Many homeowners will try to sell their home on their own.
This might seem like a great idea: save the commissions, keep control of the buyers and what's said. In reality, it's almost always a bad idea.
Here are the five reasons that For Sale by Owner is not a great idea:
- Most buyers will go through a real estate agent - That means that the people who likely want to buy your house are already in the professional real estate system. You need to be there too. Otherwise, you might find yourself missing customers or needing to negotiate a real estate agent's commission while buyers stand on the porch.
- The internet is where the action is - Nearly 90% of all purchases, including home buying, involve the internet. If your home is not listed online, it won't be seen by more than half of people. Many either won't look offline or won't trust a home that they can't learn about online.
- Too many buyers to negotiate with - That's sounds like a blessing, but it's stressful and likely to cost you money. What you need is someone that can negotiate with several buyers at the same time. This is a skill that requires experience and a team that can help.
- Death by paperwork - The laws surrounding the required paperwork for a home sale have gotten increasingly more complex. If you miss something, like a home inspection or a disclosure, you might find yourself paying the buyer thousands of dollars and even paying a fine. Real estate agents are trained to make sure they do all of the paperwork and are legally liable if it's not done correctly.
- Agents make you more money - Study after study show that real estate agents sell homes for more than owners can. Yes, you might be paying them a fee, but most of the time, they earn it and more.
For sale by owner can seem like a great deal, but it's a lot of work and time to sell house effectively. The legal pitfalls are many. The chances that you will walk away with less money are extremely high.
In truth, a real estate professional makes mathematical sense and makes your life easier.