“For Sale By Owner”…and Why It Might Be Worth It To Hire a REALTOR®
When a homeowner makes the decision to sell their home on their own, that property is classified as a FSBO or For Sale By Owner.
If that’s something you’re doing or have been attempting, we get it! It’s a great way to save money, especially when you consider the average agent commission on a property is between 5%-6% which is like $12,500-$15,000 dollars on a $250,000 home.
BUT did you ever consider what you ARE getting with that 5%-6%?
While it’s true not all agents are equal, just like not all houses are the same, at Amerikey Realty we want to give clients the maximum tools for success on the sale of their property.
So, let’s talk about why it might be a good idea to use a REALTOR® to sell your property.
1. Agents may be less motivated to show a “For Sale By Owner” Property
This is a common factor that affects FSBO sales all the time. Tennessee of one of the most highly regulated states in the U.S. when it comes to buyer/ seller representation. Before a contract can even be binding, both parties MUST confirm what kind of agency they are using, whether they are self represented or being represented by a brokerage firm.
Most agents, because of the complex nature that every real property deal presents, arent really comfortable with hassles and risks of trying to close a deal when the seller is unrepresented and here’s why…
The Commission. Many times, FSBO don’t guarantee the agent a commission on the sale, which puts the responsibility back on the buyers.
2. Agents avoid emotional sales
It’s true what they say, that “beauty is in the eye of the beholder.” Again, we know you love your home, but your reason for selling may be an intense situation. Many FSBO properties fail to sell because a homeowner doesn’t know how to negotiate correctly. They overprice their home, refuse a counter offer because they’re offended, or give up too quickly when they have a critical situation or deadline for selling.
A seller’s connection can also create inflated emotional attachments that lead some FSBO properties to be priced too high creating a situation where the house either stays on the market too long or the price does not support enough comparable sold properties in the area and fails to appraise.
REMEMBER: You always get the most activity within the first TWO WEEKS of your home going on the market.
Having an agent (REALTOR®) eliminates this issue because you have someone representing your interests that does not have an emotional interest in the transaction. This isn’t to say agents are not empathetic, we are! Our team can also help you get the most value out of your property in a timely manner with smaller amounts of stress.
3. Real Estate is a Full Time Job
Many sellers, some of whom we’ve represented, aren’t aware of the amount of hours we work to ensure a successful transaction with the property. The calls, the emails, the texting, and the constant communication steps taken to secure a deal for both parties is time consuming.
Gone are the days of the part time “soccer mom” agent, real estate is professional business and It’s a FULL TIME job.
Are you going to be there every time an agent wants to show your home? Answer every phone call and email? If you’re not planning to stay on top of it, you may miss out on a potential buyer. Having a qualified agent handle this for you will minimize this risk and ensure every possible candidate is followed up with concisely.
4. Agents have massive networks for marketing
Nowadays, home consumers have more options than EVER before. Yes, you can list your home yourself on Zillow, Redfin, Craigslist, and even the multiple listing service (MLS) that agents use. But will that be enough?
Many agents, like our team, have vast databases of emails, private groups, and other forums to market your property directly to other agents getting you right in front of someone whose search criteria matches your home! (Not to mention access to a larger pool of ready, able, and willing buyers which means a higher chance for your property to sell!
5. Eliminating Unqualified Buyers
Question. How many people do you want walking through your home? How well do you know the buyer and the right questions to ask to determine that he/she is qualified enough to buy your property?
Just remember EVEN IF you do go “under contract” there are still many steps to get to the closing table, which includes a lengthy verification process to make sure the buyer is legitimate. The LAST THING you would want to happen is to get all the way to closing day and find out that the buyer wasn’t truthful or honest.
Having a qualified agent diminishes that risk. We know the right questions to ask.
6. Lack of Negotiation Skills
We cannot emphasize this enough. The lack of experience from most homeowners trying to represent themselves directly often leads to a deal either falling out or failure to secure one at all. Agents negotiate for a living. We are masters at it. We also understand the complex nature, timelines, and legal processes in order to contract and close on a property. Many sellers who are unrepresented do not. Some don’t have the legal understanding and deadlines involved with contracts, counter offers, inspections, amendments, addendums, contingencies, appraisals, etc. to correctly navigate to the closing table and even if they do, all that comes AFTER a sale amount is successfully negotiated and agreed upon, which in many cases, most FSBO’s are not priced correctly.
7. Legal Risks
THIS IS WITHOUT A DOUBT THE BIGGEST REASON YOU WANT TO USE A REALTOR®
Do you understand your legal risk you’re taking on by representing yourself?
Do you understand how disclosure works and that you can be held in a court of law, sued, and even receive jail time if you fail to disclose any information about your property?
There are many more legal pitfalls, however here is the difference when you hire an agent.
When you sign an agreement with an agent, you are signing an agreement with the agent’s brokerage company. The brokerage company protects the agent (and you) from any mistakes with errors and omission insurance. The dollar amount brokerage must legally carry in order to minimize any unlawful action or mistakes made by the agent or homeowner is in the MILLIONS!
Do you have that kind of cash?
FIRST OFF, we won’t bore you with the tons of years of experience and sales stats. EVERY agent does that. What we will tell you is we are LOCAL TO NASHVILLE and have been in business here for close to twenty years, so we KNOW Nashville.
SECOND, we are a small family business and are personal, professional, and relatable. No gimmicks or quick lines to just get a listing.
For us, EVERY PERSON is different just like EVERY HOME is different. Not one is alike. We evaluate every property on a case by case basis.
• We set up a phone call to just talk, see if our team is good fit, and establish firm understanding of your needs
• We set up a good time to come and look at your property to gather additional knowledge to help us evaluate it
• We look at the price, location, history, and condition of the property and determine what needs to be done to help you obtain the highest and best price for your home
• We develop a personalized marketing plan for your property which includes a multitude of selling tools to help you (and us) get the most exposure we can in a timely manner
Once you are under contract, our team helps guide you through the successful negotiations of contingencies and repairs needed to close. We have title attorneys, contract to close specialists, and even home repair vendors that can help with every issue along the way.
As a homeowner you have A REASON for needing to sell, and our job is to figure out why and help execute a strategy for you to win!
We understand trust is build not earned, but every client we’ve worked with will tell you our commitment to get the job done is unwavering.
The Bottom Line
It’s no small task to attempt to sell your home without a agent and if you’re doing it successfully and have your legal affairs in order, we applaud you. However, we hope this presentation has given you a small understanding of why hiring a agent may be a better decision and benefit you in the long run.
Agents can give a bigger exposure for your home, help you negotiate a better deal, dedicate more time to your sale, and prevent any underlying element from sabotaging it.
A REALTOR® brings experiences and expertise that most FSBO sellers just don’t have. Why risk the potential financial and legal pitfalls on your shoulders?
Many people would say it’s just not worth it. Our clients definitely do and they are glad they called us. So if you’re wanting to get the most money for your home in a timely manner, CALL US. We’re here to help!
ONE LAST THING….
If you see “instant offer” RUN and DO NOT LOOK BACK! This is the oldest trick in the book and you will be sorry you did it. Nashville is falling prey to more and more of these companies who are taking advantage of seller’s fear that their home won’t sell. Oftentimes, these “instant offers” are FAR BELOW market value and what you could get listing your home to the millions of buyers on the MLS.
Why give your home away? You wouldn’t!
If you want to SELL your property, be taken SERIOUSLY by other agents, and AVOID any risk such as a lawsuit it is better to use a REALTOR®. PERIOD.
CALL US, WE CARE AND OUR TEAM WILL GET YOUR HOME SOLD.