Should I Sell My House by Owner: Pros and Cons

Article by:

Tein Hlwa

Should I Sell My House by Owner: Pros and Cons

If you’re thinking about selling your home you might be asking if you should try your hand at selling it by the owner.

Of course, like anything real estate-related, a house for sale by owner has its pros and cons.

You should know that selling a house by owner is much simpler when it’s a seller’s market, but it’s by no means a simple task.

As a home seller, you want to make as much money as possible from your home’s sale but selling it on your own can be time-consuming, among other things.

One main reason sellers think about selling their own home is to avoid shelling out money for an agent and their commission.

Reports suggest it’s feasible to make more money when selling without an agent. But, as mentioned there are cons to selling a house by owner without a qualified agent’s assistance.

Before you embark on this feat, know that selling a home on your own is certainly more difficult than you might realize.

Pros to Selling a House by Owner


Possibly Make More Money

When you sell the home on your own, you won't have to pay for the help of a real estate agent.

This is because a real estate agent can charge a percentage fee based on the sale price. Without an agent, you could save quite a bit by doing it on your own depending on the value of your home.

Thus, saving a commission is the most popular reason homeowners try to sell their property by owner.

According to The National Association of Realtors, over ninety percent of all for sale by owners fail and end up hiring a real estate agent.

Complete Control Over Home Sale

When you do it yourself, you have complete control over the sales process. You do not have to adhere to any one's opinion about marketing the home, what price tag you want to tack on to it, how to negotiate, how to get the home ready to put up for sale, or any other decisions. While this may sound like heaven, there are good and bad points if you opt for this.

Being the boss is always great but if you don’t know much about the real estate market you could be without the important tips, info, and counseling of a real estate professional.

A house for sale by the owner means exactly what it refers to – you’re on your own.

Devote Your Full Attention to Selling

Another pro about putting up the house for sale on your own is that you can devote as much or as little time as you want to its sale.

If you hire an agent they will have other clients besides you; meaning you will not be their only concern.

On the flip side, when you sell your own home, you can spend as much time as you want to show it, offering an open house, etc.

This works in your favor if you have free time to market the home, be able to show at any time of the day or evening and be ready to talk with buyers whenever they call.

But if you have a job in the day or night when buyers want to take a tour and you’re stuck at work, it will be hard to sell the home by owner.

High Traffic Areas

One wonderful way of selling your home by owner is if it's located on a high-traffic street or in a neighborhood where agents list other properties.

If situated on a main street, you have the benefit of more people noticing you’re selling your home if you have good signage.

Cons to a House Sale by Owner

Not as Much Money as You Thought

Sure you won’t have to pay a real estate agent, but probably won’t get as much for your home as you would if you worked with a professional.

A professional Realtor knows how to market a property to the right buyer, price it competitively, and negotiate.

It’s possible without the assistance of a competent real estate agent pricing the home correctly (since this can be the biggest mistake when listing a home) can be extremely difficult.

Real estate agents price homes every day and sometimes it’s not always the best number.

Two things determine a home sale:

Price: If you don’t have the correct price listed, it’s next to impossible to sell a home. And yes, being overpriced is a top reason a home doesn’t move.

Marketing: The reason for a marketing plan is to attract as many qualified buyers as possible.

Marketing Takes Effort

You can list your home online easily, but you need good marketing. Proper marketing helps buyers see what you’re offering.

An agent also lists your home online as well via the MLS or multiple listing service and has a larger network to reach than you.

Tough Work and Internet

Before listing your home, you will need to have it inspected, repaired, photographed, and more.

For Sale by Owner Websites Not Great

A lot of buyers hunt for a new home via the Internet but listing your home on a for sale by owner website isn’t much help. The for-sale-by-owner sites don’t get as much traffic as agent sites or MLS sites.

Qualifying a Buyer

Let’s say you’re lucky and you do find a buyer for your home, you will stay have to make sure they are qualified to purchase it. Do you have the skills for this?

Know City Laws, Regulations

Before you put up the for sale by owner sign you will need to learn about the city’s laws and regulations about selling a home.

You might need specific requirements and filing certain paperwork before opting to sell by owner.

Another Option

Hire a Buyer’s Agent to Find a Buyer

You can always save money by selling your house on your own if you hire a buyer’s agent. Instead of paying the agent a full commission, offer to pay the buyer’s agent for finding a buyer. This typically saves half the commission and could get the home sold faster.

Overall, deciding to sell your home on your own could result in saving quite a bit of money since you won't be putting out for the agent’s commission.

However, you need to decide if you have the time and wherewithal to do it on your own. It takes time, effort, and patience.

In the end, only you, the seller, can answer these questions and decide if it's best to do it on your own or hire a qualified agent instead.