Think selling your home on your own is a good idea? Think again.
In my opinion, most people who attempt to sell their home on their own does so for one of the following reasons: Money, Have a buyer lined up, Ease, Trust. Let’s break these down.
Cost Savings
Let’s break these. Many FSBO’s believe they will save money selling their home on their own. The biggest expense that comes to mind is being spared paying a real estate professional’s commission. But in reality, to get buyers, you would typically pay at least 1/2 the commission, because a buyer’s agent will ask (rightfully so) that you pay them a commission if they bring a buyer. Also, it costs money to actually list your house – photography, marketing, listing fees, attorney fees, etc. The truth is, it’s highly unlikely you’ll actually save any money going it alone. On top of that, using a real estate agent will net you around 25% more on sales price.
I Have a Buyer
Do you already have a buyer? Think the transaction will be smooth and quick? Wrong. Even if you have a buyer, you still have a lot of hoops to jump through. And unfortunately, things go wrong in EVERY real estate transaction. Professional agents anticipate these issues and can help set expectations with buyers, reduce delays and negotiate on your behalf when stumbling blocks arise. If you’re representing yourself, all steps in the process must be managed by you. That means taking time off of work to meet contractors/inspectors/appraisers, countless hours on the phone answering questions, and potentially many hours of back and forth negotiations.
No Headaches
Perhaps you believe it will just be easier to do yourself. Well, good agents do make it look like an easy job. But, even after finding a buyer, there’s contract negotiations (these tend to go back and forth multiple times), managing contract contingency timelines, negotiating inspection concerns, talking to lenders, meeting the appraiser, coordinating with the closing attorney, etc. It is a full time job (and then some). Having a trusted advisor by your side is the only thing that will make it easier.
Trust
Finally, there’s trust. Many FSBO’s I talk to have had a bad experience in the past. Either an agent they used didn’t follow through on promises or didn’t communicate the proper expectations along the way leaving them feeling isolated and unheard. This is a doozie! And, it’s why I recommend you always interview MULTIPLE agents to make sure you get what you need. Find someone who is honest, professional, communicative, and trustworthy.
The Bottom Line
Your home is likely your largest asset. Why wouldn’t you want a professional, full time Realtor working to protect it and your best interest. And if not for that reason alone, a Realtor who knows the local market can price your home accurately, will reach a larger pool of people, and can ensure legal compliance every step of the way.
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