The main reason people sell their home privately, without a real estate agent, is to save on costs associated with sales commissions. However, it’s still likely that your buyer will use an agent and expect you to pay that agent’s fees. Learn more about the pros and cons of selling your home without an agent.
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Five questions to ask yourself before selling your home
Selling your home without a real estate agent can help you save on costs. But before you decide whether to manage the sale yourself or with an agent, consider these questions:
- Are you confident you can sell your home for a price close to what an agent would get for you?
- Do you want to be highly involved in the sales process?
- Will you have time to show your own home?
- Are you comfortable showing your home to buyers?
- Are you comfortable negotiating with buyers and their agents?
If you answer no to any of these questions it may take you longer to buy a home and more of your own personal time and effort. You may want to use a real estate agent. It’s important to consider more than just the cost factor. You’ll be responsible for the whole sales process.
Why would you want to sell your home yourself?
If you decide to sell your home without an agent, there could be some advantages including:
- You will have oversight over the whole process, if you’re comfortable taking the time and have the skills needed to do this.
- There may be lower sales costs.
- You may have more control over the price.
- You may have more control over the sales process.
There are a variety of websites that can help you sell your home privately. These are often called for sale by owners (FSBO) websites. You can also pay a discount broker a small flat fee to advertise on the Multiple Listing Service (MLS) site.
It can be easier to sell your own home when the real estate market is active. However, when home sales are slower, finding a buyer yourself may not be so easy.
Why should you consider working with a real estate agent?
There are potential benefits of working with a real estate agent to sell your home. A real estate agent:
- Has specialized knowledge, skills and resources.
- Can be convenient because they handle all aspects of the sale.
- Has no other sales costs beyond agent’s commission.
- Has sales expertise that may get you a higher price for your home.
- May be able to sell your home faster.
Selling your home by yourself versus selling your home with an agent
There are pros and cons to consider if you’re weighing whether to sell your home by yourself or use an agent.
| Item | Selling your home yourself | Selling your home with an agent |
|---|---|---|
| Costs | Lower sales cost since you won’t need to pay a real estate agent’s commission fee. Other costs may arise such as paying for home staging services and advertising your listing that otherwise would have been provided by a real estate agent. | Paying for a real estate agent’s commission fees may cost about 5% of sales price. You will only need to pay for the agent’s commission fee (rather than multiple transactions for things such as staging costs). |
| Selling price | May be difficult to determine the appropriate listing price without knowledge of the real estate market and trends.You have complete control over the listing price of your home. | A real estate agent may get your home sold for a higher price. A real estate agent may know when its most suitable to sell your home based on market trends. |
| Time | It may take you longer to sell your home.You will have to sort through potential buyers and determine those who are serious and qualified. | A real estate agent may sell your home faster through their network and advertising. An agent will handle finding the most suitable buyer for your home. |
| Commitment | You will have complete control over the entire sales process. You will have to negotiate with buyers and show your home. | Real estate agents provide convenience as they’ll handle the entire sales process. |
Summary
If you’re thinking about selling your home without an agent, you should consider these factors when making your decision:
- Costs – Paying a singular commission fee versus paying multiple transactions for services to help sell your home.
- Resources – Do you have the skills and resources to sell your home without an agent?
- Time – Selling a home through an agent may be faster than selling it yourself.
- Real estate market – If the real estate market isn’t doing well, it may be difficult to sell by yourself.
- Commitment – Can you commit to showing your home by yourself, negotiating with buyers, and finding the most suitable buyer?
