Can i save money selling my home without a broker? The question that goes through ever persons mind when they considering putting their home up for sale and also looking at the FSBO option. While we have outlined the clear advantages of working with a broker to buy a home, there is still a mixed debate whether the same can be said for selling a home with a broker. The short answer is "Yes, No and Maybe" - It all depends on how well you as an individual would manage the sale.
Some people will put this argument to rest before it even starts if they have had a bad experience with a broker. Regardless, we will break down the logic and as always leave the decision down to the individual if they will ultimately save money selling on their own, or if it's better left in the hands of an accredited broker.
Considerations when thinking about selling on your own:
- Taking calls and organizing visits - You must be comfortable with taking calls, texts, emails and organizing all the visits which may or may not result in the sale of your property. Depending on the market trends, this can result in 10,20,30+ visits before an offer is made. If you're lucky, it's 1 visit and the place is sold!
- Less eyes on your property - The first stop most people will make in their home search is an accredited and regulated platform (Centris.ca). While there are people who are comfortable buying from 3rd party FSBO sites, there will always be a crowd of people who stick with the trust they gain through a regulated platform and also working with a broker.
- Comparative Market Analysis (CMA) - It's important to ensure that the price your setting your home at is the best possible price for it to sell. A home which is incorrectly priced can ultimately result in a large loss of your time (when the home isn't selling) or your final return (when the asking price is too low and negotiations take it lower). If you're already trying to sell on your own, you can always request a free evaluation to find out if the price you've set is correct.
- Adjusting your price - You need to know when is the right time to change the price of your property and to the correct amount. (example: 3 units in your condo building just went up for sale for slightly lower than yours. Should you drop your price? how much by? how similar are those 3 condos to yours?).
- Negotiations are your job - Some people are comfortable negotiating on price, others not so. For some people this can be a deal maker or breaker when deciding to sell on their own and over time (if your property has not sold) can impact your final sale price as your negoiation tone wears down.
- Network of buyers - When listing on your own you're most likely not going to have a vast network of active buyers ready to look at your property. It is an important consideration as a lot of active buyers are already (and only) using Property Alerts to find homes which doesn't include properties from 3rd party FSBO websites in their search.
- Advertising - Other than the FSBO platform you list on, your property won't be actively advertised through other online mediums unless you seek your own paid medium to promote them through.
- Paperwork - When you buy or sell a property there is a lot of paperwork involved. You need to ensure you're up to the task, that you personally understand the legal implications and the buyer who is looking to purchase your place is also comfortable doing all their own paperwork before the final notarization.
Time is money and money is money.
Because price is always a key factor to FSBO success, it is up to each an every individual to use the considerations above to make an informed decision if they are confident in moving forward selling on their own or if having a broker handle the job is a better route to take.
Regardless of if you choose to go with a broker or not, we always offer a free no obligation property evaluation to all home owners who are considering selling or just want to know what their home is worth.