Which Is Better: Selling By Owner Or Selling With A Help Of A Real Estate Professional
Nov 11th, 2009 by master
Some people think that they can sell home in no time just by placing a listing of their home with a real estate agent. The idea is good enough if you have a lot of other things to do except selling a house.
But in this case, you should consider the agent’s payment. In most cases, if your property is worth $400,000, you’ll have to pay about USD24,000 to the agent for his services. You are able to save this amount for yourself.
But selling your home is not an easy task anymore.
The quantity of properties listed on the market by real estate agents is all-time high. For example, in New Jersey there were about 32,000 houses on the market at the end of May 2009. The quantity of houses sold in September 2009 in general is also decreased considerably from 3,500 in 2008 to 1,700 in 2009 for the same period (September).
The recent figures show that selling property by real estate agents is not efficient any more. Foreclosures have appeared throughout the country and now each and every state has a long list of foreclosed homes.
I believe, if you sell your house by owner, you have more chances to sell it out more quickly. In most markets FSBO houses are sold twice quicker than those listed for sale by real estate agents.
If it is necessary to sell your home faster or you want to cope with your mortgage payments, your agent is not going to pay your dues and of course he will not buy your home if it isn’t selling.
Here are several useful tips for those who want to get out of the burden of your for sale by owner home (you won’t be able to do them with your agent):
- Lease out your house to a lessee and sell the house to him at the end of the period.
- Sell your property via owner financing (for example, through an agreement for deed or a land contract).
- Pay the buyer the real estate commission in order to assist him in qualifying.
- Purchase down the interest rate.
Those ideas can help you to get out fast. At present unstable times it is better to look for some ways of paying off the mortgage payments (little by little) than to allow your house to stay on the market for ages and to pump out all your money.
These ideas are not for the rich homeowners with lots of money and variety of options in case their property isn’t sold. This information may be useful for those who need some relief from their mortgage payoffs, double payoffs, job changing or divorce. Maybe it appears to be better to sell house by owner and have total control on the process.
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This has always been the classic struggle…should I hire a knowledgeable, competent, full-time real estate agent who knows the ins and outs of the local market and navigate through the sales process or should I list it for sale by owner (fsbo) because I want to save the commission dollars. I’m not sure where you get your statistics, but I don’t believe it to be accurate that FSBOs sell faster than agent listed homes. Most just languish with a sign on the front lawn with little or no action because no one can find these homes, usually because the owners have no experience in marketing a home and don’t know what to do. Many FSBOs are priced incorrectly because, again, the owner has little knowledge of the market except that “I heard that Jones down the street got $500,000 for his place.”
You may perceive that selling homes is easy and that agents get huge commissions for doing very little, (which may have been the case in the boom years) but those still in the business work very hard to sell your house.