At first, selling your home own can seem like an attractive idea that will save you money.
That is not necessarily the case. Often times, the money a person will spend in promoting the home and listing it in other ways and the larger amount of time it will take to sell it yourself make it far more advantageous to be represented by a Real Estate Agent. There is a lot of work involved in selling a home that many people don’t realize beforehand. Let’s look at six surprising reasons that going the FSBO route may not be a good idea.
#1 You May Miss Out on First-Time Buyers
Do you remember being a first time buyer? Many people who have never purchased a home before will be intimidated by FSBO because they aren’t familiar with the buying process. They will prefer to be walked through it by a professional, and are less likely to trust an owner. They will consider your reasons for not hiring an agent to make the listing for you, and may think you are trying to hide something from them. This in itself will cut you out of a large portion of buyers.
#2 You May Attract Unqualified Buyers
First time buyers aren’t the only ones who will question your ability to sell your own home. Other investors or professional buyers specifically look for homes that are for sell by owner, believing that since you are not familiar with all the details of selling a home, they can get it from you for an unreasonably low (and often unfair) price. In other cases, the buyers who look at your home may not even be qualified to purchase it!
#3 Your Realtor Has the Budget To Promote the Home
It may seem like realtors just stick a sign out front and answer the calls that come in but that is hardly the case. Realtors spend a good deal of money in advertising. You don’t have the budget that your Realtor has to promote your home. Most FSBOs are stuck putting their homes out there just the local newspaper or online classified advertising.
#4 Your Realtor Can Weed Out “Lookey-Loos”
There are a surprising number of people out there that are not legitimate buyers. These folks can waste your time, money and effort, as they have no intentions or are not qualified to buy, but may want to look at your home anyway. The time you spend showing your home to illegitimate buyers could be time spent actually selling the home to someone who is qualified. Realtors will weed out legitimate buyers from others who just want to waste your time.
#5 Your Realtor Can Handle the Red Tape
A Realtor will provide a standard real estate contract which can be altered by a lawyer. If you need to have a lawyer draft a real estate contract from scratch it will cost a lot more in the long run as far as fees are concerned.
#6 A Realtor is a Top Negotiator
Part of a Realtors job is to represent you. Before the sale gets to closing, buyers may make requests or demands that you would be less agreeable about or that would be unfair to you. A Realtor can make these negotiations, and help both parties arrive at resolutions that work for everyone. They are familiar with these kinds of situations, and know how to handle them.
Posted on Mon, January 23, 2012
by Pam McCutcheon