Currently in Knoxville, Tennessee there are more buyers than there are homes for sale on the market. This makes Knoxville a “sellers market.” Since Knoxville is a sellers market, more homeowners choose to go the for sale by owner route to avoid paying a commission, or not as much of a commission to a real estate agent.
For Sale by Owner or Agent?
Anyone can sell their own home without a Realtor. As long as they know how to put a sign in the yard and can take care of all paperwork. What is most important is if the buyer is willing to pay what the homeowner is willing to accept after all inspections have taken their course. If the buyer is getting a loan then the home would obviously have to appraise in order for the buyer to obtain a loan.
However, the main question to ask is a for sale by owner always the best decision? The average sales price of a for sale by owner according to the National Association of Realtors is $200,000. The average sales price of a broker controlled transaction is $265,500! https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics This is over a 28% difference in price. The standard commission for a real estate agent across the United States is 6%. This statistic only proves a real estate agent is going to net you the most amount of money.
A for sale by owner is probably wondering how a Realtor gets them more money. There a several reasons to this including exposure, a pre-qualifying process, and knowing how to properly negotiate. The real estate brokerage community sales 93% of all homes sold in North America each year. This means they control 93% of the buyers. Since Realtors are constantly working with mortgage lenders they are easily able to pre-qualify buyer prospects. This will help having only serious showings when a home goes up for sale. On a rare occasion when a for sale by owner actually sells, the seller typically leaves more 28% of their equity on the table!
Call The Goswitz Team with eXp Realty in Knoxville, Tennessee to get a sold sign in your yard! 865-588-1234