When considering selling their homes themselves, many homeowners focus so much on the potential rewards that they often overlook the risks. What are these risks? Well, by selling without professional representation:
- You risk inappropriately pricing your home. Without access to the knowledge needed to establish a home’s market value, most FSBO (for sale by owner) sellers overprice their properties, and consequently their homes linger on the market longer than necessary, often selling for a song as a result. Or, they list for too little and end up selling their home for considerably less than it’s worth.
- You risk a lack of exposure for your property. Exposing it to as many buyers (and real estate sales representatives) as possible is crucial to selling your home faster and for more money. Unfortunately, most homeowners don’t have enough time to devote to marketing a property, nor do they have the advantage of exposure on the Multiple Listing Service®.
- You risk wasting your time on people who aren’t serious about your home or who can’t afford it. Real estate sales representatives are experts when it comes to distinguishing a looky-loo from a purchaser, and an unqualified buyer from a qualified one. For example, by not immediately recognizing the type of buyer, you may spend a lot of time with someone only to have the deal fall through before closing because they couldn’t get financing.
- You risk finding yourself with a legal problem on your hands. The sale of a property is a complex transaction fraught with legalities surrounding things like contracts, home inspections, disclosure, title insurance, appraisals, and more. Unless you can recognize an issue for which you may need legal advice, you could end up in over your head.