What if you could instantly make the home you're selling more profitable?
When it comes to selling a home, most of us hope to get as much money as we can. And for some, the solution to doing this is to sell the home themselves!
That leaves the big question: will you make more money if you sell home by owner? Keep reading to discover our complete guide!
The Price Isn't Right
The goal of selling your own home is to make more money. But to really do that, you need to set the right price for your home.
If you set it too high, you will drive potential buyers away. They will focus on cheaper properties instead.
If you set it too low, you are cheating yourself out of profit. And you may walk away with a lot less money than you deserve.
Therefore, you shouldn't try to sell your own home unless you really know what the value is. With that value in mind, you may have an easy (and profitable) time selling your home to a local buyer.
The Commission Condition
What is the main benefit of selling your home without a professional realtor? It's simple: you can avoid paying their commission and other fees.
Let's say that you sell a home for $200,000. If the agent gets a commission of 5%, then they get a cool $10,000 from that sale.
However, if you can sell the home on your own, you can put that $10,000 into your own pocket. But the math on this isn't as simple as you think.
It's ultimately up to you to determine if it's worth paying someone else that kind of money to handle the marketing, showing, and selling of your home. But if you can handle it on your own, you can walk away with quite a bit of money.
Anticipating Problems
From the outside looking in, it is easy to understand what a realtor does. Just how hard could selling a home really be?
However, the real value of the realtor occurs behind the scenes. A good realtor is spending their spare time anticipating any of the problems of closing on your home as well as how to take care of those problems.
You can handle all of these problems on your own. But if you miss anything, it may jeopardize the sale and put you back to square one on selling your home.
As always, this comes down to how much you know about real estate and how easily you can take care of these issues before they hurt your sale.
In the Arms of An Agent
Another thing that a realtor does to sell your home is to work with a buyer's agent. But guess what? You can cut out the middle man and work with the buyer's agent directly!
We'll warn you up front: this usually means offering them a percentage of the sale (such as 3%). In exchange for that money, they list your home and ensure that it is seen by as many potential buyers as possible.
Of course, the standard realtor percentage is 6% or less, and that includes their work with the buyer's agent. So if you go to the buyer's agent yourself, you must determine if handling everything else on your own is worth the 3% you are saving on the sale.
The Experience / Profit Equation
Earlier, we mentioned how much experience you have in real estate. And the vast majority of sellers have no real estate experience at all.
At the end of the day, their experience is what you are really paying the realtor for. And the level of experience can tie directly to your actual home profit.
In our earlier example, you would be able to save $10,000 by selling on your own. The real question is whether a realtor could have earned you more money or not.
It can be difficult to predict the final outcome of a potential sale. But if you think they could sell your home for significantly more money, then a realtor is worth it. Otherwise, you're better off just keeping the extra cash for yourself.
Legal Drama
Believe it or not, the worst case scenario of real estate isn't missing out on a juicy sale. Instead, it's ending up in a lengthy legal proceeding!
If you somehow mess up a real estate transaction, the other party could take you to court. And since you are selling the home on your own, there would be no one else to blame except for yourself.
Of course, this kind of outcome is rare. And you can avoid it entirely by doing your homework and being very careful.
It's also possible to have it both ways. You can always sell your home to local professionals who buy homes and have no interest in taking you to court.
Sales and Marketing Machine
Want to hear the secret of selling a home? It's the same secret to selling anything else: you must have very good marketing!
You'll need to create everything from classified ads to yard signs to a professional website to sell your home. The reason is simple: people cannot buy what they do not know about!
And when someone is interested in your home, you must master the art of the sale. You have to know what they want to hear and have enough real estate knowledge to put their fears at ease.
To really maximize your sales opportunities, it helps to have a network of local professionals you can call on for help. And don't hesitate to call when you need to.
If you are confident in your sales and marketing abilities, then selling your own home may be one of the most profitable adventures of your entire life!
Sell Home By Owner: The Bottom Line
Now you know about the benefits when you sell home by owner. But do you know how to make the most out of the sale?
We specialize in helping individuals grow their businesses and make a profit. To get started, check out our guide to making money from real estate investment.
