By

Sue Martin
Coldwell Banker Myers-Gallagher
361-758-7534


If you’re thinking of selling your home without the assistance of a real estate agent, chances are you’re doing it to save money. I can’t argue with your motivation. After all, real estate transactions involve large sums. But before you go down that road, I’d like to share some information with you to make sure you’re considering all factors involved.
Run all the numbers. Would you go out of your way to save thousands of dollars if in the end it cost you more than the sum you saved? That may be the for-sale-by-owner experience for many. The worst part is that the homeowner who chooses this route definitely works hard, spends a lot of personal time, and takes on significant risk in the process.
It’s not a convincing argument to simply state that for-sale-by-owner’s sell their homes for significantly less than homeowners who hire agents. So here are some numbers to back this up. According to the 2007 Profile of Home Buyers and Sellers, the median selling price in Texas for agent-assisted sellers was $197,900. The median price for for-sale-by-owner sellers was only $105,000.

Now, wait a minute. The sample size in Texas may not have been large enough to draw statistically significant conclusions. The report itself mentions that. So let’s look at a larger sample: the national numbers. The median selling price for agent-assisted sellers was $240,000 compared to $180,000 for for-sale-by-owner sellers.

A closer examination of the survey results shows a much lower sales price for for-sale-by-owners when the seller knew the buyer. Perhaps relatives and friends often give a good deal to buyers they know. OK, but when you compare the sales price of for-sale-by-owners where the seller did not know the buyer, the median sales price still falls short at $207,900, which is $32,100 less than the median for agent-sold homes.

What does it all mean? I understand that these numbers don’t fully explain every variable at work here. But you don’t need numbers or surveys to know this: A less-experienced person isn’t as skilled as an expert. That’s true whether you’re talking about hitting a golf ball, solving a crossword puzzle, fishing or handling a real estate sale.

Compare the experience and abilities of a person involved in a real estate transaction every five or 10 years to someone who works every day to help people sell their homes. A lack of experience can cost you plenty.

If you wonder what kinds of mistakes sellers make on their own, here’s the short list: setting the asking price too high, stigmatizing the property as it sits (and sits and sits) on the market; losing money by pricing too low; making remodeling choices that won’t pay for themselves when selling; making changes to the home that actually reduce its marketability; not taking easy steps to make the property more desirable to attract higher offers more quickly – the list goes on.

Money isn’t the only thing on the table. Money may represent the biggest motivator for selling on your own, but you should consider other aspects of this decision. Making a misstep during a real estate transaction can derail the sale, cost you money, or even escalate to a court case. Negotiating blunders can also start small and snowball. Not knowing if potential buyers have the financial ability to purchase your home wastes your time. Speaking of time, make sure you will available to show your home whenever it’s convenient for other people. That includes weekends, evenings, and during the workday, too.

Selling a home without an agent may be a good option for some people – they might even save the money they’re hoping to save. For most homeowners, though, working with your local Realtor pays off, monetarily and otherwise.
For more information about selling your home, I invite you to talk to your local Realtor at Coldwell Banker Myers-Gallagher. Call 361-758-7534, email info@texascoastproperty.com or visit us online at www.texascoastproperty.com .