Selling Your Home in 2021?

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

Are you considering selling your home on your own in 2021? This is known as FSBO or For Sale by Owner. Let me say this, please. There's more to selling your home than placing it on the FSBO market. In the article below are reasons you may want to reconsider trying to sell your home on your own. The primary reason is...you'll be on your own with no experienced support system.

Why Selling Your House on Your Own in 2021 Is a Mistake

Why Selling Your House on Your Own in 2021 Is a Mistake

There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner (FSBO), it’s critical to consider the following items.

1. Your Safety Is a Priority

Your safety should always come first, and that’s more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings but your health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your potential buyers.

2. A Powerful Online Strategy Is a Must to Attract a Buyer

Recent studies from NAR have shown that, even before COVID-19, the first step 43% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 97%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house.

3. There Are Too Many Negotiations

Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who solely represents the best interest of the buyer
  • The inspection company, which works for the buyer and will almost always find challenges with the house
  • The appraiser, if there is a question of value

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage

Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser’s mortgage commitment. You need someone who’s working with lenders every day to guarantee your buyer makes it to the closing table.

5. FSBOing Is Becoming More Difficult from a Legal Standpoint

The documentation involved in the selling process is growing dramatically as more and more disclosures and regulations become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

6. You Net More Money When Using an Agent

Many homeowners think they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the chance a bidding war will take place, potentially driving the price higher, too.

Bottom Line

Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, reach out to a local real estate professional to discuss your options.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (18)

Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Doug Dawes attempting to sell your own home is a big mistake.... you'll pay double that commission you think you're saving, just to get yourself out of trouble!!!  hire an agent and get the maximum sale price without any issues....

Jan 05, 2021 03:07 AM
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great article and great points Doug!

Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, reach out to a local real estate professional to discuss your options.

Jan 05, 2021 04:17 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Doug. In law school you are told "a lawyer who represents himself has a fool for a client"! Sounded good then and I have followed that advice in real estate. Great tips for thos e who nver heard the phrase. Enjoy your day!

Jan 05, 2021 04:29 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Doug Dawes - in my BNI the agent also asks to send him a shot of a FSBO owner sign with contact info.

Jan 05, 2021 04:30 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have to laugh when people think they know it all and try to do it themselves not even realizing how much money they are truly losing out on, haha.

Jan 05, 2021 04:55 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Wonderful post! Thanks for sharing! 

Jan 05, 2021 06:37 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

The current mainstream Market is geared for getting Sellers TOP DOLLAR ( over List Price) . To miss out on this will be costly !!

Jan 05, 2021 06:51 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning and WOW - great points that you make here Doug Dawes 

Jan 05, 2021 06:51 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doug and great blog about trying to sell the home by yourself.  People need to know what they are risking.

 

Jan 05, 2021 08:28 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Afternoon Barbara Todaro 

"...just to get yourself out of trouble" is right!

Jan 05, 2021 09:34 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Sham Reddy CRS Exactly the point! 

Selling and moving are big projects. People need to lighten the load on themselves with people who deal with it every day

Jan 05, 2021 09:36 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Wayne Martin 

That is a saying that is very true!

Jan 05, 2021 09:36 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

That's what BNI is all about Grant Schneider smart agent to do that

Jan 05, 2021 09:37 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Humans always think they know more than they really do Brian England 

Jan 05, 2021 09:39 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Thank you Joe Jackson and Happy New Year to you, sir

Jan 05, 2021 09:39 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good point Michael J. Perry The stats do show a seller who FSBO's actually makes less money than if they hired an agent

Jan 05, 2021 09:41 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Afternoon Rocky Dickerson 

Thank you for stopping by to read and comment

Jan 05, 2021 09:42 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

The unknowns of a Real Estate transaction are what the FSBOer needs to know Will Hamm 

Jan 05, 2021 09:43 AM

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