One of the most common questions I receive from homeowners is: Should I sell my house privately or via a real estate agent? When you’re considering selling your house you have the option to sell using licensed real estate agent or selling your house privately yourself. The Internet has changed the face of real estate in the past ten years; we’re now at a stage where properties are selling over the internet, sight-unseen. While this sounds like it’s easy to sell a house, it’s not quite that simple. There are many pros and cons for selling privately or via an agent and in this article we’ll investigate the advantages and disadvantages of each so that you can make an informed decision.
Should I Sell My House Privately? It has probably never been easier to sell your house privately nowadays thanks to the impact that the Internet has had on the way that people source, buy and sell real estate. The Internet now makes it possible for any homeowner to list their house for sale using an unlimited number of websites all at a relatively low price when considering the commission that would normally be paid to a real estate agent for selling your house. Let’s consider some of the advantages and disadvantages of selling your house privately.
Sell My House Privately – Advantages: – You know your property better than anyone – You have complete control over the way your property is marketed – You can set your selling price based on your own research rather than the opinion of a real estate agent – You will meet the people that are purchasing your house – You’ll save paying commission to an agent – Your marketing costs will generally be cheaper than marketing via an agent – You’ll know the local area well
Sell My House Privately – Disadvantages: – You’re emotionally attached to the house – You’ll likely have less negotiation experience than a real estate agent – You may not know the true selling price that could be achieved – You’ll know the property’s faults and negative aspects – You might not know how to market your house in the best way – You’ll have to sell the features and benefits of your house – You’ll have to get your potential buyer to the contract stage – You may have increased costs in having a solicitor prepare a contract – You will need to deal with emotional house buyers
Should I Sell My House Using a Real Estate Agent? This is the most common way to sell your house, simply because most homeowners prefer to have an experienced, professional representative take care of the sale of their house. Just like you go to an accountant for financial advice or a doctor for medical advice, having the right real estate agent representing your house can help to make the whole experience easier, quicker and profitable. Let’s investigate some of the advantages and disadvantages of using a real estate agent to sell your house.
Sell My House Using a Licensed Real Estate Agent – Advantages: – You’re using an experienced, trained professional – They have hundreds or thousands of potential buyers already on their database – They’ve been trained in negotiation – They have several properties for sale at any one time which can help to sell your house – They have fast access to past sales results and rental information – They’ll generally list your property on several websites that they’re affiliated with – They have contracts available ‘ready to go’ if the have a very interested buyer – They are unemotional in the negotiation process – They have a financial incentive in achieving a sale – They know which marketing works for different types of houses
Sell My House Using a Licensed Real Estate Agent – Disadvantages: – You don’t know the agent who’s representing your house – You will need to pay a commission when a sale is completed on your house – You don’t know the track record of the agent or agency (unless you ask) – You may end up spending more on marketing your house than you anticipated
Whichever path you decide is right for you, just be sure to conduct your own research into property values around the area so that you know what is realistic and what isn’t. Also, if you choose to have a sworn valuation done on your house (by a licensed property valuation firm), just remember that a valuation and your end sales price will usually be different. Valuers are usually conservative in their estimates and base their values on historical sales figures (over the previous few months and further back if required). Keep your eye on the newspaper for asking-prices of houses that are similar to yours and use these to create a realistic sale price for your house. Remember, you can always come down in price, but not up (unless it’s a highly desirable property, you’re holding an auction or the market is red hot!). A sworn valuation will set you back around $300.
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