.
Another reason why some homeowners look to avoid working with real estate professionals is that they believe they can get by without paying the commission fees and end up with higher net profits. While such a situation is possible, it is also very possible that the FSBO could end up selling for a lower value than if a realtor were in charge. Savvy buyers can try to take advantage of a seller’s lack of knowledge and negotiating experience to acquire houses for lower values than is actually reasonable. FSBO sellers may also end up spending far more than necessary on home repairs and modifications because they simply don’t know any better.
Which is the Better Path?
With all of this information in mind, the question then becomes which is the more ideal option, For Sale By Owner or working with a realtor? As both strategies have their pros and cons, the answer is not so simple. There are many variables involved, and as such it’s important for prospective sellers to carefully consider their own unique circumstances when determining the right way forward. Those that have some real estate knowledge and experience and can dedicate the time and effort to market the house properly may end up being just fine selling on their own. On the other hand, those that aren’t overly familiar with real estate negotiations and deals and don’t have too much time to commit to the process would likely benefit most from finding a skilled realtor.
Inspire Escrow Services – The Best Choice No Matter Which Path You Choose
A top escrow company for Inland Empire residents, Inspire Escrow Services expertly handles real estate escrow for conventional real estate transactions, FSBO transactions, and more. Our team of friendly and experienced escrow agents are committed to doing the job right and providing a straightforward and hassle-free experience throughout. If you would like to learn more about our effective services, please contact us online or call our office at (909) 698-4805.