Don’t Go it Alone! Why You Should Work With a Realtor Instead of FSBO
Posted: March 31st, 2022
For any homeowner, a DIY project is a great way to fulfill unique goals and gain a sense of pride for a job well done. Over the last few years, homeowners have been tackling home improvement projects on their own at increasing rates for a wide variety of reasons. Some want to save the extra money they’d spend on labor and focus their dollars on the products and materials themselves. Others want to learn new skills, or put skills they already have to the test. Whatever the reasoning for taking on these projects, homeowners are demonstrating increasing enthusiasm for DIY-ing with no signs of slowing down.
Maintaining that same thought process, some homeowners are choosing to list their homes for sale without the assistance of a Realtor. According to a recent NAR report, homes listed as FSBO, or for sale by owner, increased by 1% between 2019 and 2020, demonstrating the trend toward frugality for homeowners of all walks of life. However, listing your home FSBO may not be the money-saving move you’d expect it to be.
The Purported Benefits of Listing FSBO
Saving Money on Commission
The primary reason why homeowners choose to list their homes for sale without the help of a Realtor is to save on commission costs. According to The Mortgage Reports, commission makes up about 5% - 6% of the sales price for the average real estate transaction. Keep in mind that this commission doesn’t go to a single agent, but is usually split evenly between the buyer’s and seller’s agents.
Getting Full Control Over Your Sale
Another potential benefit of selling FSBO is the amount of control you’ll have over the process from start to finish. You’ll be able to set the listing price, market your home, and set any contingencies that matter to you over the course of the transaction. You’ll also be able to determine how you stage your home so you can attract exactly the kind of buyer you’re looking for.
Undivided Attention
Finally, when you list your home FSBO, you are your only client. At any given time, the average real estate agent is managing multiple clients on both sides of the transaction. As the overseer of your home sale, you won’t have to worry about juggling other sales, so you’ll be less likely to overlook or mix up any of the finer details.
The Reality of Selling Without a Realtor
All of those benefits may sound very appealing to you, but in reality, gaining those benefits isn’t as simple as it seems on paper. Here’s the reality of the situation:
- If your buyer works with a realtor, you’ll still be paying some commission. As we mentioned, that 5% - 6% commission on a home sale doesn’t all go in one agent’s pocket – it’s split between the buying and selling agents. If your buyer works with a Realtor (and in today’s market, chances are they will be) you will still be dedicating some of your sales price to the buying agent’s commission.
- You’ll be lacking the tools Realtors have access to. Sure, you’ll have full control over your sale, but for most aspects of your home sale, you may have to guess and test. You won’t have access to Realtors’ tools, like the MLS, to determine the right price for your home, and you may not have the experience or the bandwidth to market your home to a wide audience.
- You’ll be spending a lot of time as your own agent. Real estate transactions come with a great deal of paperwork and require some legal knowledge, most of which you’ll have to manage on your own without a Realtor. If you don’t already have a background in these areas, you’ll probably have to spend a good deal of time researching and consulting with attorneys and experts.
Here’s Why You Should Work With a Realtor
Today’s housing market puts both buyers and sellers in an interesting position. While inventory is low and houses are in high demand, sellers have a great deal of power; however, improper pricing and marketing will still turn away eager buyers from checking out your property. Your best bet for a timely, successful sale is to work with an experienced real estate professional. Here are just a few of the benefits of working with a Realtor instead of selling FSBO.
Pricing Competitively and Maintaining a Timeline
We can’t stress enough how important it is to properly price your home when you want to sell. Even in a competitive market, buyers and their agents can easily tell when a home is overpriced and will stay away from the property, meaning that your home will languish on the market. When you work with a Realtor to sell your home, you’ll have access to expert tools – most importantly, the MLS – that give your agent the insights they need to price your home right the first time.
Selling a home quickly can be a difficult task, even when homes are in high demand. But when you price your home properly and market it to a targeted audience, you should be able to maintain the timeline you desire. Your Realtor is on your team to help you get the job done effectively.
Marketing Effectively
Speaking of marketing, your real estate agent will come to the table equipped with a list of names of people who may be interested in your property. Beyond that, they have developed connections with other agents, in their own brokerage and in others, who can send out their feelers to find a list of interested buyers.
Beyond the word-of-mouth outreach, real estate companies like Ellingson Properties have dedicated social media, email, and neighborhood marketing campaigns to get the word out about new and interesting properties. They also probably have a greater budget for advertising than you do as an individual. All these factors combine to create a marketing campaign that will get you the results you want.
Keeping Your Time to Yourself
Ask any Realtor you meet, and they’ll tell you that real estate is definitely a full-time job. If you’re trying to take on your own home sale on top of work and family life, there’s a good chance you’ll soon find yourself burnt out. If you don’t have your attention focused on the job of selling your home, you may miss opportunities to market your home or to make connections with potential buyers. That’s what your real estate agent is for! Simply keeping your own time to yourself can significantly reduce the stress of a real estate transaction and make the process much more satisfying for you and your family.
Ensuring Legal Correctness
As we mentioned before, all real estate transactions come along with a good deal of legally binding paperwork. If you’re not familiar with real estate law, you could open yourself up to issues of “fraud, negligence, or breach of contract,” according to Investopedia. An experienced real estate agent knows the laws and the paperwork like the back of their hand, even in transactions with unusual circumstances. With the help of an agent, you’ll be protected from any accidental errors and omissions.
The Bottom Line
In short, we recommend that you don’t enter a real estate transaction on your own whether you’re buying or selling your home. As a seller, working with a real estate agent can keep you on schedule, help you to market effectively, and even protect you from potential legal issues. If you’re ready to sell your home in Brevard County, get in touch with the experts at Ellingson Properties by calling 321-750-7050 today.