Selling privately is not as hard as many property owners think it is. The availability of different marketing tools allows for individuals without real estate background to sell their own home even without help from an agent. But that is not the only reason it can be better to sell on your own rather than hire a real estate professional.
1. Less cost, more profit. Using a real estate agent to sell your home can cost you thousands of dollars. Remember that agents are paid on commission; usually about 1 to 3 percent of the total price of the property dollars for every hundred you will get from the sale of your home. Because you are bound by a contract, you will still owe the agent the full cost of his or her service even when the property sells right after putting up a “for sale” sign. On the other hand, you will barely notice your expenses when selling privately. You can choose from a wide range of cost-effective marketing tools.
2. More flexibility. The contract will tell the extent of your relationship with the real estate agent. In most cases, the agent will have exclusive right to sell your home for several months. You cannot decide on a lot of things such as the promotional strategy the agent will use. You can also end up with an agent who is only concerned about selling your house immediately regardless if it means selling the house at a much lower price. By selling privately, you are more in control of the situation. You can choose not to give in to a lower bid. You can also market your property the way you think will appeal most to potential buyers.
3. Your own terms. Selling privately allows you to personalize the sales process. No matter how busy you are, selling without a real estate agent is possible. You can select the date and time for meeting with clients. You can also pick the schedule for answering phone calls from those who are interested to buy your property. You don’t have someone to coordinate every step of the way with, and therefore are free to deal with prospective buyers at the time you are most comfortable with. Unless you need to rush the sale, you are free to set your own terms.
The benefits of selling privately are multifarious. But before you can start on this venture, you need to do your research first. It will be necessary to study about the questions that potential buyers are likely to ask, the ways by which you can increase the market value of your property, and the marketing tools that you can use to sell sooner. Do not get intimidated by the fact that you will be handling the sales process on your own. Many buyers prefer to negotiate directly with the owners. There is a higher chance that you can close the deal more quickly if you will not use a middleman.
Contributor Profile: Article contribution by For Sale For Lease Pty Ltd – Australia’s owner-assisted FSBO real estate agency who service home buyers and home sellers privately. This article is published with permission.