There are many reasons homeowners decide to sell their home without an agent. This is most common in hot seller’s markets when drawing in potential buyers requires less work. There are definite advantages to pursuing a For Sale by Owner (FSBO) route, but it’s important to consider the drawbacks as well. Here’s what you should consider before trying to put up a house for sale in Irvine without an agent’s help.
You Can Save on Commission
When you do an FSBO, you will not have to pay a seller’s agent commission, although you still may be paying for the buyer’s agent. Because agents charge a percentage of the sales price, you may save thousands by listing yourself. This is the most common reason homeowners try to sell without an agent’s help.
However, about 90 percent of owners fail with an FSBO and end up hiring an agent. Not paying a commission is no guarantee you will get what you want from the home or as much as you would have received with an agent’s help.
You Have Control Over Your Home’s Sale
When you sell the home yourself, you have control over the entire sales process. You will choose how to price your home, market it, negotiate with the buyer, prepare the home for sale, and more. This has its own advantages and drawbacks, but all decisions will be yours.
Effective Pricing Can Be Challenging
Marketing and staging are important, but pricing a home correctly is one of the most important steps to selling it quickly. Overpricing is a common mistake, but some homeowners also ask for too little when they price it themselves. If your home is overpriced when it hits the market, buyers won’t even bother looking. Many won’t even know about the listing because it’s filtered out of their search. You may end up chasing the market and lowering your price repeatedly. This usually backfires and causes your listing to become stagnant, at which point buyers assume something’s wrong with the home.
An experienced agent can help you price your home properly with a comparable market analysis. Factors such as location, amenities, and market conditions will all be considered.
Screening Buyers Can Be Difficult
Putting up an FSBO sign is inviting strangers to come into your home. Without an agent to screen buyers, you will need to show the home yourself and take care to keep yourself and your family safe. Screening buyers is a common issue with unrepresented sellers who also have to deal with more window shoppers. Be prepared for unqualified “buyers” to walk through the door to satisfy their curiosity. A good agent always verifies buyers are preapproved for a mortgage before showing the property.
The Financial Benefits May Not Be as Great as You Think
Sellers who are represented by agents tend to get a higher sales price than unrepresented buyers. There are many reasons for this, including proper pricing and an effective marketing plan. There are also many costs to selling a home the broker must bear. This includes listing your home on the MLS, marketing materials, and showing the home.
Whether you live in Turtle Rock or Rancho San Joaquin, Irvine real estate is in high demand right now. However, this does not necessarily mean you should attempt to sell your home yourself. Find out how a reliable local agent can help you sell your home by getting in touch with OC Residential today at 714-454-6304.