Some people are very successful at selling their home "by owner". They have knowledge of key marketing strategies, how to best show their home, and they possess a good understanding of contracts. They are versed in negotiation tactics, but most of all, they are aware of the current market in their area and have priced their home appropriately. They realize the majority of homes on the market today are sold through an agency and they are aware that potential buyers might expect them to sell for less that market value because they will not be paying an agency commission.
On the other hand, listing your home with a Realtor means that upon the sale, you pay a commission to the agencies involved out of your proceeds. This commission is negotiable. The advantages, however, might just be the deciding factors to justify using an agent to sell your home.
For Sale by Owner
•· The seller pays not real estate commission
•· Possibility of selling at below market yet receiving higher proceeds than you would have gotten had you used a Realtor.
•· The seller controls all aspects of the sale (some believe this to be a disadvantage)
Using a Realtor
•· The Realtor plans the marketing strategy
•· The Realtor can do a market analysis showing comparable home sales so that together you can determine the asking price.
•· The Realtor places your home in the Multiple Listing Service (MLS) so it can be seen and shown by other agents from other agencies. This makes a huge difference in the number of prospective buyers that are able to actually see that your home is for sale.
•· Realtors typically screen potential buyers
•· Realtors show your home to potential buyers
•· Realtors assist you with contracts
•· Realtors present purchase offers from buyers, or submit counter-offers on your behalf
•· Many buyers use agents to help them find a new home.
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