Thinking about selling your house? Looking at the commissions that real estate agents charge on every sale makes selling your home by owner look like a great option, but is it right for you? A lot of what traditional real estate agents do is invisible. Selling your home by owner might be a great way to save yourself major cash – or it might be a gigantic headache and far more trouble than the savings on commission is worth. Whether or not it is a good idea depends on whether you are equipped to do the work. Not everyone is, and some give up midway through the process and hire a real estate agent anyway. For those who are able to pull off the process well, it is a great way to save some of the huge costs associated with moving. How do you know if selling your home yourself is a good idea for you?
You are comfortable negotiating. Buying or selling a house is the biggest transaction of a lifetime for most people, and the negotiations can drag on and get pretty complex. Buyers might have all sorts of strange demands, and if you go into the transaction alone, you will need to be educated on what demands are standard, and what are unreasonable. They will also be looking to save money on the list price, so if you are selling your home by owner, make sure you are comfortable haggling and don’t take low offers personally. If you are not comfortable negotiating prices, it will be worth it to pay a professional to do so on your behalf. If you don’t negotiate often, but want to sell your home by owner anyway, practise often with smaller items before listing your home. Learn how to negotiate without causing offense.
You are comfortable touring strangers through your house. Not everyone is, and that is ok. Buyers might criticize your décor choices, talk about things they would change, walls they would knock down, and do things like test your taps, inspect your back basement, or flush your toilets. You’ll have to act professional and like none of those things get under your skin so as not to scare off the buyers or sour the transaction before it starts.
You have the time and a flexible schedule. Prospective buyers are going to want to tour the home before making any offers, and their schedule might be wildly different from yours. You can reduce the time commitment if you are able to schedule house tours in groups of prospective buyers, but you will have to be prepared to let a significant number of people into your home, which could end up being weeks or months of moving around your schedule to accommodate them.
You can think about your home’s value objectively. It can be difficult to determine the worth of your own possessions. People tend to value their own things higher than they might value the same thing if it did not belong to them. If you are someone who tends to price items you have owned for the same price as you paid for them or more, you might want to think about enlisting professional help to assess the value of your home. If you prefer to set the price on your own, check out what comparable properties have sold for in your neighbourhood or town to get an indication of a good starting point.
You can say no to people. If you handle the sale yourself, you will have to turn down low ball offers, and likely also ward off agents trying to get your business. If you have a hard time saying no firmly and politely, selling your home yourself might balloon into a giant headache for you.
Selling your home by owner has the potential to be a great way to save money, or a total waste of your time and resources. Being honest with yourself about what you are willing to put into the process, and your chances of success will be much higher.