Selling Your House – DIY Or Use A Realtor?

You’ve decided to sell your house and aren’t keen on handing over a hefty commission to a realtor. Should you try to sell the house on your own?

“The major plus in selling your house yourself is that you do save the cost of commission,” says Maureen Peacock, a CPA, CA in Kitchener. “However, that savings will be reduced by any expenses you incur, such as obtaining an appraisal of your home’s value, advertising and having someone review the sale agreement.”

Realtors’ commissions in Ontario range from four to five percent, split between the realtor representing the seller and the realtor representing the buyer. “If you sell yourself, a realtor representing a potential buyer will likely want some sort of commission,” adds Peacock. “So selling your house yourself will not necessarily mean saving the entire amount of the commission.”

“Realtors know market trends in your neighbourhood, and know the value of comparable properties, so they can help you price your property to sell,” says Aaron Goldstein, CPA, CA, Manager, Audit & Advisory with Crowe Soberman LLP in Toronto. “They are also going to stage your home better, as they know how to present it to look attractive. And if you get into a negotiation or bidding war, you will benefit from their experience.”

Using a realtor also means your house will be listed on Canada’s Multiple Listing Service (MLS). “Being on MLS means other real estate agents are updated right away when you list,” says Peacock. “Realtors also look after your advertising and have contacts with professionals in other cities.”

Selling your house on your own can be stressful and time-consuming. “It can be tough to come up with the right value of your house, and it takes time to take calls and schedule showings,” says Peacock. “Putting the deal together can be stressful, and if issues come up after the home inspection, you won’t have the benefit of a realtor’s advice.”

While selling your house yourself means you won’t have to leave during showings, Peacock cautions that it can be awkward and uncomfortable to hear what potential buyers say about your home.

If you do decide to handle the sale yourself, do your research and maximize the value of your house. “Analyze the current market so you get the best price,” advises Goldstein. “Get rid of your clutter and stage your house properly.”

You may want to get an appraisal of your home’s value to help with pricing, adds Peacock. “Consider finding a realtor who, for a fee, will write the offer and handle the deposit,” she says. It may also be wise to have a lawyer or other professional review the sale agreement.

If you decide to hire a realtor, talk to more than one.

“Walk through some of the realtors’ listed houses so you can see how they work and how they present,” says Goldstein. “Get a sense of their personality and determine whether you feel comfortable working with that agent. Ask for a list of homes they have recently sold and get references from former clients.”

It’s also wise to select a realtor who knows your market. “Get referrals and look at houses in your neighbourhood with “sold” signs,” says Peacock. “Talk to several realtors and don’t necessarily sign with the one who suggests the highest price for your house. It’s important to select a realtor who is honest, has integrity and will keep your information confidential.” 

Brought to you by the Chartered Professional Accountants of Ontario.