Thinking about selling your home on your own? You may have heard that you can save money by not hiring a real estate agent and listing it as a for-sale-by-owner (FSBO). However, before making this decision, it’s important to consider the value that an agent brings to the table. Here are five reasons why hiring a real estate agent is worth every penny.
Statistically, homes sold by agents sell for more
According to the National Association of Realtors (NAR) Profile of Home Buyer and Sellers, FSBO homes typically sell for $217,900 compared to $295,000 for agent-assisted home sales (NAR, nar.realtor, October, 2023). This means that homeowners who hire an agent will likely net more money in their pocket after paying the commission.
A different kind of buyer
Buyers today are more educated and savvy than ever before. If they’re working directly with a FSBO, they are there to look for a deal and save money. On the other hand, buyers who work with an agent are looking for quality service that they can trust and rely on throughout the process. Buyers who engage with agents are willing to pay more because they know that their interests will be protected and someone will negotiate on their behalf. This is one of the main reasons why homes sold through agents sell for more.
There’s a lot more involved in selling a home than just putting up a sign
Even in a hot seller’s market, there’s much more involved in selling real estate than just putting up a sign or using flat-fee services to list your property. Every state requires extensive training and licensing for real estate agents because they have specific knowledge required to protect homeowners from miscalculating prices or misrepresenting themselves during negotiations which can cost them money at closing time.
Separate lookers from buyers
FSBOs let complete strangers into their house without any screening or safety considerations which could lead to safety concerns for homeowners. Real estate agents, on the other hand, are able to screen and qualify potential buyers before allowing them into a home.
Protection from legal issues
When selling your home, it’s important to have someone with experience handling contracts and ensuring that your best interests are being protected. FSBOs often download contracts from the internet without fully understanding if they’re valid or not. In addition, in a multi-offer situation, a FSBO can accidentally sell their home to more than one buyer which could lead to legal hot water. Agents have the experience needed to navigate these situations and protect their clients from any legal woes.
These reasons are just the tip of the iceberg when it comes to why hiring an agent is worth every penny. Real estate agents advocate for you, protect your investments, ensure your family’s safety and answer any questions throughout the confusing process of selling your home. They know how to communicate their value and promote their clients’ interests throughout the entire transaction.
In short, before you decide to sell your home as an FSBO consider all of these important points and remember – know your value! You need a professional who will be there for you every step of the way during this important time in your life.