I've been seeing a lot of Facebook posts lately asking a pretty popular question "Has anyone sold their home without a realtor? Can you share your experience with me?"
Homeowners often list their homes by themselves in the hope of saving thousands of dollars in commission. But are you actually saving when you do this?
The term used to describe this process is "For Sale by Owner" (FSBO) and it's pretty explanitory on it's own. It's the process of selling your home without the use of a realtor in hopes of saving thousands of dollars in commission. When you make this decision, you need to be aware of the myths and misconceptions to ensure you are doing you're very best to protect your investment.
Although it's possible to sell your home this way, there are obstacles that can get in the way, and are worth knowing about before you make this massive decision.
EXPOSURE - In a market as crazy as the one we're experiencing now, exposure is KEY. FSBO websites are available when you're selling your own home however, most shoppers are not aware of them, or are leary of them. Shoppers tend to go to the most reliable and well known sites, like mls.ca, realestateagent.ca or REW.ca. Not having proper exposure can cost you thousands upon thousands of dollars.
LEGAL LIABILITY - Selling your home can be a complicated process, especially when you're not sure of all of the legal ins and outs. Real Estate agents are insured in the event that a lawsuite arises due to a buyer's dissatisfaction usually caused my lack of misrepresentation and/or non-disclosure. If issues came up when you sold your own home, you would be personally liable. That's a pretty scary thought, right? Interesting fact: Real Estate Agents are not advised to sell their own properties as they are not protected by their insurance.
SAFETY CONCERNS - Bringing strangers into your home is a major safety concern. When you are selling your home and using the FSBO websites, you are inviting those who wants to purchase your home in, and those who may not want to buy your home. When a client is working with an agent they go through a series of screening to ensure that those browsing, are actually ready to purchase.
READY TO GO BUYERS - When you are selling your own home, you don't have a way to ensure that these shoppers can actually afford your home. This can lead to big headaches and a lot of wasted time. When working with a Real Estate Agent, they are required to prequalify their buyers to ensure that they are viewing a home within their budget.
In my professional experience, it's not impossible to sell your home going through route, but it's advised that you work with a professional agent who can ensure that you'll get the best value for you home. You’ll have the advantage of being exposed to my entire pool of buyers, as well as other agents within my office (Landmark Realty Mission). More importantly, you’ll be in the MLS, or Multiple Listing Service, database. Market exposure is everything in the real estate game!