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Selling A Home Without A Real Estate Agent – Is It A Good Idea?
  • USA - English


News provided by

Loan Love

Jun 17, 2014, 02:30 ET

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San Diego, CA (PRWEB) June 16, 2014 -- Is selling a home without a real estate agent a good idea? A newly featured article from LoanLove.com takes a look at the different circumstances where going it alone might be the best option and also reviews some of the reasons obtaining the help of a Realtor might be in the home seller’s best interest. LoanLove.com is a borrower advice website that empowers readers with first class knowledge, valuable resources, and connections to top rated industry professionals, and has quickly become a trusted destination for current news and expert loan advice. This new Loan Love guide continues to help home owners to make the most informed decisions regarding their home buying and selling plans.

The Loan Love guide titled “Selling Your House Without A Realtor (PROS & CONS)” explains that while selling a home without a Realtor can be tempting, there are some things that home sellers should be aware of before they choose this to put their home up For Sale By Owner (FSBO). The main reason to sell a home without a real estate agent would be to avoid paying the real estate agency’s commission fee, which can run as high as 5 to 6 percent of the home sales price. This fee is usually split between the seller’s agency and the buyer’s agency, but will usually come out of the seller’s pocket unless something is negotiated with the person who buys the house. There are, of course, other reasons that someone may wish to forgo using a real estate agency’s help when selling their home. Loan Love states,

“There are other lesser perceived advantages to FSBO, most related to control:

• As the owner, you may feel you are better-prepared to show off your property’s best assets.
• Negotiations may be easier for you because you won’t have to take into consideration the cost of the real estate commission.
• The growing number of housing market sites offering free listings, such as Zillow and Trulia, make it easier for home owners to market their properties inexpensively to wide audiences.
• You have complete control over showing requests, the negotiation process and marketing of your property.”

However, Loan Love also warns that there are drawbacks of selling a home without a Realtor. The article explains, “Among those sellers who decided to go the FSBO route, about 40 percent of sales are completed as a closed transaction. This means the homeowner already knew the buyer, either as a friend, acquaintance or family member. Of those who did not previously know the buyer, 18 percent were contracted directly by the buyer to express interest in the property. Taking all these factors into account, it becomes clear that the portion of FSBO sellers who sold their home without knowing the buyer and who were not directly contacted by a buyer, is significantly smaller than the 9 percent.”

In addition, the article points out that homes sold by the owners typically sell for a lower price than those who obtain the assistance of a real estate agent. The article states that the typical median selling price for a FSBO home being $174,000 compared to $215,000 for agent-assisted sales. Loan Love says, “Even after commission is paid at the full 6 percent, the agent-assisted home owner would receive $202,100 compared with $174,000 for the FSBO. Suddenly, the commission becomes less of a factor once the expected difference in selling price is taken into account.”

For more information on this topic, click here to read the full article at LoanLove.com.

Kevin Blue, Loan Love, http://www.LoanLove.com, +1 (949) 292-8401, [email protected]

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