It’s not out of the ordinary for people to consider selling their home without using a broker. Before you tackle that task on your own make sure to read our guide that goes over the pros and cons of using a Broker and doing a For Sale By Owner
The advantages to For Sale by Owner
You know your community better than anyone.
San Diegans keep track of recent sales around their home. As a diligent owner, you are probably very familiar with the different types of property layouts, exposures and red flags you see in your neighborhood. Simply by having lived there so long, you have a leg up.
Additionally, by reading our monthly Market Update Reports, you can quickly come up to speed on the last few months of sales to learn the median price per square foot. This will help you figure out how your property compares with other homes, which will make it easier for you to price your home.
It is not uncommon for a broker who schedules a potential listing to spend a few hours researching the neighborhood’s recent sold properties, if they don’t already specialize in that area.
Being as aware as you are, you know what’s happening in the market. You know how your neighborhood functions and what the selling attributes are for you.
Most properties sell themselves
If a property is correctly priced and shows well, it should sell within twenty-one days. That is just our competitive market right now no matter how far a property is from the beach or great schools. The lack of supply and perpetual and insatiable demand from buyers makes it a strong market for sellers, as long as the property is presented well and priced right.
If a home sells after one open house, or with multiple offers, was the agent necessary? Or, did the property sell itself? Or maybe it was underpriced?
The disadvantages to For Sale by Owner
With many people around the country, there is some uncertainty with doing For Sale By Owner.
Even with the information out there and the market moving properties without much effort, it boils down to this: Consumers do not know what they do not know. It is that fear that keeps them from attempting a sale solo.
Let’s be real: There are not enough hours in anyone’s day. With work, relationships, kids, gym time, parties and events, few people have time to catch up with their loved ones or their favorite TV shows, much less manage a sale. To put it nicely, placing your home on the market to sell becomes a part-time job. It begins early with spending many hours doing online research and holding open houses, then organizing and paying for the marketing materials.
Holding open houses and dozens of private showings could possibly result in which the potential buyer may or may not show up. It is true that selling a property takes up a lot of time, but perhaps you work from the comfort of your home and have time to get it done. Do a cost/benefit analysis of the savings vs. time away from work or other life activities to understand if it makes sense to you.
Lack of “in-market” data
Real estate brokers live real estate day in and day out. While not all brokers are equally educated, there are some that can be extremely valuable and could make a substantial difference in your home sale. A broker who has sold dozens or hundreds of properties has a certain amount of intellectual gain. They know what to look for when it comes to choosing the right buyer.
Great brokers know real estate trends and recent sales to keep them ahead of the curve. Most brokerages have weekly meetings where they discuss the current market. First-hand experience is the type of real-time real estate data that takes the media months to pick up on.
And most importantly, good brokers are experienced with negotiating skills and are able to manage multiple offers with ease. When was the last time you negotiated a six or seven figure deal?
If not the most important part of any real estate transaction, a broker will have an in-debt knowledge of local and state rules that govern real estate transfers in San Diego, such as who signs the papers, who can conduct the actual transaction, what mandated disclosures have to be signed within a certain time period, and what to do if and when encumbrances are discovered that slow down the transfer of ownership.
Brokers are continuously being updated with new laws that would take a regular homeowner hours to search for online and to understand.
Are you really saving?
For sellers who decide to go For Sale By Owner, they should offer the 2.5% to the buyer’s broker. If you were to get rid of that incentive, the buyer’s broker may be less inclined to support their buyer’s interest in your property. So, after everything’s said and done, the money saved may be a lot less than you set out. Is 2.5% savings worth your time?
At Patrize Properties we have many options when it comes to selling your property. Give us a call to discuss more.