Some states require an attorney at real estate closings because the process of selling a home is complicated and errors can be costly. The presence of an attorney helps protect buyers and sellers, especially when selling your home without the help of a real estate professional.
Since Arizona homeowners can sell their home without an agent or attorney, both buyers and sellers can be at enormous risk. With housing on the upswing, it has once again become a seller’s market. Many homeowners think selling their home will be easy and they can save money by not paying an agent’s commission and selling directly to a buyer. Here are some disadvantages to selling your home yourself, and why you may find paying a real estate agent’s commission is actually a bargain:
Other than people driving past your home, not many people are going to know your house is for sale. You could advertise on Craigslist, but do you really want to invite anonymous Craigslist users into your home? You could list your home with the Multiple Listing Service (MLS) for a fee, but to eliminate problems with amateur sellers who don’t know what they’re doing, many realtors won’t consider showing homes which are for sale by owner, even though they may be on MLS.
Listing with MLS will cost $400. Then, if a realtor does find a buyer for your home, that agent still gets their half of the commission you were trying to avoid paying—around 3% of the selling price. Plus, because buyers know you’re not paying a realtor commission, they’ll demand a lower price. The average selling price of a home sold by owner in 2016 was $185,000. The average price of a home sold with a real estate agent that same year was $245,000.
How do you decide the price of your house? Most owners tend to overprice their homes because it gives them room to negotiate; however, prices that are too high will not get any offers. Another reason sellers price their homes too high is they may feel they are in no hurry to sell, but the longer a house goes unsold, the lower the price falls.
The seller is liable for any problems caused by inexperience. Are you in a position to buy back your home if the buyer discovers structural issues that weren’t disclosed, or if there are title defects? A real estate agent will safeguard a seller against all possible issues.
There are many statistics showing that a realtor will sell a home for a higher price, sell it faster, and with fewer issues than someone trying to sell their home themselves. While those statistics may come from the National Association of Realtors®, the numbers don’t lie.
If you’d like to see for yourself which option is better for you, try this calculator which compares the risks and costs of selling your home on your own versus using a qualified real estate agent.
When you realize that using a real estate agent is the best way to go, give the professionals at RJ Homes a call. The team will be happy to sell your home quickly and at the highest possible price.