Sellers’ Market? 3 Reasons You Shouldn’t Try to Sell Your Own Home
With so many people moving to Sun Valley, Ketchum, and Hailey, the demand for real estate in the Wood River Valley is soaring to record highs. If you’re a homeowner, above-ask offers, competing buyers, and quick closes sound like a dream come true—but if you’ve been tempted to try selling on your own, you might want to think twice.
What is a sellers’ market?
In real estate, a sellers’ market is what happens when the demand for homes exceeds supply. Even though there are many people interested in buying a property, sellers have more power because there is lower available inventory. In a seller's market, homes sell faster, and buyers are under more pressure to compete with each other. Higher offers, quicker closes, and fewer contingencies are all more common.
Under these conditions, some buyers might be tempted to try selling their home on their own (a process known as For Sale By Owner, or FSBO). Instead of working with a real estate professional, homeowners might think selling their house will be easier or faster if they do it themselves. For others, FSBO seems attractive because they want to avoid paying a commission or fee. Unfortunately for homeowners, this route is rarely a good idea.
Since FSBO's are typically a few months behind the market, in a market that is changing daily (in this case to the sellers’ advantage) Stephanie Reed Real Estate can give them the most current information without leaving money on the table.
Here are a few reasons why selling your own home might cost you more in the long run
FSBOs typically have a lower selling price and less profit
You might be missing out on valuable housing market insights
Real estate professionals can help you negotiate
1. FSBOs typically have a lower selling price and less profit
According to a report by the National Association of Realtors (NAR), the average For Sale By Owner (FSBO) property typically sold for less than the selling price of other homes. “FSBO homes sold at a median of $217,900 in 2020 (up from $200,000 in 2019), and still far lower than the median selling price of all homes at $242,300. Agent-assisted homes sold for a median of $295,000.”
If the buyer knew the seller, the median price was even lower ($176,700). Compared to homeowners working with an agent, that’s a difference of -41% in selling price.
2. You might be missing out on valuable housing market insights
If you choose to sell your house on your own, you risk missing out on valuable housing market insights. Since real estate professionals work regularly in their communities and are constantly analyzing trends and market behaviors, their expertise and industry knowledge can transform your selling experience.
3. Real estate professionals can help you negotiate
When it comes to negotiating on your behalf, real estate professionals are trained experts. An agent’s knowledge, experience, and network of local contacts can help manage much of the stress of selling your house (and get you the best possible deal).
Conclusion
Although a high-demand market can make it tempting to sell your own home, going through the process without a real estate professional can be a costly mistake. By trying to navigate the sale alone, you risk capturing less profit, missing out on key market insights, and negotiating less effectively with interested buyers.
If you’re a homeowner in the Wood River Valley and interested in connecting with a member of our team, we would love to get in touch.