As you’ve been driving around, I’m certain you’ve come across a few For Sale By Owner signs either in the yard or in the windows of some homes. These homeowners have decided to forgo the use of a real estate professional and attempt to sell the home themselves. Unfortunately according to the National Association of Realtors, FSBO’s accounted for only 8% of home sales in 2014 and the average purchase price of a home for sale by owner was $210,000 compared to $249,000 for agent assisted sales.
The process of selling a home can be an overwhelming one especially without the right knowledge and training that a real estate professional has. Here are some reasons why hiring a Realtor is something to consider before you stick that sign in your yard.
They Know How to Properly Prepare Your Home to Be Marketed
It’s important that your property is show ready as we’ve already discussed. FSBO’s don’t have the first hand expertise of a real estate agent who sells homes every day to know what works best for their home.
They Know the Qualified Buyers
Real estate agents spend countless hours with potential buyers and know what to look for in a qualified buyer. FSBO’s could be showing their home dozens of times to people that are just not ready to buy or can’t afford the price range.
They Get the Extensive Marketing Necessary
For Sale By Owner’s top marketing tools are their Yard Sign and Word of Mouth by Friends/Family when in the market, the top tool buyers used for finding a home was actually through a real estate agent themselves. Real estate agents are able to use their local MLS or Multiple Listing Service to market the property to all agents in their area. They also have the opportunity to share that property exclusively with agents at their brokerage. You can’t sell a house that people don’t know is for sale!
They Know How to Close the Deal
Real estate agents go through training on the escrow process and paperwork necessary to complete a real estate transaction effectively. FSBOs are not always prepared for the legal and financial stress of actually selling their home. Yes, you’ll save on commission, but you certainly won’t save on headache. Having the time and knowledge of paperwork and inspections to close the deal may be way more than a Seller bargained for.
They Save/Make You More Money
Now, the most common reason FSBO’s try to sell the home themselves is so they don’t have to pay a real estate agent, but if you saw the average sale price for a For Sale By Owner vs. Selling with an Agent was $39,000 less with the average commission of the $249,000 being only $7,500! You’re still making over $30,000 more than you would have without an agent! In combination with all of those reasons above, you could be finding the most qualified buyer by having a real estate market your property and negotiate on your behalf! You’ll save in any legal troubles with paperwork and you’ll probably be making more money and saving time.
These are just a few of the reasons why having a real estate agent will be much easier on your wallet and your time in the long run.
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