Each method of selling your home comes with advantages as well as downsides. The right choice for you depends on your real estate know-how, how much you’re hoping to get for your property, and more. Learn about your options.
Option 1: A Traditional Real Estate Agent
The most common way to sell a home, used in 90% of sales, is to use a local real estate agent. The agent will list the home, market it, and coordinate showings with other agents and potential buyers. They will also help you evaluate offers, negotiate terms with the buyer, and ensure the deal goes through. They may even attend your closing appointment with you. Traditional real estate agents typically operate on a commission-based fee model. The seller’s agent is compensated at a percentage of the final sales price, which they then split with the buyer’s agent. For example, a 6% commission on a $200,000 home would be a $12,000 fee.
Pros and Cons of Traditional Real Estate Agents
Using a real estate agent is best if you:
Want help and guidance during the sales processAren’t well-versed in real estateWant to ensure your home sells for top-dollar
Option 2: A Flat-Fee or Discount Agent
Some real estate agencies, such as Redfin, Clever, and Reali, provide agents that work on a flat-fee or discounted-fee structure. These agents typically help you list your home but may not offer the same amount of hands-on help a full-service agent does. Discount agent fees vary by provider but are sometimes as low as 1%.
Pros and Cons of Flat-Fee or Discount Agents
Using a flat-fee agent is best if you:
Want some help but are willing to do some of the work on your own Are somewhat familiar with the process of selling a home Want to save on agent commissions
Option 3: An iBuyer
iBuyers, a fairly new option for home sellers, are online companies that purchase homes directly from their owners, usually via a cash offer. After entering information about your property on an iBuyer website, you’ll get an offer, either instantly or within a few days. If you choose to accept it, you can select a closing date and collect your money. If you don’t, you are free to solicit other offers or list your home on the open market. These types of sales are not very common yet; less than 1% of sellers used an iBuyer in 2021. Popular iBuyer companies include Opendoor, Offerpad, and Redfin Now.
iBuyer Pros and Cons
An iBuyer is best if you:
Want to close quickly and collect your cashWant to avoid staging and showing your homeAre fairly technologically savvy
Option 4: Sell the Home Yourself
You always have the option to sell your home yourself, known as an FSBO (“for sale by owner”). About 7% of sellers choose this option. To do this, you’ll need to market your house, possibly by listing it on Zillow or an FSBO-focused website, and then coordinate showings with buyers and their agents. You’ll also need to handle the negotiations, contracts, and other details of the sale on your own—or enlist a real estate attorney for help.
Pros and Cons of Selling Your Own Home
FSBO is best if you are:
Very familiar with the home selling processComfortable pricing and marketing your homeNot in a huge rush to sell
Option 5: Trade It In
If you already own a home but are looking to sell it and buy a new home, one option is to work with a company that will let you “trade-in” your property in exchange for your next one. A few examples include Opendoor and Knock. In both cases, the companies will buy your existing home, sell it on your behalf, and use that money to help you fund your new property.
Pros and Cons of Trading in Your Home
Trading in is best if you:
Already own a home and want to sell it and buy anotherDon’t want to deal with the hassles of listing, showing, and closing on your old homeLive in one of the select markets where these programs are offered
Making the Choice
Overwhelmed by the options? You don’t have to make a hard-and-fast decision right away. Instead, talk to a few agents, get quotes from several iBuyers, and scope out your local market. Think hard about how much time and knowledge you bring to the table before deciding which pathway to take.
