You don’t need to list your home with a Realtor.

Shameless Plug: Caraway offers unique services for each of the options below so that we can truly navigate the right path to selling your home for you.

OPTION 1

For Sale By Owner

For Sale by Owner (aka FSBO) is a method of selling a home where the property owner takes full ownership of selling their own property. The owner is responsible for marketing the property, opening up their home for showings, fielding offers, negotiations, and managing the contract process.

Pros

1. Sellers will not have to pay a listing agent commission. However, if a Realtor brings a buyer they will typically require that a commission be paid to the buyer’s agent.

Cons

1. No exposure to buyers and Realtors on the MLS
2. Minimal exposure because lack of digital marketing expertise
3. Lower sales price (on average) compared to other methods
4. Very time intensive
5. Safety concerns – When you sell the home yourself, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings, but your family’s health and well-being too.
6. Lots of paperwork

OPTION 2

iBuyer

An iBuyer is a company that leverages technology to make an instant offer on your home. The actual process varies depending on what iBuyer you leverage, but the concept is that the company estimates the value of your home and makes an offer on it. If you accept, the iBuyer will take full ownership of the home, market it, and resell it.

Pros

1. More control over when you move
2. Won’t need to open up your home to strangers
3. More certainty because they are all cash offers
4. Less stress
5. Slightly less fees in some scenarios

Cons

1. Losing out on upside of multiple offer scenarios
2. Lower offers
3. Not all homes qualify – especially luxury homes and homes in need of work
4. Slightly higher fees in some scenarios

FUN FACT: Not only can your Realtor help evaluate if iBuyers are a good option for you, but they can also help field the offers and help you choose the best one.

OPTION 3

Investor

An investor is an individual or entity that purchases a property with the idea of profiting from it. An investor typically falls into one of two buckets.

1. Buy & Hold Investors: Investors who purchase a property and then rent the property out to a tenant.
2. Flippers: Investors who purchase a property, improve it, and then sell it for a profit.

As a seller, you can approach investors (either on your own or with your Realtor) directly and solicit an offer.

Pros

1. Investors are generally okay with homes that need more work

Cons

1. Lower offers than other methods considering they need to make money
2. Higher chance of the deal falling through as homes are viewed with higher scrutiny than a traditional transaction

OPTION 4

Leasing

This isn’t the first idea that comes to mind for many homeowners, but it can be a great one! Leasing your home involves you becoming a landlord and leasing the home to a tenant for a profit.

Pros

1. Make a monthly profit from rent
2. Your tenant essentially buys you equity and pays down the mortgage for you

Cons

1. Down payment funds can be more difficult to come by since you won’t have funds from the sale of your home
2. Logistics can be difficult if your new mortgage requires you to have the property leased before you can close on your new home
3. Some people don’t want the headache of being a landlord

OPTION 5

Listing With a Discount Brokerage

Discount brokerages are built to conduct a higher volume of sales at a lower cost to the Seller. The brokerage typically employs agents who are willing to take less commission in return for a higher volume of leads. Generally speaking, fewer services are included than what a full-service agent would offer and the more services you want, the more you will end up paying.

Pros

1. Can be less commission paid depending on what services you select
2. Can help evaluate what price you should list your home at

Cons

1. Less attention from your Realtor and slower response times due to the fact that they are working a high volume of deals and its not worth the extra effort on one particular deal
2. Services that typically help sell your home faster and for more money (like staging, photography, etc) are either not included or cost extra
3. Because they make less money, there is less money to invest in marketing the property to generate more demand for your property
4. You are still on the hook for a buyer’s agent commission fee (typically 3%)
5. Slower process than some other methods of selling

OPTION 6

Listing With a Full-Service Brokerage

A full-service brokerage is built to handle the entire process of selling your home – from start to finish. The brokerage is responsible for listing the property, marketing it, and handling the closing. Typically speaking, the services provided by a full-service brokerage are higher quality as they have more invested in making sure that your home sells for more money and as quickly as possible.

Pros

1. Generates more demand and higher sales prices than other methods
2. Full suite of marketing services offered, including digital marketing and promoting on the MLS
3. A higher quality, more consultative suite of services provided such as home staging, open houses, marketing, photography, paperwork, and negotiations
4. Manage the entire process from listing to closing so you save a lot of time and stress
5. Can help evaluate what price you should list your home at to generate the most interest
6. Agent will handle all negotiations

Cons

1. Higher commission fee (typically 6%)
2. Slower process than some other methods of selling

YOU NEED A GUIDE TO HELP NAVIGATE THE RIGHT OPTION FOR YOU

A great Realtor can help you evaluate every single option that I’ve spoken about today and represent your best interests for each one. Not only can they consult you on what option to choose, but they can handle some or all of the legwork involved for each one. A Realtor that offers this truly has your best interests in mind.

So my one ask for you today? When you are ready to sell, reach out to a Realtor so you can discuss these options with a licensed professional before making a decision. You will thank me for it later!