While most people choose a real estate agent to sell their home, more and more people are looking for cost-effective alternatives to the status quo. Agent commissions average at around 2.5% of your sale price but can be as high as 7% for some agents. Traditionally, the only alternative to using an agent has been private property sales, and this is still the method prefered by those who want to avoid paying agent commissions and marketing expenses. But does this avenue deliver the savings promised? Let’s take a look at how hard it is to sell your own home.
Get the best price
When selling your own home, you need to perform the job of a real estate agent, and perhaps the most vital part of their job is the negotiation process. This part of the selling process involves careful timing, jumping on hot leads, and wrangling the best price from your buyers. Unless you know how to do this job, or are willing to wait indefinitely for the right offer to come along, you probably won’t get the price you were hoping for.
Knowing the market
Knowledge of the market is another indispensable skill-set for selling homes. Unless you know the market, or are willing to research enough to bring yourself up to the level of expertise of a real estate agent, you won’t get the price you were hoping for. You need to know which demographics to target and how to reach the widest audience. Often, it takes years worth of accumulated networks to sell a home. Without these skills and experience, your home could be on the market for a long time.
Selling a house on your own is an option if you’ve got the luxury of time. This is because private sales usually take the longest. On the other hand, a real estate agent can usually sell your home faster thanks to their market knowledge, connections and negotiating skills mentioned above. You can also cut down time by using a real estate application which streamlines the process, for example by connecting buyers and sellers directly for communication and cutting down wait times associated with traditional real estate agents.
While you save on commissions when you sell your own home, you also leave yourself vulnerable to losing money. You could let your house go for below market value, or end up struggling to sell and having your house sit on the market for up to a year. However, selling a home privately is a good option for those who have insider market knowledge, are happy to wait, know how to negotiate and are willing to invest in wide-reaching marketing packages.
With the recent developments in real estate industry we now have a platform that makes selling your home even faster than a traditional agent, and with better chances of selling for a higher price. Visit Nesters for more information.