Reasons We Still Need Realtors

Many homeowners are now opting to try one of the numerous For Sale By Owner (FSBO) services. As tempting as it sounds to save on the significant commission rates many realtors charge, it may actually end up more costly than a real estate agent’s commission. There is a definite art to marketing your home properly, and here are several reasons it is a great idea for sellers to utilize realtors:

Negotiating Is Risky Business

If you decide to fly solo and list without a realtor, here is a list of just a few of the people you should be prepared to negotiate with:

– A buyer seeking the best deal possible
– Realtors who represent the best interest of their buyers
– In some parts of the country, a buyer’s attorney
– A home inspection company. These companies are hired by the buyer and typically find problem areas in the house.
– An appraiser
– In the event of a short sale, your bank

Keep in mind that some realtors can take on the “bad guy” role in a transaction, preventing anything negative between a buyer and a seller that could kill a potential deal.

Sales Come From the Internet

Recent studies show that when prospective buyers begin their home search, 92 percent of buyers begin by searching online, while a mere 28 percent read through print newspaper ads. Gone are the days of putting up a “For Sale” sign in the front yard and listing it in the paper. Statistically, results have shown that buyers found the home they actually purchased:

– 43 percent from the internet
– 9 percent from a yard sign
– 1 percent from newspapers

It is important to remember that if you are too busy to respond quickly enough to their calls, potential buyers are more inclined to move on and continue their search. Additionally, there could be times you find yourself stretching yourself too thin to rush home to an appointment, only to find that interested party is a no show. Professional realtors are better equipped to handle the organizational logistics of selling a property.

You Net More Time and Money When Selling Solo

A majority of homeowners are blinded by the potential commission they will save by listing on their own. On the other hand, one main reason buyers look for FSBO homes is because they believe they can save. In the end, the seller and the buyer can’t both save on commission. Studies have pointed out that a home sold using the FSBO method would sell for $184,000, while a realtor would sell that same home for $230,000.

Additionally, there has been a dramatic increase in the paperwork involved in selling houses. As disclosures and regulations have become mandatory in the real estate industry, there has been a dramatic drop over the past 20 years, from 19 percent to 9 percent, of homeowners who choose to FSBO.