People do it every year. They sell their homes without a Realtor (for sale by owner). And frankly, many of them do it successfully and without regret.
With the advent of the Internet, almost everyone now has “Google Doctorate” in something. They read about a subject just long enough to feel competent. You might have noticed this by the amount of For Sale By Owner signs now perched outside of homes in many neighborhoods. Many of you have learned you can get more money by paying less in commissions if you sell your homes without a Realtor. Why wouldn’t you go FSBO?
We’ll tell you why - Traffic!
The first and most obvious reason is that selling a home yourself means your home isn’t listed in the MLS (Multiple Listings Service) database. Public Real Estate websites (which do not reliably update) could advertise your impending sale, but a Realtor’s #1 jobs is to ensure your home is available for other Realtors to see and recommend to their buyers via the MLS. Cutting them out of communication reduces the numbers of buyers who see it’s for sale. It’s like chopping your nose to spite your face.
While a buyers’ Realtor won’t be made aware of your home’s sale-status via the MLS, seeing the sign in your yard could immediately tell them to steer clear for two reasons: 1. You don’t have a Realtor representing the sale, which means a buyer’s Realtor will have to interact directly with you while guiding their buyers through the sale process. This will almost certainly increase their workload because you probably don’t know the closing process and contracts inside and out and will require a lot of explanation. They’ll basically be handling both sides of the transaction, and they don’t want to do that for free so they keep on drivin'.
2. You don’t have access to price comparisons within your neighborhood aside from public sites like Zillow (which are notoriously unreliable). That means you are probably going to ask for more than your home is worth and struggle to negotiate given what is probably an emotionally-charged vision of your home’s value. Realtors don't have time to educate you about your home's value and so they'll be more likely to move on!
Realtors who choose to practice Single Agency will have a fiduciary responsibility to their buyers’ best interest regardless of their own compensation, but human nature suggests they’d choose homes that are traditionally represented if and when they can. So now, Realtors aren’t finding you on the MLS, nor are they encouraging their buyers to knock on your door when they see the sign in your front yard! Ugh!
One last thing, and this one’s a doozy: choosing to FSBO not only means you will lose a significant amount of traffic to your home, you will likely make less on the sale. According to the National Association of Realtor’s 2017 statistics, of the 7% of homes sold as FSBO, they averaged a sale price of 25% less than agent-assistant home sales!
Why were you selling FSBO again?! Find a Realtor, specifically one who practices Single Agency, and ask questions. No doubt that Google Doctorate in Realty left you wondering about some aspects of the transaction and your Realtor will answer all of those for you! Give us a call when you're ready to sell and we will make the process easy for you! 904-469-7653