Selling your home without an agent actually costs you more?
I just left a Real Estate Seminar and found out that people who sell their own house, called "For Sale by Owners" in the industry sell their homes for on average 20-25% less than if they hire a professional! For Sale by Owners, aka FSBOs, don't have the tools, such as MLS listings, a ready list of active buyers in the area, or the combined industry knowledge of the realtors that a listing agent works with. FSBOs aren't licensed, trained, or even able to market their homes properly - sometimes just putting out a for sale sign and hoping someone buys their house.
As an example say someone puts their home on the market for $500,000 to sell by themselves Â to save a 6% commisoin or $30,000. A professional who is trained to know what a home goes for in a certain market has tools to price the house right, and will most likely get the house sold faster because its priced right and marketed correctly. Say someone comes along and offers $450,000 for the house. Since the FSBO doesn't know what the other houses in the neigborhood sold for recently he's put at a disadvantage in the negotiations. And since he doesn't have a large rolidex of buyers he won't be willing to walk away and turn down the lowball offer. In ths scenario the seller just cost himself an additional $20,000 from using a professional - who won?
Not Only are FSBOs loosing the opportunity to sell their home at the highest price, they also open themselves up to many lawsuits since they don't know to disclose risks that buyers are taking on since they are not professionals.
As a seasoned realtor professional we know to make sure to disclose things like Natural Hazards, Flood Zones, Lead Paint, Transfer Disclosure Statements, and many other disclosures required by law. Not only are FSBO's loosing money, they're putting themselves at greater lawsuit risk, and in lawsuit happy California that's a nasty combination.
So if you know someone who's selling their home themselves, let them know that they are certainly risking a big monetary and a big legal mistake by not working with a professional.