As someone who is selling their home, it’s important to do what you can to get every penny for your home. With standard real-estate commissions at 6% of the transaction, it can feel like a loss to let that go to someone else and not keep it in your own pockets. However, there are some really important reasons to reconsider doing “For Sale By Owner” (FSBO, pronounced “fizbo”).
1. For Sale By Owner homes actually sell for less money than homes listed by agents.
This may be hard to believe, especially from a real estate agent’s website. We get that. Just google “Average FSBO Sale Price” and see what comes up. There are even academic articles on the subject. Why is this the case? There are a few reasons. First of all, if you’re not in the day-to-day of the real estate world, it’s hard to know the market value of your home. You may be able to compare similar listings in your neighborhood from Zillow or Redfin, but insider knowledge to market trends, year-over-year comps, competition in similar neighborhoods, and more, will help you get every penny possible. Second, because we have deep emotional connections to our homes, it’s hard to see them objectively. There may be maintenance issues we’ve overlooked or opportunities for small upgrades that buyers will attract more buyers. Lastly, products that are marketed well, to the right people, sell faster and for more money. More on that in #3.
2. FSBO is a really frustrating process.
You may know someone who had a dream buyer come along, get a single showing, offer full asking price, and then have zero fuss after inspections and appraisal. It has definitely happened. As real estate agents, we are much more familiar with the opposite scenario. Answering calls, setting up showings, negotiating, filling out and accepting contracts, etc, is a full time job! Why not let a professional handle all the details? That way you can keep working, keep packing, and keep living your life.
3. Seller’s Agents know how to market homes.
Buying a house is one of the largest financial decisions a person will make (and life decisions!) The process of making that decision has a lot of factors, and the marketing of the options will sway a potential buyer to, or away from, your house. Also, real estate marketing has many of facets. There is making sure the photographs of the house are accurate and engaging. There is crafting a description of the house and all the amenities included. Then, there is listing the house on MLS and other websites to reach a larger buyer pool. In addition
flyers, social media and hyperlocal marketing can all bring additional exposure to your home.
4. Negotiations can be awkward and awful.
Unless you’re a lawyer or work in mergers and acquistions, negotiating may not be something you have to do on the regular. Real Estate agents negotiate all day every day to represent the needs of their clients. It’s an art form of its own! It doesn’t have to be painful, because you can have someone else do it for you. The most important part of negotiating is knowing all the variables that are available to you. Closing costs, home warranties, appliances, and more, are bargaining chips to help maximize your sale price.
5. You have things to do outside of showing your home.
It’s a seller’s market and buyers know that every second counts when getting in to see a house and getting their offer submitted. If you want your house to sell quickly, you need to be able to show your house frequently and in a timely manner. Doing that while also working, taking care of your family, and just living your life is a lot! Let your agent deal with all that.
6. There can be legal ramifications if something goes wrong.
Are you familiar with seller disclosures and the laws around them? Earnest money? Contract laws? If not, you could be setting yourself up for some uphill legal battles. There are a lot of things that a seller needs to communicate to potential buyers and if not it can leave you open to legal liability. And yes, agents can make mistakes sometimes too, but the more experienced agent you hire the less likely legal errors will occur.
7. Having an agent puts an expert in your corner.
Selling a home is a lot of work, whether you’re doing it alone or with an agent. Having someone to help every step along the way makes an incredible difference in your quality of life. This may be the third or fourth time you’ve moved in your life, but experienced agents help dozens and dozens of people make their move every year! They have tips and tricks from years of experience, and can help give you the confidence you need to move forward without a hitch.
Are you ready to make more money selling your home with an agent, but don’t know who to trust?
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