Why Not To Sell Your Home Without An AgentPosted on 06/02/2015
Many believe that selling your home without an agent is a great way to save thousands of dollars. While it is possible to save money here are reasons why you should not FSBO (For sale by owner).
Buyers' agent may not show your property
Buyers agents know there will not be a real estate professional on the other end of the transaction. They believe this will lead to numerous headaches so they refuse to show the property. If their clients insists on seeing your home, the agent may discourage making an offer. They agent will tell their client it is not worth the hassle or risk. "FSBO sellers are viewed as unrealistic, unreasonable and difficult sellers whom professional realtors have rejected.”
Selling your home is a emotional process. With an agent you are one step removed from the home selling process. This helps you from overpricing , giving in too easily or refusing to counter because the low offer offended you. A realtor can communicate without desperation or eagerness because it is his/her job. Also, a agent can help with the rejection process. Without an agent you directly have to deal with the rejection each time a client is not interested. This can be upsetting for you. With a agent, he/she can put a positive spin on it. For some it is also easier to hear the bad news from someone that is on their side.
Full time job
Are you able to leave work whenever someone wants to see your home? Are you able to answer you cell at work every time a potential buyer calls ? Do you have the time and skills to market your home? Your answer to the above may be no but a real estate agents answer is yes.
Yes you can list your home on Craigslist, Zillow and a few other sites but that might not be enough. Agents have relationships with clients and other real estate companies to spread the word about your home.
Agents can find out if someone is a potential buyer or just curious. It is a lot of work and hassle to get your home ready for a showing. You want to limit the showings to just potential buyers. Realtors get trained on determining if a person is a serious buyer or not. Also, some clients find it awkward to have a owner in a home during the showing.
Agents have experience in negotiating a home sale. The buyer's agent you are facing in negotiation may have negotiated hundreds of homes before. With this experience they are more likely to win, meaning less money for you. Agents know the games and signs of a disingenuous or nervous buyer. They are also aware of what terms are worth fighting for and which terms to let the other party win.
What's wrong with your home ?
Agents are trained to know what makes a home sell. You are more likely to overlook a flaw because you see them every day or do not see it as a flaw. Once on the market, agents can report feedback from potential clients on your home. A good cleaning is recommended before putting your home on the market.
A lot of paper work is required to sell a home. This paperwork needs to be completed correctly by an expert. For example the seller's disclosure, a document that states " A seller of real estate has an affirmative duty to disclose any fact that materially affects the value or desirability of the property". If you fail to disclose and the buyer find a problem after they moved in, they can sue you. If a agent makes mistake with the paperwork, they have insurance for protection.
Selling your home will be one of the biggest transactions of your life. You can try and save money by selling alone but a agent:
- Can give your property more exposure
- Help negotiate a better deal
- Dedicate more time
- Help keep your emotions in check
- Has expertise on dealing with complex transaction.
data via investopedia.com