Why do people choose to sell their own home?
People choose to sell their own home for a number of different reasons, here are some common reasons:
- The feel like they have control over the selling process. They feel an agent may not be telling them the full truth and this gives them control to speak to buyers directly.
- They save on an agent’s cost, the theory is they’ll end up with more money in their pocket.
- They know more about the home than any agent and can really promote their own home better than any agent could. They can sell the features better than an agent can.
- They have the flexibility to have open homes or private inspections whenever they want.
Why should people reconsider selling their own home?
While there are some benefits to selling your own home, there are also several reasons why it may not be the best choice for everyone. Some potential drawbacks that you should consider:
- You make lack experience or expertise. Real estate transactions can be complex and homeowners may only ever sell 1 or 2 homes in their life time, This means having the skills to handle the sales process effectively including talking to buyers, negotiating, and marketing their home whilst navigating legal and financial issues that can arise during the sales process.
- There’s a limitation on the exposure to potential buyers. Often real estate agents have a pool of buyers from multiple sources that has grown over the years who may be looking in a variety of areas that they can direct to your property – thus reaching a greater audience to find the best buyer for your property.
- The time an effort that goes into selling a home is vastly underestimated. Agents work long hours often negotiating on a contract well into the evening, which isn’t often seen or shown upfront.
- The emotional attachment can blind a seller. A seller may be so emotionally attached to a home they simply can’t recognise the pros and cons of their own property, which may lead to them overvaluing certain aspects of the property.
- Communication can deter the wrong message. I’ve sold many houses where a seller would have dismissed the buyer of the property simply because the buyer offended the seller with their first offer or their honesty on the property. An agent can filter out the relevant data from the buyer or seller, acting like a conduit between parties to make sure the buyer and seller make the best decision.
Some common mistakes made when selling your own home
There are several common mistakes homeowners make when attempting to sell their own home:
- Overpricing the property: A homeowner will often see their property as more valuable than the neighbours home regardless of the market conditions and this will often scare buyers away with a price that is too high.
- Inadequate preparation: Some homeowners will not prepare their property for sale properly, including not decluttering, not staging, skipping some necessary repairs or renovations.
- Ineffective marketing: Marketing is essential to selling a home. Homeowners will often lack the knowledge to create or understand an effective marketing strategy. This is an area where homeowners will try to save costs when selling a home.
- Poor negotiation skills: Negotiation is critical to ensuring you’ve got the best price for your property. Being able to effectively negotiate with buyers without losing your cool is critical and this often leads to a lower sale price.
- Fail to understand legal or financial requirements: There are a lot of legalities around selling a home, from understanding titles, easements, neighbourhood disputes, or any disclosed details.
Whilst selling your own home may seem like a viable option for many homeowners, it’s important to weigh up the pros and cons and seek professional guidance to support a successful sale. It’s important to remember that selling a home can be time-consuming and complex, it does require a certain amount of knowledge and expertise many of which is gained through training and role plays over many years in the real estate industry.
Like any job, some tasks may be relatively simple and straightforward, however more complex tasks can require specialized knowledge and experience. Having an agent on your side when selling your home is more often than not worth every penny and they’ll often pay for themselves during the marketing and negotiation process.
Some days, the stress of managing the sales process just isn’t worth the hassle especially when a good agent will be a great resource for any future real estate needs.