Not paying a listing REALTOR® a commission
It’s true, not all REALTORS® are created equal (just like any profession). Having said that, an experienced REALTOR® with a focus on your area will know the maximum your home will likely sell for in the time frame you’re looking for. I’ve sold many homes for much more than my clients initially thought was possible (and for far more than the commission rate). It take a lot of research and knowing our local market inside and out to be able to price accordingly. I always remind clients, the home is worth what someone is willing to pay for it- period.
Potential buyers also know the seller is looking to net extra instead of paying a listing REALTOR®. In almost every example I’ve seen, the buyer will take advantage of this opportunity in their negotiations and reduce their offers accordingly.
Often a seller thinks their home is worth more than it is. This can be very dangerous because sellers expect a FSBO to listed LESS than market value. The longer a FSBO sits… the lower the offers buyers will make.
Risk & Contacts
Many potential buyers simply don’t want to deal with a FSBO because they are inherently more risky. There is not a licensed professional involved in the selling process and holding to the state standards associated with listing a home.
In addition, most potential buyers simply don’t want to deal directly with the home owner.
Agencies are covered by E&O insurance (Errors & Omissions). Yes- it’s rare with a licensed agent, but mistakes can happen.
Most experienced realtors have great contacts for needed repairs, etc. They have contractors they’ve worked with before that they know the work and can usually expedite timelines to meet deadlines.
Legal
Let’s not forget selling a home is a major transaction; often the largest transaction a person will make. An experienced agent has the resources and background to negotiate these situations throughout the process. An agent will likely have an variety of real estate attorneys they work with regularly and can not only help streamline the process, but because of repeat business, can usually expedite timelines when needed.
Negotiations
99 out of 100 FSBO sellers have a personal attachment to the property for sale. Because of this, negotiations regularly become personal instead of focusing on the big picture. Often, negotiations stall because of this reason. A real estate professional has the experience to know the difference in needs and wants in a negotiation, and almost always can smooth tensions when sticking to the goal at hand.
Marketing
Marketing a home is one of the top areas that FSBO sellers seem to think they can manage themselves. What most don’t realize is that agents and agencies pay to maintain their standing with the local MLS. The MLS is what drives the visibility of your home to all other databases (this is what Zillow, Realtor.com, etc. even use to pull data).
If you market your home directly with Zillow, Realtor.com, etc. they add up quickly because they all have listing fees. Sometimes I’ve even seen FSBO sellers try to get an agent to only do a MLS listing, but the agency will still charge a 1-2% if they will even do this. It doesn’t end up being the savings the seller thought!
Having a licensed realtor manage your listing also allows you to handle your normal daily job instead of having to manage listing appointments, etc.
I hope to represent you in your listing, but even if I don’t, please take my advice an use an experienced, licensed REALTOR® and agency. You’ll be glad you did! Trust me!