This blog will cover homes for sale by owner versus homes listed with a realtor. There is no rule that homeowners need to hire a real estate agent to sell their homes. Many sellers think they can do their due diligence and get top dollar for their homes without the need to pay and hire a realtor.
The real estate agent can guide a homeowner on how to price the home accordingly to get top dollar. Pricing a home too high in today’s market can backfire on the seller.
What good is selling a home for top dollar and substantially higher than the market price if the buyer cannot get financing? During a booming housing market, many realtors have connections and a network system to get you, cash buyers. This article will discuss and cover homes for sale by owner versus listing them with a realtor.
What Experienced Real Estate Agents Say
The Illinois housing market is hot. There is more demand for homebuyers than the inventory of available homes. Many home sellers are seriously considering selling their homes for sale by the owner versus listing them with a realtor.
Many are often successful, while others throw in the towel and decide to hire a real estate agent. The services of a realtor are invaluable during today’s competitive housing market. Home prices are skyrocketing throughout the country. Many homes are selling at higher than the list price. During a booming housing market is when the services of a veteran, experienced real estate agent come in handy.
Homeowners can try to sell their homes for sale by the owner, but trying to save a few bucks can sometimes backfire on them. Real estate agents are professionals in their field and know how to get top dollar on the homes they list. This blog will cover homes for sale by owner versus listing them with a realtor.
Benefits Of Homes For Sale By Owner In Hot Housing Market
Home prices have been rising nationwide for the past five years. FHFA increased conventional loan limits to $726,200 for 2023. This is the third year The Federal Housing Finance Agency has increased conforming loan limits due to rising home prices.
HUD, the parent of FHA, has followed FHFA and increased FHA Loan Limits for 2023 to $472,030. Again, HUD increased FHA Loan Limits three years in a row. Due to the appreciation in home prices, many homeowners are considering selling their homes.
Most realtors charge a 6% commission on a real estate sale transaction. 6% is a lot of money indeed, and sellers often explore the idea of homes for sale by the owner versus listing them with a real estate agent. However, is homes for sale by owner versus realtor a good idea? Will homeowners save thousands of dollars? Will homes for sale by the owner sell fast enough for homeowners? Karry Razik believes experienced real estate agents can get an average of 8% higher sales price than those who listed their homes FSBO.
Tools To Help Homes For Sale By Owner
When home sellers hire a listing real estate agent, the agent pays for all marketing expenses. Whether it is scheduling and launching open houses, sending mass mailers, listing homes in real estate magazines, or newspaper advertising expenses, sellers do not have to spend a dime.
Homeowners listing their homes for sale by the owner must cover all these expenses. Home sellers can utilize websites such as Zillow, Redfin, and Trulia to help with homes for sale by the owner.
These websites have information readily available online. There are also websites such as ForSaleByOwner.com Opens a New Window. These FSBO websites are becoming increasingly popular.
Main Reason Why Homes For Sale By Owner Versus Listing With Realtor Is Becoming Popular
The number one reason sellers try to sell homes by owner is to save commissions. Average real estate commissions are 6%. On a $300,000 home, that is $18,000.
Many believe that selling their homes without a real estate agent will save them this real estate commission. Granted, it is a lot of savings. However, nothing is that easy in life. One thing sellers need to consider when selling homes by owner is if savings of fees to have personal, professional advice during the home selling process is worth it.
Here are some things for sellers considering FSBO Versus Listing With a Professional Real Estate Agent. On the flip side, sellers can get the value of their homes by hiring an independent home appraisal. Appraisals cost anywhere between $400 to $500. Coupled with the information available online, sellers can come up with a list price for FSBO.
Sellers In A Hurry To Sell Their Homes
Home sellers in a hurry to sell their homes because they need to purchase another home should consider time. Realtors are professionals who can stage homes, set up home inspections and appraisal showings, and qualify potential borrowers.
Real estate agents will pre-qualify potential home buyers before setting up a showing on a property. Most realtors will not show a listed property without a buyer’s pre-approval letter. Many will not entertain a purchase contract without contacting the buyer’s lender.
Home for sale by owner versus hiring a real estate agent to list sellers’ homes is up to the individual sellers. It is often wise for very busy sellers to hire a professional realtor. Others not in a hurry to sell their homes may experiment with FSBO. Home sellers should weigh the pros and cons when considering selling their homes versus hiring a listing agent.
April 3, 2023 - 4 min read