The “For Sale by Owner” deal is appealing when you’re trying to sell your home. Who wouldn’t want to save the cost of that commission? After all, 3% on the price of a home is a nice chunk of change.
The problem is there are a number of downsides associated with the FSBO route. Even though on paper it looks like you’re saving money, it might actually cost you in the long run .
You Aren’t a Professional in the Real Estate Space
Let’s face it – assuming you aren’t a real estate agent, you aren’t an expert in this area.
- It will be difficult for you to price the home correctly
- You’ll have trouble getting good photos of the home
- Some things might be overlooked that would be easily caught by an agent
- You may let emotions affect certain aspects of the sale
An agent would help prevent all of these things from happening – and more. They do this day in, day out.
Fewer People View FSBO Homes
This point ties back to the last one.
Buying agents will often avoid FSBO homes because they know there’s no professional on the other end of the phone. The buying agent knows that these types of deals are always a bigger hassle than your standard contract where each side has an agent.
For example, the seller may insist that no attorney is required for the closing. Or maybe they “know a guy who can do it for $35.” Or they push back on everything from the inspection to fixing things that need attention to the closing date.
Will some buying agents show your home? Of course. But you’ll get fewer than you’d like, which means it’ll be harder to sell and you may end up dropping the price anyways, negating the savings you were trying to net.
Filter through Potential Buyers
Homesellers will have all kinds of buyers walk through the home.
Some will be pre-qualified and have a letter in-hand already.
Some are almost pre-qualified but wanted to get a jump on looking.
Some haven’t even started the pre-qualification process.
Some – especially those without a buying agent – are just “looking around.”
An agent is trained and has experience with each type of buyer. They will sort through them and make sure only serious contenders are considered.
For example, they’ll know that it generally isn’t a good idea to accept an offer from someone who isn’t pre-qualified. If they do and the deal falls through, everyone’s time (which is money) just got wasted.
Agents Legally Protect You
There is a lot of paperwork involved in the home selling process. An agent has experience with this paperwork and can make sure you do everything the right way. If you’re just winging it and trying to do it all yourself, you may miss a few things or do them wrong, opening you up for a potential legal issue.
Should you sell by owner or hire an agent? As you can tell, we recommend hiring an agent. Besides what we discussed above, there are other benefits an agent brings to the table like price negotiation and marketing the home.
But whether you sell by owner or an agent, you’ll need a loan for your next home, right? That’s where we come in. Call us at (877) 556-2655 and we’ll help you get pre-qualified in no time.