I always say… I wouldn't pull my own teeth, or install cut my own hair… I trust the professionals to do that. If you're preparing to sell your home, you may have considered selling without a real estate agent, otherwise known as FSBO (For Sale By Owner). While you may feel confident that you could save some money by foregoing agent commission, there is plenty of data to suggest that foregoing agent representation may cost you more in the long run. Below are a few reasons why home sellers should choose to work with a professional real estate agent.
1. Time is Money
Did you know that the sale price for FSBO homes is up to 26% less than comparable homes listed on the MLS? Selling a house can be costly- inspections, curb appeal projects, general cleaning, repairs, etc. And the longer it is on the market; the more those costs can pile up. Hiring an agent can save you both time and money in the long run.
2. More Exposure
As reported by the NAR: 70% of broker/broker associates and 69% of sales agents have a website.
- 81% of members have their own listings on their website, 69% have information about buying and selling, and 66% have a link to their firm's website.
- 74% of REALTORS® use Facebook, and 56% use LinkedIn for professional purposes.
- When listing with Coldwell Banker, we upload our listings to over 700+ websites.
In addition to listing your home on a MLS, an experienced real estate agent will have multiple tools available to help promote your listing. Additionally, many buyer agents won't even bother showing FSBO homes, let alone know where to find them. As a FSBO you need to be able to afford the additional time and resources it will take to get buyers' attention and interest.
3. Agents are the Better Negotiators
Most experienced agents have helped to negotiate many real estate deals day in and day out. Regardless of your confidence in your own negotiating skills, there are likely factors you won't even know to consider without that same level of experience. It's not always about the price. Many other factors come into play when negotiating.
4. Emotion
A home is a very sentimental thing. After all, this is where your family has created lifelong core memories. That being said, it's easy to become overly emotional when selling your house. FSBO sellers tend to overvalue their homes, which can mean losing out on a closing. Plus, money complicates things. Having a Realtor on your side with your best interest could net you more money than you actually anticipated.
5. Legal risk
There is quite a bit of legal work that goes into finalizing a real estate deal. If you fail to complete the legal portion of the transaction accurately, you may be held liable for fraud or failure to uphold a contract. Leave this in the hands of a trained real estate agent. Even in the worst-case scenario, if something goes wrong, professional agents will typically have E&O insurance (errors & omissions), which will protect them...
Even if you have sold a home before, the sale of any home is likely to be one of the largest financial transactions in your lifetime. While selling without an agent may seem like a cost-saver in the short term, it could cost you significantly more time, money, and headaches in the long run.
To ensure your sale goes as smoothly as possible, find a real estate agent with a proven track record to help you through the home selling process. I've sold over 500+ houses in my career. Allow me to be your advisor and your advocate.
