Mistakes For Sale By Owner Sellers Make
The idea of selling a home with no representation is tempting for many homeowners who believe that there is no need to pay someone a commission for something they can handle themselves anyway. Of course, this couldn’t be farther from the truth, given that sellers are unaware of the risks they are entering. They could fall victim to a scammer, sit for too long in the market or sell way under market value. It takes a real state expert to recognize all the red flags and get the most out of a deal. Here is why FSBO sellers need a real estate agent when they want to put their home on the market.
The Endless Paperwork
For someone who has never dealt with contracts and documents needed for a real estate transaction, it can be overwhelming to understand all the legal forms like property disclosure or the sales contract. Checking the wrong box or forgetting a document can result in legal fees and even more severe problems. On the other hand, having a professional handle the paperwork and deal with any mishaps will pressure you and increase your chances of a smooth transaction.
Marketing Is Limited
Marketing a home is often underestimated. While FSBO sellers mostly rely on friends and family to spread the word, social media posts and a sign in their yard, a real estate agent would work out a full-scale marketing strategy to maximize the listing’s exposure, including the MLS. Sellers may pay for MLS alone, but an agent will hardly recommend an FSBO home to any buyer since they can’t count on an incentive. Agents also cooperate with other agents, which means they are more likely to find potential buyers via their connections than FSBO sellers via friends/family/acquaintances.
The Asking Price
Homeowners are emotionally too attached to their homes to be able to price it objectively. Plus, they don’t know how to conduct a comparative market analysis, which is crucial to assess a home’s market value. They will usually go overboard with the listing price, which will turn off potential buyers, and eventually result in the house sitting for too long in the market. To sell at a fair market value (or higher) requires a strategic approach that most sellers are not familiar with and trained realtors are.
Response Time Counts
Agents are aware of how quickly buyers move, so they will be on the alert and make sure to get every call and email and respond as soon as possible. While sellers are usually busy with their work, they will miss a call or two or hope to get back to the potential buyers when they get home in the afternoon. Often, it’s too late, then. An agent will also be there for home showings, whether in the morning or the middle of the day, while it’s doubtful that sellers can leave their work every time an interested buyer calls.
Selling a home is a lot of work that involves a lot of money. Hiring a real estate agent is a wise decision, given that you will need someone to guide you through the transaction. Plus, you can always include the commission in the asking price, provided that a skillful agent will know how to advertise and brush up your home to sell it for top dollar. If you are about to move up or downsize and don’t know whether you should first sell your home or buy a new one, click here for valuable tips.