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Going alone or hiring help, is it worth it?

By
Real Estate Agent with eXp Realty LLC 200311024

Every day I see how many people try to sell their home on their own as a FSBO “For Sale by Owner” and I have to wonder, why?  Then it hit me, mainly because I was sitting here trying to do my taxes by myself. (Also not a wise move)

How do I know it wasn’t a wise move? Well, unlike real estate, I got a do-over, a second chance, a mulligan. I decided to take my taxes to a professional because as I was looking over all the new tax laws, even since last year, and I thought, I may be saving myself $350, but I could also be setting myself up for prison time or at least a huge tax liability.

Sell it on your own or to use a Realtor

Well, that decision to spend that $350 was a very wise decision on my part. What I thought I was saving by doing it myself would have actually costs me an additional $4323.00. Now that is not something I like giving away on a mistake.

You see, I didn’t understand the law and there were some things I had on my taxes that would have gotten me red-flagged immediately and others that I had totally missed. Just like a person who wants to sell their home on their own. They may think they are saving money by not paying the commission, but time and time again, the numbers tell a different story.

But, unlike me with my taxes, they can’t buy the home back and try to sell it with an agent to see which would have gotten them more money. But, also, there is the danger of a lawsuit because you filled out some paperwork wrong or forgot to mention something that would have been mentioned in a disclosure form.

So, don’t try to save yourself money selling your home or doing your taxes on your own, it just isn’t worth it. Because the money you think your saving, really isn’t there and can you imagine how much more you could be getting if you just look at the averages of selling on your own vs using an agent?

As I thank myself for getting a second opinion on my taxes, I have to wonder how many people wish they had got a second opinion and used a Realtor to sell their home. Give us, the Friendly Home Team a call, we would love to be your second opinion and help you sell your home for top dollar!

Comments(14)

Charles Gardner-Realtor/Investor
ZIP Realty, Inc-Houston District - Humble, TX

Hello Todd,

May you continue to "Helping Families Home" so they do not need to 'go it by themselves'.

Mar 22, 2011 06:42 PM
Roger Radcliff
FREEDOM REALTY - Barksdale AFB, LA
AFB Specialist - Barksdale

Todd, You are absolutely Right. Great comparison. Now how many will listen?

Mar 22, 2011 06:45 PM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Todd, taxes and real estate definitely need to be handled by professionals. Good example.

Mar 22, 2011 06:58 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Excellent analogy. Hire an expert to do a professional job. You say you saved over $4000 but how much is your time worth?

While struggling with your own taxes, there were a couple of transactions that could have yielded you a lot more in that same time.

Margaret

Mar 22, 2011 11:30 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I couldn't agree more Todd.  I can't do my own taxes as well as a professional, and in the long run it saves me money.  The same is true when that accountant wants to sell his home.

Mar 23, 2011 12:52 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

No matter what it may be, always leave the jobs to the professionals that know how to do it. I have an accountant do the taxes, the mechanic works on the car, I sell real estate, and my wife's husband does everything she tells him to do, even if it's not professional.

Mar 23, 2011 01:05 AM
Tricia Hoffmann
Your Home Free - Highland Village, TX

There are just certain things to be left to professionals and dealing with the IRS is one of them!  

Mar 23, 2011 01:54 AM
Virginia Gardner
Roy Wheeler Realty Co. - Charlottesville, VA
Realtor, Charlottesville, Serving Central Virginia

I worry that my accountant will retire.  I haven't a clue, having not done my own taxes in fifteen years!

Mar 23, 2011 01:59 AM
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

This is a great way to make the point, Todd. We can't specialize in everything--no matter how hard we try. It is always good to bring in a professional.

Mar 23, 2011 03:00 AM
Jill Watts
Realty Pro, Inc. - Vancouver, WA
A Luxury Experience at Every Price Point!

FSBOS are just screaming for help and don't even know what they are doing to themselves. Taxes...same kind o' mess. It's good to get help.

And on that note...thanks for all the professional help you've given me with Activerain, craigslist and other computer stuff. And a special thanks for the email to tell me to turn off the gps feature on my twitter account!

Mar 23, 2011 04:14 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Todd, I don't understand the thought process behind the FSBO.  So many of them say "well I am going to try it by myself first".  Why would they waste this valuable marketing exposure when they clearly don't know what the heck they are doing.  Not just the marketing but the legal implications as you stated should be reason enough to hire a professional. 

Good call on the taxes BTW.

Mar 23, 2011 04:34 AM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA

Your analogy is right on Todd.  And I think both aspects - that a professional can save you money/make you more money and also help prevent you from getting into legal hot water - are very good reasons why paying a professional is totally worth it.

Mar 23, 2011 07:44 AM
Sheila Newton Team Anderson & Greenville SC
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
Selling the Upstate since 1989

what a great comparison!!! And so right. I have used an accountant for years now because one year I found that he saved me over $6000.. And as for FSBO, never worth it!!! Even the appraisers recognize our worth.. a home listed will usually appraise more than a fsbo..

Mar 23, 2011 03:57 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I'm certainly glad I hired a professional, not only did I save money, but I'm less worried about being called in for an audit. That is their job and they will protect me as long as everything I told them is correct, that is the same thing we do for our clients when we sell their home. As long as everything they tell us is true and on the up and up, we can help protect them from future lawsuits.

Mar 24, 2011 05:59 AM