In this economy we are all looking for ways to save money and some homeowners are looking at the option of selling their homes themselves to save money. Selling your own home may seem easy enough but there are a lot of things you may be unaware of. Hiring an agent to sell your home has a lot of advantages over a FSBO, for sale by owner, property. The reasons below will outline why it is better to hire an agent than to sell your home yourself.
One of the first advantages real estate agents have is their access to MLS. FSBO properties are not listed in the multiple listing services or MLS. MLS is a big marketing tool for licensed real estate agents and brokers and is only open to licensed agents; homeowners cannot list their properties in these databases. The MLS listings reach a wide variety of home search engines and web sites which helps to promote the property and sell it. A FSBO property does have some advertising options but they are generally limited to a for sale sign in front of the home and newspaper advertisements. This is a huge disadvantage because when selling real estate it is really important to reach the masses.
Agents Wont Show Your Home
A disadvantage of selling your home yourself is that other real estate agents likely won’t show your home. The reason that other real estate agents will likely avoid your home is because there is no listing agreement which guarantees the buyers’ agent to their commission for their participation in the sale. Also some agents aren't willing to show these homes because they are unwilling to work with a self-represented seller during all the necessary transactions that are part of selling a home. This limited the potential buyers of your property drastically.
Risk of Overpricing Your Home
Another big factor you will want to consider is that many homeowners end up overpricing their homes. Homeowners are notorious for believing their homes are worth more than they are and they really need the advice of a real estate agent to price their home properly. The expertise of a real estate agent will help with the asking price of your home, the current market conditions and other tips for appealing to buyers. Real estate agents don’t just handle the paperwork of a sale they help bring in buyers, prepare the home for sale and provide many other services. Also there are legal issues that can arise and when selling your home yourself you are liable for providing all the disclosures and other paperwork.
Buyers are Less Comfortable
Finally you need to consider the buyers feelings when listing your home. Most buyers are much more comfortable working with a home listed by an agent rather than the homeowners. It is stressful to view a home that is for sale with the owners present and buyers tend to spend less time in the home if the owners are present. The buy will likely feel uncomfortable discussing their feelings about the home if the owner in present. Also buyers may feel like it is more challenging to negotiate the terms of the sale if the owner is selling the property which may deter them for making an offer.
Considering all the factors listed above there is really no question that using a real estate agent is the best choice for listing a property. While there may be some financially advantages to listing your home for sale without an agent there are far too many disadvantages to make the savings worthwhile. Working with a real estate agent will take the burden of paperwork and other work related to the sale off your shoulders and allows you to concentrate on finding your new home.
LessThan6Percent™ was born out of the belief that there could be a more transparent, efficient and cost-effective way for home owners to search for and hire a real estate agent when they are ready to sell their home. With a founding team possessing experience in building online marketplaces and developing online real estate communities, we set out to create an amazing, "so-satisfied-that-I-gotta-tell-my-neighbor" experience.
So that's our story: making the process of home selling better, faster and easier, one home at a time. Read about us on WSJ http://online.wsj.com/article/PR-CO-20130429-912590.html