8 Really Good Reasons Not To Sell Your Home Without Agent

“For Sale By Ower” or (FSBO), prounounced Fiz-Boe is touted as a great way to save thousands of dollars when selling your home.  The standard real-estate commission is 6% or $15,000 on a $250,000 home.  I know this seems like a lot, but when you factor in everything, you’d be paying a lot more to do it on your own with a substantial amount of risk involved.  This is not to scare you, but to make you an informed seller.  NAR or National Association of Realtors reports that Realtors sell homes for 14% more than FSBO’s are able to on their own, thus netting the seller 8% more than going it alone.  Do the math, that’s an extra 2% or $5,000 on a $250,000 home,  in your pocket without doing all the work!

1.  Buyer’s agents do not want to show your property to their clients.

In a for-sale-by-owner deal, the buyer’s agent knows there will not be a professional on the other end of the transaction.  Even if buyers insist on seeing the home, the agent may discourage them because of the hassles and risks of not having a professional on the other end.

2. It’s hard to keep your emotions out of the transaction

A professional agent will help and advise you on the proper amount to list your home to sell.  We all want to believe that our house is worth what we think we deserve.  But, that simply is not how it works.  There are many variables which factor into how much your agent thinks you should list your home for.  The most important one is a CMA, or Competitive Market Analysis.  This is a painstaking process which takes into account all similarities and differences of the comps in your area which can be used to price your home.  The value in the current market of each item in your home has been determined and analyzed.  You also will have to deal with rejection every time a buyer’s agent tells you their client is not interested.  As a homeowner, it can be very discouraging and frustrating to hear all the things some people do not like about your house.  An agent will buffer this and give you proactive solutions to feedback as well as “selling” your home to buyers who are on the fence.  A seasoned agent knows how to do this and can open doors which a private seller might think are permanently sealed.

3.  It’s not your full time job.

A professional real estate agent makes it their full time job to arrange showings, market your property, network, negotiate and sell, sell, sell.  We are all busy these days with work, spouses, kids, friends and trying so hard to be everywhere we can for the most things we care about.  Your real estate agent is 110% invested in selling your home.  Trying to squeeze in selling your home in between all of our existing obligations just doesn’t make sense.  You may not be able to get a showing in and that buyer could have been the one.  You can be 100% sure that your agent will never miss a showing, never forget to follow up and do everything they can to sell your home with experience and honesty.

4.  Agents have a larger network than you do.

Sure, you can list your home on Zillow, Craigslist and Trulia.  But your agent has access to MLS or Multiple Listing Service, which is the largest and most widely used online search tool to find real estate.  MLS is the first place agents will look when searching for properties for their clients.  Also, your agent has worked their entire career to build up a network of resources to sell your home.  They know exactly who to call first because no one talks more to each other than real estate agents.  They are always exchanging info on properties they are listing. They know who is looking for a home like yours before you do.

5.  You subject yourself to needless showings.

Realtors are trained on weeding out willing able buyers from the looky-loo’s.  They know how to ask the right questions about how long the buyer has been looking, if they are paying cash or prequalified, what schools they are looking for and so on.  A real estate agent isn’t just knowledgeable on finding a buyer, but they are specifically trained on how to look for a good buyer.

6.  Negotiating the sale is tricky and awkward.

Truth is, your buyer’s agent has one person in mind when they are negotiating with you, their buyer.  They are obligated to give their buyer full disclosure, obedience and loyalty.  The most they can get out of the deal in favor of their buyers, they will.  This puts you in a tough position.  You don’t know how good this agent is at negotiating.  You may be an expert negotiator and salesperson but real estate is very specific and there is an unwritten “code” that agents use to make deals.  Unless you are licensed and experienced, you will not know this code.  Its not your fault, it is a long and tough path to understand this language in an industry that can be incredibly cut throat.  Experienced agents can see the warning signs coming of bad deals and are there to advise you when/ if that happens.  Experienced agents know the pulse of the market and what is driving demand.  They can use this to their advantage to emphasize your home’s real and perceived value.  They know local customs such as who typically pays fees such as transfer taxes and closing costs.  Not only are you dealing with agents who are far more experienced in real estate negotiations, but you are likely to be more emotional about the process than an agent.  Your agent is not going to be deterred by low offers,  crazy requests and silly accusations which can happen in a real estate deal.  They don’t get emotional and know how to handle the situation.

7.  You can’t see what’s wrong with your home.

Your agent’s job is to look for things in your home that need to be changed to attract the most buyers and for the highest price.  You see your home every day and you may not notice things that may deter potential buyers.  Your agent has a network of trusted stagers, interior designers, painters, handymen etc…that can help get your home in tip top shape to sell.  They see thousands of homes a year and know exactly what to hone in on.

8.  You put yourself at risk for being sued.

A seller of real estate is obligated to disclose all known material facts about the value and desirability of the property. The seller can be held liable for fraud, negligence or breach of contract if they do not disclose properly.  Your agent knows what is material and what is not.  For example, stigmatized properties do not need to be disclosed in the state of Colorado.  Stigmatized means that a death, a felony or person living with AIDS occurred on the property.  Unless you’re a real estate attorney, your agent probably knows more about disclosure laws than you do.  If you fail to disclose a known material fact, hazard or defect your buyer can come back and seek damages from you.  Agents make mistakes too but they have professional errors and omissions insurance to protect themselves in case this happens.

THE BOTTOM LINE:

After reading this, ask yourself if the commission is worth all these variables.  Then you have become an informed FSBO or you can go the easy route and hire yourself an honest, experienced and reliable agent.  Like the agents at the DiVito Dream Makers!  Sorry, had to do it.