It’s true. Some people are able to sell their own house without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who’s already living in the home. These circumstances are the exception, not the norm. For most people, a for-sale-by-owner transaction simply isn’t a realistic choice. Here are some reasons you should consider using an experienced, full-time realtor.
1.Agents can sell your house for more money. According to the National Association of Realtors, the typical for-sale-by-owner home sells for 20% less than homes listed with an agent. That means, even if you pay an agent a 5% commission to list your home, you’re still coming out way ahead.
2.Realtors understand how to complete the many contracts, forms and disclosure statements required in a real estate transaction. Realtors walk home sellers through the complicated documents step-by-step. According to the National Association of Realtors, difficulty with paperwork is the biggest problem FSBOs have in selling their homes.
3.Real estate agents do this full-time. Often for-sale-by-owners don’t recognize how many hours a real estate salesperson spends. Most home sellers do not have the experience, or the time and energy needed to sell their home for a competitive price.
4.Realtors have the market knowledge to price the home competitively. For-sale-by-owners may know what one or two homes near them have sold for, but they don’t have the access to the wide number of comps agents do or the market knowledge to adjust pricing. According to the National Association of Realtors, setting the right price was the third most difficult problem for-sale-by-owners had in selling their own homes.
5.Agents will be objective, handle criticism of the house, and focus on how well the home works for a buyer. All owners have emotional attachments to their homes and will emphasize the features they consider most desirable during a showing. However, as a trained professional, agents are more attuned to the buyers’ needs and able to highlight the home’s features that have the most appeal to each buyer.
6.With the home seller in the house, buyers will feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they’ll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they’ll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.
7.Realtors can assess buyers’ ability to afford the property and help them locate the best places to obtain financing. Often buyers, especially inexperienced ones, rely on the real estate salesperson to help them obtain a mortgage. Agents are also more experienced in prequalifying buyers so that they will not make an offer on a home they cannot afford.
8.Experienced agents how to negotiate and overcome objections. Balancing offers and counteroffers, as well as handling many of the contingencies that usually accompany real estate transactions, can be frustrating or frightening for for-sale-by-owners.
9.A realtor can get the transaction closed. Many for-sale-by-owners think that once the purchase agreement is signed, their work is over. Not so fast. There are many, many tasks that must be completed before closing, including home inspection, termite inspection, title insurance, building permits for improvements, and so forth.
10.A realtor can help protect you from legal trouble. Sadly, for-sale-by-owners are likely to stumble into legal trouble. Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements. A seller who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.