It’s no secret that the housing market is challenging right now. Properties are taking longer to sell, and homes are staying on the market for extended periods of time as a result. If you’re thinking about selling your home, this may not be the best time to place it on the market.
However, if you’re serious about selling and understand that there isn’t likely to be an upturn in the real estate market anytime soon, then perhaps you should consider selling your home privately rather than putting it on the open market with an agent. Here are five reasons why you should sell your home privately instead of through a real estate agent:
5 Reason you Should Sell Your Home Privately
- You’ll Save Money
Real estate agents usually charge a commission when they sell your home. On average, this can range from 2.5% to 6% of the home’s sale price, and is typically based on the home’s final sales price, including any buyer-paid closing costs. So, if you sell your home for £200,000, you may owe an agent anywhere from £4,000 to $£6,000 for their services. You’ll likely have to pay a commission, too, when you buy another home.
So, if you decide to sell your home privately, you can save money while you’re at it! Consult a real estate agent to find out what they charge, and their potential commission percentage. Then, compare your potential earnings from a real estate agent with the amount you would receive from an offer from a private buyer. You may be surprised to find that you’d make more by selling privately.
- You’ll Have More Control Over The Sales Process
Once you list your home for sale, an agent will be in charge of marketing it and showing it to prospective buyers. If you want to sell your home privately, don’t worry; you’ll still have more control over the sales process. You can choose from a wide variety of options available to privately sell your home, giving you more control over the sales process.
For example, you may decide to sell your home as-is, or you may also have the option to repair some of the home’s exterior issues (if any exist) before a sale. When you sell your home privately, you’ll likely have more control over the sales process, including the price you set for it. You may have a range in mind, but ultimately, it will be up to you to decide how much your home is worth.
- You’ll Have A Lot of Options
As mentioned above, there are a variety of options available to you when you decide to sell privately. If you opt to sell your home as-is, the buyer will assume all the risk for any repairs that need to be made. However, you’ll likely receive a lower offer from this type of buyer. Alternatively, if you make repairs to your home before selling it, you’ll likely receive a higher offer from the buyer.
However, you may decide to sell your home with a warranty, covering any repairs that need to be made. In this case, the buyer will assume the risk for any repairs. You may even decide to sell your home subject-to-financing (STFR). In this case, the buyer will assume all the risk for financing, but you’ll receive a higher offer.
- There Will Be No Commissions Or Fees For You
An agent works on commission, meaning they make money based on the sale of your home. So, if your home doesn’t sell, you don’t make any money, and the real estate agent doesn’t make any money either. In some cases, you may also have to pay a commission to the buyer’s agent.
This can delay the sales process, and you may end up paying more than if you sold your home privately. If you sell your home privately, you’ll avoid paying a commission or any other fees to an agent. You can negotiate your own terms for a sales price, closing cost, and any repairs you’d like to make to your home before a sale.
- It Can Help Boost Visibility For Future Purchasers
Selling your home privately can help you market it to future purchasers, as well as give you more control over the sales process. If you decide to list your home with a real estate agent, you may be subject to a lock-out period, meaning you won’t be able to sell your home privately while it’s listed with an agent.
You can’t sell your home privately while it’s listed with an agent. This is one reason why you may want to consider selling privately. You can negotiate a lock-out period with a buyer, giving you time to sell your home privately while it’s also listed with an agent.
If you’re thinking about selling your home, you may want to consider selling privately rather than listing it with an agent. You’ll save money, have more control over the sales process, and have a lot of options, such as repairing the home’s exterior issues, setting the sales price, and closing costs. It can also help boost visibility for future purchasers.