Selling your home can feel like an exciting venture, especially when the idea of saving on commission fees by going the for-sale-by-owner (FSBO) route gets your attention. The thought of bypassing a realtor and pocketing that commission is undeniably appealing. However, before you dive in headfirst and become a real estate agent overnight, it’s crucial to take a closer look at whether this approach is truly a good idea in Ontario—or if it might just end up costing you tens of thousands of dollars. 

How many times have you heard someone say that houses in Toronto practically sell themselves? But is that truly true? While the market can be historically competitive, it’s important to consider whether the current conditions are favorable enough for you to take such a significant risk with one of your largest investments. Is it wise to gamble on today’s market, especially when the stakes are so high? 

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Is going solo more appealing?

It’s tempting, isn’t it? By skipping the realtor, you envision pocketing that commission money—typically 5% of the sale price. For a $1,500,000 home, that’s a whopping $75,000 saved! But lets dive a little deeper on how this 5% commission is allocated.

When selling your own home in Ontario, it’s a common misconception that you can save the entire 5% commission typically associated with real estate transactions. In reality, if you want your home to attract buyers, you’ll likely need to allocate 2.5% of that commission to the buyer’s agent. This is a standard practice, as most buyers are represented by agents who expect to be compensated for their services. Before long, the $75,000 is cut in half to cover the buyer’s agent’s fee.

Do you have more questions about selling your home? Keep reading these posts next:

• How to Declutter Your Home When Selling
• What to Expect When Your Home Hits the Market
• How to Handle Buyer Feedback the Right Way

Is there value in a local expert?

When you hire a local agent, you’re not just paying for their time, you’re investing in neighbourhood expertise that can significantly boost your bottom line. A knowledgeable realtor will not only cover their fees but also help ensure your home reaches a wider audience, maximizing its sale price. Navigating the real estate market in Toronto’s west end can be complex, with intense competition, varied pricing strategies, offer nights, and discerning buyers. With the right agent by your side, you’ll not only streamline the process but also greatly enhance your chances of a successful sale.

Buying or selling in the West? Trust our West End expertise. Learn more about our history in Toronto’s west end right here.

What are the hidden costs of selling without a realtor?

While the potential for savings is enticing, the reality is that selling a home involves more than just putting up a sign on your front lawn and waiting for buyers to come knocking. Here are some reasons why selling your home without a realtor might not be the best decision.

1) Pricing mistakes:

Setting the right price is crucial. Too high, and you scare away buyers, but too low, and you leave money on the table. A local agent knows the market inside and out, allowing them to price your home strategically based on comparable sales and current trends.

Read more about pricing your house to sell with this post right here.

2) Marketing mastery:

A skilled realtor has a marketing strategy that can effectively showcase your home and expose it to more buyers. In the age of online marketing, when you list your property, the marketing package should craft a beautiful story about your home. Your property website should look like a magazine feature with invaluable info all about your home and its charms.  Pair this with beautiful, professional real estate photos and you have a perfect piece of real estate marketing. You might think posting on Kijiji or Facebook Marketplace is enough, but with today’s picky buyers, it’s definitely not. Professional marketing can make your home stand out in a crowded market.

Knowledge is power! Keep reading these home-selling blogs next:

• Why Your Agent’s Communication Style Matters to Your Home Sale
• Selling Your Home in the Age of Digital Marketing
• What to Do When You Need to Sell Your Home Fast

3) Negotiation skills:

Negotiation is a delicate dance, and emotions can easily cloud your judgment when you are representing yourself. As a seller, you’re likely attached to your home, which can make it challenging to handle objections or counteroffers objectively. A realtor acts as a buffer, managing negotiations with professionalism and distance that you may not have.

4) Home staging:

Did you know that homes that are well-staged tend to sell faster and for higher prices? Quality real estate agents should offer professional staging services to ensure your home looks its absolute best before its public debut. A beautiful presentation can dramatically influence buyer perception, making it essential for maximizing your sale. It’s all about getting every dollar you can from your sale and ensuring that nothing is left on the table. Strategic and professional staging can help you achieve just that.

What if you already have a Realtor and it’s not working out? Can you fire them? Find out here.

How will you handle tricky situations?

Life can throw curveballs, and real estate is no exception. What happens when you encounter a tricky situation with your potential buyer? Perhaps you’re dealing with a tough market, an inherited property with its own complications, or emotional ties that make the process overwhelming.

Buyers often prefer dealing with agents not home owners because they appreciate the professionalism and neutrality that comes with it. When negotiations get tough or questions arise, having an agent in your corner can help facilitate smoother conversations. After all, many buyers and sellers never even meet face-to-face; instead, negotiations happen through their agents, creating a buffer that can help keep emotions in check.

Navigating buyer objections & negotiations

As a homeowner, you’re invested in your space. You might have fond memories tied to every room, making it challenging to remain objective when potential buyers voice objections or negotiate prices. An experienced realtor knows how to address these concerns without taking things personally.

They can highlight the strengths of your home and downplay its weaknesses in a way that reassures buyers. Remember, it’s not just about selling a property, it’s about creating a narrative that buyers can envision themselves in. A skilled realtor can expertly weave that story.

Helping our clients sell their homes is one of our favourite things to do, and it just so happens, we’re also really good at it! Find out the 5 ways we speed up the home selling process and blow sellers away right here!

In the end, what is the better option?

Before you decide to go solo, ask yourself: Is the potential savings worth the risks?

Selling your home without a realtor in Ontario might seem like a savvy move, but the risks often outweigh the rewards. From pricing and marketing to negotiations and tricky situations, the value a knowledgeable real estate agent brings to the table is undeniable.

In a complex market like Toronto’s, having a skilled professional by your side not only makes the process smoother, but can also lead to a significantly higher sale price. Remember, it’s not just about saving on commission, it’s about maximizing your return on your investment and ensuring a stress-free experience.

If you’re considering selling, reach out to a trusted neighborhood agent who knows your area. The peace of mind—and potential profit—you’ll gain will make it worth every penny. Happy selling!

Looking for professional help? Fill out the form on this page, call us directly at 416-909-1602, or email hello@getnested.ca to get in touch today!

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