There are many benefits to working with a real estate professional when selling your house. During challenging times like today, having an expert you trust to help guide you through the process becomes even more critical. If you're considering selling on your own, known in the industry as a For Sale by Owner (FSBO), it's crucial to consider the following:
1. Your Safety Is a Priority
Your family's safety should always come first, and that's more crucial than ever, given the current health situation in our country. When you FSBO, controlling entry into your home is complicated. A real estate professional will have the proper protocols to protect your belongings and your family's health and well-being. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing and even facilitating virtual tours for buyers, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.
2. A Powerful Online Strategy Is a Must to Attract a Buyer
Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?
3. There Are Too Many Negotiations
Here are just a few of the people you'll need to negotiate with if you decide to FSBO:
- The buyer, who wants the best deal possible
- The buyer's agent, who solely represents the best interest of the buyer
- The inspection companies that work for the buyer will almost always find challenges with the house
- The appraiser, if there is a question of value
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and mediate the emotions felt by buyers looking to make the largest purchase of their lives.
4. You Won't Know if Your Purchaser Is Qualified for a Mortgage
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, being involved in your buyer's mortgage process is almost impossible. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress toward a purchaser's mortgage commitment. Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and mortgage forbearance. A loan program that was available yesterday could be gone tomorrow. You need someone working with lenders daily to guarantee your buyer makes it to the closing table.
5. FSBOing Has Become More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the primary reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
6. You Net More Money When Using an Agent
Many homeowners believe they'll save the real estate commission by selling independently. Please realize buyers mainly look at FSBOs because they think they can save the real estate agent's commission. The seller and buyer can't both save on the commission. A study by Collateral Analytics revealed that FSBOs don't save anything by forgoing the help of an agent. Sometimes, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
The more buyers that view a home, the greater the chance a bidding war will occur.
Bottom Line
Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount? Before you decide to take on the challenge of selling your house alone, let's connect to discuss your options.
