When most homeowners think about selling their home, their goal is to get as much money as possible out of the deal. They want to make money on their investment and, more than likely, need to channel that money into their next home purchase.
In their quest to increase their profit margin, some homeowners will look at reducing their costs by trying to sell on their own. While the largest expense of selling a home is the real estate commission, selling solo may not be the best choice. In the real estate world, this is called FSBO, or for sale by owner.
There are plenty of reasons why this is a bad idea.
1. Paperwork: Every real estate transaction has copious paperwork. When you work with a licensed real estate agent, you don't even have to think about it. They are trained to know what to fill out, where to sign, and the why the documents matter. When you sell FSBO, it is all on you to figure out.
2. Weirdos: Face it. The world is full of weirdos and, once you list your home For Sale By Owner, they are all going to show up on your front porch. For open houses and showings, you will have to escort them through your home. Some may just be noisy neighbors out to waste your time while others may be downright creepy. Hiring an agent means you can avoid all the weirdos.
3. Liability: Part of a good real estate agent's job is to remove their client from any future liability. What happens if the house burns down the morning of closing? Would you know what to do? A good agent can help with that.
4. Low Ballers: Probably the worst part of selling FSBO is dealing with the low ballers. While FSBO sellers are trying to save a few dollars by working without an agent, there are buyers out there that are specifically targeting FSBO homes in an attempt to save money as well. They assume — wrongly — that FSBO sellers have more room to negotiate on the price because they are saving on commission. Be prepared for their extremely low offers.
Selling FSBO may save you a few dollars, but it is simply not worth the added stress and hassle. Avoid all that confusing paperwork, irritating low ballers, and the slew of strange people that pop out of the woodwork. Hiring a licensed real estate agent is money well spent.Share