Selling your own home can be both emotionally and financially trying. An FSBO, short for for sale by owner, comes with many challenges and if you are not familiar with the residential market this is especially true. If you are opting out of using a real estate agent, then you should have an understanding of the process. The National Association of Realtors (NAR)’s Profile of Home Buyers and Sellers, reports that those that sold their home FSBO face challenges with pricing the home right and dealing with required paperwork. Real Estate agents are essential and here are several reasons why.
Marketing and Exposure
This is one of the biggest pieces of the puzzle when it comes to listing a home. Sellers want the info to reach as many potential buyers as possible. With that being said, a seller wants to attract but they need to be qualified buyers. A real estate agent can screen buyers before they preview a listing to make sure they can really afford the home. They also have access to many marketing platforms such as MLS listings, professional photography, virtual tours, and extensive professional networks.
Managing Liability and Legal Considerations
There are a lot of disclosures and regulations that you have to follow when selling a home. This can be burdensome if you do not stay up to date on the legal aspects. If you sell a home by owner, you are asking for liability risks and legal complications. A real estate agent is very familiar with handling contracts, disclosures and regulations. An agent can also help to avoid any legal dispute or delays because of omissions or errors in the contract.
Negotiations and Contracts
If you are selling your home, then you are emotionally invested in the house. This can take away from the business aspect of the deal, when emotions get in the way. An agent is your advocate that has no attachment to the property and can negotiate for the best price and deal. Your agent can set it up where not only are they working for you and the sale of your home, but also the home inspection company and the home appraiser. All parties will come together and work on the best solution and deal. If you go at it alone, you will have to hire vendors yourself, who might take advantage of you.
Pricing and Housing Market Knowledge
Pricing your house can make or break a listing. Pricing it too high can deter buyers while pricing it too low can be money out of your pocket. A real estate agent will know the market and be able to make a good decision on the value of your home. They have in-depth knowledge of the current market data. You, as a seller, do not have this advantage. You will run the risk of underpricing or overpricing your home.
Remember it is best to hire a real estate agent who can help you navigate the current housing market. They will not only protect you from a bad transaction but will be able to get you the most bang for your buck!