With many advantages is working with a real estate professional selling your house. During difficult times, as we face today, it is 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 in the industry as Owner’s Sale (FSBO), it is important to consider the following:
1. Your Safety Is A Priority
The safety of your family must always come first, and that is more crucial than ever given the current state of health in our country. When you’re an FSBO, it’s incredibly difficult to control entry into your home. A real estate professional will have proper protocols in place to protect not only your belongings, but also the health and well-being of your family. From regulating the number of people in your home at a time to ensuring proper healing during and after a show, and even facilitating virtual excursions for buyers, real estate professionals are equipped to keep up with the latest industry standards recommended by the National Association of Real Estate Agents (NAR) to help protect you and your family.
2. Powerful Internet Strategy Must Attract Buyer
Recent studies of NAR showed that even before COVID-19, the first step taken by 44% of all buyers 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 online and social media strategy to promote the sale of your home. Do you have
3. There Are Too Many Negotiations
Here are just a few people you will need to negotiate with if you decide to FSBO:
- The buyer who wants the best deal
- The buying agent who only represents the best interest of the buyer
- The inspection companies that work for the buyer and will almost always find challenges with the house
- The appraiser, when it comes to value
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to convey the emotions felt by buyers looking to make what is probably the biggest purchase of their lives.
4. You Will Not Know If Your Buyer Qualifies For A Mortgage
Having a buyer who wants to buy your house is the first step. Making sure they can afford to buy it is just as important. As an FSBO, it is almost impossible to participate in your buyer’s mortgage process. A real estate professional is trained to ask the right questions and, in most cases, will be intimately aware of the progress made towards a buyer’s mortgage commitment.
Further complicating the situation is how the current mortgage market is evolving rapidly due to the number of unemployed families and due to mortgage tolerance. A loan program that was available yesterday could disappear tomorrow. You need someone who works with lenders on a daily basis to ensure that your buyer gets to the closing table.
5. FSBOing has become more difficult from a legal point of view
The documentation involved in the sales process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third party to help the seller avoid legal danger. This is one of the main reasons why the percentage of people have FSBOing fell from 19% to 8% over the last 20+ years.
6. You Network More Money Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Be aware that the main reason buyers look at FSBOs is because they also believe they can save on the real estate agent’s commission. The seller and buyer cannot both save the commission.
A study of Lateral Analysis revealed that FSBOs actually save something by leaking the help of an agent. In some cases, the seller may even net less money of the sale. The study found that the price difference between an FSBO and an agent-listed home was on average 6%. One of the main reasons for the price difference is effective discovery:
“Real estate listed with a broker who is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buying population. And those MLS properties generally offer compensation to agents who represent buyers, encouraging show them and sell the property and again possibly expand the buyer. “
The more buyers look at a home, the greater the possibility of a bidding war.
Listing yourself lets you manage the entire transaction yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect to discuss your options.
Content previously posted in Keep Current Things