What are the risks if you sell your home by owner?

What are the risks if you choose to sell your home by owner? Will you really save money? What should you expect?

Hi, I’m Pam with Haven Real Estate Group.

Let’s

talk about the pros and cons.

Pro’s

You won’t have to pay a commission. Or will you? You may have to pay up to a 3% commission if a Realtor brings you a buyer. Did you know that 89% or more home sales involve a real estate professional? Also, that agent will be representing the buyer to make sure that they are protected by using legal forms and contingencies. Who will be representing you and making sure you are protected?

You will be at all showings and know who is in your home? Do you really know who is coming into your home?

Let’s take a look at some things to consider. Con’s

  1. The time and money you will spend to show and to market your home. Are you going to take time off work to show your home? What if they don’t show up.
  2. How do you know the buyer is qualified? This can be a big risk if you go through escrow and in the end the deal falls apart because of financing.
  3. Do you know how and where to market your home and do you have a list of buyers?
  4. Is the buyer really who they say they are?
  5. How do you know if they are serious buyers or just lookie Lou’s or worse yet just trying to see what is of value in your home.
  6. They might offer you a crazy deal like wanting to trade land and a motorhome. They might want to rent or talk you into a lease option. They might just be bargain hunters.
  7. Do you have negotiation skills? You may not get top dollar. Doing your own negotiations can be awkward. Did you know that for sale by owner homes typical get 89% of list price compared to homes marketed with a Realtor getting 99-100% or more of listed price?
  8. You will have to deal with different personalities, criticism and rejection.
  9. Your home may not be priced right and without knowing how to price it you may not get top dollar. You may need to pay for an appraisal yourself.
  10. You will need to follow up with buyers and know time lines and procedures. Remember important dates and conditions to meet. If not done correctly you could open yourself up to being sued. You could be liable for damages.

You will need to know real estate laws and seller obligations. You will need to do seller disclosures.

  1. You may not be protected if something goes wrong. There are too many unknowns.
  2. It is more stressful than you realize.
  3. Consider the: work, liability, knowledge, time, energy, money spent for marketing, signage, and buyer agent fees should a realtor bring you a buyer.

 

REALLY THINK ABOUT IT, SHOULDN’T YOU USE A PROFESSIONAL, A REALTOR WHO IS LICENSED AND KNOWS HOW TO PROTECT YOU AND YOUR MOST VALUABLE ASSET, YOUR HOME.

 

 

 

 

 

 

 

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