Selling Without An Agent
Why selling without an agent can actually be advantageous if you know what you’re doing…
Many property owners, against conventional wisdom, decide selling without an agent is the best route to take. Setting aside the issue of commissions you must pay, many owners are wary that real estate brokers — for all their efforts and expertise — may not have their best interests atheart. According to some economists and other financial experts, real estate agents may be motivated less by getting you the highest possible price for your property than by securing a buyer as quickly as possible. Commissions only rise a small amount for every additional thousand dollars of purchase price. There is little incentive for brokers to sit for months and wait for the highest and best offer.
In his book “Freakonomics,” economics professor Steven D. Levitt cited data showing that many real estate agents sell their own homes for considerably higher prices than those of similar properties for their clients. With that said, part of the reason many property owners decide to sell FSBO (For Sale By Owner), is the fact that no one will hold their interests closer to heart than themselves.
The main marketing tool real estate agents use is the MLS, and with the advent of online tools such as Zillow, Trulia, FSBO.com and many other sites it has become increasingly easier to market to potential buyers. Many sites, like Postlets.com, will aggregate your marketing to all these sites at once, among others. If you or someone you know is creative, creating flyers and ads is not a problem.
There are a few things someone should know before selling without an agent.
If your selling without an agent, make sure your property is priced correctly. Do a little research to see what similar properties are selling for. Assuming you’re selling a single family house and not an apartment building or some other product type, it is wise to find out what other property has sold for that is less than half a mile away radius from yours. It is also wise to find property that is around the same square footage, same beds, baths, and amenities, like a view, pool, upgraded kitchen, etc. These “comps” as they are called should also have been sold in the last six months or so. Comparing values will help price your property to sell quickly. You can also see what similar properties are listed for, and price yours slightly below to be competitive. It can be advantageous to spend the extra money to have your house appraised.
While spending the extra money to upgrade, fix, and enhance a property may seem like a drag, it could go a long way to help sell your property for top dollar. Be aware though, that not all upgrades and enhancements will be a good investment. It is smart to understand what sells in your market. Go to a few open houses to gage what works and what doesn’t.
All in all, selling without an agent can save you thousands, if not tens of thousands of dollars. Just doing a little legwork up front can be worth it!
If you’re looking to sell your house “As-Is”, without paying for repairs or commissions visit here for a free, no obligation offer.