I think there are a few reasons why some people try to sell their own home instead of hiring a REALTOR®. First, they want to save money on commissions. Second, they may have had a less than positive experience the last time they bought or sold a home. And lastly, a professional agent makes it look so easy from the outside, that it can appear as if anyone can do it.
There is so much more to selling a house than posting photos online and putting a sign in your yard. Here are a few things to consider before you try to do a For Sale by Owner (FSBO):
- Financial Risks: If you make mistakes during the sale process, it can lead to financial losses. The cost savings from not paying a commission may be offset by lower sale prices or legal fees to rectify errors. Not to mention pricing your home accurately. For Sale By Owners on average can sell for 10-15% less than homes sold with an agent.
- Security Concerns: Inviting strangers into your home for showings can raise security concerns. Real estate agents can help ensure that only qualified and serious buyers gain access to your property.
- Time and Energy: Selling a home can be a time-consuming process. It involves handling inquiries, scheduling showings, and managing the entire transaction. If you’re already juggling work, family, and other responsibilities, the effort required to sell your own home can be overwhelming.
- Marketing and Advertising: Effective marketing is key to attracting buyers. Real estate agents have the resources and experience to market your property effectively, using strategies that may be beyond the reach of most homeowners.
- Limited Market Exposure: Real estate agents have access to multiple listing services (MLS), which greatly increases the exposure of your property to potential buyers. When you sell on your own, you’ll likely have a smaller pool of potential buyers, which can lead to a longer time on the market and potentially lower offers.
- Pricing Challenges: Determining the right listing price for your home is crucial. If you price it too high, you risk turning away potential buyers. If you price it too low, you may leave money on the table. Real estate agents have access to market data and expertise to help you price your home competitively.
- Negotiation Skills: Real estate transactions involve complex negotiations. An experienced agent can help you navigate these negotiations, ensuring you get the best deal possible while also protecting your interests.
- Legal and Contractual Knowledge: Real estate transactions involve numerous legal documents and contracts. Mistakes in these documents can have costly consequences. Real estate agents are trained to handle these documents correctly and ensure compliance with local and state laws.
- Emotional Attachment: Homeowners often have strong emotional ties to their properties, which can cloud their judgment during negotiations. Real estate agents provide an objective perspective and can help keep emotions in check.
- Limited Network: Real estate agents have a vast network of contacts, including other agents and potential buyers. This network can be invaluable in finding the right buyer for your property.
- The agent you hire to help you can make a huge difference. You might be considering selling your home yourself because you didn’t have a great experience in the past? If so, I’d love to meet with you to show you how I go above and beyond for every single client. Please reach out today to schedule a no-obligation consultation.