Selling a home is expensive. No doubt, if you've ever done it or even considered it, then the thought of selling your own house has crossed your mind. Who could blame you for trying to save a few dollars by rolling up your sleeves and doing it yourself?
As it turns out, a "for sale by owner" transaction can be a total nightmare for FSBO sellers. There are a number of reasons why people may choose to work with a real estate agent rather than selling on their own. Below are the top 5 reasons NOT to sell your house yourself.
Lack of knowledge
Selling a house can be a tricky process, and many (well, MOST) people may not have the knowledge or experience to navigate it effectively on their own. An agent has the expertise and training to guide homeowners through the process, including setting the right price, marketing the property, and negotiating offers. (TIP: Make sure any agent your speak with is in good standing with NAR, the National Association of Realtors).
The average homeowner sells their house approximately every seven years. That means, after each sale, you probably forget all about the process entirely for a few years. Think about the technologies and platforms you use today that didn't even exist seven years ago!
Also, not only are you behind on innovation, but you're way behind on sheer volume. In those seven years, a seller's agent will have closed dozens of real estate transactions. While you could spend months performing a competitive market analysis for your property, a top agent is able to spout off comparable properties and detail market trends in an instant. That type of experience and insight is invaluable.
Time constraints
Selling a house can be a time-consuming process, and many people may not have the time or energy to handle all of the tasks involved. A good agent can handle many of these tasks, such as scheduling showings and managing paperwork, on behalf of the homeowner.
This is very straightforward. A home sale by owner takes a ton of work; countless hours of labor and education and stress. The opportunity cost of the FSBO route can be massive; you might actually save money in the long run just by hiring a professional. And the last thing you want is your home sitting idle on the market for months on end.
Emotional attachment
It can be difficult for homeowners to detach emotionally from their house and make objective decisions about the sale. An agent can provide a more objective perspective and help homeowners make decisions that are actually in their best financial interest.
Let's face it -- everyone thinks they have the prettiest house in the block. It's human nature to overvalue places where you've lived and made memories. Separating yourself from those can be challenging; but it's necessary to make rational choices about your sale.
One of the biggest mistakes people make selling their own home is setting a listing price way too high. They overestimate fair market value for their special property, and can be tens of thousands or hundreds of thousands of dollars away from reality.
Another common issue is hosting your own open houses. Nothing makes home buyers more uncomfortable than walking through a listing with the current owners breathing down their necks -- woof! Both parties having a seller's and buyer's agent is a great idea; beneficial intermediaries can help both you and your counterpart.
Complex legal issues
There are many legal issues that can arise during the process of selling a house, such as title issues and disclosures. An experienced agent is familiar with these issues and can help homeowners navigate them effectively. They understand how to communicate with the title company, how to work with buyers agents during the loan approval period, and ultimately how to make the closing process a seamless experience.
Here's the great paradox of sell a house by owner. Due to all the technicalities of a sale, if you don't have an agent, you'll definitely need the services of a real estate attorney. And as it turns out, real estate attorneys -- like all lawyers -- are pretty expensive. So the savings of foregoing an agent will likely be swallowed up by legal fees and closing costs.
Access to a wider pool of buyers
Real estate agents have access to a wide network of potential buyers through their connections in the industry and through the MLS (multiple listing service). This helps increase the exposure of a property and leads to a faster sale.
At the end of the day, an agent proves their worth by achieving a terrific final sale price for your home. That is why you pay them. How they get that price is combination of (seemingly less important) tactics. They know how to put on the perfect open house and maximize the curb appeal of your property. They'll bring in the perfect professional photographer to make your home stand out against comparable homes in a pool of online listings. And when it's all said and done, they'll convert potential buyers into real offers.
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Check out TrueParity today.
