If you want to put your real estate property on the market, there are several ways you can approach the sale. The method you choose will determine not only how much you can get from the sale, but also how complicated the process is for you. Below are three common methods for selling real estate properties.
1. Full-Service Agent
A full-service agent handles everything related to the sale, from the listing to the negotiations. The good thing is that you can sit by the sidelines and let the agent work their magic. The agent will list your property on all the major listing sites, ensure the paperwork is accurate, and come up with ingenious ways to sell your property. This last bit is especially useful if you have an unusual property that is difficult to sell or if you are in a buyer's market.
Unfortunately, the advantages associated with using a full-service agent don't come cheap. Expect to part with around 6% of the sale price as the agent's fee, which can be a significant sum. The 6% commission can be a lot of money if you only own a small fraction of your home's equity.
2. For Sale by Owner
You don't have to sell your house via an agent; you can do it on your own – this format is known as for sale by owner (FSBO). The main advantage here is that you get to pocket all the money from the sale. An FSBO allows you to sell your house at your own pace; you can pause at any stage of the sale or even change your mind without breaking any contract.
Unfortunately, you have to shoulder all the responsibilities of the sale that an agent would have helped with. This means listing the house, coming up with the right price, staging, and showing the property to prospective buyers, among other things. Selling a house is hard work, and many home sellers think it is best to leave all the work to the agent.
3. The Hybrid Approach
Both full-service agents and FSBO formats have their pros and cons, but you aren't restricted to either format. You can pick the best of both sides and opt for a hybrid format. In the hybrid format, you get an agent to handle some of the services at a reduced rate (much less than the standard 6%). However, you also have to play your part; for example, you may have to market the property. This can be a smart idea if you have some experience with real estate sales.
For more information, call a real estate agency in your area.