With the recent appreciation in Stockton home values, this might be a good time to consider selling your home. Stockton ranks 20th on a list of the top 300 markets in the country that are best for seller and buyers, according to Realtor.com. But which is the smarter way to sell your home –through Stockton realtors, or by listing it yourself?
Like many homeowners, you may find the idea of selling your home by yourself without the help of an agent a tempting idea. If you choose to list your home yourself rather than through a real estate agent, you could potentially save the standard real estate commission, but the amount you really save will depend on your negotiating skills and willingness to do everything a real estate agent would.
In reality, the money you could potentially save on commissions is often canceled out when you consider that selling with expert assistance, like the Movoto’s Sellers Program, can garner you a higher profit on your home. Statistically, homes on the market “For Sale By Owner” (FSBO) take longer to sell and sell for less than homes represented by real estate agents. The average price for a home represented by a real estate agent was $215,000, while the average FSBO sales price was $174,900 — $40,100 less, according to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers.
Here are five questions to ask yourself to determine whether you should attempt a FSBO or opt for expert real estate representation.
1. Can You Price Your Home Accurately?
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In order to determine the correct market value of your house, you will need to find similar homes in your neighborhood, assess if their similarities and differences make them comparable, and then price your home appropriately based on those factors. You need to know which homes your Magnolia District or Doctor’s Row District home are comparable before you set your price. In addition, you’ll need to spend between $300-$500 to hire an appraiser to support that price.
Stockton real estate agents have both the experience and industry-specific tools required to run a comparative analysis and create an accurate assessment of the Stockton housing market. Most agents work with certified appraisers to find the best listing price
2. Will You Be Able to Market Your Home?
A strong online presence is critical when selling your home. In fact, the first step 43% of homebuyers take when looking for properties for sale is to look online. In contrast, many FSBO sellers depend heavily on posting yard signs, with only limited social media exposure as follow up. The issue with that marketing approach is that yard signs don’t attract potential buyer’s attention like they used to, and the chances that your buyer will be in your circle of social media contacts is slim.
On the other hand, a real estate agent has other marketing tools available, such as the Multiple Listing Service (MLS) and their agent mailing list, in addition to requisite yard signs and social marketing. The MLS is a crucial tool for seller’s agent’s listings and for buyer’s agents to find available homes being offered. If you don’t have your home listed in the MLS, you will be at a huge disadvantage when you try to find a buyer.
3. Can You Handle the Tasks Involved with Selling Your Home?
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There are a plethora of small tasks that must be handled in a timely manner involving the marketing, prepping, showing and eventually sealing the deal. Some of the more important tasks your real estate agent will typically perform on your behalf include:
- Arrange interior and exterior photographs for advertising
- Help you prepare your home for sale; providing repair and painter referrals, and more
- Provide a lockbox for other realtor’s use
- Hold open house events; viewings for other real estate brokers
- Arrange individual property tours
- Receive/process offers to buy your home
- Ensure your home is available for appraisals and inspections
- Coordinate with the buyer’s agent throughout the escrow period; attend the closing
4. Are You Good at Negotiations?
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When a buyer gives you an offer on your home, will you be prepared, available and equipped to negotiate. While Stockton and the general San Joaquin Valley home values are steadily rising, it isn’t likely you will get the sale price you ask without assistance.
If you opt to go FSBO, you are going to have to be able to negotiate with people such as:
- The buyer looking for the lowest price
- The buyer’s agent who represents only the buyer’s best interests
- An appraiser, if your home’s value is questioned
- Home inspectors hired by the buyer to find problems with your house
- Your bank, if your home is a short sale
5. Do You have Enough Time to Sell Your House?
If you are like most homeowners, both you and your spouse work, which will limit the hours you will be available to show your home. While you will obviously need to be available during the evenings and weekends, you also need to be free during the weekday and daylight hours.
When you choose to work with a real estate agent, they will work with a potential buyer’s agent and always be available to show your home, even when you are working. Considering that the average home buyer searches for 10 weeks before committing to a property, you need to make sure your home is available at any time for a walk-through.
The majority of homeowners who consider a FSBO approach is to save money. Movoto’s Stockton real estate agents aren’t driven by commissions – which means that rather than paying a standard commission rate of up to 5%, you’ll get the support of a real estate professional for just 1% of the selling price of your home. Selling your home can be a stressful experience. By having a trustworthy local real estate agent by your side who knows the Stockton real estate market, who is willing to put out the effort to attract buyers to your open house events and secure the best price for your house you’ll reduce much of that stress.
