Occasionally, one can see "For Sale By Owner" signs in their neighbourhoods. Most owners believe that selling their own home will save them considerable money, because they are avoiding having to pay a sales commission. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer’s recommend selling your own home yourself in today’s market. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate). Every day of the week, hundreds of real estate salespeople are searching through MLS listings, looking for the right home for their purchasing clients.
2. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
3. In a “sellers market”, when properties are in short supply, increased exposure can very often result in multiple competing offers, which can bring the seller an even higher price than that which they were expecting. This can result in offsetting most, if not all of any commission that you would pay.
4. The longer a home is on the market, the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long…there must be something wrong with the home.
5. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor… and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate agent does not represent the buyer, and they are looking on their own…they usually leave the home and often start to talk themselves out of the buying process. If a trained real estate sales person represents the buyer, then there is a good chance that any buyer remorse that they may be experiencing (a very common occurrence) can be overcome.
6. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
7. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
8. The majority of qualified buyers are working with experienced real estate professionals.
9. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
10. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
11. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate agents to bring potential buyers.
12. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.
13. Only real estate agents have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to agents. Further, real estate agents are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
14. You only pay the commission to the real estate broker, if they successfully sell your home at the price you agree to.
15. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions can quite often run into snags on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.