In an ever so competitive real estate market, it’s not uncommon to see a homeowner try to put on the hat of a real estate agent. Homes today seem like they are flying off the market and some homeowners are wanting a piece of the action. The funny thing is, instead of hiring a professional to sell their home, they are choosing to take on the task themselves. The reason behind it? For the most part, is just to save on a commission that they would have to pay an agent. But the question is, are they really saving?
Here are my top reasons why it sucks to sell a home “For Sale By Owner”
For a buyer to hire a real estate agent, it does not cost them anything. For a buyer to not hire an agent, it could cost a lot. Most buyers know this. When it comes to purchasing real estate, it’s not as simple as it may have been in the past. There is the mortgage process, the home searching process, the contract phase, and the closing cycle. Each of these steps will require a good amount of attention to detail and not to mention knowledge and understanding. The liability for a buyer to not hire an agent is just too dangerous. When a buyer is spending hundreds of thousands of dollars, they want to have the security of knowing an agent is taking them in the right direction.
Didn’t mean for that to sound too harsh but it’s true. As a homeowner representing yourself in a transaction, you need to be prepared to come with your A-game. Pretty much everyone in the transaction, you will be dealing with, will most likely be on the buyer’s team. It wouldn’t be the best feeling for everyone involved to have the other parties best interest at heart, and not yours, would it? A few people you will probably encounter would be:
With all of these people working for the buyer, why wouldn’t a homeowner want someone working for them?
I’m going to let you in on a little secret. Most real estate agents belong to some type of network. Whether it be a local Realtor® board or association, an internet forum, or even a secret Facebook group, agents network. It’s the goal of an agent to get a home sold as quick as possible for the most amount of money. With that being said, agents network with other agents day and night to get the word out about a home they are trying to sell.
It’s no secret that today, most buyers are searching for homes on the internet. As a matter of fact, most buyers start their home search on the internet. Today, real estate agents are like celebrities online. We kinda have to be to attract new business. It’s actually a pretty good thing. What it allows an agent to do is often times build a decent sized database of buyers for potential homes. When that new listing agreement gets signed, the home is like a rocket ship taking off into space. It gets blasted all over the place. Of course, there’s the MLS (multiple listing service) anyone can get on there, but today, agents have so much more when it comes to internet exposure. Much more than most for sale by owners.
As I said before, most people choose to sell a home themselves because they think they will save money on commission. Well, that’s not entirely true. Most FSBO properties will attract a certain type of buyer. Here are the most common types:
Aside from the buyers, an agent, often times, is able to net a seller more money on their home. Studies from Realtor.com have shown that a typical house sold by an agent sells for $249,000 while the typical house sold by a homeowner sells for only $210,000. Of course, this can be different in each type of situation but it’s certainly not uncommon to see this type of contrast.
To wrap it up, just look into things first. Have a sit down with an agent before you decide to go down the road alone. Get some true facts and knowledge so you know what to expect. Just because you offer an agent 3% to bring you a buyer, doesn’t mean they will. Actually, they probably won’t. Why would an agent want to work with an unrepresented homeowner?
If you want some insight on what a real estate agent would do to actually sell your home, download My Listing Packet, it’s free. This could give you a pretty good idea of what steps a professional would take to get your home sold. Let me warn you, it includes more much than placing a sign in the yard.
Chastin J. Miles is a full-service real estate agent specializing in Dallas real estate, brand management, and client representation in a comprehensive spectrum of classes including single-family residential, condos and developments, commercial real estate, and luxury leases.