6 Reasons You’ll Win by Selling your Housz with a Real Estate Agent This Fall, or Not.
Yes, I'm a broker, but I'm not entirely sold on using an agent to sell a housz...
There are many benefits to working with a real estate professional when selling your housz. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling your housz on your own, known in the industry as a For Sale by Owner (FSBO), it’s critical to consider the following:
1. Your Safety Is a Priority Your family’s safety should always come first, and that’s more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your housz. A real estate professional will have the proper protocols in place to protect not only your belongings but your family’s health and well-being too. From regulating the number of people in your housz at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family. Of course, you can learn those protocols easy enough...
2. A Powerful Online Strategy Is a Must to Attract a Buyer Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a housz was to search online. Throughout the process, that number jumps to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you? If not, after an easy course and burning some midnight oil you will know how to do it.
3. There Are 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 inspection companies, which work for the buyer and will almost always find challenges with the housz.
The appraiser, if there is a question of value.
... Just put your foot down and demand your price. You would do that with or without an agent. Remember, right now on 10/12/2020, it's a sellers market.
As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives. Again, you can learn that too...
4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage Having a buyer who wants to purchase your housz 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. This can be overcome, too, and could save you a ton of money.
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 who is working with lenders every day to guarantee your buyer makes it to the closing table. So make a friend in the mortgage business!
5. FSBOing Has Become More Difficult from a Legal Standpoint The documentation involved in the selling process has increased dramatically as more and 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 major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years. (Most of the documentation is there to protect the agent).
6. You Net More Money When Using an Agent Many houszowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission. A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed housz was an average of 6%. 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.”
If you stick to your price in a sellers market you WILL make more on your own.