So you’re thinking of selling your house and going “for-sale-by-owner.” I know it sounds like a good idea: you know, saving on all those real estate agent fees. In theory, that may sound like a good idea, but here’s why most for-sale-by-owners regret the decision and why you might want to reconsider.
Pricing is huge. This is the key factor to selling in a reasonable amount of time, and it isn’t as easy as you might assume. Yes, you can go online and check out your Zillow Zestimate and look for what homes around you recently sold for: but are you comparing apples to apples? Just because your neighbor sold her 1500 square foot rancher two blocks away for $280k doesn’t mean that your 2000 square foot split-level house on a busy street is the same. A good Realtor can put together a market analysis that takes all kinds of features into consideration: from condition differences to improvements and desirability. Because do you know how to account for square footage differences or how much the pool affects price or that brand new carpet you just put in? You don’t want to leave money on the table, but you also need to price correctly to stay competitive and not stay on the market for so long that potential buyers skip over your home because they assume something is wrong with it.
Throwing up some yard signs and marking it “for sale” on Zillow isn’t going to cut it. Buyers are tech-savvy and for the most part they aren’t just aimlessly driving around looking for yard signs. The sign is really just a locator. And yes, it is important to be “live” on Zillow… but almost every single buyer uses an agent. And agents use the all-powerful MLS to check for their listings and send out emails for listing to their clients. In order to have your home seen by the most amount of buyers (and more eyeballs means potentially more offers!) you need to be on the MLS – aka the number one way buyers find homes.
Agents are good filters
And let an agent be the filter for you. A good majority of buyers don’t like contacting sellers directly. It’s weird and uncomfortable for them. An agent is a good, approachable “middle man” to them. Plus, let them be the filter for YOUR benefit, too. Craigslist can be creepy. There are a lot of scammers and criminals and dangerous people on there who are searching for your name, your phone number and other pertinent information. They might call you and set up a showing, when really they aren’t interested…they just want to look at what you have in your house. When you have an agent representing you and your home, any potential buyers only see the house in the company of an agent who is in good standing with their association – which includes frequent background checks, history, etc.
Don’t waste your time!
This leads into not wasting your time, too. If you’re your own agent, how do you decide who’s a serious buyer and who’s just wasting your time? Everything goes through your agent, so they can vet potential buyers BEFORE they see your home. They’ll ask about the buyer’s pre-approval letter, how long they’ve been looking, etc. to make sure they are serious about potentially putting in an offer and they aren’t just looking for the fun of it.
Legalities and paperwork
And finally, all that legal mumbo-jumbo and paperwork. Once you have verified a potential buyer and they put in an offer, you have to attend to all the details and make sure the sale goes through. But what happens if you forget a mandatory disclosure or form? It’s more than just the loss of the sale at that point…we’re talking the potential for serious legal repercussions, too. Agents are trained on the legality of this paperwork, can explain anything you are confused about and make sure everything is in order to protect you from any legal ramifications.
It all boils down to the hope of saving around 3%. It isn’t the normal ~6% because any buyer with an agent will likely require you to cover their agent’s ~3% fee or they have to pay it themselves. And yes, saving around 3% sounds really great! But when most people only sell a home a handful of times in their life, a professional guiding you along the way can take away SO MUCH HEADACHE. Let the pros pay for the photography and all the marketing, and let them deal with the hassle of negotiation and paperwork and vetting of buyers. I assure you, it is worth it in the end.