Owners selling their property without hiring agents are called FSBOs (For Sale By Owner).
Try asking these Sellers what they do for living, and then tell them that you, probably, could easily do it.
They would smile at you. They would tell you that it is very unlikely that you would be able to do it with any measure of success. There is so much involved, so many nuances, tricks, and it only sounds easy, but without education and experience it really isn't.
Then how come selling your home is any different? Did you spend years mastering it? Do you know what it involves? Are you prepared to deal with issues? How would you stack against a professional, representing the buyers?
Ask yourself why is that outsiders do not really know your business, but as an outsider, you know real estate?
The funny part in selling by owner is that there is no financial benefit. Unlikely any benefit whatsoever.
- How come? Isn't making more money the goal of selling yourself?
- It is the goal, but it does not work this way.
If buyers know that there is no agent involved, they immediately calculate how much you are trying to save and they would discount this amount. At best they would buy it for the market value minus the amount of commission that you are trying to save.
So, best case scenario is that you would sell and get exactly the same amount that you could get with the agent, and you would not have to go through the hoops.
But best case scenarios are rare. If an experienced agent is stack against a Seller, who is not active real estate professional, you stand no chance to get the best deal possible. No chance.
So, why people keep doing it?
I spoke to a Seller, who bragged that he sold 28 properties, all by himself, got offers within hours.
He simply does not know how much more money he could have made with a decent real estate agent.
People keep doing it because they do not know what they do not know.
Because to really know it you need education and experience.
Image by ROBERT HUFFSTUTTER via Flickr.com/creativecommons