Your home is your biggest asset, so it’s only natural that you want to get the best price when selling it. But you might believe that the ideal way to do this is to forego paying a realtor’s commissions because you’ll make more profit and are good at negotiating. Shortly, you or your friend might be thinking of selling your homes in Ottawa yourself, which is known in real estate agent circles as FSBO (for sale by owner).
Cons of FSBO
FSBO can work out for several people, but for most, it doesn’t. The main problem is that most of them need clarification on how the process works and how much expertise is involved. So, even if you’re prepared to put the time into selling the home yourself, you may need more expertise to do it right. The most common cons of FSBO include the following:
You Might Undervalue or Overvalue Your Property
Selling your home by yourself might become too emotionally draining. You probably have lived in the house for a better part of your life and shared some fantastic memories. Being emotionally attached to your home can cause you to overvalue your property and push away prospective buyers.
One of the highest risks of selling your property without a real estate agent is that you cannot tell how many homes in Ottawa are selling for. There’s a big difference from the asking price that anyone can find on the internet. Only real estate agents have access to information on actual real estate prices, and they’ll know when to adjust the price up or down to different neighborhoods. Additionally, real estate agents have the experience to weigh the comparable factors for Ottawa or your specific area.
But is there a problem with inaccurate pricing? Yes, there is. Suppose you’re asking too high of a price for your property. That means it may be listed for a while. Generally, home listings have a four to six-week shelf life. So, the longer your property stays on the market, the more likely potential buyers will believe something is wrong. Alternatively, you might give someone a massive deal by selling your home for too little.
You Have to Market Your House All by Yourself
Another risk of selling your property privately is that it takes plenty of work to market your home. For starters, you will need some professional-quality photos for your listing. You must call various local newspapers or online sites to place ads. When selling privately, you’ll also have to craft a “for sale” sign and send out promotional fliers with your contact information on them. Otherwise, you’ll have limited exposure, which leads to a low number of viewing and might affect the end price
You Have to Do Your Research and Make Sure You Are Legal
Ottawa has many regulations and laws for selling a home. It’s critical to document what you need to do as a seller. You’ll have to prepare all the necessary selling paperwork all by yourself. In addition, one of the most significant areas for lawsuits is needing to know or understand the disclosure laws. If you leave out issues in your home because you believe it’s not a big deal, you might be in the middle of an ugly lawsuit.
You Don’t Get a Reality Check on Your Property’s Looks
You can indeed spend some time on decluttering or do some research on staging, but you may not create an effectively staged home. A real estate agent will give you an honest opinion about what buyers want, as their goal is to ensure the home sells. If necessary, the real estate agent will call in a professional stager so your home looks its best to clients.
Staging is different from how you would normally decorate your home because it uses sight lines, placement, and psychology to maximize the appearance of space. Moreover, professional stagers might provide you with decor changes, but that’s less painful than having weeks or months go by without a showing.
There are various resources for FSBO, but you must ask yourself if you have everything to sell a house. Are you willing to let your property sit on the market longer to save a few bucks? While you may try to save on the agent’s fee and have more control, you may need to gain the knowledge and experience of a seasoned real estate agent.