10 Reasons Not To Sell Your Home By Owner
1. Not Netting The Top Dollar Amount For Your Property
A real estate agent is hired to gain the most profit for her client. In most cases, an agent will include commission costs into the asking price to account for selling costs. Therefore, meet with an agent and see what she has to offer. When selling the largest asset you have, don't you think it is worth a commission to have representation of someone who is working to put more money into your pocket?
2. Accounting For More Liability
Any good real estate company has errors and omissions insurance. This is insurance that covers agents who make any mistakes in contracts or anything else. When representing yourself, you are setting yourself up with tons of legal liability instead of depending on an agent.
3. Lack Of Marketing/ Exposure
Sure, there are tons on Internet listing sites with whom owners can list their properties; however, the multiple listing service (MLS) trumps all. Thousands of buyer's agents search the MLS when representing buyer clients every day, multiple times a day. Also, good agencies have top notch marketing and networking tools they utilize to sell your home in the shortest amount of time.
4. Perception As An Easy Negotiation
Any time there is a for sale by owner, a buyer perceives that as an easy negotiation. Buyers will usually negotiate like this: Let's say a house is for sale for $200,000.00 and the buyer writes an offer for $183,000.00. Why would the buyer make an offer for this amount? Their justification will sound like this: "We made this offer because if you had a listing agent, we took off the commission costs and then asked for $5,000.00 in closing costs resulting in our offer price. Many times this works, because there is nobody advising the sellers and they get scared they won't receive another offer. They were easily negotiated down, and if they had a listing agent, they would have gotten more money most likely and better advice on what to do.
5. Agent Boycotts
Any time an agent sees a for sale by owner, they usually avoid taking clients there. I don't do this, because it is not upholding the fiduciary duty to clients when showing them anything and everything they could potentially be interested in buying. However, it is taking the risk of not getting paid, and this is wrong. Agents fear this and usually avoid taking buyers to that house--causing the for sale by owner less frequent showings and potential buyers.
6. Pricing Incorrectly- Stagnant On The Market
Many times, for sale by owners do not know how to price a property. Having access to the MLS allows agents to see past sales history, comparative market analysis, and active prices in a certain area, giving them the best ways to competitively price your property. Pricing is everything when selling a property and it can make or break a listing. Overpricing a property is the most common mistake owners make, and their property becomes stagnant on the market. When it becomes stagnant- this later becomes a negotiation tool used against them.
7. Low Offers
There is no getting around it. You will be consumed with people not remotely interested in buying and are just nosey. They want to waste your time, see the house, act interested, then give you the lowest offer imaginable. This is frustrating and will happen more often than not. Using an agent filters the unqualified buyers and avoids the not serious, low ballers.
8. Time
Real estate agents are known as workaholics. Why you ask? Because this is a time consuming job. Between showing properties, meeting with clients, marketing listings, and taking thousands of phones calls, the job seems endless. Are you ready to take time out of your busy days to handle all these tasks?
9. Confusing Contracts
When a buyer's agent writes an offer, it can be confusing, especially if you have never read one before. Also, it is easy to miss detrimental details. Having piece of mind alone should be worth the 6% commission to you when dealing with the piles of contracts and inspection paperwork.
10. The Buyer Has Representation, You Have Nobody
That line says it all.
The bottom line is, talk to an agent you trust. Sit down and interview multiple agents and go with the one you know will represent you the best. You need representation in real estate.