“For Sale by Owner” will not save you money. Home sellers sometimes get the mistaken impression that they can save money by selling their own house instead of paying a Realtor’s commission. I could write a book about all of the reasons why this is a bad idea, but some people still only look at one factor: the 6% that they think they can save by cutting the agent out of the picture.
Most people who are not mechanics would not try to work on their own cars, and few people suffering from broken bones or other serious illnesses would think to treat themselves in order to save money. It’s not really any different when it comes to selling a home. You may have heard the old saying: “There’s no such thing as a free lunch.” If you forgo hiring a professional to sell your home, you will lose more money overall (not to mention the additional time you’ll spend). Here are a few things to reconsider if you think you can save money by going the FSBO route.
Marketing Your Home
Without a real estate license, you don’t have access to the Multiple Listing Service (MLS). This is the first place that many buyers go when looking for a home. But marketing a home goes far beyond the MLS. It’s a Realtor’s job to know where to advertise a listing for maximum visibility in front of the right buyers. If you try to figure this out yourself, you’re likely to waste advertising dollars and make your property invisible to the people most likely to buy it at the right price.
Setting The Right Pricing
Knowing how to price a home correctly requires specialized knowledge. While any real estate agent will happily give you a competitive market analysis (CMA), less experienced agents do not understand all of the factors that go into determining the correct list price. There are external factors beyond your control (such as the neighborhood and the supply of homes on the market), and there are factors you can control (mainly the condition and appearance of your home).
Preparing Your Home For Sale
Without the experience of real estate professional, you run the risk of making expensive mistakes when it comes to staging and repairs. You will need to repair conditions that might cause a buyer to be concerned. You will also need to invest in the aesthetics of your home, both outside and inside. But only an experienced real estate agent can tell you which repairs and improvements are the highest priority for your home. Otherwise, you might exhaust your budget on improvements that don’t net you any price gains while neglecting simpler improvements that could make the difference between whether or not a buyer makes an offer.
Safety and Screening
Realtors can screen buyers before allowing them to visit your home. We know how to pre-qualify people financially to make sure they are not wasting your time and have the ability to buy. Also, some “buyers” are actually criminals looking for victims. Unfortunately, FSBO homeowners are easy targets for burglary or worse. Real estate agents are trained to notice red flags when buyers call to look at properties. We are experienced in asking the right questions and watching for signals that something is not right.
At the end of the day, you get what you pay for. When you enlist the help of a quality agent to list your home, you make more money and get your home sold faster with less hassles and fewer demands on your time. It’s as simple as that.
Posted by Larry Tollen on
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