7 Dangers of Selling Your Home without a Real Estate Agent
The cost of selling without a Real Estate agent...
If you are thinking about selling your home, it's likely crossed your mind if you even NEED a real estate agent or not. Selling your home without an agent can be appealing, given that the average commission you pay to the broker is 6%, and why wouldn't you want to save this?
Think again, seller. Here are 7 dangers of selling without a real estate agent:
By putting a "For Sale By Owner" sign in your yard, you're essentially inviting strangers to walk around your house and see your property. Some for their own reasons, while some legitimate. If deciding to do this, hide your personal belongings, never show your home alone, and only set up showings by appointment.
2. LEGAL PRECAUTIONS
Are you ready to prepare paperwork and legal forms? Well, they're all your responsibility and you need to know everything that must be done to close the home legally. If you're not skilled in writing legally binding real estate contracts, your transaction may fail OR you may find yourself in some financial or legal trouble.
3. Lack of Marketing and Presentation
Image is everything when it comes to selling your home, especially for top dollar. Do not expect pictures from your smart phone and putting a "FSBO" sign in your yard to drive the HIGHEST price possible. It takes a strong and thought out marketing plan, videography, professional real estate photography, staging, drone work and more.
FSBO's are limited in how wide they can market their homes; while realtors have their own networks as well as massive global and local reach.
4. Time VS MONEY
Can you leave work mid-day to show your home? Are you able to constantly respond and screen inquiries? Be available at a moments notice go show and answer questions? Manage showings and feedback? What about if it closes? Are you going to have time to figure out the closing agent and stay on top of this stress-free?
You don't want to miss out on a potential buyer and typically buyers aren't available at the SELLERS convenience. They'll see the other property.
5. Lack of real estate negotiation skills
So you received an offer, the moment we've all been waiting for. Now what? How do you respond? What terms are good? What terms are bad? Should you counter-offer? Even if you think you're a savvy sales person - you don't have the specialized experience in a home sale. The agent representing the buyer DOES - so he or she is more likely to win a negotiation, resulting in less money in your pocket or unfavorable terms.
6. Transaction management
Congratulations! Your home is now UNDER CONTRACT! Now what do you do? What happens? What as a seller, do you need to do to ensure that it actually closes?
If you can't answer this, you DEFINITELY need an agent.
7. Criticism of home
Picture yourself selling a home you've lived in for 15 years, have put your money and time into it, AND raised a family in the home.
Now, someone comes into the home telling you how much they DISLIKE the kitchen. And then another does the same about your landscape. How will you handle this?
Realtors keep you one step removed from the process and can take the sting out of negative feedback.
When you do decide to sell your home, it's likely that this will cross your mind. While saving commission may be tempting, it could cost you in the long run AND you may be missing out on more money than you had expected. My suggestion? If you're really considering selling by yourself, interview a few agents beforehand to see if it's truly right for you.
If you're considering selling on your own, in the Seattle area, i'm happy to provide a no-obligation assessment on the value as well as the Sotheby's marketing plan to ensure top dollar and a smooth, safe close.