If you are considering listing your home for sale, the thought of selling it yourself without the guidance or knowledge of a licensed Realtor may be tempting. You may have had a bad experience with an agent in the past or are simply trying to save a few dollars when closing. All things considered, listing your home without an agent may be the right choice for you, but for most homeowners it is difficult to understand the complexity that goes in to selling your home. In a competitive market like Maui, it’s also very important to understand buyers, how to talk to them and how to market to them. Let’s take a look at some of the pros and cons of listing your home as a FSBO (For Sale By Owner).
Pro: You maintain control of the transaction.
If you are the type of person who wants to pick the price, handle all the marketing, and show the property to buyers than FSBO may be the right option.
Con: It will be difficult remain impartial.
You know your home better than anyone, and will most likely have emotions and memories tied to the home that will make it difficult to think of your home as a piece of real estate. In that same respect, potential buyers may find things that they don’t like and openly criticize the property which may be difficult to hear.
Pro: You have expert knowledge of your home.
You also know what needs to be improved, fixed or updated because you have been living in the home for years.
Con: You do not have excess to the correct paperwork or marketing channels.
Selling a home requires a robust knowledge of several areas, such as marketing, negation and real estate contracts. Realtors dedicate most of there time to mastering the skills of negation, sales strategy and marketing. They also know how to structure legal paperwork to keep you safe and protected during a transaction.
Pro: There is no agent commission fee.
This reason alone is why some homeowners decide to go the FSBO route. Depending on the price of your home, the potential agent commission could be thousands of dollars. If you sell the home yourself, that money stays in your pocket.
Con: You may make less money in the long run.
The reason being that Realtors possess market knowledge and negation skills that often equip them to secure a higher offer for their sellers. Often the higher asking price more than covers the cost of the agent commission fee.
Pro: There are plenty or resources available.
FSBO has been an emerging trend for a long time, and there are dozens of websites out there that can help you get your property listing in front of the right people and market it effectively.
Con: No access to other agents.
Agents know other agents, and have access to a network of people who will be able to find you a qualified buyer in much less time than it likely would have taken you as the homeowner.
If you are confident in your knowledge of the current real estate market, negotiation skills, real estate contracts and marketing, than listing your home without the help of a Realtor may be the right option for you. But if you are unsure on your skills in any of the areas mentioned above it may be a good idea to sit down and really consider how beneficial having an agent represent you would be.
The Smith Team has an intimate knowledge of Maui real estate trends and decades of experience buying and selling properties all over the island. If you would like to sell your home but are unsure of the next steps, contact us today! We are happy to answer any questions you may have.