Why Selling Your Home Yourself Really Doesn’t Save Money
We don’t often write about selling your home yourself. Even though we advise against it, it is hard not to sound self-serving. However, a recent experience of a friend reminded us that it is good to discuss your home selling options. This sweet couple tried to save money for their big move by selling their home on their own. When asked if the home was on the internet anywhere, they said, “well…no.” Their next step was a discount broker, with equally frustrating results.
Here are some solid reasons not to sell your home yourself.
92% of homes that sell aren’t FSBOs (For Sale by Owner). Homes sold through a realtor average a 24% higher selling price. This far outweighs the cost of the realtor’s commission.
Factor in Sweat Equity
Managing a home sale requires a time commitment. Independent sellers should expect to spend time researching and determining the list price, photographing, staging, creating and uploading extensive marketing materials, preparing the home for showing and hosting open houses, researching and securing contractors for services such as septic inspections and an appraisal, negotiating the sale and seeing the financial transaction through to completion.
The value of time spent on these tasks should be calculated into a cost/benefit analysis when deciding whether or not to sell your home yourself.
Too good to be true
Some people are intrigued by the direct sale approach- the ads with promises such as “we’ll buy your house for cash.” These can be legitimate offers, but are often well below market. Bankrate.com said, “No offense to the owners of such businesses, but they are the lowest of lowball buyers…” Bankrate estimates these discount buyers average about 65 cents on the dollar when buying a home.
A good realtor will work with you to price your home for sale based on a comprehensive market analysis, including interest rates, your home’s value and qualified comparable sales in your area.
As was made painfully obvious in our friend’s attempt, people generally do not have the resources- marketing system, contacts, industry knowledge and support- to effectively sell their own home. Realtors, such as our Homes and Lakeshore team, have an effective system in place, which is proven by our record sales and high customer satisfaction ratings.
The bottom line is, you typically will not save money selling your house yourself. Statistically you will make more profit and sell your home quicker with a well-qualified agent. Please contact us to see how we can help you sell your home.