You’re a homeowner. It’s your name on the title and your one goal is to maximize the profit on the sale of your home. Here’s what whoever is representing your home must do:
- Price your house accurately
- Qualify buyers
- Advertise the listing
- Understand mortgages, regulations and contractual law
- Coordinate all the details of a closing
With this established, let’s look at the pros and cons of selling your home without an agent.
Pro: You Save on Several Fees which can Equate to Thousands of Dollars
Unless you have something against real estate agents, the main reason to avoid working with one is to save money. Since it’s not a small amount of money, it’s understandable if this is attractive. There’s always a risk of losing money in other areas due to inexperience but you will save substantially on agent fees.
Con: To do it Right you must Treat it as a Full-time job
Selling a home involves a lot of work. From research to staging to open houses to negotiating the deal, selling a home isn’t as simple as putting a “for sale” sign on your lawn. You should enter the process knowing that it is more than a hobby and requires daily commitment.
Pro: Complete Control
This one is no surprise. Some people want the control and are comfortable being responsible for every aspect of a sale. You will position every piece of furniture in your home, you will write every word of a listing and you will negotiate every term of the contract.
If this appeals to you, then you might fare well without an agent.
Con: You are Assuming Legal and Financial Risks
This is a big one. There are tons of legal and financial risks associated with real estate. One wrong step could cost thousands or have severe legal ramifications. It’s vital to weigh out the cost savings vs. the financial risk involved along with the potential cost of common legal issues.
Selling your own home is risky but that’s not to say that you can’t or shouldn’t do it. It comes down to comfort, personality and situation. Just know that if you go this route, it will take up a ton of time, could cost more in the end and there’s the potential for fall out.