Article | 2:17 min read

Pros and Cons of Selling Your Home For Sale By Owner

Homeownership

With rising populations embracing the do-it-yourself mindset, more people are wanting to sell their house on their own. This is no easy task, so consider all the things that come along with this decision.

A house with a for sale by owner sign in the yard

Pros:

  • Skip the commission. One of the biggest perks, and main reason people are choosing this option, is because you don't have to cover a commission fee. Commission fees can run anywhere from 5 to 7 percent of the overall selling amount, which the seller has to cover [1]. Avoiding this fee means that you can list your house at a lower price and stand out among the competition.
  • You know your house best. You are able to sell your house the best since you actually lived there. Realtors come across many different houses and can't always remember the different intricacies of each house. You can make sure to point out nice additions you've made and found helpful, along with tricks for incoming buyers.
  • You have control. Without a realtor, you get to make all of the decisions. The listing price, how much you plan to accept, when you will have appointments, and everything else are completely in your control.

Cons:

  • More of a time commitment. Without someone helping you sell your house, all the work is on you. You are required to research where to list your house, as well as contact potential buyers and sort through paperwork. If you are working a full-time job, this can be especially taxing, so be sure that you will have the time to fully devote to the sale.
  • Selling for less. One of the biggest mistakes that sellers make is they sell their house for much less than it's actually worth. Quicken Loans explains that sellers usually sell their home for about 15 percent less than the actual value because they don't know what their house is really worth [2]. Since realtors know the market and know what houses are going for, they can better determine the best price for your home.
  • Higher risk for security issues. Since you don't sell houses everyday like realtors, you might not be as experienced when it comes to weeding out the people who are serious buyers and those who aren't. Also, you might not be able to identify the people with bad credit who might bail at the last minute. For this reason, it's recommended that you have an attorney to help you out with the details to make sure that you're not going to be taken advantage of. This, of course, is another added expense.

If you are truly committed to selling on your own, make sure that you have done your research. As long as you are well-educated on the ins and outs of the entire process, and watch out for scammers, everything should go over smoothly.

Sources:

[1] Pros And Cons Of Selling Your Home On Your Own, Homes.com
[2] For Sale By Owner: The Pros and Cons for the Seller

Topics:
Selling

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