Don’t go it alone
When buying or selling a home there are numerous decisions to make and roads to travel, but one of the biggest decisions you have is who will help guide you through the process.
In 2014, 89 percent of sellers sold with the assistance of a real estate agent according to the National Association of Realtors. Using a realtor is a wise choice; there is someone there to help you navigate through the nuances and unique situations that arise in the real estate market.
“One person may buy or sell three to four homes in a lifetime. We sell thousand,” says Julie Pogue. “We can only get better with practice.”
But still, there are eight percent of sellers who chose to go the process alone. Over the past 20 years in real estate, Julie says she has worked with a number of sellers who initially try the market on their own.
“The home is usually over priced and sits forever; then they call a realtor anyway, or it is severely under priced and sells too quickly,” Pogue says.
The National Association of Realtors reports that in 2014 sellers without an agent sold their homes for $30,000 less than those with an agent. So why chance losing money? The association says most FSBOs hope to avoid paying a commission on the sale of their homes. Typically during the sale of a home the seller’s agent receives a three percent commission and the buyer’s agent receives another three percent.
“What if something goes wrong and there’s no one there to help you”, Julie says. “It can be terrifying. Everything is a liability. It helps to have a go between buyers and sellers. It’s really a business partnership. Why would you want to risk on if not the biggest assets that you own.”
Julie’s Top 5 Reasons to use a Realtor
Relators save you time and money. Realtors have easy access to home prices in the area so they can ensure a fair listing price.
Realtors solve problems before/if they occur. An experienced and full time agent has seen it all. They can work with you to develop solutions to the most complex situations. The longer you do it the better you get.
Realtors help with negotiations. It’s not just the price that can be negotiated, but repairs, time of possession, etc. There’s also more to consider.
Realtors think of things you’ve never considered. Without many years of experience, you can never know every situation that will arise. Every sale is unique
Realtors are in your corner and want to make sure you are successful. Selling or buying a home can be stressful. Why worry when you can have someone you trust to watch out for your interests.
FSBOs accounted for 8% of home sales in 2014. The typical FSBO home sold for $210,000 compared to $249,000 for agent-assisted home sales.
FSBO methods used to market home:
- Yard sign: 42%
- Friends, relatives, or neighbors: 32%
- Online classified advertisements: 14%
- Open house: 14%
- For-sale-by-owner websites: 15%
- Social networking websites (e.g. Facebook, Twitter, etc.): 15%
- Multiple Listing Service (MLS) website: 10%
- Print newspaper advertisement: 3%
- Direct mail (flyers, postcards, etc.): 3%
- Video: 2%
- Other: 1%
- None: Did not actively market home: 25%
Most difficult tasks for FSBO sellers:
- Understanding and performing paperwork: 12%
- Getting the right price: 6%
- Preparing/fixing up home for sale: 6%
- Selling within the planned length of time: 18%
- Having enough time to devote to all aspects of the sale: 6%
- to all aspects of the sale: 6%