Problems in Selling a Home Without a Realtor
September 13th, 2011
Times are tough all over. People who are selling their homes want to save money just like everyone else. It is common for thrifty people to consider selling their homes without a Realtor. That way they can save themselves the commission and make more money on their home sale. It all sounds so simple. Yet the fact is that there are many problems in trying to take the For Sale By Owner route.
Poor Advertising Opportunities
Realtors have the advantage of being able to list your home on the most advantageous advertising system for real estate of all – the Multiple Listing Service (MLS). FSBO sellers cannot use the MLS, and so they cut themselves off from a very large majority of the people who are looking for a home. They are forced to take out advertisements online or in newspapers or simply put up a sign in the yard. These methods are usually much less effective.
Buyer’s Perception
When you are a FSBO seller, the buyer makes certain assumptions about you and about the sale. He automatically assumes that, since you are saving the cost of the Realtor’s commission, you can afford to drop the price below your asking price. He probably will not trust your evaluation of the home’s worth in any case because he knows you are not a trained professional. He may think that you are trying to hide defects in the home even if you are being totally honest. The buyer’s perception of you can damage your ability to sell your home.
Emotionalism
Buyers who are looking for their first home may be very emotional about the process. When you are selling your own home, you compound that emotionalism with your own strong feelings. If you are showing these buyers your home without a Realtor present to add a note of professionalism to the situation, the results can be very unpleasant. The worst thing is that if you upset the buyer you are not likely to sell your home.
Legal Requirements
There are many legal requirements in selling a home, no matter which state you live in. Realtors take large amounts of time and effort to learn how to cross all the t’s and dot all the i’s in meeting all the legal obligations necessary to sell a home. They will make sure all the inspections required are done on time and all the paperwork is filled out in full. If you are selling the home yourself, these tasks can be very intimidating, and in fact many people never get them completed correctly.
Some people may be suited to selling their homes for themselves. If you have experience in real estate, a cool head and a clear eye, you might be able to pull it off. For most people, the opposite is true. While they try to save money by eliminating their Realtor’s commission, they create more problems for themselves than they can handle. In the end, many FSBO sellers end up using a Realtor after all. It is not a sign of failure, but an acknowledgement that Realtors are best suited to selling houses.