Is it really that hard to sell your home without a real estate agent?
Yes.
And that’s not to say that people don’t do it successfully, or that it’s not possible, but it’s not easy because “sellers” are human beings. (Most of them) and human beings make mistakes. Mistakes are good, we all learn from them, but should a person’s biggest financial asset be used like a practice run?
Our response to that question may seem predictable, because we are agents, however, we are agents because we believe in the power and the worth of an experienced agent. Here are three common mistakes that “by owner” sellers make:
1. Pricing.
“Steve and Barb down the street just sold their house for $879,000. I’ve been in their house, it’s not nearly as nice as ours! We could get at least $900,000!”
Meerrrrrrp. (bad buzzer sound).
Pricing a home properly is not simple. Renovations, upgrades, finishes, square footage, layout, lot size, street placement, fixtures, condition, sales history, additions, permits, parking set up, easements, rights of way… these are just some of the factors that come into play when analyzing the value of a property.
A home owner will more often than not, overvalue their home. The challenge there is that an improperly priced home WILL impact the sale in a negative way.
2. Making it all about commission.
Sellers that make their selling decisions solely around saving commission will most likely end up regretting it.
We’re not suggesting you just blindly pay whatever an agent tells you they charge, but the driving force behind many of the “by owner” sales out there is the idea that saving commission will earn you more profit on the sale. At a quick glance that seems to make sense, but selling a home doesn’t occur in a vacuum. Saving commission does not equate to “earning more profit” from the sale.
A seller that truly wants to maximize the likelihood of a successful sale will make commission one of many discussions had with their prospective agent. Not just the only one.
3. Get it on MLS by any means necessary.
There are a few “flat fee listing services” out there. Essentially, they promise to get you the exposure of MLS for a fixed fee. Unaware sellers are being fed the idea that MLS will provide their home with the necessary exposure it needs to sell and that the rest is a breeze.
The bait and switch there is that MLS was created and designed as a tool for licensed agents to collaborate with other agents. It’s been designed by agents, for agents. It’s being paid for and constantly improved and maintained as a result of funding from agent membership fees. It’s essentially a marketplace for agents… and there your listing sits for sale… priced improperly and without an agent.
