FSBOs are tempting but risky business.
You may have heard that buying a FSBO (For Sale By Owner) home or selling on your own is easy and can save you money if you do it without a Realtor®, however, you should understand why it’s best to have a real estate agent in your corner to avoid the serious pitfalls that can occur. Here are some key reasons why it’s in your best interest to work through a licensed real estate agent.
If you are selling on your own, it may not be a fair fight. One reason a person may sell their property on their own is that they believe they’re going to save on the Realtor fees. Most sellers don’t know that they are going to have to pay the buyer’s agent anyway. So, using a real estate agent on a FSBO property isn’t going to cost the buyer anything. The buyer has a licensed professional working for them while the seller does not.
Real Estate Is a full-time job. There are so many things that have to me done in a timely manner, not the least of which is showing your home at any time of day. This, coupled with a mountain of paperwork, scheduling, and marketing, is going to take more than just an hour a day.
Real estate agents are experts in marketing homes. Yes, you can list your home yourself on Zillow, Redfin, Craigslist, and even the multiple listing service, and post on all of your social media channels, but even if you are good at marketing in general, you aren’t part of the club…
Being a real estate agent also involves being a part of a network with relationships with clients, other agents, or a real estate agency to bring a large pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.
Owners generally overlook what might make their home sell. Agents can see flaws you’re oblivious to because you see them every day—or because you simply don’t view them as problems. They can also help you determine which feedback from potential buyers you should act on after you put your home on the market to improve its chances of selling.
Selling your home is typically an emotional process. Having an agent keeps you one step removed and makes you less likely to make costly mistakes, such as overpricing your home, refusing to counter a low offer because you’re offended, or giving in too easily when you have a serious deadline.
An agent can find out whether someone who wants to view your house is really a qualified buyer or just a dreamer or curious neighbor. You want to limit the hassle of doing showings to only people who can actually buy.
Your real estate agent is a skilled negotiator, and you may not be. In general, the negotiation process can be very emotional for both the buyer and the seller. An agent can soften some of that emotion.
A good real estate agent will have connections with professionals who can help you with the inspection, repairs, getting a mortgage and the closing process. All of these steps must be done in a timely manner and in order
You could be opening yourself up to legal risks by going it alone. A lot of legal paperwork is involved in a home sale, and it needs to be completed correctly by an expert. Your real estate agent has experience in real estate transactions, can offer advice regarding the contract, and can make sure all the paperwork is completed properly. Without the use of a Realtor, you’re on your own in figuring everything out unless you hire an attorney.
Additionally, Realtors may be wary of a "For Sale By Owner" home. The buyer’s agent knows there won’t be a professional colleague on the other end of the transaction, so even if a client really wants to see your home, the agent is well aware of all of the hassles and the risks.