If you’re selling your home, you may be tempted, like many other sellers, to go the for-sale-by-owner (FSBO) route in order to avoid paying that irksome agent commission. But you might want to think again before you take that step. But the simple fact is that most sellers who work with an agent sell for more and more quickly. And there are other major benefits you’ll miss out on if you try to do it yourself. Read on, then, to discover 4 reasons why selling your home on your own can be a huge mistake for property owners.
1. Much Less Market Exposure
Maybe the biggest mistake you’ll make when selling your home on your own is that you will drastically limit your market exposure. These days it takes a lot more to sell a home than a for-sale sign in the front yard.
“What [homeowners don’t] realize is how many buyers need to see that sign in order to actually produce a serious, ready, willing, and able buyer. The number could be in the hundreds, and . . . the number of actual qualified buyers that drive by [your] house will be very few. Even if you’re home happens to be located in a popular city like San Antonio or San Diego where investors are buying houses with cash, they may not even know that your home exists.”
And marketing on the big third-party real estate sites won’t help you all that much either. Yes, you will get more exposure that way, but you’ll also “get a lot of tire kickers and ‘unqualified’ buyers contacting you.”
Really, the only way to get the exposure and marketing reach you need to sell fairly quickly and at a good price is by working with an experienced local agent. “[M]ost of the ‘pre-qualified buyers’ are already represented by agents, that are off viewing houses that they were shown to by their agents. Agents only look on the MLS when trying to find homes for their buyers, so if your home isn’t listed there, you’ve just removed a very large pool of available buyers.”
In addition, today, you also need effective online marketing strategies that only an experienced agent can provide. To discover more about how an agent can help market effectively, just call 808-634-4518.
2. Netting Less Money
As we mentioned early on, if you try selling your home on your own, you will very likely end up with less money in your pocket – even though you don’t have to pay an agent commission.
And there’s not a little irony involved in this. “Many homeowners believe they’ll save the real estate commission by selling on their own. [But] the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.”
Studies have shown that sellers who sell on their own don’t actually save any money. “In some cases, the seller may even net less money from the sale. [One] study found [that] the difference in price between an FSBO and an agent-listed home was an average of 6%.”
As we just indicated, the main reason for this is the limited exposure and marketing reach with an FSBO. The greater exposure you get with an agent typically makes the agent’s commission a bargain because you’ll access a much larger target market and pool of potential buyers. “The more buyers that view a home, the greater the chance a bidding war will take place.”
3. Lack of Experience and Expertise
Another important reason why selling your home on your own can be a huge mistake for property owners is that you most likely just don’t possess the necessary experience and expertise.
“How many times have you negotiated closing costs, sales price, or even repairs with a home buyer? . . . Like it or not, most real estate agents have much more experience in the industry than you will ever have, and in real estate, inexperience can translate into financial losses.”
Keep in mind that good agents typically work hard on constantly educating themselves. They take continuing education courses to gain additional certificates so as to be able to negotiate better for their clients. Agents are trained to negotiate every aspect of a real estate transaction – something you will likely miss out on if you go it alone.
4. Much Time Required
Selling your home on your own can also be a huge mistake for property owners because it just eats up so much. It takes a huge time investment to do it right, and most sellers just don’t have enough available time. And don’t forget that time is money.
“Before taking the leap to sell by owner, in order to save the 6% commission, try calculating what your time is worth in dollars. Then, estimate how many hours you’ll realistically need to work to get your house sold.” That 6% commission begins to look like a huge bargain when you do this.
Get Professional Assistance for Selling Your Home
Ultimately, selling your home on your own can easily be a huge mistake. To get the needed marketing reach and to sell for more and more quickly, most property owners are far better off working with an experienced local agent. If you’re considering selling your home and want to avoid these mistakes, be sure to contact us at 808-634-4518.