It may seem like a terrific way to save thousands of dollars to sell your house yourself, often known as “for sale by owner” (FSBO). After all, the typical commission for a real estate agent is 5% to 6% or $12,500 to $15,000 for a $250,000 house.
You could believe that representing yourself as your seller’s agent will be worth the savings considering the size of this cost. Here are eight reasons you might want to rethink your decision.
Usually, selling your property is a complex procedure. You are likely to overprice your house, refuse to counter a low offer because you are insulted, or give in too quickly when you have a deadline for selling if you have an agent working for you.
An agent may soften the blow of rejection and make the most of any unfavorable comments. Because there is no neutral third party to bounce ideas off of, it is harder for [the seller] to keep their emotions out of the sale, according to real estate broker Jesse Gonzalez, president, and CEO of North Bay Capital in Santa Rosa, California. For instance, if the house is on the market for a while, the owner is unaware of the problem.
Gonzalez continues, “The emotions will always be there for the seller, but constructive criticism might be easier for the seller to accept when it comes from a broker who is on their side, wanting to obtain the best for them.
Can you leave work early every time a visitor requests to view your house? Can you leave a meeting every time a call from a possible customer rings? Do you have the stamina to take advantage of every chance to advertise your house after a hard day at work? Are you an expert on selling homes?
Have you ever done this before? Your response to each of these is probably “no.” The response to each of these questions is a “yes” for the experienced agent.
You may list your house in Facebook groups used by realtors. But will that be enough? Even if you have a sizable personal or professional network, those folks are probably not interested in telling their friends and family that you are selling your home. You lack the connections with customers, agents, or a real estate company to attract the greatest number of possible purchasers to your house. Less demand for your property results from a smaller pool of possible purchasers, which might mean that you have to wait longer to sell your house and may not get as much money as it is worth.
An agent can determine whether a potential buyer is qualified or just a dreamer or nosy neighbor who wants to visit your home. Every time you have to put your life on hold, make your home seem flawless, and show your home, it is a lot of effort and a big disruption. You should restrict those inconveniences to the viewings that have the best chance of producing 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,” says Kean. “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.”
Even if you have sales experience, you lack specific knowledge on how to negotiate a house sale. As a result, the buyer’s agent is more likely to prevail in the negotiation, leaving you with less money. According to Kean, “A seasoned selling agent may have negotiated hundreds of house purchases.” “We are aware of all the tricks and the telltale signals of a frightened or dishonest customer.”
You’re more likely to make mistakes since you lack expertise, you’re likely to be sensitive about the situation, and you won’t have your own agent to tell you when you’re acting irrationally. According to Kean, an agent will say something more polite, such as, “The seller has denied your first request but has made the following counteroffer,” in place of an upset seller responding to a bidder in an improper, emotionally charged manner.
Agents are specialists in how to sell a house. They may accompany you on a tour of your house and point out any improvements you should make to entice buyers and receive the best bids. They are able to spot problems that you may be blind to since you see them every day or don’t consider them to be flawed. They may also assist you in deciding which buyer feedback to take into consideration after listing your house for sale in order to increase the likelihood that it will sell.
Anyone who is determined to sell their own house should contact an interior designer to evaluate the property’s existing state and market attractiveness advises Kean. “All sellers must employ a cleaning company to thoroughly clean a house before placing it on the market. Since the occupants are accustomed to the smells, such as pet scents, a thorough cleaning will help eliminate any noticeable odors.
Learning how to sell your property without an agent is a challenging task since it will probably be one of the greatest financial transactions of your life. Although you may try to do it yourself to save money, there are several benefits to hiring an agent. Agents can promote your home more widely, assist you in securing a better bargain, invest more time in your sale, and stop your emotions from derailing it. An agent offers experience in a complex transaction with plenty of potential financial and legal dangers, which few FSBO sellers have.