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Thinking about Selling Your Home Yourself?
Dated: January 17 2022
I'm talking about Privately selling your home and what that means - and why you should (or shouldn't) do it.
Hi I'm Jennifer Re of Jennifer Re Homes and Keller Williams.
First, what does selling your home “privately” mean? Basically, it is the fancy way of saying “We didn’t hire a real estate
professional to help with the sale of our largest asset.” I was inspired to share about this topic after seeing content from a well known blogger with a large audience about how they chose to sell their home privately. While that is a decision that everyone has the right to make, I wanted to shine a light on a few things that those who aren’t professionals may not
realize they’re missing when they do decide to forgo working with an agent when selling their home. In addition, taking advice from a non-licensed, non-professional is likely not in your best interest. I strive to be YOUR real estate resource and because of that, I felt compelled to share with you what you might not be considering when it comes to making the decision of whether or not you’re going to hire a real estate agent to handle the sale of what is most likely your largest asset.
1. Hiring a real estate professional isn’t just about putting a for sale sign in the ground, hosting a creative open house where we have a movie going in the theater room with popcorn for the buyers to create an "experience", and putting it on MLS (although we do those things as well)! It goes far beyond those basic things.
2. We know the market and we utilize our expertise to be able to price your home competitively and effectively. There have been multiple situations where homeowners considering selling on their own let me know the price they were thinking of listing for (and it was well below what they could realistically get in the current market even after the expense of hiring a REALTOR).
3. Buyers realize that if you’re listing your home For Sale By Owner you’re not paying a REALTOR. They will most likely take that into consideration when determining what price to offer on your home. In
addition the buyers who end up purchasing your home are likely to be working with an agent meaning you’ll be paying commission for an agent working on behalf of them and in their best interest, while having no one to negotiate in your best interest.
4. You’ve probably heard how crazy the market is right now. Inventory is at historically low levels and there are more buyers looking for houses than there are houses for sale. It makes sense that sellers might be contemplating selling on their own. However, in order to drive up demand when you put your house up for sale, you’re going to need a REALTOR. There wouldn’t be a hot seller’s market right now if REALTOR’s didn’t exist!
5. Then there is this to consider - Once you get your house under contract, you are only at the beginning! There is a large gap between an accepted offer and closing where you could potentially lose some serious money if your negotiating skills and knowledge of contracts isn’t up to par. From strategizing the appraisal, negotiating with the buyer’s agent and making sure your're on track with deadlines, these factors all play a role in getting you to the closing table and cashing in on your proceeds.
NOW HERE'S A LITTLE BIT FOR THE DATA LOVERS:
Here’s an excerpt from a report by National Association of REALTORS:
“For Sale by owners typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 in 2020 (which was up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000. Sellers who began as a FSBO, then ended up working with an agent, received 98 percent of the asking price, but had to reduce their price the most before arriving at a final listing price.”
Long story short make sure you know what you are missing when you choose to sell “privately”. Again, that’s a fancy term for choosing to sell your largest asset without the help of a real estate professional. If I can give you one piece of advice if you are considering that route, it would be to at least reach out to a GOOD agent and let them explain how working with them might benefit you AND net you more money in your home sale if it makes sense for your situation.
If you have any questions please text me, DM me, email me or make a comment. As always make it a great day!
After 17 years in the Residential Mortgage Industry, I decided to pursue my passion of real estate and join Keller Williams Atlanta North. Real Estate has been a passion for as long as I can remember....
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