Why do folks try to sell their own home? Likely money is the reason. But potential for sale by owners need to consider everything involved and at stake....
Selling Your Home? 5 Reasons You DON’T Want to Handle the Sale Yourself
Are you thinking about selling your home? If so, you may be weighing the pros and cons of working with a professional real estate agent. Let's take a quick look at five powerful reasons that you won't want to handle the sale yourself. We call these For Sale By Owner properties, otherwise known as FSBOs.
You Won't Save As Much As You Think…And Most Times, You Won’t Make As Much Either
Let's start with the most common and obvious reason that homeowners try to handle their home sale: the cost. It's true that selling your home, using the services of a real estate professional is not going to be free. Remember, however, the entire reason you're paying commission is that you're contracting with a professional to do the job. Your real estate agent is there to both share their knowledge & experience with you and handle all of the tasks and responsibilities that go along with the sale of your home. Without the professional, you'll be responsible for everything from creating an online presentation for your property to determining how to safely handle showings, host an Open House and have an in-depth, working knowledge of the legal documents.
So while you may believe you are saving money by not paying commission, you're going to be burning a lot of your time. If you're already busy in your career or as a parent, that may end up costing you more in the long run.
Additionally, according to sales data of all sales from the National Association of Realtors®, FSBO sellers averaged selling their homes 16% less than they would have with a Realtor® - that figure should be positively mind-blowing if you’re thinking about selling your home by yourself!
Litigation Comes at a Much Higher Cost Than Commission
Yes, we live in a VERY litigious society and when it comes to selling your home on your own, sellers being sued DOES happen. This is not to alarm you, this is a warning - FSBO sellers are sued at a FAR higher percentage than sellers who enlist the services of a professional.
A seller who doesn’t have the representation of a licensed professional WILL PAY for any and all mistakes. Attorneys can and do Close a real estate transaction in both NC & SC but, they do not carry E&O (Errors & Omissions) Insurance. I can’t tell you the number of times that I’ve heard an owner of a FSBO say, “Oh, I have a great attorney handling all of the paperwork!”
Let me just say that I have represented several local real estate attorneys in their own home sales - there’s a reason they hire me! They don’t know the necessary documentation, nor do they need to have a full working knowledge of the documents - that’s not what they do. Real estate attorneys CLOSE sales, they don’t have a clue how to BEGIN the process and get you to the Closing!
So, has your attorney been to your home at all? Does he/she have experience in the type of siding, flooring, etc.? Can your attorney professionally measure your home? Does your attorney know what kind of plumbing piping you have?
Let’s say you have engineered hardwoods and have already sanded them the maximum number of times allowable by the manufacturer. You list your home as having ‘hardwoods’ and, after moving in, the buyer wants to change the color of the stain. The buyer finds out that he/she can’t change the floor stain because the floors are engineered and they have no more sanding surface.
You marketed your home as having hardwoods - the buyer has every right to sue you. That attorney isn’t going to be able to help you when you are sued - he/she has no E&O insurance to help cover your mistake; a licensed Realtor® does. However, that agent should know the difference in engineered flooring and should never have marketed it as ‘hardwoods.’
Scammers Gravitate to FSBO Sellers
Real Estate scams do happen and they happen a whopping 90% MORE with FSBOs. With a FSBO scam, sellers have little recourse besides hiring an attorney. I can assure you the cost of hiring an attorney is FAR more than paying real estate commission - FAR MORE!
Common scams include fraudulent documentation, fraudulent buyer deposits, purchases through an unscrupulous attorney and possible financial demise by scammers (including some so-called attorneys & mortgage lenders) obtaining sellers’ personal information.
A Professional And Objective Eye Is A Major Plus
Objectivity is another great reason to work with a real estate professional when selling your home. If you had to answer right now, would you say your home is better than your neighbor's? Better than all the houses on your street, even? The majority of home sellers do believe their home is "above average," which is of course statistically impossible.
When someone has been the one painting, renovating and putting love into her home for so long, it is no surprise that he/she becomes attached to it. A real estate agent's objective eye can offer a nice dose of reality and help to keep the sale moving.
Many Buyers Avoid For Sale By Owner Homes
Selling your home is a significant financial transaction in which you're going to have to meet with buyers. Moreover, from their perspective, it's likely that your home is not the only one they're viewing. Most Charlotte homebuyers prefer to work with a listing agent as they know the process will be professionally handled, rather than trying to negotiate directly with an owner. As well, buyers agents share the propensity to look the other way when they see homes that are for sale by owners.
These are just a few of the reasons you won't want to go it alone when you sell your home. For more information about local home sales, contact me today at (704) 491-3310.
Visit www.ListMyCharlotteHome.com if you're thinking of selling your home in the Charlotte Metro region and make the right decision to hire a professional! I provide full-service real estate with award-winning customer service. I am also happy to provide references of any of our sellers for you to speak with about their experience. You can also read a few of our reviews at www.CharlotteRealEstateAgentReviews.com.
© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | Selling Your Home? 5 Reasons You DON’T Want to Handle the Sale Yourself