5 Reasons to Use a Real Estate Agent
With home prices rising and a lack of inventory, some homeowners may consider selling their home on their own. This is called a For Sale by Owner, or FSBO.
There are several reasons why this might not be a good idea for most sellers.
Here are my Top 5 Reasons:
1. Exposure to Prospective Buyers
Recent studies have shown that 94% of buyers search online for a home, compared to only 17% who look in the newspaper. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
2. Home Buying Internet Results
The days of selling your house by putting up a sign and advertising in the paper are long gone. Having a strong internet real estate strategy is crucial.
Where did buyers find the home they actually purchased?
- 51% on the internet
- 34% from a Real Estate Agent
- 9% from a yard sign
- 1% from newspapers
3. The Number of People to Negotiate With
There are many people and companies with whom you must be prepared and knowledgeable to negotiate if you FSBO. Here is a list of just a few:
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The home inspection company that works for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
- Title companies if there is a lien issue
4. FSBO’ing Has Become More And More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. It can be overwhelming. You can find yourself in a legal situation if you aren’t aware of the requirements.
5. You Net More Money When Using an Agent
Many homeowners think they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can too save the real estate agent’s commission! Both sides can’t save the commission.
Studies show the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.
Real Estate Bottom Line
Before you take on the challenges of selling your house on your own, let’s talk and discuss the options available in today’s market.