The main reason people sell their home privately without a real estate agent, is to save on costs. In a deal where there are no real estate agents involved, you could save a sales commission of up to 5% or 6% of the sale price. For a $300,000 home, that commission can add up to $15,000 or more.
But your buyer will likely use an agent and expect you to pay that agent’s fees — usually 2.5%. And don’t forget you still have to pay a lawyer to finalize the deal.
4 reasons to sell your home yourself
- You have the time and ability
- Lower sales costs
- More control over the price
- More control over the sales process
There are a variety of websites that can help you sell your home privately. These are often called for sale by owners (FSBO) websites. You can also pay a discount broker a small flat fee to advertise on the Multiple Listing Service (MLS) site.
It’s easier to sell your own home in a hot real estateEstate The total sum of money and property you leave behind when you die.+ read full definition market. When home sales drag, finding a buyer yourself may not be so easy.
5 reasons to use an agent
- Their knowledge, skills and resources
- Convenient because they handle all aspects of sale
- No separate sales costs beyond agent’s commission
- May get you a higher price
- May sell your home faster
5 questions to ask yourself
- Are you confident you can sell your home for a price close to what an agent would get for you?
- Do you want to be highly involved in the sales process?
- Will you have time to show your own home?
- Are you comfortable showing your home to buyers?
- Are you comfortable negotiating with buyers and their agents?
If you answer no to any of these questions, you may want to use a real estate agent.
Consider more than just the cost factor. You’ll be responsible for the whole sales process.