In today’s real estate market, people are looking to save by putting their houses up as “For Sale By Owner”, or “FSBO”, to save on the costs of paying a real estate agent’s commission. While saving money always seems like a good thing, there are some instances where a little bit of investment will actually save you money, as well as a lot of headache, in the long run.
Derrick Miller, Owner/Broker of Exit Realty Garden Gate Team in the Sumner County, TN area, likens trying to sell your own home to jumping without a parachute. There are some things in life you just don’t want to do without some protection.
For starters, paying that commission ensures that you have someone looking out for your best interest when it comes to selling your home. According to Dave Ramsey, a well respected financial guru and author of Financial Peace, there are multiple reasons for listing with a ‘high octane’ agent. In the real estate game it’s all about exposure. If you list your house yourself you are limited to the handful of people who will see it in the paper or on sites such as craigslist.org. You also have to consider the fact that someone looking to buy a home being sold privately is looking to save on paying a realtor’s commission as well. Listing with an agent maximizes the reach you will have as well a gets you listed with the MLS (Multiple Listing Service) database. This makes the difference between a handful of people looking at your home versus potentially thousands.
A realtor’s job is to match up people looking for homes with the exact home they are looking for, so one who knows what they are doing will know just who to bring in and has a better chance of selling them your house. As Mr. Ramsey also says, “Even if you went the FSBO route every time you moved, you might do three or four of these transactions in a lifetime. A good agent closed three or four deals last week!”
Also, when you attempt to sell your home without the help of someone who knows the ins and outs of real estate a lot of mistakes are made which will cost you more than what you would pay a good realtor. A quality agent will assure that the pricing and negotiations are done in a way to maximize your sale, and that you are getting what you deserve. They will also be on top of the inspections and any other ins and outs you should have done to protect you in the transaction. Many people listing as FSBO end up losing more money than what they would have paid a good quality agent.
Buying and selling a home is one of the biggest financial decisions you will make in your life. Even when times are tough, you don’t skimp on good toilet paper or mayonnaise; why would you skimp out when it comes to selling your most valuable asset?