Selling a home is a complicated process and takes a lot of hard work, legal considerations, and even some negotiating. It may seem as simple as putting a sign up in your front yard and waiting for potential buyers to call, but a successful real estate agent does much more than that.
Technically, there's no reason you can't try for sale by owner (FSBO), but if you run into problems in the process, you may regret your choice. After all, the cost of doing it yourself may be much more than the commission you save.
Before you make up your mind about whether or not to hire a realtor, read this post! In it, we'll consider the advantages of FSBO vs realtor listings.
Realtors Save You Time
If you lead a busy life, selling your home is the last thing you want to worry about. If a buyer wants to see your home, you'll have to coordinate around your schedule. This may mean delaying the showing until you find a time that works for both you and the buyer.
Realistically, you won't be able to leave work for showings or answer your phone during your office hours. After work, you may have limited time and energy to call back potential buyers and market your home.
These obstacles are avoided when selling with a realtor. Their full-time job is selling your home, so they have much more time to attend to buyers. They can also show your home even if you aren't there so there is no need to put your life on hold.
Realtors Know What Changes Need to be Made
Agents know what buyers are looking for, especially after working with hundreds of them. After a quick tour of your home, they can recommend simple changes that will attract more attention and offers.
On the other hand, you may not notice your home's flaws because you see them every day or don't see them in a negative light. In any case, an experienced realtor can stage your home in a way that makes it more appealing.
Realtors Have Better Connections
While it's true that you can list your home online or through MLS services, you'll likely lack the connections that a professional realtor has. They may already know of several potential buyers who are looking for a property like yours.
Real estate agents also network with other agents who can spread the word about your home or whose clients are interested. They send emails to advertise homes to their list of contacts, which quickly generates interest.
The bottom line is that it would take you a lot of time to get the same kind of interest in your home that a realtor can create with a few phone calls or emails. This is important because the more demand for your home, the more it's worth.
Realtors Get More Showings
Selling your home by yourself may cost you potentially interested buyers. Even if your property meets someone's criteria, they may not pursue it if they are working with an agent. The reason is that agents prefer to buy homes that are represented by a colleague.
FSBO transactions can be risky and create a lot of hassle for the buyer's agent. They know that most homeowners are inexperienced, which can create some difficulties that typically an experienced agent would avoid.
In addition, FSBO owners have a negative reputation in the real estate world and some agents believe them to be unreasonable. Agents worry they may not want to pay any commission to the agent who brought them to the buyer.
Realtors Avoid Emotional Sales
Selling your home is emotional. The memories you made in the house, such as raising your kids or having family gatherings can lead you to make some mistakes in the process. You may mistake the sentimental value for the actual value of your home, overpricing your home.
These feelings can also lead you to avoid countering when offended about a low offer. On the other hand, you may give into a low offer because you're stressed and need to sell by a certain date. And when you face rejection or criticism about certain aspects of your beloved home, it's hard not to take it personally.
Whatever you're feeling, it will likely be transmitted to potential buyers or their agents. They'll pick up on your eagerness to sell or desperation and offer a lower amount.
When you work with an agent, you have no direct contact with the buyers. This protects you from feeling rejected or offended.
Agents will also help you make smart decisions because they're not emotionally attached to the property. So, whether it's setting a reasonable listing price, countering lowballers, or fixing issues that are preventing a sale, you'll feel less stressed each step of the way.
Realtors Know How to Negotiate
Speaking of emotions, negotiations can be a stressful and sometimes frustrating process. When you're selling FSBO you're left to make all the decisions when your emotions are running high, and you may make irrational ones.
On top of that, you probably have limited negotiating experience and don't know the rules of the game. If the buyers have an agent, they'll have the upper hand. They know how negotiations usually work, and their knowledge of the market will keep them from taking deals that just aren't worth it.
When you have an experienced realtor by your side to negotiate, you won't have to worry about being taken advantage of because of inexperience.
Realtors Avoid Unqualified Buyers
Realtors don't like wasting time on nosey or curious neighbors who may request a showing just to get a peek inside. They ask questions upfront to gauge someone's seriousness and likeliness of actually purchasing the property. If they notice someone is not a serious buyer or lacks the funds to purchase the home, they will move on, so they aren't wasting time.
Realtors Mitigate Legal Risks
Selling a home means working through a lot of red tape and paperwork, including the seller's disclosures. Completing it without experience is a big mistake.
Failure to disclose anything that affects the value of the property can lead to legal issues, such as negligence and fraud. It may even breach the contract.
Agents are much less likely to make mistakes with the paperwork because they have experience filing it. Even if they do make an error, they're protected from professional errors and omissions insurance, which you as an FSBO seller do not have.
Should You List Your Home FSBO?
After reading all the benefits of using a professional and experienced real estate agent, it's only fair to talk about the potential benefits of FSBO.
Commission: What comes to most people's minds is commission savings. After all, having to pay around 5% of the sale price to the agent isn't something most people like. This is a potential advantage if you can get top dollar for your home without using an agent.
Asking Price: Another reason some sellers decide to forego the assistance of an agent is the listing price. If you do your research and put aside your emotions, you can come up with one you're comfortable with, and you don't have to worry about a third party agreeing.
As the seller, you're also personally invested in the process. You know how much money you need to make and are willing to go above and beyond to get it. It may be hard for you to trust a realtor to do the same, although the good ones will do everything in their power to make a successful sale.
Control Showings: Some people don't want to worry about last-minute showings. Who wants to wake up early on the weekend or wait around to go home after work? When you're doing the showings yourself, you can decide when to do them and won't be inconvenienced.
You'll also be able to tell potential buyers all about your experience with the neighborhood and property. Talking directly to the seller may convince them just how special the property is or help them see its potential.
FSBO vs Realtor: Which Is Better? The Answer Is Clear!
Although there are some benefits to selling FSBO vs realtor, they aren't usually worth the time and effort it takes to sell it on your own. If you want to get the most value out of your home, sell it faster, and feel secure during the entire process, we recommend using a realtor with experience.
Are you looking for an agent in your area to help you list your home? If so, use our website to find a licensed realtor today!