Five Reasons Why “For Sale by Owner” Can Be a Significant Liability
Selling your home is a complex transaction with significant financial impacts for both you and for the buyer. Homeowners trying to sell their property without a Realtor® can make costly mistakes affecting their net proceeds and also open themselves up to legal exposure if they aren’t prepared. There’s a reason why the National Association of Realtors runs an ad campaign called “For Sale by Expert”…
The bottom line is that For Sale by Owner, or FSBO, may seem like a tempting opportunity to avoid the hassle and cost of working with a Realtor®, but for most, it doesn't work out in the long run. Beyond lack of knowledge, lack of resources, and lack of network, owners can open themselves up to legal and financial issues.
Here are five reasons why you should hire a Realtor® over selling your home yourself:
Maximizing Your Listing’s Exposure
One of the main reasons for choosing to go with an experienced, licensed Realtor® when selling your home is that they have access to a tool called the Multiple Listing Service (MLS), which distributes your listing out to all licensed agents in the area and to their clients who are looking for the criteria your home offers.
The MLS and other syndicated services ensure your listing shows up in more places, maximizing exposure from the right audience and ensuring you aren’t relying on questionable calls from the sign that is out in front of your property.
Plus, unless your home is perfect for their buyers, Realtors® will rarely show FSBO listings because they know there isn't professional representation on the other side of the transaction. Your house may not be seen by as many buyers, and those who do show your listing will be wary every step of the way. Or worse, looking to take advantage of the fact you don’t have representation.
Setting an Accurate Listing Price
Realtors® are experts when it comes to pricing your home accurately to avoid overpricing or underpricing. They do this based on a variety of factors from neighborhood comparables and running a Comparative Market Analysis report, looking at the price per square foot, factoring in improvements and renovations, and their knowledge of where the market is heading. Put simply, a Google search doesn’t compare to years or decades of experience in the industry.
Plus, it’s not just about setting the right price; it’s about handling all the negotiations when an unfavorable inspection report comes back or the buyer requests concessions.
Realtors® are knowledgeable of the real estate market and negotiation tactics and have the experience to help guide you, so there is no guessing game when it comes to how much you can expect from the sale of your house. They have a fiduciary duty to you as your representative, which means you have peace of mind knowing they are making the right decisions on your behalf.
Dependable, Available Representation
If you try to sell on your own, you’ll be stuck needing the time and energy to host open houses, work with potential buyers and their agents, accommodate last-minute showings, answer questions constantly, and, ultimately, determine if the potential buyer is the right buyer.
Selling a home is time-consuming and emotionally taxing, so you want to ensure you have proper representation from a professional you can depend on to serve your best interests.
Access to a Professional Network
Experienced Realtors® have an extensive network to bring the largest pool of potential buyers to your home, from relationships with their own potential buyers, other Realtors® and agencies they’ve worked with, and their social networks. Most Realtors® have grown their professional network and built their reputations by providing excellent service and being good to work with. In fact, some sellers will trust their agent’s recommendation on which of two similar offers to pick from based on the buyers’ representation!
When you sell your home yourself, you miss out on tapping into a professional network, which both limits the exposure of your listing and can land you in hot water with a poor buyer’s agent.
Experience Handling the Legalities
Realtors® handle the mass amounts of paperwork—both financial and legal—that must be completed during a home sale. They have to know what needs to be disclosed, what documents survive closing, and what to do in each period of the sale, from Due Diligence to Financing & Appraisal. Did you know that if a seller fails to disclose any fact that materially affects the value or desirability of the property, they could be held liable? This includes a 6-page Sellers Disclosure document in the State of Utah!
Avoid making the mistake of FSBO. Hire an experienced professional Realtor®.
Selling your home is likely one of the most significant transactions of your life and not a small task to accomplish, especially alone. Trying to cut corners to save money can lead to substantial legal risks, and you could lose more money than you were even trying to save.
Hiring a Realtor® will increase your listing’s exposure, accurately position your property in the market, and handle all negotiations to be in your best interest. A Realtor® also has the extensive network needed to pool the most potential buyers and knowledge of legal disclosures. Go with a trusted Realtor® for your home sale. You wouldn’t hire a dog walker to file your taxes.
