Why Selling Your Home On Your Own Puts You At Risk
By: Ian Golightly MBA, Realtor
Real estate agents have gotten a bad reputation throughout the years. When one negative experience occurs, it is easy to get caught up in the emotions with the idea that all real estate agents are the same. I promise you that it is not valid. When agents are unable to execute a sale, they should be communicative about what happened. Many non-seasoned agents default to blaming their client or the market.
As a result, that leads to many homeowners going the FSBO route. If you are a homeowner and think about selling your home on your own, I urge that you reconsider. There are many benefits to working with a trusted real estate professional that will be on your side through the whole process. If you placed your house on the market without an agent or you are planning to run solo, please continue reading.
Your Safety Is Important When Selling Your Home
If you are selling your home on your own, it won’t be easy to control who enters your home. If you work with a seasoned agent, they’ll have protocols to protect your valuable belongings and make sure health protocols are in place (COVID pandemic). A real estate professor will have the latest industry standards recommended by the NAR (National Association of Realtors) to make sure you’re safe and potential buyers are too.
A Bold Online Presence Is a Must To Attract Potential Buyers
Recent studies that were conducted by the NAR had shown that 43% of buyers first went to search for homes online. Because of the COVID-19 pandemic, those numbers have jumped significantly to roughly 97%. Having a real estate professional will help you tremendously getting your property marketed online.
FSBO’s Have Multiple Negotiation Barriers
If you are planning to go the route of selling your property on your own, here are a few people you need to negotiate with:
- Buyers agent, who solely represents the best interest of the buyer
- The buyer who wants the best deal possible
- An appraiser who questions the value
- Inspection company that works for the buyer and will almost find something that is wrong with the property
Seasoned agents are taught how to negotiate every aspect of the real estate transaction, and because of these barriers, they know how to mediate some of these challenges that FSBO’s will face.
FSBO’s Don’t know If Potential Home Buyer Is Qualified To Close
Having a potential home buyer who wants to purchase your property is the first step, but making sure that they could afford to buy your property is critical so you know they can close on the transaction. Selling a property on your own is almost impossible to be involved with the other party in the mortgage process.
If you work with a real estate professional, they are trained to ask the right questions. Also, they are knowledgeable about getting a mortgage, that they have a better prediction if the buyer will be able to close. Being a ‘for sale by owner,’ making a mistake like this can set you back another four weeks depending on how critical it is to sell the property.
FSBO’s Need To Think About It From A Legal Standpoint
Anytime a real estate transaction occurs, there is a plethora of documentation involved in the selling process. More documentation has increased over the years as more disclosures and regulations have become a mandatory part of the legal paperwork. A real state professional will act as a third party to help you avoid any legal jeopardy.
You’ll Net More Money In The End
There is a widespread belief that homeowners will save money if they do not use a real estate agent because they’ll be saving money if they don’t have to pay a commission. Collateral Analytics (link to study) conducted a study that revealed that most FSBO’s don’t save anything by dismissing the help with a real estate agent. In most cases, the seller can potentially even net less from the sale.
Selling your home on your own will leave you with a significant amount of responsibility. Why not hire an agent who can represent you in your best interest? Before you take a considerable undertaking, reach out to us to discuss your options.