Selling your home means making a lot of big decisions, including whether to work with a real estate agent. While the majority of homeowners hire a listing agent, others jump in the waters of “FSBO”, or For Sale by Owner. According to extensive research, 36 percent of sellers attempt to sell their homes themselves, but challenges along the way lead many of them to eventually hire an agent. Ultimately, only 11 percent of sellers end up selling their home without a real estate agent.
Going FSBO Will Cost You…
Some sellers decide to go it alone in order to avoid paying a commission fee to the real estate agents involved in the sale. While most FSBO sellers are trying to keep more of their profit in their pocket, it’s important to know that a real estate agent likely has more experience in pricing strategy so it’s possible that the net profit you earn from a FSBO could end up being lower than if you had listed with an agent.
When selling on your own, you are responsible for the process from start to finish, including pricing, staging, listing, negotiating, drawing up paperwork, and closing.
We’ve laid out a list of why working with an agent is more beneficial than selling on your own.
- Understanding of the market value and pricing strategies.
An experienced, local agent will have a great handle on what your home is worth in your area, and what kind of pricing will get buyers through the door. They will help you get as much money out of your house as possible, while still appealing to a wide range of buyers.
- Exposure to Prospective Buyers
With access to the local MLS and online listing portals, social media presence, professional networks, connections with other agents, and name recognition, your real estate agent can get a lot of eyes on your listing and plenty of potential buyers in the front door. An agent will bring a complete strategy of ways to sell your home to the table.
- Motivation to Show Your Listing
Real estate agents are paid on commission, so some agents may not take the time to show your FSBO listing to their clients, since there’s no guaranteed commission.
Although, FSBO sellers do have the option to offer a commission to potential buyers’ agents.
- Objectivity
There is one thing that an agent doesn’t have that you have – a personal attachment to your home. Because of that, an agent is able to be impartial when it comes to pricing, open houses and showings, and throughout the negotiation process.
- Makes Negotiations Simple
As a FSBO seller, you should be prepared to potentially negotiate with the buyer, the buyer’s agent, the buyer’s attorney, home inspection companies if there are issues with the house, and the appraiser if there is a question regarding home value.
Agents are extremely familiar with both the selling process and your local market, so they are ready and willing to negotiate all of your needs. They can also recommend appropriate counter offers if necessary. Bottom line—they’ll help you get as much money as possible.
- Lots of Paperwork Involved
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. If you decide to sell your home without an agent, the burden of making sure it’s complete and accurate falls on the seller (or an attorney you’ve hired to help).
This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20 years.
Seasoned real estate professionals are experts at the purchase and sale process, and all the details that come with it.
You will find plenty of seasoned professionals with the Robinson Team who are more than ready to help you sell your house and find your new home.
Give us a call today to get a professional assessment of your property.