If you’ve been asking yourself “Should I sell my own house or hire a Realtor?” you have come to the right place. Understandably, many people consider selling their own home in order to save on the sales commission an agent would normally collect, but there is a good reason why 85% of homeowners listed with a real estate agent when it was time to sell.
In the long run, choosing to sell your own home could cost more than expected. Read on to learn why.
The Time it Takes
How much is your time worth? Estimate the hours it would really take you to do the work to get your house sold and ask yourself if negating a 6% commission is actually going to save you money. From staging the property to entertaining potential buyers, people who choose to sell their own homes must be prepared to sacrifice their time.
Determining the Price of Your Property
Pricing your property incorrectly is one of the biggest mistakes a seller can make. Unlike the public, Realtors have access to special data that enables them to price real estate accurately. Unless you’re willing to pay for a formal appraisal, you won’t know what you’re property is truly worth, which can put you on shaky ground when it comes time to negotiate.
A great Realtor is always educating themselves to be the best at their job, and that includes negotiating. Chances are they have much more experience than you do at negotiating closing costs, sales price, or repairs. Some agents even view FSBO listings as easy targets to negotiate against because they know they have an advantage. You could be risking thousands if you have to negotiate with an agent that can easily pick apart your property and price.
Your FSBO May Not Be Taken Seriously
Many real estate agents perceive FSBO sellers as only willing to accept an unrealistic price, waiting for the perfect buyer to come along, or just testing the market. It may be a challenge to have your FSBO property taken seriously within your local real estate community.
Access to Multiple Listing Services
You can post your real estate for sale on sites like Facebook or Craiglist, but nothing compares to the Multiple Listing Service (MLS) that your local real estate office has access to. This is how you get your property on sites like Realtor.com, Trulia.com, and Zillow.com. Sites like these are where the majority of buyers start their search. Agents who are representing buyers look on their MLS to find properties to show to their clients, so if your home isn’t listed there, you could be missing out.
Will it Really Save you Money?
According to the NAR, people who used a Realtor to sell their home generally see more profit from the sale. Spending a lot of money upfront without knowing for sure if your property will sell can be risky. Real estate agents spend a budgeted amount of money to ensure the best return for both of you. This is a low-risk investment on your behalf. Not only that, but an FSBO seller also won’t escape all of the realtor fees. For their services to the buyer, a buyer’s agent will most likely ask for a 3% commission from the home sale.
Should a mistake be made in the contract, agents have something called Errors and Omissions Insurance which protects them. Conversely, any mistake you make may result in unwanted costs.
In today’s market, it is more important than ever to invest in a Realtor who has your best interests at heart. While some people may have the experience and time necessary to sell their own homes, many FSBOs inevitably fail. Before you decide to take on the challenges of selling your own real estate, contact our team of licensed professional Realtors. We’d be happy to discuss your real estate goals.