With the rising costs of homes and public access to general home buying and selling information on the internet, some people are opting to forgo a realtor and attempt to sell their homes without a real estate agent. Selling your own home without recruiting a real estate agent is referred to as a “for sale by owner (FSBO)” sale and may seem like a great way to skip paying half of the real estate agent commission fee— which, on a $250,000 home is $15,000— but here are four reasons why you cannot afford to skip hiring a realtor.
#1 It is hard to keep your emotions out of the sale
Whether you are desperate to sell your home for financial reasons or you are eager to get out from under of your home and onto the next life adventure, the way you communicate will give your urgency or emotional investment away. If a buyer’s real estate agent knows you are more than ready to land a sale, they can easily exploit that and offer you a deal that feeds your emotion rather than your best interest. Other seller emotions that hinder sales are sentimental attachment or disdain. If this was the first house you’ve owned, it may be worth the last 10 years of memories made. Or if your family home is being sold in a divorce settlement, you may be tempted to sell to the first offer. No one is going to buy your home for its sentimental value, and hearing potential buyers criticize your house or offer you lower than expected can be a hard blow to your ego. Real estate agents do not have personal emotions attached to the home and can negotiate matter-of-factly, to get you the most fair rate.
#2 Real estate agents have large networks
It is true that anyone has access to list their own home on websites such as Zillow and Craigslist —which real estate agents also use— but is it enough? Real estate agents have the ability to mass inform a large, continually growing, network of real estate agents and actively seeking home buyers. Having established relationships with real estate agents and their intended home buyers widens the pool invaluably. In addition to a large network, real estate agents have access to buyer specifications to narrow the pool down to potential buyers that would actually be interested in the features your home offers. Added bonus: with a large pool of potential buyers, the demand for your house may drive up sales price!
#3 It is not your full time job
Selling your home is a full time job, so if you don’t have that kind of time available to dedicate to the task, you may miss out on valuable opportunities. Real estate agents list homes, show homes, host open houses, and make negotiations as a full time job. They are able to weed out needless showings by already knowing if a potential buyer is qualified to purchase your house. A real estate agent knows what sells, can make sure your house has the right look and that the listing highlights the sellable features.
#4 Sales contract negotiations can get tricky
Even if you are a full-time salesperson, home buying negotiations can be tricky. Real estate agents are familiar with the current state of the market and know what drives current sales, which is important when negotiating prices. They are also familiar with what upgrades can alter the sale price from the raw appraisal. Since they are familiar with every fee and detail of what is included in a sales contract, they are able to negotiate from every angle and ensure that everything is clear to avoid legal issues.
Selling your home is one of the largest financial transactions you will make in your life, and it should not be taken lightly. If you are an experienced real estate agent yourself, you may be able to be a FSBO homeseller. If you are not a real estate agent, you cannot afford to sell your home without one. When you hire a real estate agent, you are not paying for a sales person; you are paying for experience and financial and legal expertise. If you are selling your home in Indianapolis, trust the real estate dream team at Jones Realty Group.
