More times than not when a property is listed for sale it is through the services of a professional real estate broker. A homeowner will hire these brokers who are familiar with the in’s and out’s of a real estate transaction to ensure the process goes smoothy. But should you consider the alternative which would be listing your home as a for sale by owner.
A for sale by owner listing is just that. It is the owner of the property that will actively list the home on the open market in hopes that they find a buyer.
Let’s look at some advantages and disadvantages of listing your home for sale by owner.
Advantage: You will save on realtor commissions. The average broker charges anywhere from 6-7% commission of what the home sells for. Obviously the more expensive your home is the more money you will save on commissions.
Advantage: You will have better control over who is purchasing your home. The seller will rarely meet the buyers throughout the course of the transaction when there is a real estate broker involved. If there is sentimental value to the seller it may give them some closure knowing first hand the home is going to a nice family.
Disadvantage: Even though you will save money on commissions you may not get the best possible price since for sale by owner listings will not be listing on the local MLS. You may save $10,000 in commissions but you may get a price $15,000 higher by hiring a professional to list your house.
Disadvantage: Unless you have a real estate background it may be difficult to navigate through the buying and selling process of your typical real estate transaction. A seller is who is not familiar with the transaction may waste there time on a buyer who is not qualified to purchase the property. One of the many things you hire an professional real estate agent for is the ability to filter out the qualified buyers from the non-qualified buyers.