6 Reasons Why Selling Your House on Your Own Is a Mistake
David Deem
714-997-3486
 There are many benefits
to working with a real estate professional when selling your house. During
challenging times like the one we face today, it becomes even more important
to have an expert help guide you through the process. If you're considering
selling on your own, known in the industry as a For Sale By Owner or
FSBO, please consider the following:
1. Your
Safety Is a Priority
During
this pandemic, your family's safety comes first. When you FSBO, it is
incredibly difficult to control entry into your home. 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 home at one time to ensuring proper sanitization
during and after a showing, and even facilitating virtual tours for buyers,
agents are equipped to follow the latest industry standards
recommended by the National Association of Realtors (NAR) to help
protect you and your family.
2. A
Powerful Online Strategy Is a Must to Attract a Buyer
Recent
studies
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 jumped 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?
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:
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.
4. 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 that's 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
there 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.
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.
6. 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 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 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 home 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.
The
more buyers that view a home, the greater the chance a bidding war will take
place.
Bottom
Line
Listing
on your own leaves you to manage the entire transaction yourself. Why do that
when you can hire an agent and still net the same amount of money? Before you
decide to take on the challenge of selling your house alone, let's connect to
discuss your options.
DRE#01266522
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