“For Sale By Owner,” or FSBO as some like to call it, sounds like a great way to save thousands of dollars if you’re thinking of putting your home up in the market. After all, a real estate agent’s standard commission is around 5-6%– and that’s a whopping $15,000 to $18,000 on a $300,000 home. So yeah, it’s not a surprise most sellers think that acting as their own agent is worth the savings.
But is a realtor really dispensable in a real estate transaction, let alone in selling your home? Here are ten reasons why you selling your home by yourself is a bad idea:
Some buyer agents don’t show a FSBO home
Realtors are aware that an FSBO deal means there won’t be a professional colleague at the other end of the transaction. So, even if the client is interested in seeing your home, his agent may discourage moving forward with an offer, citing risks that may come in making a deal without a professional representation– and, of course, sans a guaranteed commission!
Agents don’t do emotional sales
Most homeowners have a hard time dealing with their emotions during the selling process, and it is quite understandable. Hiring an agent helps you avoid going through this tough ordeal, and you’re less likely to make unnecessary mistakes like overpricing your home, giving in too easily to a low-baller, etc. And the best thing about having an agent? You won’t have to deal directly with rejection every single time!
Homes that are FSBO don’t sell as quickly and as much
Paying for a real estate agent means you’re also paying for his expertise and knowledge in the housing industry, which will translate to how long and how much your house will sell. According to data released by the 2018 National Association of REALTORS® Profile of Home Buyers and Sellers, FSBO listings take an average of 19 more days to sell and an average of $65,500 less than those represented by a Realtor. If you’re time-pressured and also tight on budget, selling fast and for a better price will truly make a big difference.
Real estate transactions require most of your time
Many homeowners don’t realize that selling your home requires a huge chunk of your time. Are you able to take off from work every time a prospective buyer wants to view your home? Do you have enough leeway to entertain every call about your house? Do you still have the energy to market your home after a long day at work? Think about it.
Agents have full access to large networks and connections
A smaller pool of potential buyers leads to a longer wait in selling your home plus a lesser price than what your house is worth. An agent can list your home on all viable selling platforms, plus use his/her professional network and connections (a.k.a. past clients, other agents, real estate agency) to bring huge waves of potential buyers to your home.
Realtors have impeccable marketing strategies
Did you know that only 9% of home buyers can find their preferred property by calling on a sign they see by chance? The majority of these buyers find their homes with assistance from a residential real estate agent on current and upcoming listings. So yes, having an agent truly has its perks.
Realtors can weed out unqualified buyers
Real estate agents undergo training to ask qualifying questions to determine the seriousness and qualification of a prospect. He/She can find out whether someone is really a qualified buyer or just a dreamer, and having this knowledge saves you from putting your life on hold to make your house look perfect on every single inquiry. We’re sure you’ll want to limit those time-consuming hassles to showings that will actually result in a sale.
The skill of price negotiations
Can you honestly say that you have specialized experience in negotiating a home sale? Even if you do have some sales experience, a buyer’s agent has more in-depth knowledge in that area, and they’re more likely to succeed in the negotiation, leaving you with less money in your pocket. A realtor knows all the games and the important warning signs of a disingenuous buyer and will know what kind of counteroffers to make if the need arises.
Agents can spot your home’s flaws instantly
Let’s face it: you’re so emotionally attached to your home that you tend to ignore your home’s flaws. Meanwhile, agents can walk through your home and point out the changes you need to make to get the best offers. They have “x-ray” visions to see the flaws you’re oblivious to (probably because you see them every day) and even help improve your chances of selling.
FSBO exposes you to legal risks
Have you seen the lot of legal paperwork you’d have to deal with in a home sale? These paper works need to be completed correctly by an expert, and unless you’re a real estate attorney, your agent would most likely know more about these legalities than you do, most especially when it comes to the seller’s disclosures. A seller will be liable for fraud, negligence, or breach of contract if they fail to disclose a hazard, nuisance, or defect. If the buyer comes back to you after moving in and finds a problem—he/she could sue you. And we’re pretty sure that’s the last thing you’d like to happen.
Social Media Post:
Are you looking to sell💲 your home🏠 the FSBO way? Well then, you may want to reconsider.
An agent’s professional fee👨💼 may be a bit heavy on the pockets, but is it worth cutting them out of the picture?🤔
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