It is usual that when selling a house the seller does it without having a real estate agency involved. Let's put this case in particular: an individual who wants to sell her home already has two offers from her neighbors. Your house was already appraised last year so you have an idea of how much it could cost in today's market.
If you decide to sell your property to one of the two buyers without having a professional, you would save the cost and commission of the agency. In addition, by having only these two sales options, it would avoid having to show the house multiple times and organize visits, prepare the interior of the house, etc.
But it's not all advantages. Helen Curtis-Goulding, real estate expert partner of the Fladgate company, explains the drawbacks of choosing this route:
Market Value
The owners appraised the house a year ago, so its value has likely changed. There may be buyers willing to pay much more than the price offered after having done a little research on the offers that are out there. Real estate agents know the market much more in depth than an owner without references, and can have a much broader vision with which to calculate a profitable price.
The knowledge of a professional
It is important to keep in mind that a real estate agent has more experience when it comes to closing deals. We are not only talking about the ability to negotiate, but also when it comes to financial factors.
To choose a buyer, it is necessary to first know if they have enough financial stability to pay for the property. Asking for a proof that justifies your solvency can be somewhat violent for the owner if it is someone you know, so having a third person to take care of this process is a relief.
It would not be the first time that sellers ended up having to go to court because the final buyer did not have enough funds to pay for the house.
Having to Decide
When it comes to known buyers, choosing between one or the other can be tricky. When you have a real estate agent, he is in charge of assessing the economic factors and giving the seller a more profitable option, without counting on sentimentality or social commitments that can complicate the negotiation.
It is common for problems to arise in the process, so instead of having to go directly to speak with the parties involved, it is easier to leave it in the hands of a professional.
Selling a house is always stressful and complicated, so you must assess whether the economic savings that not hiring a real estate agency means is worth it.