Everyone at one time has thought, “I will sell my own home, I don’t need a Realtor and I could save thousands.” And while that does happen and sounds enticing there are some serious reasons why this might not be a good idea. These are in no particular order and in bullet point fashion to make it easy reading:
Selling Your Own Home:
- On sale vs. for sale: What this means is that buyers tend to think that a home that is a for sale by owner is ON SALE, meaning they can get a REAL deal. Overall the National Association of Realtors says FSBO’s sell their home for as much as 20% less than when they sell it through a Realtor, and it takes longer to sell. Moreover, a sign in the yard from a reputable brokerage firm signals to the buyers that you are serious about selling and serious about your price.
- Most buyers I know don’t prefer to tour a home with the seller. They feel uncomfortable and feel as though they can’t speak freely about concerns and price.
- On the other side most homeowners we know are emotionally attached to their home and as such, they are not objective when it comes to negotiating the price, terms, inspections and so on.
- Spending money in the wrong places: Many times, sellers will spend money fixing up their home to sell, but they are prioritizing the wrong projects or projects that won’t help move the needle. We always tell sellers to meet with us first so we can walk through the home with a buyer’s eye and help prioritize the fix-ups that will make a difference in the sale of the home.
- Don’t offer a competitive commission: Many times, FSBO’s don’t offer a competitive commission to the agents representing the buyer. Most sales are done with an agent representing a buyer and that agent gets paid from the seller. When a FSBO offers less of a commission or no commission at all it de-incentivizes the agent. While agents are required to show their clients all the available homes that best meet their needs, they may also be inclined to steer clients away from a FSBO that offers little or no commission.
- Zillow is not your MLS: Most FSBO’s start advertising their home on sites like Zillow. Problem is most agents are not searching Zillow. Instead, they are searching the local MLS and thereby missing those homes that are FSBO.
- Pricing can be an issue: One thing we know for sure if that FSBO’s generally price their homes too high. This generally is due to a lack of data. FSBO’s don’t have all the same data tools that a professional Realtor does nor do they know the local market as well as a professional Realtor. This leaves the home languishing on the market longer than it needs to be.
- Marketing is not your core competency: Marketing can be difficult when it comes to real estate. There is a lot of competition out there and the question becomes how do you make your home stand out from the crowd and what channels do you advertise that are the most effective? Knowing what to do here, where to do it, how much to spend and what’s effective can be a minefield and probably best left to the pros.
- Staging is important: Depersonalizing your home, having the right amount of furniture, and making your home appealing is best left up to a professional stager. As real estate agents, we do not pretend to know, in fact, we employ professional stagers for all our clients.
- Paperwork can kill you: By the time you are done with the real estate transaction, you would have either read and or signed about 150 pages of documents. All of which have legal implications so if you are not crystal clear about the legal side of a transaction this large you may not want to put your name on the dotted line.
I could easily list another 10 bullet points on why selling your own home might not be a good idea, but I think you get the point. I am sure there are many that after reading this still believe Realtors don’t earn their money, but I hope after reading this short list you begin to realize how much value we bring to helping you get the most money for your home in the least amount of time.
If you would like to speak with us about selling your home, we would love to talk with you. You can contact us at 808-913-0899 or team@coloradodreamhouse. Would it be worth 30 minutes of your time to explore whether or not we are a fit for you?
Dan Polimino is a Broker/Owner with The Hawaii Team, Keller Williams Realty Maui. Contact The Hawaii Team at 808-913-0899, team@thehawaiiteam.com