It’s time to sell your house.
That sentence comes with a lot of panic, plenty of questions, and anxiety. One of the biggest things on your mind is if you need a realtor. And for whatever reason, 3 out of 4 people don’t trust realtors.
If you’re one of those three, know this: you don’t always need a realtor. But there are benefits of having a professional sell your biggest asset.
So, for those of you with the “do I need a realtor” question on your mind, we’ve got some answers.
The Benefits of Realtors
When in the market as a seller, you can sell your house by-owner. But doing so, you lose a lot of the benefits of having an agency.
Properties listed through realtors grossed 25% more profit than those sold by owners. Though this number is subject to different variables and market volatility. That number is greatly reduced in a hot market for sellers.
With an agency, your house is exposed to a greater amount of exposure. A realtor has limitless access to advertisement. Most homes are sold through a real estate firm because of how accessible they are.
But Do I Need A Realtor?
The first thing that you might question: is it legal? You’re not a trained professional, and realtors need licensing. Despite that, there’s no law mandating that you cannot sell your own house.
You don’t need a license. You don’t need to take any courses. You just need a sign out front that has a toggle for “for sale” and “sold.”
However, there are some states that require the finalization of the sale to be supervised by an agent.
Roughly one in twelve homes are sold for-sale-by-owner. Those that sell this route have to put in a lot of time, effort, and energy.
By-owner sellers forego agency costs, like listing costs or commission, but at their own price. A typical realtor commission is high at 5-6%. That’s a big chunk off the top of your profits, especially for higher priced homes.
Before you stake your sign into your lawn, consider the housing market.
Is the market hot for sellers? A high demand for housing makes for an easy sell.
If it’s the inverse, and the market is in favor of buyers, hold off on selling. There’s a lower demand and a high supply of housing. Sellers that use agencies will have a strong upper-hand; they’ll get a better offer and have an easier time.
Try to market your home yourself using the internet. Posting advertisements online is a competitive approach.
Some people don’t trust realtors. They’re afraid of the profit-sharing style of selling their homes or they’ve been burned before.
Those with a distrust for agents can sell their homes “for sale by owner.” It’s tough doing it this way. They forego the costs of commission and listing costs, but also the convenience.
Agencies have a lot of assets that are hard to compete against. But it can be done.
Got any other queries about selling or buying homes? Check out the rest of the blog for guidance.