The Pros and Cons of Selling Your Home Without an Agent
Thinking about selling your house on your own, without a real estate agent? This is often called a "For Sale By Owner," or FSBO, sale. The main reason people think about this is to save money on commission fees. But is it really a good idea?
Here’s the quick answer: Selling your house without an agent can save you from paying the seller's agent commission, which is usually around 3% of the sale price. However, national studies show that homes sold by their owners often sell for less than homes sold with an agent. This lower sale price can sometimes cancel out the money you save on commission. In a competitive market like Roanoke, there are a lot of things to think about before you decide to sell your home by yourself.
The Good Things About Selling Your Home on Your Own
You Could Save Money on Commission
The biggest reason people choose to sell their own home is to avoid paying a commission to a seller's agent. In a typical sale, the seller pays about 6% of the final sale price in commissions, with half going to their agent and half to the buyer's agent. If you sell your house for $250,000, that's $15,000 in commissions. By selling it yourself, you could save the seller's agent portion, which would be about $7,500. You will, however, most likely still have to pay the buyer's agent commission, which is usually around 3%.
You Have Full Control
When you sell your own home, you are in charge of everything. You get to decide the asking price, when to show the house, and how to market it. You talk directly with potential buyers and their agents. If you're someone who likes to be hands-on and make all the decisions, this can be a really nice part of the FSBO process.
You Know Your Home and Neighborhood Best
You've lived in your home, so you know all of its best features. You know how the sunlight comes in the kitchen in the morning and how friendly the neighbors are. You can share these personal stories with buyers, which can be a powerful way to connect with them. Your knowledge of your piece of the Roanoke Valley, from the best hidden foot trails in the Blue Ridge Mountains to the quickest way to get to downtown Roanoke, can be a great selling point.
The Not-So-Good Things About Selling Your Home on Your Own
FSBO Homes Often Sell for Less Money
While saving on commission is a big pro, data from the National Association of Realtors shows that FSBO homes sold for a median of $310,000 last year, while homes sold with an agent sold for a median of $405,000. That's a big difference. An experienced real estate agent from a team like The J&D Realty Team knows the Roanoke, Virginia market inside and out. We can price your home just right to get the most money for you. The Roanoke market is busy, and homes are selling fast. If you price your home too low, you could lose out on thousands of dollars. If you price it too high, it might sit on the market for a long time.
Selling a Home is a Lot of Work
Selling a home is a full-time job. Here are just some of the things you'll have to do on your own:
Pricing your home: You'll need to research the prices of similar homes that have recently sold in your area of Roanoke, like in Cave Spring, Hollins, or Salem. This can be hard without access to the Multiple Listing Service (MLS).
Marketing your home: You'll need to take really good pictures, write a description, and get your home listed online. Getting on the MLS is very important because it's where most buyers look for homes. You can pay a company a flat fee to list your home on the MLS, but this will cost you a few hundred dollars.
Showing your home: You will have to be available to show your home to potential buyers, which can mean leaving work early or giving up your weekends.
Negotiating with buyers: This can be tricky. You'll have to negotiate the price, repairs, and other terms of the sale. An experienced agent does this every day and can help you get the best deal.
Handling the paperwork: There is a lot of legal paperwork involved in selling a home. In Virginia, you'll need to fill out a Residential Property Disclosure Statement. While Virginia is a "caveat emptor" or "buyer beware" state, you still have to be honest and answer any questions a buyer asks. Making a mistake on the paperwork can cause a lot of problems.
Legal Risks and Paperwork
Selling a house involves a lot of legal documents. You'll have a purchase agreement, disclosure forms, and closing documents. One mistake could delay the sale or even lead to legal trouble. While you can hire a real estate attorney to help with the paperwork, this is an added cost. A good real estate agent, like those at The J&D Realty Team, understands all the legal requirements for selling a home in Roanoke and Southwest Virginia and can guide you through the process.
Selling a Home in the Roanoke, VA Market
The real estate market in Roanoke is very active. The median home price is around $250,000, and homes are often on the market for only a few weeks. This means that as a seller, you have a good chance of getting a good price for your home. However, it also means that you need to be prepared to act quickly and have all your ducks in a row.
Working with a local real estate team like The J&D Realty Team can give you a big advantage. We know the neighborhoods, from Blue Ridge to Cave Spring, and can help you price your home to sell. We have a network of buyers and other agents, which means more people will see your home. We can also help you find trusted local professionals like home inspectors and real estate attorneys.
So, Should You Do It?
Selling your home on your own can be a good option for some people, especially those who have experience in real estate and a lot of time on their hands. However, for most people, the risks and hard work involved in an FSBO sale outweigh the potential savings.
Before you decide, think about these questions:
Do I have the time and energy to sell my home myself?
Do I feel comfortable negotiating with buyers and their agents?
Do I understand the legal risks involved?
Am I willing to potentially sell my home for less money than if I used an agent?
If you're not sure, we're here to help. The J&D Realty Team can give you a free, no-obligation home valuation and talk to you about how we can help you sell your home for the best possible price with the least amount of stress. We love helping people in the Roanoke Valley find their perfect home or sell their current one. Ask us anything by calling 540-302-5003.
FAQs About Selling Your Own Home In Roanoke VA
Q: How much can I really save by selling my home FSBO in Roanoke? A: You can save the listing agent's commission, which is typically 2.5-3% of the home's sale price. On a $250,000 home in Roanoke, that’s about $6,250 to $7,500. However, you'll likely still need to pay the buyer's agent commission (another 2.5-3%). Also, studies show FSBO homes often sell for less, which could wipe out your savings.
Q: What are the biggest challenges for FSBO sellers in Virginia? A: The top three challenges are pricing the home correctly, understanding and completing all the legal paperwork, and selling it in a timely manner. Virginia's "caveat emptor" (buyer beware) status puts a lot of responsibility on the buyer to do their inspections, but as a seller, you must answer all questions truthfully and disclose any known major issues.
Q: Can I list my Roanoke home on the MLS without an agent? A: Not directly. Only licensed real estate agents can post listings to the Multiple Listing Service (MLS). As an FSBO seller, you can pay a flat-fee MLS service a few hundred dollars to have a broker list your property for you. This is very important for getting your home seen by the largest number of potential buyers.
Q: Do I need a lawyer to sell my house by owner in Virginia? A: While it's not legally required to have a lawyer, it is highly recommended for FSBO sellers. A real estate attorney can help you with the contract, ensure all paperwork is correct, and guide you through the closing process to protect you from legal issues. This is an extra cost you'll need to budget for.
Q: What if I try to sell my house myself and it doesn't work? A: This is a common situation. Many FSBO sellers find the process more overwhelming and less successful than they expected. If your home isn't getting offers after a few weeks, you can always decide to hire a real estate agent. An experienced team like The J&D Realty Team can step in, re-evaluate your pricing and marketing strategy, and get your home in front of more buyers to get it sold.
