For those of you who may be considering selling your home on your own, it is referred to in the real estate industry as a For Sale By Owner, otherwise known as a “FSBO.” Many sellers have the misconception that trying to sell their home on their own is the better route and that it will net them more money from the sale. I among all other real estate agents in the industry would disagree. Here are my top three reasons why working with a real estate agent is the better option.
Sellers that choose to go the FSBO route do so because they want to save money. They believe that they can do this by cutting the agent’s commission out of the equation. According to the National Association of Realtors, FSBO homes typically sell for 25 percent less than agent-assisted sales. Currently a typical commission fee is 6 percent. Based on these numbers, sellers that work with an agent can potentially achieve a 25 percent greater sale price, which after deducting the 6 percent commission fee still nets the sellers approximately 19 percent more money than if they were to sell the home on their own as a FSBO.
FSBO’s generally do not have the marketing background and expertise needed to get sufficient exposure for their home. This can result in the home staying on the market longer because fewer buyers see it. Research shows that almost 95 percent of home buyers begin their search online. For that reason it is critical to have a strong online presence. The majority of FSBO sellers do not have the time, money or resources needed to build a strong enough presence to market their home. Working with an agent helps solve this issue. By working with an agent your home can be listed on the Multiple Listing Service, or “MLS” for short, which puts your home in a position to be seen by thousands of agents and homeowners across the state. Real estate agencies will often use a blend of digital and print marketing to ensure your home reaches buyers effectively through various channels of exposure. In addition, most real estate agencies and even agents themselves have built personal webpages and social media accounts with thousands of follows and connections to further promote your listing to generate interest. This exposure to their network of professionals and potential buyers typically results in quicker sales. And quicker sales results in less money that the sellers will need to spend on taxes, utilities and other various maintenance fees.
The amount of paperwork necessary to legally sell a home has continued to increase drastically over the last few years. All of the inspections, disclosures and other regulations that are mandatory by the state of New Jersey can be very overwhelming, especially to an untrained eye. FSBO sellers are not exempt and must adhere to all of these same regulations. These regulations have resulted in a decline in the number of FSBO properties over the last few years. When selling with a Realtor, sellers get the benefit of working with an agent who has extensive knowledge of all of the rules and regulations and who understands the process of selling a home from start to finish. In addition to all of the legalities, negotiation is another part of the process that can be very frustrating and difficult for people who are not trained and skilled in doing it. FSBO sellers often will need to negotiate not only with the buyer but often with the buyer’s agent and home inspector as well. Without experience this can be incredibly stressful and costly. A good agent guides these negotiations and in many cases is the key to keeping the deal together. Moreover, most experienced agents have closed multiple sales and have encountered and overcome the majority of issues that may arise during the sale process. This prevents delays and frustration for the seller.
In closing, working with a real estate agent has many benefits that in the long run can help sellers net more money from the sale. Agents can help by achieving a higher sale price, in a shorter amount of time, and by providing the sellers with peace of mind that they are working with trained professionals that know all of the rules and regulations and can overcome any of the obstacles that may arise during the sale process.
By Zeevyah BenoffBy Zeevyah Benoff
Zeevyah Benoff has been a Teaneck resident for over 25 years and has extensive knowledge of the area, local schools and community organizations. Her drive, devotion and creativity have helped her build a successful career in real estate. She prides herself on her negotiation and advocacy skills. Her legal background and keen attention to detail coupled with her candor and energy has positioned her to be an invaluable asset to her clients. Zeevyah can be reached at 201.956.0208 or [email protected].
