Are you thinking of selling your home in Miami? If you are, you’ve got two possible routes: hiring a local real estate agent and relying on them to do all the heavy lifting, or bypassing the traditional route and saving on the agent commission. In a hot real estate market like Miami For Sale By Owner alternative can be very tempting. In fact, it may be so tempting that the homeowners forget what they’re actually paying for. This begs the question: FSBO certainly has its advantages, but do the pros really outweigh the cons? Although the decision is ultimately up to you, it is important to know what you’re getting into.
Weighing out the pros and cons of both options is the best way to make a better-informed decision.
Pro of FSBO: You’re in charge
If you choose to go it alone, you will have absolute control over the entire process. What exactly does this mean? For starters, you can sell the property on your own terms. You can decide on the listing price and marketing strategy without having to explain or justify your choices to anybody or jump through their hoops. Secondly, it allows you to move at your own pace rather than having to adhere to somebody else’s timeline. And, chances are that you aren’t your realtor’s only client. When working with a realtor, homeowners more or less have to accommodate both the agent’s and the buyer’s schedule for open houses and showings. This, in turn, frequently results in appointment times that are inconvenient for the home sellers to vacate the property.
Con: You’re not a licensed professional
If you’re lucky enough to have all the necessary skills to sell your own home, by all means, sell away. Most people, however, lack the expertise, and so they bring in an experienced realtor. When you hire a real estate agent, you pay for their:
- Marketing skills;
- Their knowledge regarding the market;
- Negotiating skills;
- Knowledge of the common pitfalls and loopholes;
- Their expertise regarding the legal process and paperwork;
- Access to pricing data;
- Knowledge of staging the property and best improvements for home valuation;
- Resources.
If you decide to go the solo route, all of this becomes your responsibility.
Pro: You can share the owner’s perspective
The buyer will want to know everything there is about your home before buying it. Thus, the fact that you know your home inside out makes you the most qualified salesperson. You are the one who can most effectively showcase the property’s highlights and discuss any deficiencies and upgrades. And not only that. You are also the best person to talk about what it is like to live in the community. After all, no one knows your neighborhood as well as you. Sharing the owner’s perspective can be a strong selling point with the shoppers.
You already have the knowledge regarding your home and neighborhood
Con: Limited resources
As a way to sell a home, For Sale By Owner is very unlikely to get you access to qualified buyers and visibility. Real estate agents and realtors have an established network. They are in contact with serious buyers, people who have the funds for a home purchase. Next, they know the ins and outs of the right marketing websites, tools, and strategies that help your property get the visibility it deserves. Without professional help, it will take much more time and effort to market a Florida FSBO home.
Pro: The trust factor
If you’re about to list your home, you may be asking yourself if real estate agents and Realtors® are trustworthy. This is a very common question to which a simple answer would be: Yes, generally, they are – but not all of them. Although most professionals in the industry take ethics very seriously, as in every other profession, there may be a small, unethical group governed only by self-interest. These are the people prepared to do anything it takes to get your signature, and once you’ve signed a contract with them, it’s highly unlikely you’ll be able to get out of it scathe-free.
So, let’s face it, selling a home in Miami, which is a very competitive real estate market, is not a situation where you can afford not to be able to trust your realtor®. Therefore, yes – in terms of the trust factor, FSBO may be less risky if you don’t think you would be able to recognize red flags or don’t trust salespeople in general.
Con: FSBO is time-consuming
The FSBO pathway can definitely be a time suck. The list of responsibilities is a long one, so selling property generally takes a lot of time and energy. For instance, correct property pricing takes a tremendous amount of time. We’re talking hours and hours of analysis. Don’t forget that technically, it’s not you who really determines the sales price. A piece of real property is worth as much as its features and future benefits of owning that property. In order to determine a property’s value, you will have to consider a lot of major and minor details. So, if you plan on going with FSBO, make sure you’re prepared for a lot of legwork.
Pro: You can potentially save some money
Not paying an agent’s commission is probably the main reason home sellers opt for Miami For Sale By Owner alternative. On average, a commission is 5 to 7% of the sale value. That’s $15.000 on a $250.000 FSBO that remains in your pocket. Then, you can allocate this money to your moving budget, for instance, and make the necessary arrangements to have your long-distance relocation out of town handled by professionals. Furthermore, there has to be no compromising on price to sell the house quickly. In other words, an agent may try to convince you to accept a lower offer to speed along the process. But, when you opt for FSBO, there’s no pressure.
Doing all the legwork means you’ll save on the agent’s commission. But be ready to invest a lot of your time
Miami flat fee real estate brokers provide a bit different level of service, though. The owners do much of the actual sale work; a Florida flat fee real estate broker will direct prospective clients to the homeowner and charge a fixed fee irrespective of the final selling price. The reasons this is becoming a popular route for the sellers are as follows:
- It’s a way to save equity on the sale;
- They don’t lose out on valuable services;
- FSBO homeowners still get to be in control of the selling process.
Con: You probably won’t make as much money
Although FSBO allows you to save money on a real estate agent, it cannot guarantee your home will sell for as high a price as it would if you worked with a licensed professional. Agent-assisted homes sell for much higher prices than FSBO homes, according to the National Association of REALTORS. An experienced agent has a time-tested strategy for real estate marketing and qualifying prospective buyers. They will also price your home competitively and use their profound negotiating skills to get you the best deal possible, which makes it a great Miami For Sale By Owner alternative. By going FSBO, you risk pricing your home incorrectly and marketing your home inadequately. This eventually decreases the likelihood of getting multiple offers and selling over the asking price.
