Is it wise to try to sell your home as for-sale-by-owner? Let’s take a look at why or why not.
I recently had a conversation with a group of my top agents about some of the big challenges they have been facing in helping their buyers find good properties at good prices. The dialogue shifted to where they were finding the best opportunities to find the lowest priced properties and the easiest deals.
There were two sources in particular that they mentioned where they were having the most success at getting good deals. One was FSBO homes, which makes sense because the people selling like this are most likely not real estate professionals. The other was homes that were using Homie.com to help sell their home. Homie is a Utah startup that claims to be the solution to all your real estate problems. They say they can save you more than $10,000 on your transaction while giving you all the tools you need to sell your home without an agent.
Why are the homes listed with Homie such easy pickings for our agents? In many cases, they are finding that sellers are drastically underpricing their homes. Homie doesn’t have the tools and technology necessary to help sellers value their property the same way a professional, experienced agent can. These homes don’t get nearly as much exposure either, and oftentimes have to suffer through price reductions.
Many homes on the market today receive multiple offers and sell over asking price when they are listed with an agent. This doesn’t happen nearly as much with homes listed with Homie. Sometimes, it doesn’t happen at all.
I don’t want to corner Homie into a box and say that everyone that uses them is sabotaging their transaction, because there’s definitely a place for their services in our market. However, it’s very important that if you are considering selling you are comfortable with pricing and marketing your home so you don’t leave tens of thousands of dollars on the table. It’s one thing to save 3% on commission, it’s another to leave 10% in value on the market.
If you have any questions about Homie, selling your home on your own, or anything else related to real estate, give me a call or send me an email today. I look forward to hearing from you soon.