When you sell a home, you don’t need a real estate agent, just like you don’t need a lawyer when facing criminal charges. You can, if you want to, represent yourself in a court of law, and you can always put your home up for sale by owner (FSBO).
But, it’s an extremely risky proposition. As outlined in this Inman article, there are many things to consider when putting a home up FSBO. Here are eight things, summarized from said Inman article, that sellers risk when they don’t have a realtor representing them:
1. Knowledge
Realtors are professionals in this business. They have expansive knowledge of the complicated home-buying and selling processes, possess loads of helpful data, and have large networks of people who can help minimize the difficulties that arise.
2. Time
The non-realtor probably doesn’t realize how many hours are put into any given home, buy or sell. Real estate agents are available for clients around the clock, on a whim, and can confidently and smoothly quell any concerns by potential home buyers.
3. Presentation
Preparation is essential to selling a home – what buyers see when they walk through the door will determine if your home sells. Agents can prepare the finest details and have stagers, professional photographers and others who will help make the space beautiful.
4. Marketing
Anyone can draw up a “For Sale” poster, but realtors will design, distribute and widely market the home to a huge number of potential buyers. Realtors can access predictive analysis and promote to those demographics on social media. Also, they know just what to write to draw interest.
5. Negotiation experience
If you’re doing FSBO, what do you do when you actually receive an offer? There’s a purchase agreement to be discussed, price negotiations to be had, and so on. Realtors will make sure you don’t get screwed by a buyer, and that you only incur costs you’re supposed to pay.
6. Inspection and repair know-how
One of the most important parts of any real estate transaction is knowing which inspections to expect and how to get them done. This is where the realtor’s web of resources comes in handy again – he or she should be able to provide repair people to fix anything discovered in an inspection.
7. Transaction management
Once a home is in contract with a buyer, there are more steps to close the deal. Realtors can make sure the right people are contacted to handle the closing, appraise the property, repair anything found in inspections and anything else to follow up on.
8. Closing finesse
There are expectations upon closing a property. Non-realtors probably don’t understand what the buyers expect, in terms of when move-in/move-out occurs, the condition one should leave their home in, or what to do if a last-minute issue arises. Realtors do know, and they are worth the time and money to ensure your sale is in good hands.
FSBO’s may be intriguing to the cheap and/or self-confident, but the small savings on a realtor’s commission is not worth the hassle that comes with navigating such a difficult process without professional help, and often a house sells for less than what it would have with an agent even after the commission has been paid.
On that note, there’s a reason I do what I do! I’d love to help you buy or sell a home. Please reach out any time for information regarding the current, local real estate market!