Why it’s worth getting a pro to sell your home
When you sell your home yourself— also known as “for sale by owner” (FSBO) – it may seem like a great way to save thousands of dollars. After all, the standard real estate agent commission is 5% to 6%—that’s $12,500 to $15,000 on a $250,000 home.1 Given the size of this fee, you may think that acting as your own seller’s agent will surely be worth the savings. Here are eight reasons why you may want to reconsider.
1. Realtors May Not Show a “For Sale by Owner” Home
In an FSBO deal, the buyer’s agent knows there won’t be a professional colleague on the other end of the transaction. Even if a client insists on seeing your home, the agent might discourage making an offer, citing the hassles and risks of trying to close the deal without a professional representing the seller—and without a guaranteed commission.
Still, there are buyers’ agents who will show your property under the right conditions. That may mean signing an agreement with the agent that states the percentage fee that you, as the seller, will pay the agent. (The agent may specify a 6% commission, trying to nab both the buyer’s and seller’s side. Instead, negotiate the total commission to a more reasonable 2% to 3%.) An agreement should also clarify that the agent is only working on behalf of the buyer. It may also state that as the buyer’s agent, the real estate agent has a duty to disclose to the client all the information the seller provides to them, such as the need to sell by a certain date.
2. Agents Avoid Emotional Sales
Selling your home is typically an emotional process. Having an agent keeps you one step removed and makes you less likely to make stupid mistakes such as overpricing your home, refusing to counter a low offer because you’re offended, or giving in too easily when you have a deadline for selling. “When a seller repeatedly checks, it signals, rightly or wrongly, the willingness to accept a lower price.”
If you forgo an agent, you’ll also have to deal directly with rejection every time a buyer’s agent tells you that the client isn’t interested.
An agent can take the sting out of the rejection and put a positive spin on any negative feedback. “It is more difficult for [the seller] to keep their emotions out of the sale, because there’s no third party to bounce anything off of,”. “For instance, if the property sits on the market, the homeowner doesn’t know the reason the home is not selling.”
“The emotions will always be there for the seller,” “but constructive criticism can be easier to digest for the seller when it comes from a broker who is on their side, trying to get the best for them.”
3. Real Estate Is a Full-Time Job
Can you rush home from work every time someone wants to see your home? Can you excuse yourself from a meeting every time your phone rings with a potential buyer? At the end of a long workday, do you have the energy to take advantage of every possible opportunity to market your home? Are you an expert in marketing homes?
Do you have any experience doing so? Your answer to all these questions is probably “no.” An agent’s answer to all of these questions is “yes.” In addition, by going through an agent, you’ll get a lockbox for your front door that allows agents to show your home even when you aren’t available.
4. Agents Access Large Networks
Yes, you can list your home yourself on Zillow, Redfin, Craigslist, and even the multiple listing service (MLS) that agents use. But will that be enough? Even if you have a large personal or professional network, those people will likely have little interest in spreading the word that your house is for sale. You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.
5. Weeding Out Unqualified Buyers
An agent can find out whether someone who wants to view your house is really a qualified buyer or just a dreamer or curious neighbour. It’s a lot of work and a major interruption every time you must put your life on hold, make your house look perfect, and show your home. You want to limit those hassles to the showings most likely to result in a sale.
It’s also awkward for buyers to have the seller present, rather than the seller’s agent, when they’re touring the home. “When showing a house, the owner should never be present,”. “Nothing makes a potential buyer more uncomfortable than the current owner being in the house. When a seller is present, most buyers will rush through a house and won’t notice or remember much about what they saw.”
6. Price Negotiations Take Skill
Even if you have sales experience, you don’t have specialized experience negotiating a home sale. The buyer’s agent does, so they are more likely to succeed in the negotiation, meaning less money in your pocket. “An experienced selling agent may have negotiated hundreds of home purchases. “Know all the games, the warning signs of a nervous or disingenuous buyer.”
Not only are you inexperienced; you’re also likely to be emotional about the process, and—without your own agent to point out when you’re being irrational—you’re more likely to make poor decisions. instead of an offended seller making an emotionally charged, inappropriate response to a buyer, an agent will say something more professional, such as, “The seller has declined your initial request but has made the following counteroffer.”
Sellers who go solo also typically aren’t familiar with local customs or market conditions. “Agents know the pulse of the market and what’s driving demand, which gives them an advantage by knowing what terms are worth negotiating for and which are worth letting the other party win,”.
7. You Ignore Your Home’s Flaws
Agents are experts in what makes homes sell. They can walk through your home with you and point out changes you need to make to attract buyers and get the best offers. They can see flaws you’re oblivious to because you see them every day—or because you simply don’t view them as flaws. They can also help you determine which feedback from potential buyers you should act on after you put your home on the market to improve its chances of selling.
All sellers need to hire a professional cleaning service to give a home a deep cleaning before putting it on the market. A good cleaning will help remove any distinct odours, such as pets, that the inhabitants can’t smell, since they live with them every day.”
8. Exposure to Legal Risks
A lot of legal paperwork is involved in a home sale, and it needs to be completed correctly by an expert. One of the most important items is the seller’s disclosures. “A seller of real estate has an affirmative duty to disclose any fact that materially affects the value or desirability of the property,”. A seller can be held liable for fraud, negligence, or breach of contract if they do not disclose properly. “The issue of whether a fact is material or not is generally established in the case law of the state in which you live”.
Unless you’re a real estate attorney, your agent probably knows more about disclosure laws than you do. If you fail to disclose a hazard, nuisance, or defect—and the buyer comes back to you after having moved in and found a problem—the buyer could sue you. Agents can make mistakes, too, but they have professional errors and omissions insurance to protect themselves and give the buyer recourse, so the buyer may not need to pursue the seller for damages.
The Bottom Line
It’s a tall task to learn how to sell your house without a realtor—and selling your home will likely be one of the biggest transactions of your life. You can try to do it alone to save money, but hiring an agent has many advantages. Agents can get broader exposure for your property, help you negotiate a better deal, dedicate more time to your sale, and prevent your emotions from sabotaging it. An agent brings expertise, which few FSBO sellers have, to a complex transaction with many potential financial and legal pitfalls.
Source From: https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp