Should You Sell Your Home Without a Real Estate Agent?

Alternatives to Selling Your Home with a Real Estate Agent

Should you sell your home without a real estate agent?

There are a number of sales methods you can choose from when selling your home. Do you feel that your realtor is not there for you? Do you need to sell your house in the New Jersey area? Do you wonder about the advantages and disadvantages of using a realtor vs. selling the house by yourself? Ever thought of selling to a cash buyer such as an investor? If you’ve ever entertained these questions, then this article is for you!

Sell your own house – For Sale by Owner (FSBO)

Advantages of FSBO

• No commission fee –The main advantage of selling your own house is that you will not have to pay anything to the agent. This way you will be saving the traditional 5-7% real estate commission. The median price of homes currently listed in New Jersey is $299,000. So a FSBO has the potential of saving $14,950-$20,930 in commissions.
• Promoting Features – You know your house better than any real estate agent. Therefore you can point out all of its amenities.
• Free Listings – Today, there are several resources available to help you sell a home. You can list your home on websites such as com and Zillow.com without paying any fees. However, this can be a double-edged sword; although the listing is free it may not give you the exposure you need to sell your home quickly.

Disadvantages of FSBO

• More Liability – Taking care of the legal forms and disclosures is your responsibility, and therefore you will be assuming more risk in terms of financial and legal liability.
• You don’t receive professional pricing advice – Most owners set the price of their property based on what they feel their property is worth, and their price is usually inflated due to sentimental value. However, a real estate agent uses comparable sales for the area to determine the market value of your house. Statistics have shown that the average FSBO home sells for about 15% less than properties sold through a realtor.
• Negotiation skills may be inadequate – Most real estate agents are trained negotiators, whereas most homeowners are not. The negotiation process can be very emotional for the seller. The buyer can ask the seller to pay for some of the closing costs, like the title fee. Additionally, the buyer can also negotiate the cost of certain repairs.
• It takes time – Calls from prospective buyers, even those who are not qualified and who are merely “kicking the tires” will have to be answered. Appointments must be set to show the home.  Some appointments may even be no-shows. A definite time commitment is required to sell your home yourself.

Sell your house for cash – to a real estate investor

Real estate investing companies are great alternatives for homeowners looking to sell their homes as soon as possible.

Advantages

·         Flexible Payment Options – Cash buyers offer different payment options. They can pay you using certified funds, cash, or pre-scheduled cash payments. Furthermore, investors can even take over the existing mortgage.
·         Selling “As Is” – This allows you to avoid any costly repairs that would normally fall under your responsibility. When you sell to a real estate investor who buys “as is”, you will not have to prepare your house for sale. This means you will not spend any money to renovate, landscape, or market your property.
·         It is fast– As long as there are no title issues, cash buyers only need 7-10 days to complete the transaction.
·         No Commission – When you sell to a cash buyer there will be no real estate agent commissions.
·         No Mortgage Issues – No need to worry about a mortgage not being approved when selling to an investor who is a cash buyer.
·         No Contingencies – No need to worry about prospective buyers selling their homes first before they can buy yours!

Disadvantages

• Offers May Be Lower – Just like in any business real estate investors are trying to make a profit. The offer you will receive from an investor will take into consideration the repairs that are needed in order to sell the house in a competitive market.

Deciding the route to take when selling your house is a matter of understanding the pros and cons of each method and then choosing the approach that is best for your situation.