There’s an obvious reason people decide to try and sell their homes themselves, and it’s not a love of handling long legal contracts or the art of negotiating price or repairs. They want to save money by not paying a commission to a real estate agent, and I totally understand—why pay someone to do something when you can do it yourself for free? Following are five reasons using a realtor could make you more money:
1) Audience. Almost 90% of buyers use a realtor to find a home, and agents most frequently use the Multiple Listing Service (MLS) to find properties. Only real estate agents can place a property on the MLS, so for sale by owners (FSBOs) are missing out on the vast majority of people wanting to buy property. When real estate agents are searching for properties to fit their clients’ needs, they generally do not consult web sites such as Zillow or Trulia—they go to the MLS. If you’re trying to sell your home on your own, you are missing out on 90% of the potential buyers searching for a property right now.
2) Pricing. The price you place on your house is the single most important factor in how quickly your home sells, and a realtor can give you accurate information on what properties in your area are selling for currently. You may know that the house down the street was originally offered at a certain price, but what was the final dollar amount? You might be able to find the sale price somewhere online, but that’s not the full story. Buyers often ask for closing costs as part of the purchase, which is not disclosed, so you could be using the wrong information to price your house. Overpricing equals more days on the market, and a realtor can help you avoid that costly mistake.
3) Knowledge. Realtors are either listing houses, showing houses, or researching houses every day, so they know what buyers are looking for, and can use that knowledge to help you prepare and stage your house for a faster sale. Working with buyers is a realtor’s full-time job, so take advantage of that insider knowledge.
4) Experience. North Carolina real estate agents have to attend 75 hours of training before they can even sit for the licensing exam, and then have to do 90 hours of post-licensing classes plus yearly continuing education. Your home is most likely your largest asset, and real estate agents are trained to handle the all the contracts, disclosures, and legal issues involved in selling a property. If you had a $200,000 tax issue, would you hire a CPA or try to handle it yourself? Hiring a professional to manage your largest asset, your home, could save you money and a lot of headaches.
5) Network. When it comes to selling your home, you’ll need to involve multiple people in the process, such as lawyers and contractors. Do you have a good real estate lawyer in mind? A realtor does. A buyer will want to do a home inspection before purchasing your home, and if they find a problem with the roof, do you know a reliable roofer? Or an experienced plumber, electrician, or contractor that won’t overcharge you for repairs? Realtors can provide you with recommendations for any trade you need when it comes to repairs to make sure they are done correctly, and for the right price, the first time.
The first three reasons above, audience, pricing, and buyer knowledge, relate directly to the amount of time your house stays on the market, and the longer you hold on to a property, the more it costs you. If your home is on the market for three extra months because you are not taking advantage of a realtor’s experience, what is that costing you in mortgage payments, taxes, and utilities? What could happen to the property in those three months that may end up costing you more, such as replacing big ticket items like a water heater, HVAC unit, or roof? Most people who try to sell their homes themselves end up hiring a realtor after a few months of attempting to handle the process on their own. If you’re thinking about putting your house on the market, call me today and let’s talk about how I can make you more money selling your home the way you want it—quickly and at the highest price possible.