It may seem like a good idea to sell your home as an FSBO (For Sale by Owner) in an attempt to avoid real estate agent commission fees; however, it can end up costing way more than if you used a real estate agent. We’ve put together a list of all the reasons that you should use a real estate agent instead of doing it yourself.
1. FSBOs typically sell for less
While it could be tempting to sell your home on your own instead of using a real estate agent, it’s probably not in your best interest. When selling your home on your own, you can generally expect to get less money in the end. Last year, FSBO homes sold at a median of $217,000 nationwide while homes that sold with the help of a real estate agent were at a median of $295,000.
2. FSBOs are hard to price correctly
Real estate agents have access to the latest market data, including home evaluation reports that’s difficult to discern if you’re trying to do it yourself. Because of this, real estate agents will be able to help you price your home correctly so that you can walk away with more money at closing.
3. Marketing an FSBO can be difficult
Real estate agents have access to what is called the multiple listing service or MLS. Most people start their search for a home with Google. These days real estate giants dominate the search results and they all use the MLS to list homes. This is no different with us; any listings we get at Pere Homes, we put into the MLS. This means that you will be able to get more eyes on your listing if you used a real estate agent.
4. Selling your home as an FSBO is inconvenient
When you sell your home as an FSBO, you have to take on all of the tasks that a real estate agent would take care of for you. This includes everything from staging the home, taking pictures, and even showing the home. People will want to see your home and you’ll have to make yourself available to show it to them. Additionally, FSBOs tend to stay on the market longer than homes sold with the help of a real estate agent. This means that it can be and usually is way more time consuming when selling your home yourself.
5. There is a legal liability
Real estate agents have insurance to cover themselves from any legal issues. When selling a home, there’s a lot of paperwork and contracts that have to be signed and a mistake can be extremely costly. Using a real estate agent means you pass the risk to them rather than taking it on yourself.
6. Scammers may target you
When you sell your home as an FSBO, you are putting it out there that you don’t have the help of a professional. This can make you can easy target for scammers. Selling as an FSBO and falling victim to a scam can cost you hundreds and even thousands of dollars. Using an agent instead can give you peace of mind that you will be less likely to fall for any scams because you have an experienced professional to help.
7. You may have emotional attachment to your house
When you are selling your own home and are emotionally invested, you are likely to price your house incorrectly. When you are invested in your home this way, you may end up setting the price too high and miss out on potential buyers. Having an agent can help ground you and take your emotion out of the equation.
It’s understandable that some people may try to sell their home on their own. After all, it does seem like a good deal to miss out on agent commission fees. However, as we have explained, it usually means a higher risk and a lower reward for the seller. If you are ready to sell your home, but need an agent, contact us today and we can help you get your home sold!