Many homeowners believe that selling their own home is the way to go in order to maximize profit by not paying a commission to a realtor. It sounds like a pretty good idea, but it may not be worth it in the end.
According to the National Association of Realtor’s 2016 Profile of Home Buyers and Sellers, the average FSBO sales price was $185,000. On the other hand, the average price for a home represented by an agent was $245,000. The difference is $60,000!
Doing a sale of your home yourself places you in a position to handle all marketing and negotiating. Another key attribute of completing an FSBO sale is having the skill and knowledge to finalize a contract yourself.
Let’s start by breaking down the marketing that a realtor does for a home. Realtors are registered with multiple listing services (MLS). This tool offers widespread exposure of your property due to the other agents that can get notified immediately when a home is on the market as well as the MLS’s connection with Realtor.com and Zillow.com.
Another reason to consult with a realtor is to make sure your property is listed for the right price. Free online valuation tools run the risk of using a tool with less knowledge than a real estate agent. This can cause your home to either be priced too low or too high. When you work with a real estate agent you receive a listing price based on a comprehensive market analysis. Agents are also helpful in giving you advice on the ways to enhance your curb appeal.
The most beneficial reasons to use a realtor is for the paperwork that comes when finalizing a deal. If you aren’t familiar with real estate law, you could be opening yourself up to large issues. When you have an agent, closings are taken care of with proper contracts, disclosures, and addendums to cover you in all situations that could go wrong and help you avoid future liability.
If you are ready to work with a real estate agent, check out our excellent group of agents here.