Can I sell my house without using an agent? Of course you can!

Can I sell my house without using an agent? Of course you can!

But do you really want to?

If you do, we strongly suggest you think again. If after reading this page, you still want to do-it-yourself, we have provided some tips that may make it easier for you.

Homeowners certainly can, and do, sell their homes without using a professional real estate agent. After all, for every homebuyer there is a seller! According to recent surveys, 16% of home sales are “fizz-bo’s” (the jargon used in the real estate industry for “for sale by owners”). This clearly shows that selling your home by yourself is indeed possible.

These same surveys also indicate that more than 50% of people who sold their homes by themselves would NOT do it again!

Let’s spend a few minutes understanding why this is so.

The main reason people want to sell their homes is to save the commission charged by real estate agents. On the surface, this makes a lot of sense – you can even make your property more appealing to purchasers by passing on the savings to them! After all, if you don’t have to pay commission to an agent, you can sell your home at a lower price, and still get the same “net” money as you would with using an agent. Makes sense, huh?

Or does it?

Despite what has been a sellers market for several years, a recent study by the National Association of Realtors found that the average selling price achieved by real estate agents nationally( in 1999) was $129,000, while the average price obtained by fizz-bo’s was $113,000.

This indicates that fizz-bo’s achieve a price some $16,000 less than agents get. This represents 12.4% of the agents selling price…or more than double the agents commission. In other words…by using an agent you could have received 6% more for your house AFTER PAYING THE AGENTS COMMISSION than you would have received if you sold it yourself.

Why is this so?

The answer is not as obvious as it seems however there are several reasons which we will explain below:

A good professional real estate agent knows the local property market in
detail and can probably better estimate the value of your home than you can.

A real estate agent has access to local multiple listing services, and therefore
access to literally hundreds of agents acting as BUYERS agents. This extends
the market of potential purchasers greatly.

A professional real estate agent has access to very current finance
      information, and is often able to assist potential buyers in obtaining the
      finance necessary to purchase a home. This also increases the number of
      potential buyers for your home.

A professional real estate agent has the marketing skills required to sell your
home without the emotional attachment that you may have.

A professional real estate agent will be able to negotiate the BEST price for
      your home, from a completely unbiased viewpoint. Since he or she knows the
      market intimately, they can assist you in determining whether an offer is fair
      or too low.

Before you decide to sell your house by yourself, you should be aware of this VERY significant fact…

Most people who are looking to buy from fizz-bo’s are simply looking to save money because they know the seller is not paying an agents commission. These are basically two types of buyers:

bargain hunters

buyers with credit issues

In both cases you are unlikely to get the price you want!

As we said earlier, over 50% of people who sold their homes without using the assistance of a professional real estate agent have stated they would NEVER do that again. The most common reasons for this are:

Holding open houses.

Arranging for appraisals and inspections.

Understanding and filing paperwork.

Helping buyers obtain financing.

Finding the time to do it all.

As you can see, most people who try to do-it-yourself do not exactly enjoy the experience, and in most cases get less money than they would have if they used an agent.

Before you decide to do-it-yourself, ask yourself these questions:

a) Do I know my local market well enough to know what is a good offer and what is too low?

b) Do I have the time and knowledge to market my home properly?

c) Do I have the skills needed to write good newspaper advertisements?

d) Am I able to hold open houses without getting emotionally involved with what potential buyers may say about my home?

e) Do I have the negotiating skills necessary to get the best price?

f) Do I have the knowledge necessary to complete all the paperwork?

g) Do I have the knowledge and contacts to assist potential purchasers to find finance?

h) Do I have access to ALL the potential buyers in the market?

i) Do I REALLY believe that I can get a better price than a professional real estate agent?

j) DO I HAVE THE TIME TO DO IT PROPERLY?

If your honest answer to any of these questions is no – then you are without doubt much better off to engage the services of a professional real estate agent to sell your home.

If you are still determined to do-it-yourself, perhaps the following tips could help you:

   Educate yourself on every facet of selling a home. Our web site will help you
      a lot, but we also recommend that you visit other sites and read as many
      books as you can about the process. You should do this even if you choose to
      use a real estate agent.

   Prepare a detailed plan of how you intend to market your home. Do research
      into the best places to advertise, how much it costs, and the best days to run
      your ad. Spend several hours planning your advertisement. Find the aspects
      of your home that will be of benefit to your target purchaser, and that
      differentiates your home from the many others on the market. Make sure
      your advertisements “grab” the buyers attention.

   Consider advertising that you will co-operate with buyers agents – and are
      prepared to pay a 3% commission if they find you a buyer. This will help
      maximize your marketing efforts.

   Clean up your house, and make any necessary repairs well in advance of
      open houses. For more information on this, visit:
      “How to prepare for an open house?”

   Do research on local financiers, talk to them and understand what their
      requirements may be. Know, in advance, how you can help potential buyers
      in raising the finance they need.

   Research the necessary paperwork and disclosure documents. Understand
      what is required and when. Have copies on hand at all times – you never
      know when you will get an offer.

   Be prepared to negotiate with hardness and sympathy. Do not just assume
      that when a buyer makes an offer, it will be his best. Do not allow your
      emotions to get in the way of good negotiations.

Above all, price your house to sell!

We hope these tips will make it easier to sell your home by yourself. Of course, we would prefer you to appoint us as your professional real estate agents to sell your home, but we are aware that you may prefer to do-it yourself for many reasons.

Should you wish for any further information from us about how best to sell it yourself, we would be happy to help you. Simply send us an email and we will get back to you as soon as possible.