Top 5 Reasons to Use a Real Estate Agent
In today’s market, with homes selling quickly and prices rising, some homeowners might consider trying to sell their home on their own. In the industry, this is known as a For Sale by Owner (FSBO). There are several reasons this may not be a good idea for most sellers.
Here are 5 top reasons:
1. There Are Lots of People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspector, who works for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
2. Exposure to Prospective Purchasers
Recent studies have shown that 89% of buyers search online for a home. That is in comparison to only 20% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?
3. Results Come from the Internet
Where do buyers find the home they actually purchased?
- 44% on the internet
- 33% from a Real Estate Agent
- 9% from a yard sign
- 1% from newspaper
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.
4. FSBO-ing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically due to mandatory industry disclosures and . This is one of the big reasons the percentage of people FSBO-ing has dropped from 19% to 8% over the last 20+ years.
The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.
5. You Net More Money when Using an Agent
Many homeowners believe that 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 save the real estate agent’s commission. The seller and buyer can’t both save the commission.
Studies have shown the typical house sold by the homeowner sells for $210,000 while the typical house sold by an agent sells for $249,000. This doesn’t mean that an agent can get $39,000 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 decide to take on the challenges of selling your house on your own, let’s talk so we can discuss the difference an agent can make.