for sale by owner pros and cons
If you are getting ready to sell your Tennessee home, you are most likely trying to research the most profitable way of doing so. Without doing some research, the first thing that comes to your head is most likely to sell by owner so you can avoid real estate fees. You will most likely end up with the most cash at the end of the process.
Just like most things, there are benefits and downfalls. That may not be what you are wanting to hear, but it is important to understand what you are dealing with before making a decision. Selling your home is a big decision, and sometimes not an option, so if you are trying to figure out what the best steps to take are, here are some for sale by owner pros and cons to think about.
Pros: Home for Sale by Owner
1. Make More Money
This is plain and simple when you don’t involve another party you don’t have to pay them. You will pay between 4-6 percent of the home’s purchase price to an agent. Selling your home by owner will save you a pretty chunk of change. This is the biggest reason why people try to sell their home on their own.
2. Complete Control Over the Sale
Selling your home for sale by owner allows you control over the entire sales process. You can name your price, market your way, and stage your home however you like. You don’t have to put all your trust in someone that you don’t agree with and who doesn’t know your home as well as you do. Everything is your decision and in your hands.
3. You Can Manage the Schedule of Showings and Open Houses
Keeping your house tidy all day is exhausting, however, keeping it immaculate every day is impossible. Selling your home by owner allows you to schedule showings on your own time, so you can get home and clean it when you are available. You also don’t have to wait for an agent to be available to show someone your house. You can do it yourself.
4. You Can Sell Your Neighborhood
Who knows your neighborhood better than you? Not a real estate agent. When you show people your home, you can help sell it with your expertise in the area and the neighborhood. You can talk about the people around, if it is a quiet neighborhood, and what conveniences the area has to offer. If the family looking to buy your home has children, you can let them know about the schools and the perks of your community. It is a lot more personal hearing first hand from someone who knows the area that they potentially may spend most of their lives in then having to guess from an agent. For sale by owner is the best way to give a personal touch to those looking at your home.
5. Sell for a Cash Offer
If you aren’t obligated to sell through a real estate agent, then you can sell to a cash buyer. There are many benefits of going to a cash buyer. A few of them being more cash in your pocket, selling as is, and saving time.
Cons: Home for Sale by Owner
1. Selling a Home Is Hard Work
There is more to selling a home than just staging it. If you want to sell it for the right price, you will have a lot of work to do and need to have a lot of time to do it. Selling by owner means your home will need to have repairs made, and if it is an older home, you may need to make some cosmetic changes. This can be time consuming and expensive.
You will also need to have your home inspected and photographed so you can list it. Most agents will do some of these things for you and they also are experienced in doing so with a professional eye.
2. You May Not Sell for as Much Money as You Hope
You may not have to pay a real estate agent, but you will not be able to ask as high of a price for your home as you would like to. An experienced real estate agent knows how to market your home to interested buyers, price it right, and they can negotiate it based on the perks of your home. When making your home a for sale by owner home, it can be hard trying to figure out what your home is worth without experience in real estate. According to Zillow, this is the number one reason why homes for sale by owner, do not sell.
3. Marketing a Home Is Hard without a Network
Another con with selling your home for sale by owner is that you will not have the proper marketing techniques. Anyone can list their home online, but marketing it is a whole new ballgame.
Having your home properly marketed ensures that your home will get recognized and potential prospects will come flying in. Real estate agents have more resources and places where they can list your home.
They have potential buyers they are usually working with and can reach out to other agents who also have buyers in your area. If you are selling by owner, you may not get as much traffic from people, which means you may not get as many offers. By not getting multiple offers, you aren’t able to counter and the offers that are low may be your only option.
4. You Need to Qualify the Buyer
If you don’t have an agent then you may run into problems finding a qualified buyer. Real estate agents will only bring buyers who are qualified to buy the home. If you are looking for a home and going through an agent, they make sure you are pre-approved before showing you any homes. As the seller, that can be tremendously beneficial to ensure the sale isn’t going to fall through during the process.
Reasons for Sale by Owner Doesn’t Work
If you are selling your home for sale by owner, make sure you are aware of these problems for a successful sale. Overcoming these factors can make you aware of what to do from the beginning, and benefit you.
- Home was listed too high at the beginning
- The staging of the home wasn’t presentable
- Not able to show home when the buyer was available
- Buyers were not aware of your listing
- Buyers weren’t qualified for home
- Marketing failed to reach the qualified buyer
If you are feeling overwhelmed by trying to weigh the pros and cons of for sale by owner or going with an agent, maybe neither is right for you. So then what should you do? Don’t fret! We are here to help you out and we can get you the cash in 7 days. A cash offer is great when you don’t have much time, or just don’t know if you want to go through a huge process while selling. If you would like more information on a cash buyer is, fill out the form and we will give you a call today!