Thinking of being a FSBO…think again!
Did you know that during a real estate transaction, your real estate agent will perform more than 200 tasks on your behalf?? Yet, there are some folks that think it might be easier and more profitable to do it themselves. If you or someone you know has ever thought about trying to sell your home without the help of a real estate agent, keep reading!!
Saving money on commission is something that probably sounds appealing, but are you really saving money when being a FSBO (or For Sale By owner)?
Statistics show that sellers who use a Realtor actually achieve a higher net proceeds than those that don’t. In 2016 the national Association of realtors found that the average FSBO price was $185,000 and the average price for a home using an agent was $245,000 which is a difference of $60,000!
Let’s take a look at 4 other reasons why you should use an agent to sell your home:
- Agents know the contract and can help you navigate through it. Do you know what loan commitment means and do you know how soon loan commitment should be completed before closing? Do you know which riders are needed or available for an offer or contract? These are just a couple of the contract items that an agent can assist with.
- Agents know what is standard practice regarding who pays for what in your particular state or area. Everything is negotiable, but one example of a fee that is handled differently in different states is who pays for the title search and title insurance. In the St Louis area the buyer is usually the one who pays for this, so if a seller is asked to pay for title insurance by a buyer in a FSBO situation, that seller may unknowingly be paying for something that they likely wouldn’t have paid for if they were using an agent. The cost of this could be $1,000-3,000 depending on type and price of the property. This is just one example.
- An agent can assist immensely during inspection negotiations. This should probably be a topic all by itself, but I’ll try to make it simple. When a buyer asks for inspection repairs, a realtor can assist with getting bids, advising on what items are the most important to get repaired, or helping to determine if the market in your particular area is good enough where you can tell the buyer that you won’t be making any repairs.
- One more reason for hiring an agent is so they can work to get a backup offer for you if possible. A backup offer will move right in place if something would happen with the original buyer so you won’t skip a beat!
I hope this has given you just a small insight on why an agent is the way to go! If you have any other questions about selling your home or you’re interested in finding out the current value of your home please let me know!