My clients fell in love with a beautiful home a few weeks ago, and they were very bummed when it sold out from under them. That's not supposed to happen in this market!
Undeterred, we wrote a back-up contract and crossed our fingers that this contract would self-destruct for some reason. After all, a previous contract on the property had fallen through weeks earlier, so maybe this one would do the same. And that's exactly what happened in just a matter of days. My clients could not have been happier.
BUT...
The seller was a FSBO with a real estate license. You know what they say about attorneys who represent themselves... the same was true for this real estate agent. A transaction that should have been smooth and pleasant for everyone became complex and unpleasant. (Maybe that's why two previous contracts fell through on the property.)
If you're a real estate agent who is thinking of selling your own home, take a minute to consider this:
TOP FIVE REASONS YOU SHOULD NOT LIST YOUR OWN HOME
- Buying or selling a home does not bring out anyone's best qualities. OF COURSE, you're going to be highly emotional about every aspect of the transaction - you're only human. You may feel personally attacked any time the buyer asks for a concession, such as a home inspection repair, and you will probably react accordingly. A real estate license will not shield you from the emotions of selling your home. A listing agent will help keep everything in perspective for you.
- Your professional reputation is at stake, as well as your home sale. It is likely that the real estate agent in you will go underground, and the FSBO in you will be the persona experienced by the co-op agent, the buyer, the title company, the inspectors. That could cost you their good will and even future business. Why risk it?
- A homeowner simply can't be objective in negotiations. For example, you may be swayed by what you WANT for a bottom line, not what is fair in this market (like any home seller); you may get huffy over delays that are not uncommon in any transaction (slow appraisals, delayed test results, etc.); you may see the co-op agent as your adversary, when he/she communicates the buyers' position on the appraisal, inspection results, etc. (Remember, don't shoot the messenger if you don't like the message.)
- You may make unnecessary concessions. A listing agent may save you a bundle of money and hassle because he/she is probably objective enough to identify the buyers' hot button. Perhaps the buyer cares more about the settlement date or those custom-built shelves in the family room than anything else. Knowing this could give you an edge in negotiating the contract or post-inspection addenda. As a FSBO, it's easy to overlook the buyers' priorities because you're naturally focused on your own.
- Your E&O Insurance may not cover you in your own personal sale or puchase transaction. Check with your insurance company to find out for sure if you will be covered for errors and/or omissions. If you find yourself before your state regulatory authority for your performance as an agent in this transaction, you may have to pay your own legal fees and any fines imposed on you and your broker.
If you're not covered by E&O Insurance when you sell your own home, listing with someone else is a no-brainer.
Perhaps you can barter with another agent in your office to handle your listing. Some ideas: Cover for him/her when he/she goes out of town, assist him/her with a future sale or listing of a personal property, pay a reduced brokerage fee. Wouldn't it be nice for you if you could enjoy the same professional services that you give your own clients?
Remember that your broker is responsible for everthing you do as an agent, and the line gets really blurred when you sell your own home. Therefore, it's important for you to keep your broker or branch manager in the loop at each step of the transaction. You owe them an opportunity to supervise you in your role as an agent when you sell your own home because they could be held accountable for your professionalism (or lack thereof).
And last but not least... Chances are that YOU are your own worst enemy when you handle your home sale. Even a FSBO with a real estate license can benefit from the moral and professional support and advice of a listing agent throughout the sale process and closing.
Wear your "Seller" hat proudly today, and save your agent hat for the days when you're helping someone else sell their home.
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