To many sellers, the idea of listing their home as a “FSBO” or “For Sale By Owner” seems like a good idea. However, this isn’t necessarily the right choice for the majority of sellers. Here are five reasons why it’s best to work with an agent.
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to list your home on your own.
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies which work for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
- Your bank in the case of a short sale
2. Exposure to Prospective Purchasers
Recent studies have shown that 92% of buyers search online for a home. That is in comparison to only 28% looking at print newspaper ads. A good real estate agent will have an internet strategy to promote the sale of your home. Do you?
3. Results Come from the Internet
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial. Here at Platinum Real Estate Professionals, we create a targeted and aggressive internet campaign for your listing. Is this something you’re prepared/able to do on your own?
4. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.
5. You Net More Money when Using an Agent
Last, and perhaps most important to the majority of sellers, is the financial advantage to hiring an agent. The bottom line is, you net more money when using an agent. Many homeowners believe that they will 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 commission. The seller and buyer can’t both save the commission.
Studies have shown that the typical house sold by the homeowner sells for $184,000, while the typical house sold by an agent sells for $230,000. Clearly, it makes financial sense to pay the commission and potentially get a lot more out of the buyer.
Not to mention, here at Platinum Real Estate we’re the home of the famous “List for 1%” program. Instead of paying a real estate agent 6% to sell your home, we offer the same professional photo shoot, marketing plan, and service for just 1% commission.
The bottom line is, for most sellers it simply doesn’t make sense to list your home as FSBO. Between the headaches of negotiating the entire deal yourself, to potentially getting a lot less for the home, there are plenty of reasons why it pays to hire an agent. If you’re interested in selling, give us a call anytime 24/7 at 702.545.0020 and we’ll be happy to answer your questions!