It may seem like something that can be handled on a person’s own, however, selling your home on your own is truly no easy task, and will most likely result in some headaches along the way. Let’s discuss 5 common traps of a for sale by owner (FSBO) transaction that a Realtor can help you avoid…
1. Fewer People May Know Your Home is For Sale
Trained specialists acquire their licenses to accomplish this for you for a reason. A real estate agent will have insider connections and networking contacts, they will know the market, and will also guide you through the entire process, whilst negotiating on your behalf, and do everything in their power to make the process of selling your home as simple as possible.
Only Realtors can list homes on the Multiple Listing Service (MLS), which is one of the biggest online tools real estate agents use today. In a For Sale by Owner transaction your “buyer foot traffic” may be limited to drive-bys and curious neighbors, and if this is the case then you may have a potentially expensive problem to deal with.
Selling is quite often a game of numbers, and it is as simple as this: The greater exposure brings greater chance for success. You will need to be willing to invest your time, money and any skill set you may have in the real estate industry, in to a solid marketing plan.
Realtors almost always use services that will allow sellers to approve, deny, or reschedule showings and also to set time-frame boundaries. If you truly want to sell your home, you need to be as accommodating as possible for showings of your home, because if you decline one, potential buyers may seek out and put an offer on a home around the corner instead.
A Realtor will be doing all of this for you, and he or she will have more experience, and sometimes more drive, in promoting your home through ads, signs and other methods.
2. The Risk of Underselling Your Home
There is a risk of selling your home for significantly less than it is worth if you are doing For Sale by Owner. Statistics have shown that the average FSBO home sells for approximately 15% less than homes which are sold through a Realtor.
3. The knowledge
Not only will you need to spend a significant amount of time educating yourself on the process of selling a home to the point that you could become a licensed real estate agent yourself, but you will also need to educate yourself on the current market, and advertising methods competitive real estate agents are using today, as well as working with potential buyers.
4. The Paperwork
Preparing all of the legal forms, disclosures, etc. is your responsibility, and if you’re unfamiliar with the guidelines and requirements, which majority of us are, you are taking the risk of financial and legal liabilities.