The Pitfalls of Selling Privately

There are many hidden pitfalls to be aware of when selling your home privately that could end up costing you far more than you’d save.
for sale by owner

If you’re planning on selling your home, you may have considered putting up a “For Sale” sign and doing it yourself but there are many potential pitfalls that could end up costing you far more than you’d save.

Just as it’s not recommended to represent yourself in court, marketing and negotiating your biggest asset on your own can be a very risky move. Here are ten reasons why you should use a real estate agent to help sell your home:

Mass Exposure

Your pool of potential buyers will be very limited, whereas an agent can expose your home to the masses which will dramatically increase demand and hopefully trigger a bidding war!

Marketing Fees

Advertising fees can quickly amount to a small fortune but when you list your home with a real estate agent, they’re responsible for shouldering those costs.

Time Is Money

Your time is very valuable so it may make more financial sense to spend it on other projects that will deliver a higher return.

Carrying Costs

Selling privately usually takes longer which quickly drives up carrying costs such as mortgage interest payments, insurance premiums, taxes, utilities, etc.

Stigma Status

The longer a home sits on the market, the harder it is to sell as its extended time on the market gives the impression that there’s something wrong with the house.

Expert Advice

Real estate agents are experts when it comes to local market conditions so they’re in the best possible position to advise you on multiple and counteroffer scenarios.

Qualified Buyers

If you sell your home on your own, you’ll have to show it to complete strangers on short notice which can be inconvenient and also dangerous. Real estate agents on the other hand will only show your home to qualified buyers.

Third-Party Negotiator

Buying or selling a home is an emotional roller coaster where just one wrong remark can cause a deal to fall apart. A third-party negotiator provides a buffer between the buyer and the seller to help ensure things go smoothly.

Splitting Headache

Most buyers are represented by real estate agents who are paid directly by the seller. That means you’ll be giving away half the amount you’re trying to save unless the buyer also chooses to go it alone. If that’s the case though, buyers will expect to pay less which also cuts your savings in half.

Selling a home privately can be risky which essentially means you’re gambling with your biggest asset.

Do-it-yourself jobs are great in certain situations but when it comes to selling your home, it’s best to have a professional on your side who will look out for your best interests during this complex transaction.

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