In today’s hot sellers’ market, you may be tempted to cut out the Realtor and try “For Sale by Owner” (FSBO).
For most homeowners this is a mistake. You will likely lose money, experience high levels of stress, elevate your blood pressure, grow lots of grey hair, and, ultimately, call a Realtor to get the job done for you.
Homeowners who FSBO believe they will save money. That’s a myth!
Here are 5 reasons why hiring an agent is well worth the commission:
1. Incorrect Pricing
When it comes to pricing their property most FSBO’s get it wrong.
Some overprice the house hoping to attract an unrepresented buyer who falls in love with it and pays whatever they ask. That’s happening occasionally.
Buyers who are represented by an experienced agent will either pass on your listing or submit a realistic offer (which may offend you).
Many FSBO sellers, however, underprice their property. They leave money on the table and settle for much less than the house would sell for if listed by a pro.
A report by the National Association of Realtors shows that on average FSBO’s sell for 11% less than agent listed homes.
2. Most Buyers are Represented by a Realtor
The majority of buyers (88%) are represented by a Realtor. Even if you list by owner, the buyer’s agent wants to be compensated. Most FSBO’s offer a 3% coop commission to any agent who brings a buyer.
Many buyer’s agents are not very motivated to submit offers on FSBO listings, because they know they will have to do double the work.
If you hate negotiating, then FSBOing is not for you. You will have to negotiate with the buyer and the buyer’s agent, with the home inspector, with the appraiser, and with the title company.
As the owner you are emotionally involved in the transaction. You can’t make an objective decision. That’s why professional representation is critical.
An experienced Realtor will know when and how to negotiate to get the very best offer and top dollar for your property.
Posting your home for sale on a Facebook Group with a few cellphone pictures does not attract the most qualified buyer. Only a few passersby will call on your “For Sale” sign in the yard.
You will have to pay for online advertising to promote the listing.
As a FSBO you don’t have access to 8,500 Central Ohio real estate agents and their buyers. And you miss out on the tremendous global exposure I can give you as a RE/MAX agent.
5. Legal Compliance
Selling a house has become more complicated. There are many forms to fill out, disclosures to make, and contracts to sign.
If you are not represented by a Realtor, you definitely need to hire a lawyer to review documents and offer legal advice on the contracts you sign. Unlike Realtors, attorneys get paid by the hour, whether the deal closes or not.
You Have a Choice
1. List Your Home by Owner and deal with all the hassles, negotiations and emotional setbacks by yourself. This may save you 3% in commissions, but possibly cost you 11% or more due to wrong pricing and lack of exposure.
2. Hire Me to List Your House. Now you can sit back and relax, while I handle all the marketing, negotiating, pre-qualifying buyers, collecting multiple offers, and getting top dollar for your home.
Let me show you how convenient and easy it is to sell your house with expert, professional representation: Call or text me TODAY at (614) 975-9650!
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.