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Selling a Home Without a Real Estate Agent Can Cost You Money

By Bill Gassett | March 5, 2019
Selling Your Home Without a Realtor Can Cost You Money!

Selling a House For Sale By Owner

Is it true that selling a home without a real estate agent can cost you money? Many homeowners think that selling a house without a Realtor is going to save them money. The belief that a full commission is going to be saved is quite powerful.

It is not hard to understand, as the fees to sell a home through a real estate agent are quite a bit of money.

Unfortunately, the opposite is almost always true when it comes to saving on commission. Most private home sales stay on the market for longer, and in the end, the homeowner often achieves a much lower price.

That's if they are lucky enough to sell the property. Most for sale by owners end up failing to sell their house and end up listing with an agent. So if you don't sell your home or do so for a lot less than other similar homes, are you really saving money? Of course not!

Why You Should Always Use a Real Estate Agent

Selling a home is about many things more than just selling a property. First of all, most homeowners get the price wrong. In general, private home sales are staggeringly overpriced. Of course, you enjoy your home, but valuing your property is not the same thing as loving it.

A professional real estate agent will cast a critical eye over your home, and may even tell you to make a few home improvements before he or she takes it on. The agent should also have the professional experience to know what your home is truly worth.

The best agents will be brutally honest with you. There is no sugar coating or telling you what you want to hear. That's how home sale failure happens.

Why Is Not Anyone Coming Around to View My Home?

Buyers agents are often not happy to visit private home sales. They know that most of them are overpriced and may not even be in excellent condition. That's if they even know your home exists. One of the most significant problems with selling a house for sale by owner is a lack of exposure.

One of the most significant reasons you pay a real estate agent is for them to let the world know your home is for sale. If you are relying on that little for sale by owner sign you bought at Home Depot, you're in for real problems.

One of the major mistakes people make when selling their house is that they will have the same results a real estate agent would provide.

Homes languishing on the market is where it can get really costly for a FSBO. You are making mortgage payments each month and not moving forward with your goals which could be purchasing another property.

Trying to buy and sell a home at the same time can be really troublesome, especially when you are trying to do it without the help of a top-shelf real estate agent.

Presentation Matters

You may have heard of the real estate agent expression "location, location, location." Yes, the location of your home matters, but there is more to it than that. The presentation of your home matters as much if not more.

Many homeowners who attempt to sell their homes privately simply forget about presentation. This is something that an experienced real estate agent can help you with when he or she comes around. They will tell you how to present your home to make a quick sale. Many will provide valuable tips for clearing the clutter before the property goes on the market.

Experience is Important

Real estate agents are experienced when it comes to selling a home. They will have local knowledge and point out many of the advantages of living in the town or area. Not only that, but that will create a buzz and have the relevant contacts to sell your home quickly.

Here is an example of a Real Estate agent guide for Framingham Mass which provides exceptional local real estate and community information. Can you see how this would be valuable to a buyer?

You may think that you know everything about your home, but it is not going to take you long to realize you need to know more than you think. The best listing agents can sell all the most promising aspects of living in the community. The will be able to share attractive features and amenities you may not know.

Many agents will put together feature sheets a buyer can take with them emphasizing why living in your city or town is incredible. Buyers value this kind of info.

Do You Have All The Necessary Paperwork?

Plus there is a lot of paperwork to think about when you sell your home privately.

Are you sure that you have all of the paperwork and permits for all of those home alterations that you have done over the years? That is something that you should consider. An agent knows that correct paperwork matters - it can add value to your home.

Lack of permits for work done to a home is one of the significant issues at the forefront of real estate at the current time. Are you one of these homeowners? Do you know how to get past this potential issue?

Legal Issues and Confidence

Are you sure that you know all of the laws surrounding a home sale? You can look things up and check stuff out. It's great if you can, but at the end of the day, it is about having the confidence to know that you are right. This is where a lot of private sales go wrong.

Not only is the legal side important, but you need to know how to close a deal. This is a selling term and a particular skill set that many people lack. In fact, what you are doing, is asking for the money.

Liabilities Issues

When you hire a real estate agent, you also have fewer liability issues to worry about. He will take away all of the responsibility of selling your home, and you don't have to worry about anything apart from providing correct information about your property.

Would you like to become liable for handing out the incorrect information to a potential buyer? That could cost you a lot of money. Remember we live in a sue happy society.

Final Recap

For sale by owner sounds like a fantastic idea but it will probably not save you money. Most of the time your home will stay on the market for much longer, and you will pocket less money. Ask yourself if that is really what you want to get out of the deal?

Of course, you want to achieve a fast sale and make sure that you get the most money for your home. It can be said that selling a home is a bit of an art form, and is best left up to the professionals.

Other Realty Biz News Articles Worth a Look

Use these additional articles to make the best decisions possible when buying or selling a home.

Bill Gassett is an authority in the real estate industry with 38 years of experience. Bill is well respected for his informative articles for buyers, sellers, and fellow real estate agents to make sound decisions. His work has been featured on RIS Media, the National Association of Realtors, Inman News, Newsbreak, Credit Sesame, Realty Biz News, and his own authoritative resource, Maximum Real Estate Exposure. He has been on of the top RE/MAX agents in New England over the last two decades.
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