The 5 Ways to Sell a Home in 2023

 

Selling a home is typically one of the largest transactions you will make in your lifetime and with advances in technology and techniques, selling a home in 2023 is a completely different experience.  In the past you had two choices, list your home with a full-service real estate agent or go the For Sale by Owner route.  Today, you have five ways to sell your home all with their unique advantages and disadvantages.

Every seller wants to end up with as much money as possible in their pocket so in this article we will explain the five ways to sell a home in 2023 as well as the pros and cons of each method.

The Five Different Ways to Sell a Home in 2023

1.  Full-Service Real Estate Agent


Selling a home using a full-service real estate agent has been the dominant method of selling a home for over 50 years and there is good reason for this. When you engage the services of a full-service real estate agent you are hiring a professional with one goal, sell your house so they can earn a commission.  They have the tools to properly analyze the value of your home, set a realistic sales price, and have the ability to market your home to a vast audience. They will handle almost every aspect of the sale and guide you through what can sometimes be a cumbersome process with many moving parts.

The Advantages of Hiring a Full-Service Agent

  • You are provided advice from an experienced professional
  • You get the data necessary to set an appropriate sales price
  • The advertising and marketing is included in the service
  • The agent will market your home to a vast audience
  • The contract and related documents are prepared for you
  • They assist you in resolving issues revealed by the home inspection
  • You are guided through the transaction from start to close

The Disadvantages of Hiring a Full-Service Agent

  • Not all agents are equal. Full price does not guarantee great service
  • A full-service agent will typically charge a 6% commission
  • You have no control over the advertising, marketing, or sales process
  • You can get the same level of service with lower fees
  • If your home sells, you are required to pay the commission fee regardless of the quality of service you receive.

Why Consider Hiring a Full-Service Agent?

A full-service real estate agent will help you sell your house quickly with the least amount of effort but this comes at a price.  You will pay the highest fees and typically will receive less money at the closing. This option is best for a seller that wants the security of a nationally branded realtor and is willing to pay high fees for the comfort of a brand name.

2. Limited Service Real Estate Agent

A limited-service real estate agent is the opposite of a full-service agent. For a modest fixed fee, their basic service includes listing your home for sale in the local MLS.  In addition, most of them offer a menu of additional options you can choose from all at an additional fee.  This is very similar to the For Sale by Owner except you will get your home listed in the MLS and have the ability to select additional services as needed/wanted.  The additional services generally include lock boxes, yard signs, flyer creation, showing scheduling services, etc.  But the one thing they all exclude is advice and direct assistance from a real estate professional.

You can think of it as borrowing tools from your local auto parts store, they allow you to use their tools for a small fee but you need to know how to use the tools and do the work.  This can be effective providing the seller has the knowledge, willingness, time, and resources to handle all aspects of the home sale.

The Advantages of Hiring Limited Service Agent

  • Your home is listed in the local MLS
  • All agents are generally willing to show homes listed in the MLS
  • The cost can be substantially less than a full-service agent
  • Feedback from potential buyers is not filtered
  • You decide on the advertising and marketing plan
  • You are directly involved with the negotiations
  • The closing agent and other third parties work for you

The Disadvantages of Hiring a Limited-Service Agent

  • It is difficult to select the right level of service
  • You still pay a 2.5-3% commission to the buyer’s agent
  • The process can be tedious and time-consuming
  • You pay the cost for a photographer and marketing
  • If the sale is not successful the money spent is lost
  • Sales, and marketing fees may be higher than expected
  • The expected cash savings may not materialize

Why Consider Hiring a Limited Service Agent?

A limited-service real estate agent has the lowest fees and can help you get the absolute most cash at closing but this comes at a price. You will be required to put in the effort and depending on how effective you are at managing, advertising, and marketing your property will determine if the home sells quickly. This option is best for people with some experience in sales, marketing, and some experience with real estate sales.

3. Full-Service Discount Real Estate Agent

Another fairly recent development in the real estate market is the full-service discount real estate agent. These agents provide almost the same services as the full-service-full-price agents but at a reduced commission. This includes current market trend information, sales pricing data, MLS listing, advertising, marketing, professional photography, and guidance from a local real estate professional. Some full-service discount agents pecialize in selling homes and are strictly seller’s agents and do not work with buyers. This eliminates any potential conflict as their only goal is the sale of your home.

Although discount full-service agents include all of the typical sales, advertising, marketing, and support services there are a few things they might do differently, such as not holding open houses. Less than 1% of all homes are sold through an open house.  An open house is used to solicit buyer leads.  For sellers, holding an open house is a waste of time, resources, and an unnecessary expense.

A full-service discount real estate agent is only interested in doing what is needed to sell your home quickly for the highest possible price.

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The Advantages of Hiring a Full-Service Discount Agent

  • You are guided by a professional from start to close
  • Pay a 4-4.5% commission vs. 6%, saving you thousands
  • You get the data needed to set an appropriate sales price
  • The MLS listing and advertising will reach a vast audience
  • Marketing and professional photos are included
  • They assist in resolving home inspection issues
  • Their only goal is to sell your home

The Disadvantages of Hiring a Limited-Service Agent

  • Most will not hold an open house
  • Not all agents are equal. Many provide a great service but some do not
  • The fee is reduced but you will stay pay a 4-4.5% commission
  • You have no control over the marketing and sales process
  • There is no guarantee that your home will sell

Why Consider Hiring a Full-Service Discount Agent?

A full-service discount real estate agent has low fees, will help you sell your home quickly, and requires very little effort, but you will pay some modest fees which will reduce the amount of money you receive at closing.  This option is best for people who want a professional to handle all aspects of the real estate transaction and do not mind paying a modest fee for the services provided.

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4. For Sale By Owner

Many sellers are enticed to go the For Sale by Owner or FSBO (pronounced “fizz-bow”) route as it can potentially put the most money in their pocket by saving or reducing the commission paid to a real estate agent. Interestingly, the other most cited reason for sellers to go the FSBO route is having complete control of the home sale process. This includes getting direct feedback from potential buyers and being an active member in all negotiations. With the internet and sites like Zillow, this has become an easier process but easier does not mean easy.

But like the other four ways to sell your homes, there are advantages and disadvantages of going the FSBO route.

The Advantages of FSBO

  • You have complete control over the sales process
  • You can potentially save a substantial amount of money
  • Feedback from potential buyers is not filtered
  • You decide on the advertising and marketing plan
  • You are directly involved with the negotiations
  • The closing agent and third parties answer to you

The Disadvantages of FSBO

  • You do not get access to recent sales comparable data
  • You pay for the photographer and marketing upfront
  • If the sale is not successful the money spent is lost
  • The process can be tedious and time-consuming
  • Agents may not show or sell a FSBO home
  • The expected cash savings may not be realized

Why Consider the FSBO Route? 

For Sale by Owner requires the most amount of effort but has zero fees.  How quickly you sell your home and for what price is highly dependent on how effectively you manage, advertise, and market the sale of your home.  This option has many risks and is generally the best option for people with sales, marketing, and real estate experience or who cannot afford to use the services of a professional.

5. Sell to an Investor/iBuyer

A fairly recent development in the home real estate market is the ability to sell a home quickly to an investor or an iBuyer. Investors and iBuyers use computerized automated valuation models (AVMs) to evaluate your home based on what similar homes in your neighborhood have recently sold for combined with the specifics of your home to estimate its value and make offers.

This sales method allows the seller to avoid the stress, time, and complications of the home selling process. It also allows sellers to bypass things like extended negotiations, appraisals, and buyer financing issues. The process is also much quicker, instead of weeks or months the entire transaction can be completed in 10 to 15 days.

However, selling to an investor or an iBuyer isn’t for everyone. Not all homes will meet the acquisition criteria and you may be able to get a higher price for your home from a traditional buyer.

The Advantages of Selling to an Investor/iBuyer

  • Selling to an investor/iBuyer is a much faster
  • It is a much easier and stress-free process
  • Terms from investors are flexible and allow leasebacks
  • The closing is not contingent on financing
  • You do not pay real estate commissions
  • There is little to no risk that the sale will close

The Disadvantages of Selling to an Investor/iBuyer

  • Not all homes will qualify
  • Investors do not purchase in rural areas
  • Typically the sales price is much less than a traditional sale
  • You have no control over the process and closing vendors
  • The sale might be canceled after the inspection
  •  It can be hard to reach someone with authority

Why Consider Selling to an Investor/iBuyer?

An investor/iBuyer will require the least amount of effort and will be very quick to close, but their fees or the price paid for the home will typically cause you to get the least amount of cash at closing.  This option is best for a seller who wants convenience and speed over price or someone who needs to sell quickly.

Conclusion

 

Selling a home can be a complex and stressful process that involves lots of paperwork, negotiations, and legal issues. For the vast majority of sellers, the full-service discount real estate agent will provide the ideal mix of convenience, speed, and cost savings while ensuring they get their homes sold quickly and for a great price. But every home and home seller is unique so you will need to choose the option that best suits your particular situation.

Brought to You by the Mac Realty Team

This information is provided by Mac Realty Team, a team of full-service discount real estate agents with Global Realty. For additional information, current market sales data, or for help selling your home we invite you to visit www.MacRealtyTeam.net

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