Should You Work With a Real Estate Agent or Sell by Owner?

When it comes to selling a property, the process can be exciting yet complicated. One of the first major decisions you will need to make is how exactly you want to do it: on your own or through the help of a real estate agent. The potential to save money on real estate agent fees and having full control of the selling process can sound enticing, but there are significant pitfalls if you’re not experienced. 

In the following article, the Fort Collins real estate experts at Black Bear break down all you need to know about selling your home or commercial building, including the important factors to consider before making the decision as well as several pros and cons of each choice for you to weigh against your specific selling situation. 

What Does a Real Estate Agent Do?

Whether you’re a first-time seller or more seasoned in property ownership, working with a real estate agent is certainly considered the ‘standard’ way of doing things. This is, primarily, for the convenience and expertise that a real estate agent will bring to the process, but the traditional method of hiring a real estate agent also helps you with the following: 

Market Research 

Real estate agents are professionals with extensive experience in the real estate market, and they usually have a plethora of knowledge about the housing and building market specific to your region, state, and city. They will be able to know the trends in pricing, purchasing habits, and best practices that will give your property the best chance for success when it hits the market. 

Marketing and Sales

Real estate agents will list the property for you, and they may even already have a list of potential buyers that they’ve been in contact with who have expressed interest in your property or properties in your area. Furthermore, they can leverage professional photography and video, social media, and other marketing tools to maximize the chance of success.

Your agent will also be able to screen these potential purchasers so that you don’t have to waste time on individuals who aren’t serious about buying, and they will negotiate for you regarding offers and counteroffers, always striving to achieve the best possible price. 

Sale Preparation

Preparing and staging the property is critical for good first impressions of buyers. Real estate agents can arrange rooms and decorate the property according to the best buying experience. They will be there to help show buyers the property and in general prepare everything needed to conduct the sale. 

Paperwork and Legal Requirements

When it comes to the point where the sale has been made, some real estate agents will also help you through the specifics and communicate on your behalf. All the extensive paperwork and finalizing work that comes with making the sale official is made much simpler with the help of a real estate agent. 

Things to Consider

If you truly are considering selling all on your own, it’s worth considering the following: 

• What is your budget? 
• Do you have experience selling properties? 
• Do you have a strict timeline for selling the property? 

As you will see in the next sections, your answers to these questions will make a big impact on whether or not you choose to sell with the help of a real estate agent. 

Working with a Real Estate Agent

There are several advantages and a couple of disadvantages to working with a real estate agent. Be sure to weigh these into your own situation before making your decision. 

Pros

• Experience: real estate agents have the experience it takes to ensure a seamless selling process. They will know exactly who to target and how much your property can possibly sell for. 

• Full-time presence: real estate agents can work full-time, unlike yourself who will be limited by your job and other factors demanding your time. 

• Access to large networks: real estate agents have access to large networks of potential buyers and home listing sites giving your property the most exposure possible.

• Guarantees best buyers: real estate agents will avoid unqualified buyers. 

• Price negotiations: real estate agents have a lot of skill and experience negotiating prices. They will always fight for the highest price possible and have the techniques and training to do it effectively. 

• Property preparation: real estate agents will prepare the inside and outside of the property in order to achieve the highest possible aesthetic appeal. 

• Legal challenges: agents will help to overcome all legal challenges, requirements, and regulations. 

• Faster sell time: agents will be able to sell your property faster than if you were to attempt selling on your own. 

Cons

• Fees: real estate agents usually charge fees for their services which may affect upfront costs or the profit gained from the sale. 

• Committing to contract: some real estate agents will require you to sign a contract with them. This is usually not a problem, but some sellers like the freedom of putting their property on the market and taking it off whenever they want to. 

Selling Property Without a Real Estate Agent

The advantages and disadvantages of selling a property without the help of a real estate agent are as follows: 

Pros

• Lower initial cost: by selling your property on your own, you can save on initial commissioning fees. 

• Hard work: not everyone will see this as an advantage, but the challenge of selling a home can be rewarding and satisfying to some individuals. 

• No contract: You are not locked into a selling contract with any real estate agency. 

Cons 

• Lower selling price: the advantages of a real estate agent help secure your property a higher selling price. Without them, you’re likely to sell for less. 

• Longer sell time: without the help of a real estate agent, the selling process is likely to take much longer. You will not have access to their marketing, selling tools, networks, connections, and more. 

The Verdict

The answer to the question of whether you should work with a real estate agent or sell by owner is actually quite simple. Working with a real estate agent makes the selling process easier, quicker, and far more profitable. The only situation where working with a real estate agent may not be the right choice is if you are unable to afford it due to the inability to pay for initial commissioning fees. As it turns out, even with the initial fee, sellers with real estate agents are selling their property for a higher cost in a shorter time and coming out of it with much higher profits. If you’re looking for a Fort Collins real estate agent don’t hesitate to contact the team at Black Bear Real Estate and Property Management today!