It may be cheaper to pay a realtor than sell your home by yourself
HouseLeague by Ryan DeLuca December 04, 2008 03:34
FSBO; otherwise known as For Sale Bye Owner is a means of selling your home on your own without the aid of a licensed realtor. While this may seem a great way to save money there are many disadvantages as to why these types of listings may end up costing you in the end.
One of the biggest advantages to using a realtor is the benefit of the Multiple Listing Service. This is an online database containing most properties that are for sale through licensed realtors. In fact, websites such as realtor.ca (formerly mls.ca) are where the majority of home buyers will find properties they are interested in viewing and subsequently purchasing. This is especially important for out of town investors and purchasers who are unable to drive around looking for that new home or investment.
It is also important to consider the type of market you are trying to sell in. Most buyers will use a realtor when making a purchase. The safety of a knowledgeable professional who can guide them toward a wise purchase is a logical choice for any buyer. If you are listing your own property in a slow market that is flooded with listings and lacking in buyers, you will be cutting out a large segment of an already small market. Realtors working with buyers expect to be paid a commission for their work. Some realtors may assume if the property is for sale by owner, a commission will not be paid. Whether this is true or not, it may in turn make it more difficult for you to attract a buyer.
Finally, you must consider the length of time it will take to sell the property. One thing most vendors fail to remember is that the longer it takes to sell the home, the more carrying costs you will incur. Mortgage payments, electric bills, gas bills, etc. can add up over the months. Realtors will usually sell a home significantly faster and for more money than those sold by the owner. In the end, the amount of money you believe you can save by listing your own home can end up dwindling down.