In a busy seller’s market, it’s tempting to want to sell your home on your own. Buyers are desperately searching for homes and it’s easier than ever to share your home with potential buyers through Zillow and Facebook. So, what are the drawbacks to selling your home on your own?
Money
One of the biggest reasons many homeowners choose to sell their home themselves is to save the cost of commission normally paid to the REALTOR. It’s a common misconception that you’re saving yourself and the buyer of the property money by choosing to do the transaction without the help of a REALTOR. Pricing your home should be strategic and comparable to the current market. While you may think you know what your home is worth, a REALTOR is able to accurately price your property based on the current market and past sales with actual figures, data, and examples. Pricing your home is one of the most crucial steps in the selling process. Too high and you lose buyer interest, too low and you’ve missed an opportunity to maximize your profits.
According to the 2020 Buyers and Sellers Report from the National Association of REALTORS:
- FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 last year (up from last year), and significantly lower than the median of agent-assisted homes at $242,300
- Sellers turned to professionals to help market their home to potential buyers, price their home competitively, and sell within a specific timeframe
Time
If you’ve come to the conclusion that you’re ready to sell your home, you’re more than likely looking to do so sooner rather than later. Especially in a seller’s market, time is of the essence – you can’t guarantee that buyer activity will last! If you choose to list your home and try to sell it yourself, you will lose valuable time and attention as your try to navigate your way through listing your home on Zillow, posting on Facebook, putting ads in newspapers, etc. The vast majority of buyers are working with agents – meaning they’re getting their information directly from the Multiple List Service. Since you’re not a member of the MLS, buyers and the agents working with those buyers, will miss your home during their searches. You are gambling that a buyer will see your home on the one or two sites you list your home on. Meanwhile, all homes listed with an agent and put into the MLS are syndicated to hundreds of sites, including Zillow, Realtor.com and Redfin.
According to the 2020 Buyers and Sellers Report from the National Association of REALTORS:
- Only eight percent of recent home sales were FSBO sales this year. This remains close to the lowest share recorded since this report started in 1981.
- Having an agent to help them find the right home was what buyers wanted most when choosing an agent at 51 percent.
Legal Documents
The sale of a home requires legally binding documents between the seller and the buyer. These documents should cover the agreed upon price, any inspections to be done, what would constitute contract termination, if mineral rights convey, and many other aspects. Seems a little overwhelming to the average person, right? You can find a standard Maryland contract online – but are you really covering all your bases? If your contract does not cover absolutely every portion of the sale, you are opening the door for potential trouble and even legal action from the buyer of the home. A lakefront townhome within an HOA will need different/additional documents compared to a primary residence in Grantsville. Nothing beats experience. REALTORS who deal with these documents and transactions every day know the ins and outs, what to look out for in certain areas of the county, and how to make sure you are protected throughout the process.
Working with an agent, whether you’re buying or selling, offers you a level of protection and security that is invaluable. They are your expert REALTOR, well versed in writing contracts, Maryland Real Estate Law, market prices, loan applications, and more. Skipping steps or cutting corners with an investment as large as real estate is never a good idea!
If you’re interested in selling, and finding out how much your home is worth, our agents are happy to provide a free comparative market analysis and answer any of your questions regarding selling your home! Fill out this form to get started!
You can read the full 2020 Home Buyers and Sellers Report from the National Association of REALTORS by clicking here.
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