For many people, once they decide to sell their home, they opt to take the for-sale-by-owner route. After all, with listing sites like Zillow, advertising the sale of your home seems like a fairly straight forward process. You can easily post pictures taken with your smartphone on these sites with their user-friendly platform. Once that is done, it’s just a matter of setting up appointments and giving potential buyers a tour, and then you can easily sell your house and pocket that 6% that typically goes to an agent. Easy, right?
But, what happens if you clear out your schedule for several showings and only a portion of them show? And, for those that do show up, would you be able to respond to criticisms or questions in an unbiased manner, since you likely have a personal attachment to the house. The truth is, the job of a real estate agent involves much more behind the scenes work.
Here are some major advantages to using a real estate agent to sell your house:
1.MLS Services Increase Listing Visibility:
The MLS, multiple listing service, is only accessible to state licensed realtors. This service shares property listings to dozens of different websites that other agents use exclusively, when helping home buyers find the perfect home, speeding up the process of your home being found.When using the FSBO site, you’ll either pay a flat fee or commission for brokers to have access to your listing. According to the National Association of Realtors, less than 15% of homes listed on MLS sites are for sale by owner.
2.Upper Class Buyers Are Not Interested In FSBO:
Highly qualified buyers are not interested in dealing directly with individuals selling their own home. These folks are often on time constraints and either traveling to a new area for a weekend to find a house for relocation, or they need to buy quickly because they’re selling their own home. Most likely they’ve searched online in advance and with FSBO listings lacking the visibility compared to realtor listings, chances are minimal for them to see your listing. The fact is they want the expertise and service of a real estate agent. Also, most of the buyers who are interested in FSBO are looking to spend as little as possible, which means you’ll end up with a lot of hassle and wasted time, while losing out on a headache-free transaction with a realtor.
3.Realtors Make Time for You:
Once a realtor takes you on as a client, the agents required by law to accommodate you and act in your best interest; otherwise, you can take them to court. Think of all the time and money you will save by not marketing and showing your property on your own.
4.Consider What You’re Really Saving:
Homeowners choosing to list their own home to save money fail to consider all the costs involved. Statistics indicate that homes listed and sold by realtors sell for thousands more versus FSBO. Of course the higher a home sells for the more commission the agent will make. In regards to the realtor commission, it is generally between 5% and 7%, with the buyer’s agent and seller’s agent splitting the commission. So, for example, a 6% commission on a $300,000 home, will be $18,000. Now, let’s consider the FSBO listing. Not only will you make less on the sale of your home (according to statistics), you will still be responsible for paying a commission to the buying agent, which will likely be 3%. So, in the end, the savings isn’t that impressive.