Who doesn’t want to save money when selling their home? Working with real estate agents can be costly. You will likely pay 6% of the sales price of your home to agents: 3% to the Listing Agent and 3% to the Buyer’s Agent. On a $300,000 home, that is $18,000!
So why not just list the home yourself to save on those fees?
While it may seem like an appealing option, studies show that listing your home “For Sale By Owner” is likely to result in a lower sale price while also adding in the workload that a real estate agent typically handles throughout the process.
Here are the top 3 reasons to choose a Realtor over listing your home For Sale By Owner (FSBO).
1. You Will Make More Money Selling Your Home
Working with a Realtor ensures that you are getting top dollar for your home. While you may try to save money listing your home FSBO, you will likely end up netting less money in the end. Here are three reasons why:
To get the most money for your house, you need the most possible buyers to see and consider your listing. According to recent data, Buyers are most likely to use Zillow when looking online for a home. Being relegated to the hidden “Other Listings” tab on the Zillow mobile app can be detrimental to attracting buyers.
Additionally, listing with a Realtor will allow your home to be listed in the local Multiple Listing Service (MLS). This ensures that other buyers’ agents are more likely to see your listing. It also automatically syndicates your listings to hundreds of websites rather than just listing the house on Zillow yourself.
Listing a house FSBO sort of has a negative connotation to it. When a buyer is considering a FSBO house, they are unsure of the hoops they will have to jump through with their buyer’s agent to buy the house knowing that the seller is not guided by a professional both in the sales and legal processes.
There is also the question of whether or not the seller will pay the buyer’s agent a fair commission percentage of around 3%. If the seller will not pay that fee, then the buyers are significantly less likely to make an offer, and if they do, they likely will offer less knowing that they will be on the hook to pay their own buyer’s agent.
Real estate agents work daily to negotiate the best terms for their clients in real estate transactions. Experience is a huge benefit here, and working on your own to negotiate with buyers is likely not going to produce the same results as working closely with your Realtor.
2. You Will Be Less Stressed Selling Your Home
Selling a house FSBO requires a lot of time and attention which can add significant stress to what is likely to be a stressful time of transition. From scheduling showings to reviewing contracts to coordinating a closing, there is a lot of work that goes into selling a house that may be overlooked at first glance.
A real estate agent takes the burden of the sale off of your shoulders so that you can focus on packing and moving amidst your normal day-to-day responsibilities. The reduction in stress itself is worth a significant amount, let alone the additional money you will make on the sale as well.
3. You Will Avoid Exposure to Legal Issues Selling Your Home
A real estate transaction is a big deal – its the transfer of an incredibly valuable asset that must be recorded and handled properly both financially and legally. It is not uncommon for there to be significant setbacks in real estate transactions, and ensuring that the legal side of things is completely taken care of by your Realtor is a huge benefit that allows you to sleep easy at night.
Not Convinced to Work With An Agent?
If you list your home For Sale By Owner, it will likely sell, and it may not even be that hard. However, by working with an agent, you can rest easy knowing that you are getting every last penny that your home is worth while also knowing that a professional is handling one of the biggest transactions in your life.