Should You Try to Sell By Owner?

The numbers don’t lie; only 10% of owners succeed in selling their home by themselves. That number can vary a bit, and will obviously go up if the person happens to be a property investor by trade. They tend to be much more familiar with the ins and outs of the market.

Individuals who succeed in selling their home on their own usually have two things in common. First off, they undoubtedly accepted a lower price for their property. This is mostly because of the large inventory of houses on the current market. Secondly, even though they think they saved some money by cutting out an agent, they actually netted far less in the end.

As of today, it would take approximately ten months to sell every house currently on the block, even if there were no new homes coming to the market. That is taking into consideration the Multiple Listing System (MLS) that would be on your side. Going it alone, and without the MLS, it is that much harder.

How does the MLS help?

If you run an ad for the sale of your home, you have two things going against you. You will be paying for this ad, and your house can only sell to those who actually see the ad. That takes a chunk out of your demand right there. The law of supply and demand in never more prevalent than it is in the real estate market.

The MLS shares the information about the sale of your home with brokerages and realtors in your area, and instantly increases the demand for your property. You will not only have the advertising from your own agent, but from other agents as well. Since fewer than ten percent of prospective buyers purchase an advertised home, the agents must present them with other possibilities.

The MLS database is exactly where these realtors find these other homes, and only an agent has access to the MLS. Because of this, not only can you be getting leads from your agent, but other MLS members are working for you as well. It’s rather simple; more demand equals a higher price.

What are other drawbacks of selling by owner?

It doesn’t matter if the sign out front says for sale by owner or if it features the name of the top realtor in the country, it is still the same house, correct? Of course it is, but a for sale by owner sign breeds lowball offers, and garners less respect on the open market. Buyers see these homes as a way to get a bargain. Stay up late some night and watch those real estate infomercials that teach you how to get rich quick in real estate. The number one tip they offer is to take advantage of someone who doesn’t know what they are doing. Don’t be that person.

Nick Muller | king-and-assoc.com