When the time comes to sell your home, you may ask yourself whether it’s really worth hiring a real estate agent to help in the process.
With house prices increasing, that extra commission can begin to pile up and maybe you’d prefer to have that money in your pocket. Some sellers are tempted to go down the For Sale by Owner (FSBO) route, but it’s not always the best choice for everyone.
What does FSBO mean?
For sale by owner or FSBO, is when a homeowner lists their home without the help of a professional agent. So the Seller will responsible for the process from A to Z, including pricing, staging, listing, negotiating, drawing up paperwork, and closing.
Why people decide to go with FSBO?
Most sellers who want to go with FSBO are trying to avoid paying the commission fee to the real estate agents involved in the sale. But while most FSBO sellers are trying to keep more of their profit in their pocket, it’s important to note that a local real estate agent likely has more expertise in pricing strategy, so it’s possible that the net profit you earn from a FSBO could end up being lower than if you had listed with an agent.
A recent research in Quebec,shows that 92.79% of home sellers hired a Real Estate Agent to sell their homes.Study was based on the last 90 Days of 2019 only .
Advantages of Hiring a Real Estate Agent Instead of FSBO
1.Local Market Knowledge:
A good real estate agent knows everything about the market in their area of expertise. Home prices and market conditions can vary widely from one neighborhood to another.
That’s why it is extremely important to work with an experienced real estate professional with strong local ties and knowledge of your specific neighborhood.
2.Getting the Right Value of the Property
Pricing a home correctly is art and science. If you price too low, you simply risk losing lots of money. If you price too high, your home will languish on the market. An over priced home doesn’t get taken seriously by buyers and may be ignored, however the longer it sits unsold the more investors and bargain hunters will see your home as a low-ball offer opportunity.
3.Real Estate Agents ate Expert Negotiators
The art of negotiation doesn’t come naturally to all of us—in fact, most of us are downright bad at it! But for a good listing agent, it’s a key skill, and one they would have honed over many years. An agent can help you dissect any offers that you receive and provide advice as to whether they’re worth considering or not.
When it comes to negotiating, their experience will help you to work out how far you can go. Paired with a deep understanding of the current market, plus research into potential buyers, they can help you respond to any offers or conditional offers with the terms that are most likely to get a buyer to bite.
4.Real Estate Agents Avoid Emotional Sales
Selling your home is typically an emotional process. Having an agent keeps you one step removed and makes you less likely to make mistakes, such as overpricing your home, refusing to counter a low offer because you’re offended, or giving in too easily when you have a deadline for selling.An agent can always take the sting out of the rejection and put a positive spin on any negative feedback.
5.Avoid Unqualified Buyers
These may be people who just started thinking about maybe buying a home, or people who want to buy a home but aren’t pre-approved, or people who want to rent to own, or even nosy neighbors posing as buyers who really just want to see the inside of your home and how much you’re selling it for.
Imagine going through the process of showing people your home, only to find out that they aren’t really ready or able to buy. You will have wasted precious time, and delayed your home sale. When homes sit on the market for too long, buyers offer less money.
A real estate agent will be your filter to keep you from wasting precious time on unqualified buyers.
5. They have access to extensive market exposure:
With access to the local MLS and online listing portals, social media presence, professional networks, connections with other agents, and name recognition, your real estate agent can get a lot of eyes on your listing and plenty of potential buyers in the front door.
7.They know the paperwork:
There’s a lot of documentation involved when you sell a home. Without an agent help, the burden of making sure it’s complete and accurate falls on the seller .Real estate professionals are experts at the purchase and sale process, and all the legalese that comes with it.
The Bottom Line
Selling your home is arguably one of the biggest financial decisions you will ever make. Your home is likely your largest investment, and how the sale is managed could be the deciding factor in how you move forward in life. Doesn’t it make sense to at least consider hiring a professional to do it right the first time?