There’s more than one way to sell a home, and for many homeowners, choosing between a private and a traditional sale can feel like a bit of a mystery. Both choices will let you sell your home to the buyer of your choice, but they work in different ways. Your Minnesota real estate attorney can help you set things up regardless of the method you choose, but before you choose how to sell your home, it’s a good idea to familiarize yourself with both choices. Let’s take a closer look at how private and traditional sales work, and how you can choose the right method for your home sale.
What Is a Private Sale?
A private sale refers to the process of selling your home directly to the buyer without using a real estate agent to facilitate the transaction. Often, these sales are referred to as “for sale by owner” or “FSBO” sales.
The goal of these sales is to streamline the sale and cut out the middleman or realtor. Doing so could help sellers save money on realtor fees and commission costs. In these sales, the buyer and seller negotiate prices and terms directly.
It’s also up to the seller to advertise and market their property to find a qualified buyer. For some sellers, this is a benefit, but for others, it may be more work than they want to take on.
What Is a Traditional Sale?
Traditional sales are real estate transactions made with the help of at least one realtor. Typically, the buyer works with their real estate agent who makes an offer on a property by submitting that offer to the seller’s real estate agent. The real estate agents then present their clients’ counter offers if applicable and guide the home sale through to closing.
Aside from helping you navigate the closing process, real estate agents also help with marketing your property, coordinating and advertising open houses, fielding questions about the property, and other tasks that you may not want to deal with on your own.
How to Decide Between the Two
Both private and traditional sales have their benefits and downsides. But there are a few considerations you’ll want to keep in mind to help you choose the best method for your upcoming sale.
Think About Your Timeline
If you’re trying to sell your home quickly, you may find it better to sell your home through a private sale. These sales typically take less time and are easier to wrap up, especially if you already have a buyer in mind, like a coworker, friend, or family member. But if you have a bit more time, working with a real estate agent may be a better choice. Traditional home sales may take longer, but they tend to get higher prices and result in less frustration for sellers than private sales.
Consider Your Comfort Level With Negotiations
In private sales, you bear the full responsibility for communicating with the buyer and negotiating a price and terms that make you comfortable. If you’re not thrilled by the idea of negotiating the sale or feel worried about your ability to negotiate terms that are beneficial to you and your family, working with a real estate agent and going through a traditional sale may be a better choice.
Work With a Minnesota Real Estate Attorney Regardless
Both private and traditional sales can be a good option for homeowners and both are perfectly legal ways to sell a property. However, it’s always a good idea to work with an experienced Minnesota real estate attorney regardless of the type of sale you choose. Your attorney will be able to review your contract and help you guarantee that the final purchase agreement works to your interests as best as possible. Contact us today to schedule a consultation.