Do You Need a REALTOR?
There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you are considering selling on your own, known as For Sale By Owner (FSBO), it is critical to consider the following items:
Your Safety is a Priority
Your family’s safety should always come first, and that is more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A realtor will have the proper protocols in place to protect not only your belongings but your family’s health and well-being too. 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, realtors are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.
A Powerful Outline 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?
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, which work for the buyer and 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 how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.
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, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made 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 in mortgage forbearance. A loan program that was available yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.
FSBO’ing Has Becoming More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more and more disclosure 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 major reasons why the percentage of people FSBO’ing has dropped from 10% to 8% over the last 20+ years.
You Net More Money When Using an Agent
Many homeowners believe they’ll save the real estate commission by selling on their own. Real that they main reason buyers look at FSBO is because they also believe 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 FSBO’s don’t actually save anything by foregoing the help help of an agent. In some cases, 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%.
“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. An 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 change a bidding war will take place.
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 of money or maybe more? Before you decide to take on the challenge of selling your house alone, reach out to a local real estate professional to discuss your options.