Dear Valued Customers and Friends!
6 Reasons You'll Win by Selling with a Real Estate Agent
There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more critical to have an expert you trust to help guide you through the process. If you're considering selling on your own, known in the industry as a For Sale by Owner (FSBO), it's critical to consider the following:
A Powerful Online Marketing Strategy
Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 93%. Today, those numbers have grown exponentially. Top real estate agents have developed a strong Internet and Social Media strategy to promote your house's sale. Have you?
Too Many Negotiations
Here are just a few of the people you'll need to negotiate with if you decide to FSBO:
- The buyer, who wants the best deal possible
- The buyer's agent, who solely represents the best interest of the buyer
- The buyer's attorney (if applicable)
- The inspection companies, which work for the buyer and will almost always find challenges with the house
- The appraiser, if there is a question of value
- The title company
- The town or municipality
- The buyer's buyer & their agent
- The bank (if a short sale)
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and mediate the emotions felt by buyers looking to make one of the most significant purchases of their lives.
You Won't Know if Your Purchaser Is Qualified for a Mortgage
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it's almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser's mortgage commitment. Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was available yesterday could be gone tomorrow. You need someone working with lenders every day to guarantee your buyer makes it to the closing table.
FSBOing Has Become More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the primary reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
You Net More Money When Using an Agent
Many homeowners believe they'll save the real estate commission by selling on their own. Realize that buyers look at FSBOs because they also think they can save the real estate agent's commission. A study by Collateral Analytics revealed that FSBOs don't actually save anything by forgoing an agent's help. The seller may even net less money from the sale. One of the main reasons for the price difference is effective exposure: "Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the Home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool." The more buyers that view a home, the greater the chance a bidding war will take place.
Other reasons to Hire a Professional:
- The difficulty of Pricing Correctly (especially in a dynamic, rapidly changing market).
- Emotional attachment to the Home and the inability to see the property from the consumers' eye.
- The inconvenience of showing themselves.
- Increase in the prevalence of Scams!
Bottom Line
Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money or more? Before you decide to take on the challenge of selling your house alone, let's connect to discuss your options.
-Barbara Schluraff ~ Broker/Owner
