To Use a Realtor or Not Use a Realtor

Though many sellers believe the benefits of selling a home "by owner" outweigh the benefits of using a Realtor, I am here to explain the benefits and disadvantages of each and perhaps dispel some myths.

1. Selling By Owner I save the commision.

PARTLY TRUE - You see, you will save on the commission but that is only a partial benefit. Though the commission will be saved, it is necessary to understand the "entire picture." On an average, a FSBO sells at 16 percent less (sales price) than a home listed with a Realtor.

2. With all the services such as Zillow, Trulia, etc. I don't need to have the house listed in the MLS.

Eighty-nine percent of buyers begin their home search on the internet. So chances are that your home will be viewed by the buyers even if it's not on the MLS (Multiple Listing Service).  However, with that being said, most buyers also prefer working with a buyer's agent so chances are that they will choose to look at homes listed on the MLS and recommended by their agent.

I am of the opinion that you CAN successfully save on the commission and sell your home on your own. However, in doing so, I can use the example of fixing your own roof or installing your own flooring. Yes, it can be done, but chances are if I don't want to worry about the liabilities, potential injuries, lawsuits, etc., I will call the professional to do so and devote my time to making money in what my actual profession is.

When considering to sell your home on your own, think about these facts:

1. Do you know who is entering your home?  A professional Realtor will have prequalified their prospective buyer, develop a relationship with them and have personal information about the buyer lessening the concern of a "stranger" calling you and entering your abode. Suggestion: Call me and I can give you names of mortgage brokers that can "prequalify" your potential buyer so that you are at least sure that the buyer is even able to purchase your home.

2. Are you aware of the contracts and disclosures you should use? At a very minimum, there are many Realtors that can assist you in making sure that the right paperwork is filled out. I often help For Sale By Owners and all I ask is that they allow me to have a list of the buyers that did not buy their house.

3. Is your home priced right? Often, homesellers choose to sell their home "By Owner" because they don't like the price that the Realtor recommended. Again, I do recommend that you at least interview a couple agents (My husband would love to be one) and get different opinions of price. If they are professional agents, you will see that the numbers should be similar and based on recent sales and what the competion is. This will at least allow you to gauge the proper price. You see, if the home is overpriced and does not appraise, unless the buyer is a cash buyer, chances are that you will have lost the buyer.

4. Use an attorney: Not just any attorney. I highly recommend that if you do not use a Realtor, at the very least consult a Real Estate attorney.  (I am glad to provide you with several names). This can highly protect you.

5. Earnest Money: I would recommend that you allow the earnest money to be placed in the account of your attorney.

*This is only the tip of the iceberg but my passion is to see people succeed in their goals. If you can or want to sell your home without a Realtor, that is great. Just remember though that when you are ready to buy a home, buyer representation is Free so you can experience the other spectrum. Choosing the right Realtor is a whole other topic but for now, if you would like a FREE Fsbo Kit with all the tools you need to sell your home, by owner, request one here. If you are simply thinking it about it or just want to know the value of your home, email me here.  Also, lots of valuable information including the latest market statistics can be found here. No strings attached.