Do you know what the biggest motivation for people to go for a FSBO is? Bingo, to save the commission money they will have to pay to the agent otherwise! And yes, some of them also succeed at saving that amount by doing everything on their own. I wonder if the vast majority of people selling their houses do the research of how much money they would get for their house if they use an agent and if they don’t.

Here are 7 reasons for you not to sell your home on your own and use a real estate agent as a representative:

Marketing 

Challenges faced by FSBO’s

FSBOs rely mainly on their guts and personal contacts to get their home sold. They lack on the marketing aspect of the sale i.e. marketing materials, effective networking, and MLS. Houses not listed on the MLS, which is a huge database of potential buyers having their listed criteria, are obviously going to get much less exposure to prospective buyers. Being on the MLS makes your home accessible to a huge number of buyers and other agents who have customers looking for a home. Although some of the websites allow FSBOs to get listed on MLS for a fee, that’s also not possible without a listing agent.

How agents add value

On the other hand, apart from the MLS, real estate agents have a wide network of contacts (previous clients, friends, referrals, and personal contacts) that enhances the reach of property listed with them for sale. A recent study shows 92% of buyers start their house search online. Apart from the online strategy agents have a detailed marketing plan (tailored to cater your specific needs) including direct marketing (postcards, brochures, open house and inviting neighbors) as well as intangible marketing (online strategy, target marketing, exclusive listing, social media and email campaigns, etc.). Choosing the right strategy and implementing it in an efficient manner is what makes the difference.

Peace of Mind

Challenges faced by FSBO’s

Selling your home calls for a lot of hard work. Being a FSBO you will be running around in circles. You have to get your home “ready‿ to be shown to the buyers. You have to be there in person to give buyers a tour of the house. So if you have a full-time job, you will have to take time off from your work or you may miss the buyer.

How agents add value

On the other hand, an agent can do all that hard work for you. He knows how to show your house in the best possible light with the help of staging tips. He will be there to for you to show your house to interested buyers. He can update you on how the showing went afterwards. So you don’t have to compromise your work life for these tasks. 

Negotiation Skills

Challenges faced by FSBO’s

Not everybody is good at negotiating in their own interest. Getting your desired price for your beloved home is directly proportional to your ability to influence and persuade others of the worth of your house.  That’s where negotiation comes into play, which FSBOs lack by far. They tend to be hard bargainers, pushy and end up being. This is the reason why they have a hard time arriving at a pleasant and satisfactory agreement with the buyer.

How agents add value

On the contrary, Real estate agents can handle all the negotiations on your behalf. Negotiating is not just limited to the buyer, the list goes far and beyond a buyer. It includes negotiating with the buyer representative, attorney, inspectors, appraisers and the bank. Real Estate agents communicate and negotiate in your best interests to make sure they get the best deal possible for you.

Finer Details of Deal & Closure

Challenges faced by FSBO’s

FSBOs lack the knowledge on properly closing their deal. It just does not end with the acceptance of a chosen offer. There are other tasks that need to be completed before closing which include: getting the written commitment from the buyer on the mortgage, getting the inspections done within the given time frame, getting the contracts approved by an attorney, and so on. Many FSBO often ends up with unexpected outcomes. Certain disclosures and regulations have been made mandatory. Avoiding such legal niceties may cost you money, lead to lawsuits or you may fail to sell at a time of your choice.

How agents add value

That’s the part where professional agents come really handy. They know every tiny bit of the home selling process. So no more surprises and no more headaches when you have an agent by your side. They know how to deal with everything coming their way. Be sure to have a sound, hassle free closure because your agent is there to take care of all the paperwork.

Lacks Transparency

Challenges faced by FSBO’s

Another problem with FSBO sales is that they are perceived to be lacking transparency.  Sellers are legally obliged to disclose any issues or repair works they have had done during their ownership of the house. But too often, they lack proper disclosure which results in a lawsuit. They are either unaware of their legal obligations towards disclosure, or they tend to hide such issues. But whatever the reason may be, FSBOs are found to be lacking credibility.

How agents add value

On the other hand, buyers approaching a house for sale through an agent are confident, because, their agent has had already checked out the property for any faults before letting them in the deal.

Lacks Legal Capacity

Challenges faced by FSBO’s

Too often, FSBOs don’t have a strong understanding of the contractual part of the real estate process. They are either ignorant of what they agree to or don’t know how to negotiate specific parts of the contract. These contracts are not just about signing the offered price, but they have many complex clauses, timelines, and contingencies which a layman is unable to comprehend.

How agents add value

That’s the reason why many FSBOs end up hiring services of an expert who understands contracts and help them steer the process to a legally sound conclusion.

Selling Time

Challenges faced by FSBO’s

A speedy sale is a combined result of all the other factors involved in the process. Pricing your house correctly, getting it the maximum exposure and then the ability to come to terms with the buyers help you sell your house swiftly. FSBO are generally unaware of the market dynamics so they either incorrectly price their home or settle for less. FSBOs lack the required exposure and owners don’t have the negotiation skills that’s why FSBO homes stay on the market for longer.

How agents add value

Agents know how to gear up the process so that all the little things mentioned above go in the right direction and bring the desired results.

Last but not the least, FSBO sales lack the specialist, marketer, guide, advisor, and negotiator all along the way to home selling. Professional real estate agents have a lot of value to add into the sale process, FSBO sales lack this value!

So if you are deciding on to take the FSBO route OR hire an Agent, ask yourself the ultimate question, how much do you really save by selling the home yourself- is it worth it not to pay the 5% commission? What do you lose in the process? What happens if you do try to sell it yourself, but it doesn’t get sold, and it becomes an expired listing? Hope you’ll get the right answer!

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