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Here are 15 reasons to why you should avoid selling without an agent:
1. You’re not saving money
While it may seem like you’re pinching pennies by cutting out the Realtor from the selling process, that is not actually the case. Extensive studies have proven that sellers who forgo the services of a experienced licensed Realtor end up selling for less, creating complications, and regretting their decision to go it alone.
2. Scams are more common
When you are selling a home by yourself, it might be hard to spot warning signs of potential scams. Realtors will be able to spot these for you.
3. You’ll save time
The process of selling a house takes a lot of time and energy. Hiring an agent will save you a lot of precious time and stress throughout the process.
4. You may not be aware of the ins and outs
It makes sense that people seeking to sell their homes may not be aware of all the details that go into it. It is much harder for clients to research the procedure on their own than it would be to simply hire a trained agent.
5. Paperwork may be troublesome
If paperwork is not properly filled out, it may cause a potential lawsuit on the seller’s part. Without any loopholes at all, a buyer may be able to legally target the FSBO seller.
6. You may not be well-versed in inspections
Inspections are an important part of selling a home, and someone trying to sell their home themselves may not be equipped to handle them. There is a lot that goes into home inspection, and only an agent can make sure it is done efficiently.
7. There isn’t any marketing:
When hiring a Realtor, homes are able to be marketed across various real estate platforms and thus sold faster. FSBO does not allow for any marketing strategies, and it results in homes not getting sold as quickly as they would otherwise.
8. You’re not going to get any representation:
Many people who are selling homes are drawn to big-name Realtors whom they feel they can trust. With FSBO, home buyers do not have that same security and therefore may be less willing to consider buying the home.
The perception of FSBO sellers is that they are not serious about selling their properties and are often just testing the market or seeing if they can get some far fetched price or perfect buyer that isn’t realistic. They are often not taken seriously in the real estate community because they don’t see the value in representation by an agent or broker.
You might be ready to post your home on Facebook and Craigslist a few times, but you don’t have the ultimate home selling tool – the MLS. The multiple listing service can be accessed by licensed real estate agents, and is the way to get your home listed on sites like Realtor.com. A large majority of home buyers begin their search on sites like these, and you want your home to be seen by as many buyers as possible to get the best price. It’s no surprise that homes sold via FSBO have seen a steady decline as online real estate has become the norm.
When you sell your home without an agent, any mistakes you make can cost you greatly. Agents have something called E&O (Errors & Omissions) Insurance. This protects them when mistakes are made in contracts. When you sell on your own, others can make sure to exploit every little mistake you make.
12. Agent Boycott/Sabotage
When you decide to sell your home yourself you are telling other agents that you don’t understand their value in a multi-billion dollar industry. Agents often see FSBO sellers as easy marks to negotiate against because they have the upper hand. They control the buyer/offer and can negotiate their own commission. They can also pick your property and price apart because they have the expertise to do so. They don’t need to worry about treating you unfairly because the chance of them dealing with you again is slim to none. More often than not they will simply ignore your listing altogether to avoid the hassle.
13. Pricing Incorrectly
Pricing your home incorrectly when you list it can be the worst mistake, and can greatly affect days on market and final sales price. Pricing too high will mean fewer people see it, resulting in fewer offers. Price it too low and you’re conveying that something is wrong with the property or that you are desperate to sell. More days on market will also signal to buyers that something is wrong and can ultimately mean less money upon final sale.
14. Low Ballers
When you FSBO you attract investors and low-ballers who see your inexperience and ignorance as a prime opportunity. What may seem like a lot to you may be a steal to them. An experienced agent will understand this and negotiate the most money possible for you.
15. You may end up resorting to an agent anyway
Many For Sale By Owner situations turn into agent-seller transactions anyway. FSBO clients are more than likely to inevitably realize how difficult the process is and eventually seek out help before they are able to close a deal.