6 Ways To Sell Your House — Which Is Best?
According to a survey from Clever Real Estate, 77% of recent home sellers used a traditional real estate agent, and 73% stated that this method was the best way to sell a home. However, 57% of sellers preferred to land the best home price, even if it meant more work and waiting longer to close the deal.
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Since there are six common ways to sell a home mentioned, you want to know your options to get the best price possible.
Here are six ways of selling your home and the pros and cons of each method.
Traditional Real Estate Agent
“Working with a conventional real estate agent involves hiring a licensed professional to manage the legalities, marketing, negotiations and sales,” said Sara Levy-Lambert, head of operations at Awning. She pointed out how you get a thorough service from listing to closing with a traditional realtor.
The real estate experts and the respondents in the survey agreed that this was the best way to sell a home because a knowledgeable agent brings expertise in the local market, strong connections, negotiation skills and an understanding of the entire process.
Based on data from Clever, the national average realtor commission for a seller’s agent is anywhere from 1% to 4.50% with an average of 2.74%. While you can’t ignore the compensation involved, you’ll want to consider that you can earn a much higher selling price, which would offset the fees.
Ryan Gillen, a realtor and team lead at The Gillen Group, elaborated, “At the end of the day, a great agent isn’t just selling your home — they’re managing the entire process and making it as seamless as possible.”
What are the pros of a traditional real estate agent?
Thorough services so you don’t have to do anything on your end.
Knowledge of marketing techniques and pricing strategies.
Availability of an extensive network, including MLS listings.
What are the cons of a traditional real estate agent?
Higher commission fees since an agent can take a decent fee.
Less control over the selling process.
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Discount Real Estate Agent/Broker
“Although they provide identical services to conventional agents, discount brokers charge lower commission rates either from simplified operations or limited offerings,” said Levy-Lambert. A discount real estate agent can offer competitive rates because they don’t offer the same customization during the home-selling process as a traditional realtor.
What are the pros of using a discount real estate broker?
You can save money on the commission fees since they won’t charge the same as a traditional realtor.
You may not have to worry about advertising in a hot market as much.
What are the cons of a discount real estate broker?
Less customized attention from your realtor.
Limited marketing and assistance in the process.
The discount broker may fare poorly in negotiations with an experienced professional.
Laura Adams, an award-winning personal finance author and real estate expert, summarized it best, “The pros of a discount agent include getting professional expertise at a lower cost than a traditional agent. The cons involve sacrificing certain services, such as not advertising your property widely.”
For Sale By Owner (FSBO)
As the name implies, this method involves selling your home on your own without the assistance of a realtor. In the Clever survey, 66% of respondents felt this was the hardest way to sell a home. This could be attributed to the fact that you’re on your own, which can be overwhelming if you’ve never sold a home before.
“I always tell people, if you can sell your house yourself, you should,” said Gillen. “But if you need help, want top dollar, or want to sell faster, there’s a real estate agent who can meet your needs.”
What are the pros of FSBO?
Complete control over the entire selling process.
You can save a decent amount of money on the realtor commission.
What are the cons of FSBO?
You could face challenges if you don’t have experience in marketing and negotiating.
You’re completely on your own for the entire process.
You could be too emotional to handle the negotiations for your own home.
Cash Buyer Companies
As the name suggests, these companies have the resources to purchase your home upfront without a mortgage. However, the Clever study found that Americans have a harsh view of this selling option, with 61% of respondents referring to these companies as “scams.”
What are the pros of cash buyer companies?
You may not have to spend money on potential repairs or worry about dealing with buyers.
A quick closing process if you want instant access to cash.
What are the cons of cash buyer companies?
You may get much less than you could on the open market.
The company may lower the initial offer after an inspection.
iBuyer
An iBuyer is a company like Offerpad or Opendoor that makes an offer on your home based on the details you input. “Technology firms streamline the selling process by using algorithms to create fast bids on properties,” said Levy-Lambert.
What are the pros of an iBuyer?
It’s convenient and quick since you don’t have to go through the extensive process of selling your home (no showings or dealing with repairs).
You can connect with nationwide buyers willing to make a no-obligation cash offer.
What are the cons of using an iBuyer?
Limited availability in some areas.
Service fees could be high.
You could potentially lose a decent amount of money if you accept a cash offer below market value.
Flat Fee MLS Listing
“The pro for a flat fee MLS listing is getting exposure for your listing in the largest broker database,” said Adams. “The downside is not getting the full-service expertise that comes with paying a sales commission to a traditional real estate agent.”
Gillen pointed out that a flat fee MLS listing is similar to FSBO, but you get the added benefit of having your property listed online. If you choose the FSBO option, you’ll want to consider a flat fee listing to get better advertising. He added, “The con is that if your house doesn’t sell, the money you spent is gone. Flat fee MLS services typically cost between $750 and $1,000 for a set period of time, and that fee is non-refundable.”
What are the pros of a flat fee MLS listing?
You maintain control of the sale while reaching a larger audience.
Access to MLS publicity at a lower cost than buying a broker.
What are the cons of a flat fee MLS listing?
More obligations for the homeowner since you have to handle every aspect of the transaction.
You could lose money on the listing if you don’t get an offer.
“The pros of using an agent include getting high expertise and marketing know-how. They have a vast network of potential buyers, understand effective advertising strategies, and guide you through listing, showing, negotiating, and satisfying contingencies to close a deal,” Adams concluded.
While there are numerous ways that you can sell your home, you’ll want to consider the amount that you could earn from each strategy. Even though a traditional realtor could charge a higher commission, you’re paying for customized attention and a better chance at getting the highest price possible for your home.
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