Here are a few reasons why sellers choose to sell on their own. Saving money on the agent’s commission is the top reason. Years of data show that homes sold by owners tend to sit on the market for longer, sell for less, and create a lot of unnecessary hassle for the seller. Here are some myths and facts about the For Sale By Owner market:
Myth: I Will Save the 6% Real Estate Agent’s Commission by Selling It on My Own
This is a common misconception. Although the Real Estate Agent’s compensation is 6% of the sales price, they only keep 3%. The rest of it goes to the buyer’s agent. Unless you are lucky enough to find your own buyer, which is highly unlikely, you will only save 3%.
Fact: You Might Be Leaving About 20% at The Table when Listing on Your Own
According to the National Association of Realtors, the average For Sale By Owner home in 2018 sold for $217,900 compared to $295,000 for agent-listed properties.
Myth: No One Knows My Home Like I Do, so No One Can Sell It Like I Can
Selling a home is an emotional process, Real Estate agents work as mediators to keep the distance between buyers and sellers. Because sellers are emotionally attached to the property, they tend to get offended by low offers, ignore the property’s flaws, overprice and hinder the sale process all together when they are in direct contact with buyers or buyer’s agents.
Fact: You Might Be Exposed to Legal Risks
Unless you are or have a real estate attorney, selling your own home might come with legal risk. There is a lot of paperwork involved that needs to be reviewed by an expert. In Florida, the typical sales contract is 12 pages plus addenda. If you fail to comply with the timelines and terms of the very lengthy contract, you might be at risk of losing time and money. Also, during the sales process if you fail to disclose any hazards on the Seller’s Disclosure (another four-page document, apart from the contract) you might be charged with fraud.
Myth: Everyone Is Browsing the Same Websites; I Just Need to Get My Home on Those
Most Realtors not only have a database of buyers, but they also have access to the MLS (Multiple Listings Service) and a network of other colleagues that might have an interest in your home. The MLS syndicates your property to all the real estate websites fast and efficiently. More exposure means your home will sell faster and at a better price.
Fact: Hiring a Professional Will Help You Sell Faster
According to the NAR, 6% of sellers selling on their own list selling within the desired timeframe as the #1 issue with the process, while 9% say pricing is the main problem. A Real Estate Agent knows how to study the market trends and price your home to sell. They are bound to put your best interest first and have connections that can help sell your home faster. A skilled agent is also a professional negotiator and thus will be your best representation when it comes to negotiating an offer.
