For Sale By Owner, or FSBO, is widely misconceived as an “easy” way to sell your house without representation of a real estate agent. There are many reasons why homeowners choose to sell their house by themselves. The main motivation is to avoid paying a commission on the sale. Before you even consider selling your house, here are a few reasons you should hire a Realtor:
Real Estate Agents Are Your First Defense.
If you are selling your house by owner, you don’t necessarily know if a buyer is even qualified to purchase your house. A majority of buyers who are working with a Realtor are already pre-approved by a lender to view houses in their price range. Real estate agents are trained to ask qualifying questions to figure out if a buyer is even able to afford a property or not. If a buyer comes to see your house and they don’t have an agent, you have no way of knowing if they are pre-approved to purchase your house. You can end up wasting a lot time, that could have been easily vetted by an agent.
Selling Houses Isn’t a FSBO’s Full Time Job.
When you are selling your house, your home should be “show ready” within a couple hours notice. It’s very common for buyers to want to see a property in the middle of the day. Most working professionals can’t leave their job at a moments notice to let a buyer inside to see their house. They also probably don’t have the ability to answer every call that comes through during the work week from a potential buyer or Realtor inquiring about their property. Your real estate agent is there to do all this. They answer calls from other agents, arrange and schedule showings for your home. Your Realtor also makes sure you have all the proper paperwork that is necessary to sell your house. Realtors also use a co-operating scheduling system that allows them to give instant feedback on the property. This resource lets you know if a buyer is interested in making an offer.
Marketing.
On top of the normal day-to-day work and family obligations, FSBO’s just simply do not have the time to spend marketing their home and scheduling showings for potential buyers. According to the 2015 National Association of Realtors Profile of Home Buyers and Sellers, 25% of FSBOs did no marketing at all for their home. A lot of disruption happens during the home selling process. You are organizing, packing your belongings and searching for your own new property to move to. Let a professional real estate agent handle scheduling showings, market your house, and negotiate the best price for you.
FSBOs Typically Overprice Their Home.
Whether you are FSBO or you are listing with an agent, pricing your house too high will result in fewer showings, and subsequently fewer offers. When a real estate agent is working with a homeowner to list their house, they use data from multiple sources to come up with an accurate price range. Realtors have access to these tools to create Cost Market Analysis (CMA). This resource gives you a good idea of what your home is worth. It also helps set the expectation so when you get an offer from a buyer you know if it’s fair or not.
Selling Your Own Home is Risky.
Real estate agents know the rules and regulations involved in selling a home. They have what is called “Errors and Omission” Insurance which protect them if any mistakes are made during the transaction. They also know the guidelines in different counties. Guidelines such as who pays for transfer tax, title search or what disclosures are needed. Plus, when you hire a Realtor, generally there is no up front cost out of pocket from the homeowner. Your Realtor pays for all of the marketing cost associated with selling your house. They don’t get paid until the house sells. Make sure you hire a professional who knows your area. They will handle all the bumps along the way so you can focus on your number one priority of moving.
All in all, selling a house by owner can really end up costing more if you aren’t aware of what is involved. Like all other projects in life, make sure you hire a professional.
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