There are over 3 million licensed real estate agents in the United States. If you are thinking about selling homes you need to think about whether you want to put your properties on the conventional market or not.
You may be asking yourself: “Do I need a realtor, or can I sell my home on my own?” There is no easy answer to this predicament. The best answer for you entirely depends on your situation.
That said, you can use the five tips in this guide to help make the call. That way you can do what makes the most sense for you during this current real estate boom.
1. Assess the Condition of Your Home
Realtor homes for sale are often in prime condition. Most real estate agents shy away from putting a fixer-upper on the market. You should assess the following attributes of your home when making the call on how to sell it.
What is the present condition of important structural elements of your home? Is the roof sound, or do you need to redo it? How about the foundation, exterior paint, and interior rooms?
If the structural integrity of your home is compromised you may be better off selling it for cash as a fixer-upper, or knocking it down and selling the raw land.
Is your home located in a slide zone? Is the area you live in prone to wildfires or other natural disasters? These are some questions you need to ask yourself as many real estate agents won’t list homes in disaster-prone areas.
Your home’s age will dictate how it will be listed. If your home is a historic building it may sell well on the market. If not, a dilapidated old building may not list well.
Mold and Environmental Hazards
If your building is full of mold, water damage, or other contaminants you should keep it off the market. Always get some environmental testing done on your surrounding land as well to make sure you are transparent to buyers.
2. Assess Your Financial Situation
Your financial situation will dictate the best option for selling your home. If you are broke, you may want to sell your home quickly for cash. You can read more here about that option.
If you aren’t hurting for cash, you may want to list your home with a realtor. If you let it sit long enough you may be able to hold out for an offer well above your asking price.
Realtors Take a Cut
Another thing to keep in mind is that realtors take a cut of your profits from your home sale. If you can’t afford to break them off a piece of your nest egg you may be better off selling for cash to keep more profits for yourself.
3. Assess the Market
If the current real estate market in your area is hot, you may not need a realtor to get way above the asking price for your home.
If things start to stagnate, you may want the professional touch of a realtor to help you navigate the slow market.
Realtors have access to leads that you may not get from the conventional marketplace. You will pay for this access but it may be worth it.
4. Do You Need a Realtor With Experience?
If there are no cash buyers available, and you are out of your element you may want to hire a realtor simply for their level of experience. A realtor can help guide you through the hoops of listing your home and selling it.
While you may lose money to them by paying them for their services, this niche knowledge on how to navigate the real estate market could be worth it. This is especially true if you don’t understand real estate laws in your state.
5. Determine Your Purpose and Strategy
If you are flipping homes as a business your purpose and strategy will be much different than an individual selling their home so they can buy a new one. Keep in mind the following when determining your purpose and strategy.
Is This Transaction for Business?
If you earn a living flipping homes, you may want to keep them off the market. Your transaction will be much faster and you can earn a higher profit by selling them for cash to interested buyers.
Will You Be Reinvesting Your Profits?
Whether you are flipping homes or selling your primary residence, you need to think about your end goals. If you are reinvesting your profits in a new property you may want to skip listing your home with a realtor.
Their realtor fees will eat into your bottom line and you will be losing profits that you could reinvest into your business.
Do You Have a Good Reputation?
If you have a good reputation with past transactions, you may not need a realtor. If you have botched some deals in the past you may want to hire a realtor so you can ride on the coattails of their reputation.
How Much Real Estate Knowledge Do You Have?
If this transaction is not your first rodeo, a real estate agent may be unnecessary. If you can facilitate your sale you should do it as you will save money.
If however, you have no past real estate or business experience, you may be better off using a realtor. The last thing you want to do is make a foolhardy decision because you lack adequate knowledge of the real estate market.
Realtors Aren’t Right for Everyone
Depending on your situation you may need a realtor to sell your home. If you can manage to do without one, however, you will save a ton of money.
That said, if you can’t sell your house on your own a realtor may be your only option. If you are having a hard time deciding on whether or not to use a realtor, analyze the tips in this guide.
Make your call based on the information presented in this article. If you have other questions about reality and need guidance, check back with our website for other great content.