Many homeowners assume selling their house on their own will save them money, but you should know a few things about ‘For-Sale By Owner’ (FSBO) and why hiring an experienced property agent could be worth the commission paid. Whether you’re a potential buyer, seller, agent or broker, we have found the following helps any of the forementioned better communicate with the other.
Why Hire a Real Estate Agent?
Many homeowners mistakenly believe they can save thousands of dollars by selling their house without the aid of an agent. Unfortunately, they underestimate how much time, energy, and resources are involved; plus, they lack the excellent negotiation skills, legal knowledge, and market expertise required to successfully market their property without assistance from an experienced real estate broker. Here are some convincing arguments for why using an agent for real estate is far more cost-effective than paying commission fees.
1. Real estate agents have access to extensive MLS real estate listing networks. Some of the largest listing systems are exclusively available to agents.
Real estate professionals are connected to both buyers and contacts. While the property owner may believe an extensive network of people will share their listing, this pool may not be as populated as they think; thus, taking longer to sell may not yield the amount desired by the home seller.
Remember, in most countries, buyers employ realtors to assist them with finding a home. Unfortunately, real estate agents may discourage customers from looking at or even making an offer on an FSBO house due to past bad experiences with sellers who set unrealistic prices, lack knowledge about how the process should proceed, and have an emotional attachment to their property.
Realtors have access to the multi-listing service (MLS), mainly when they belong to international listing networks. This opens up millions of potential buyers to view a property’s listing. Unfortunately, sellers often lack the funds or ability to put their house on the MLS without spending out of pocket for advertising purposes.
Another reason hiring a real estate agent is worth the commission is expertise.
2. Agents are the people responsible for selling homes in the form of a house.
Selling your home can be a difficult and emotional experience, so having an agent represent your interests will keep personal feelings out of the process. A real estate agent’s representation reduces the chance that the seller will make mistakes like underpricing, being offended by low bids, or not making the most out of negotiations. A real estate agent contacts potential buyers on behalf of their seller with no zeal or desperation that can arise in an FSBO scenario.
Without representation, sellers may face disappointment, rejection, and negative comments firsthand. A professional real estate agent can handle these issues rationally, offering advice, discussing options with the seller, and responding from an emotional point of view. While selling a home requires some emotion, having someone on your side simplifies the process. A real estate agent is the intermediary who separates emotional attachment to the property from actual business transactions.
Realtors coordinate with agents and escrow companies, inspectors, title companies, and sellers to complete these negotiations independently.
3. Real estate people add value, period
If a homeowner opts to sell their home without an agent present, they must cover all expenses associated with staging, recording images/videos, and marketing. These costs could run into thousands of dollars (and possibly even hundreds of thousands!) which come out of pocket for them. Furthermore, holding open houses and viewings by appointment requires time and energy from sellers who must fit bookings into their regular schedules. There will likely be an influx of inquiries from unqualified leads who want to learn more about the inside of the home. Remember that FSBO sellers may not avoid all costs associated with hiring a realtor; agents for buyers typically request a commission (usually 3 percent) from the sale price to provide their service to the purchaser.
Hiring an agent to manage all these details is worth the investment for many sellers. A realtor can assist them in prepping their house for potential buyers, taking photos and creating high-quality videos or renderings, then listing on Multi Listing Service (MLS) and other listing portals. Open houses, viewings, and meetings with prospective buyers can be scheduled according to realtor availability; thus, sellers don’t need to leave work or rearrange their schedule to present their homes to potential buyers.
Statistics show that, on average, you make more money selling through a real estate agent than through personal sales (National Association of Realtors, 2018).
4. A realtor is knowledgeable about the legal requirements of a sale
Home sales are legally binding contracts, and the seller must negotiate and manage all related paperwork. There is a legal procedure for dealing with buyer’s attorneys, home inspectors, appraisers, and banks and discussions between sellers and financial institutions. Sellers unfamiliar with such legalities and terms and procedures could face legal issues if they fail to follow them correctly. In certain jurisdictions, there may even be regulations against home sales – some could even prohibit closing without an attorney present!
Realtors are the go-betweens in business transactions and negotiations between agents, escrow companies, title companies, lawyers, inspectors, and more. Since realtors possess in-depth knowledge about how to close a sale legally, you won’t end up facing an unjustified lawsuit if your homes sell quickly through an agent – who typically handles multiple sales per week since they work full time on this task.
5. Real estate agents are full-time professionals
Many FSBO sellers mistakenly believe they will save money by employing an agent to sell their home; however, they neglect other costs, such as time and inexperience. Suppose the seller can’t take time off work each time. In that case, a buyer shows interest or detaches themselves from obligations to make deals and file paperwork. Their property may remain unsold longer than anticipated, leading buyers to believe something is wrong with their house. This leads to costly delays for both parties since a long time on the market, and lower prices are likely to follow afterward.
Real estate agents devote their time and energy to selling a house, while sellers typically struggle to manage appointments and viewings. For these reasons (and more), employing an agent for real estate means sellers benefit from having an expert on-hand full-time. An agent in real estate will guide sellers regarding staging, help determine the most reasonable price point, identify and qualify potential buyers from both countries, and manage requests, viewings, and offers. Agents typically put in long hours, including evening and weekend shifts, to help sellers sell their property at the highest price quickly. Real estate agents possess expert knowledge about the market and are up-to-date on buying trends and laws and regulations specific to this field. By hiring an agent for real estate transactions, you can access their extensive sales background that most average sellers cannot match.
Benefits of Working with an Expert in Real Estate
Home sellers who sell their house “For Sale by Owner” often believe they can make more money through the sale. However, realtors possess the necessary expertise and experience for pricing, marketing, and negotiation. Due to this, FSBO sellers could potentially make less from a sale than they would if they hired an agent and paid a commission. Selling a house independently could take longer, as buyer markets are limited by budget and understanding of where to advertise. Selling your property will consume all your time! Sellers need to be mindful of the time, energy, and money invested into making a successful sale. Ultimately, there are various options for selling your property.
