Hiring a Realtor vs For Sale By Owner
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Hiring A Realtor® vs For Sale By Owner (FSBO): Why To Choose
A Real Estate Agent?
What Does for Sale by Owner (FSBO) Mean?
Doing the FSBO is not the latest dance craze on Tik-Tok or a social media challenge. But FSBO-ing definitely takes some skill and is challenging.
FSBO, pronounced fizz-bow, is an acronym meaning for sale by owner. Alternatively, “fizbo” is also sometimes used to describe a property for sale by the owner.
Regardless of the spelling, for sale by owner means exactly what it sounds like. A property that is for sale by owner means the owner has decided to sell the property themselves without the assistance of a real estate agent or a Realtor®.
Benefits of FSBO
1. FSBOs Benefit by Not Paying Real Estate Commission Fees
The number one factor in the FSBO vs listing with Realtor® question which tempts many sellers is avoiding paying real estate commission fees.
2. Controlling the Process and The Outcomes
Another benefit of selling a property for sale by owner is the seller maintains complete control over the process. Some home sellers just do not want to place their trust with a real estate agent.
Benefits of Hiring a Real Estate Agent
1. Real Estate Agents Have S.K.E.E.T and Home Sellers
Don’t
The leading benefit of hiring a real estate agent is you get to take advantage of the agent’s professional experience. S.K.E.E.T. !! S.K.E.E.T. stands for skills, knowledge, education, experience, and training. Real estate agents are licensed professionals who routinely sell other people’s homes.
2. Real Estate Agents Can More Effectively
Communicate with Homebuyers
Real estate agents are able to more tactfully negotiate with homebuyers. Equally true is real estate agents are more experienced at handling circumstances which require everyone to make an adjustment. Real estate agents can more effectively and communicate to homebuyers why an issue has come up, how it can be handled, and quickly begin setting a new expectation.
3. Real Estate Agents Are Proactive
Another benefit of hiring a real estate agent is real estate agents will proactively work your home sale. Real estate agents have the ability to assess how an action today will change the future outcome. This will help you make decisions which do not interfere with your future plans.
4. Hiring a Real Estate Agent Takes Less Time Than
Running the Transaction Yourself
A benefit of hiring an agent to sell your home is the agent’s and not the home seller’s time spent to get the home sold. As a real estate agent I get calls, texts, and emails and all times of day, seven days a week. There isn’t really an off button on this thing. Selling your home yourself will take up a lot of time. This time can be saved by hiring a real estate agent to do the work for you.
5. Avoiding the Bridge to Nowhere
A benefit of hiring a real estate agent is we can prevent home sellers from accepting an offer that is dead on arrival. From a buyer offering an exorbitant purchase price, to financing situations, to property conditions, and to just about anything else, I can assess an offer and provide the seller with a probability that in its form the offer will make it to the finish line as it is written. Home sellers can’t do this.
There are many rules, guidelines, processes, and procedures when it comes to selling a home. Real estate agents know these, and their expertise will keep you from accepting a dead offer placed at your doorstep.
6. Pricing Your Home Correctly
FSBO Home sellers are notoriously bad at putting a price on their home. One of the key benefits of hiring a real estate agent is your home will be priced correctly. Real estate agents have much more and much more detailed data about comparable homes in your area. Hire a real estate agent so you get your home for sale correctly priced on the first day.
7. Real Estate Agents Can Maximize Your Home’s Online Exposure With the MLS
One of the top reasons to hire a real estate agent is they can more efficiently maximize your home’s exposure on the market. Real estate agents have access to the MLS which stands for multiple listing service. This is the database which feeds all of the real estate websites. This tool is the loudest and best blow horn to alert all homebuyers your home is for sale.
Real Estate Agent vs FSBO: What to Choose
There are four phases to a home sale, and each phase has its own action items. Let’s review each of these and differences at each step when you hire a real estate agent versus selling your home yourself.
Phase 1 – Preparing The Home for Sale
A real estate agent will advise you on changes to your home to make it more attractive to homebuyers, increase its value, or to avoid costly repair demands from homebuyers. Too often, inexperienced home sellers focus on items which really have no effect on increasing the home’s value or attractiveness.
A real estate agent will put you on the correct trajectory at the beginning saving you time and money. On the other hand, FSBO sellers are more likely to make ineffective improvements.
Phase 2 – Pricing, Preparing Marketing Materials, and
Advertising the Home
Marketing materials are important to attracting homebuyers. Real estate agents are more likely to be able to succinctly assemble marketing materials due to having “go-to” resources. FSBO home sellers can find the resources, too, but it will take more time.
Most importantly, real estate agents via the MLS have the ability to get a home posted to hundreds of real estate websites. FSBO home sellers will not have this same access.
Phase 3 – Working With Prospective Buyers
Interested homebuyers will have questions and want to see the home. Real estate agents are available to answer questions, manage showings, collect feedback, and review a submitted offer.
FSBO sellers will need to answer these questions and schedule showings and be present for those. Additionally, not knowing what to do during a showing can negatively affect the buyer’s experience while touring the home. Lastly, failing to fully understand a submitted offer could cause you to either reject it unnecessarily or accept an offer you later wish you wouldn’t have.
Phase 4 – Working the Accepted Offer
Getting a home sold requires one to continuously push the accepted offer towards the closing table. This requires knowing what needs done and when. It also requires one to know how to address the hiccups that can come up.
A real estate agent knows these things due to his or her experience. A FSBO home seller is more likely to spend time going in the wrong direction or letting a deal stall at certain steps. Worse yet, FSBO sellers are more likely to make the wrong decision at a crucial time when a hiccup occurs. This can be either due to the emotions involved or the seller’s inexperience at selling a home.
Conclusion
It is common for home sellers to be tempted by the cost savings of paying real estate commission fees. However, home sellers need to accurately and fairly account for the time, cost of poor marketing and advertising, and expensive mistakes when deciding to sell a home themselves.
Selling a home is more difficult than home sellers realize. There is a reason real estate agents have been around for 100 years and will continue to be into the future. Selling a home is a transaction with many moving parts and reliance on numerous third parties. Experience really does matter when it comes to a positive outcome of a home sale.
Just because you can sell your home yourself doesn’t mean you should.
Because we care...
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