Should you use an agent, or sell your home on your own? Of course everyone wants the best possible return. It seems simple, deduct real estate commissions from your sales cost and will be more left. Problem is, it’s not that simple. Before you make the decision there are 5 important factors you need to consider.
Professional agents will not show homes to prospective buyers without having them prequalified for a mortgage first. There is no sense whatsoever showing someone a home if they are not able to buy. Prequalification also provides the seller with the security that the person looking at the property is actually who they say they are and has provided their personal information (name, address, social security number, etc.) to a professional who has taken a quick look at their credit. Don’t allow your home to be shown to a person who may not be financially capable of buying and who you do not know. Their motives may not be legit.
How are you going to determine the right price for your home? Just because Mr. and Mrs. Smith sold their home for $250,000 last year doesn’t mean that is what you can expect. Your home could be more or less valuable depending on many factors. Pricing is a combination of art and science which can only be ascertained by technical market analysis and/or professional appraisal.
Before your home goes on the market it needs to be prepared for buyers. Clean everything. Include windows, baseboards, and bathrooms – be sure to get the crooks and corners. After it is clean it needs to be touch-up painted (or re-painted) and staged. The majority of the time, sellers should rent a storage space to temporarily hold the things you accumulate over the years that present a cluttered appearance. Don’t ask your friends/neighbors/relatives for staging advice. Rarely will they tell the same truth a professional will to avoid hurting your feelings.
Let’s assume your home is priced right, looks great, and a capable buyer is interested – now it’s time for negotiation. Who is going to pay for the title policy and home owner’s transfer fees? What happens if it doesn’t close as scheduled? Will the buyer have an option period? These are a few of the items that need to be addressed, in writing, which must be negotiated BEFORE a contract can be executed.
When negotiation is finalized and an agreement is made it brings buyers and sellers to another critical item – preparation of legal documents. Real Estate agents are not attorneys and they don’t practice law, but seasoned agents have extensive education and experience to prepare real estate contract doc’s that have been tested and proven. If you choose to go it alone, definitely use an attorney to help you with the contract. Sure, anyone can visit an online document mill for less, but the best form that is incorrectly filled out is worthless.
For some DIY’ers the learning process is a fun part of the experience. For others, it can be too much and a professional is brought in to help. In fact, 9 out of 10 For Sale By Owner sellers end up hiring an agent.
