One of the most dangerous traps for a seller is the thought that they can save money by not working with an agent. While this may be true, there are some important things to consider when
Dated: March 21 2017
One of the most dangerous traps for a seller is the thought that they can save money by not working with an agent. While this may be true, there are some important things to consider when trying to sell a house on your own.
Buyers agents typically work for FREE and expect a seller to pay their fee. This amounts to 3% of the transaction purchase price. If you refuse to pay a commission, then the agents will not show them your house, and sometimes will sell against you using other houses around as better opportunities for their client. So the best course of action is always to agree to pay an agent for bringing a ready, willing and able buyer.
You will be negotiating with experts in real estate. Market research over the past 20 years has shown that FSBO properties net 13% lower than properties that had the representation of an agent. In today's market, agents negotiate prices that are within 3% of the asking price. So what you think is a savings on the front end could end up costing you on the back end as much as 6% more. Honestly, our favorite negotiations are with FSBO's, we regularly get a better deal than we do with an agent involved.
There is sometimes a stigma of "the seller has something to hide" so they do not want to involve agents. The best course of action is to provide buyer prospects with as much information as possible about the house. You may also want to consider spending the $400-500 on a home inspection.
Now it is time to advertise. Since you are not going to be able to tap into the agent network, or agent syndication channels, you will need to start advertising your property. Plan on spending $800-1,200 for signs, web placements, PPL, classified ads, etc.
The list goes on and on, from finding a loan officer, attorney, escrow officer to inspectors. There is a lot of work in getting a house sold, and if you would like our free copy of our 78 page book "How to Sell without an Agent", give me a call.