You probably know someone who has attempted selling their home without an agent. Seems great, no commissions so you save a bunch of money! But what most people don’t know is that, on average, For Sale By Owner (FSBO) homes sell for 24% less than a home sold through a Realtor (nar.realtor). When you’re looking at paying 6-7% to have a Realtor sell your home on average, the difference is thousands of dollars.

There’s so much that goes into selling a home that an average person doesn’t realize. At Grey Duck, we pride ourselves in our marketing and our Coming Soon Campaign we run for each home. We have sold many homes before they even hit the market, saving you time and headaches. We also will look through our database with thousands of buyers in it to find a buyer that’s looking for a home just like yours. When we find the buyer for you, we lower our commission which will save you thousands of dollars! We would love to chat with you on how we can help you sell your home quickly and for top dollar!

Let’s look at some other reasons it’s great to have a Realtor on your side!

1. Scams happen

According to an article from inman.com, Judy (not her real name) in Raleigh, North Carolina, fell in love with a FSBO home. She agreed not to use an agent and paid the homeowner $3,000 in earnest money. Then the homeowner changed his mind. With no contract signed and no receipt, Judy lost all her earnest money. She trusted the homeowner when she should have trusted an agent.

FSBO scams happen to both buyers and sellers with little recourse besides hiring an attorney. Common scams include fraudulent papers (appraisals, loan documentation), foreign buyer deposits (scammer sends too much in a bad check and then requests a refund), purchases through a third-party (a fake attorney, etc.) and asking for personal information.

2. Liability is all on the seller

Everyone makes mistakes. A seller (or buyer) who doesn’t have the representation of a licensed agent pays for those mistakes. Attorneys can close a real estate transaction, but they don’t carry errors and omissions (E&O) insurance. So, if homeowner Sandy lists “hardwood floors” as a feature and the buyer discovers it’s just a wood veneer, chances are Sandy is going to pay for that mistake. An agent would have either caught the mistake or covered it with E&O insurance. Let’s face it: this is a litigious society, so what homeowner wants to be a target for lawsuits?

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3. Paperwork is daunting

The 2015 National Association of Realtors’ Profile of Home Buyers and Sellers showed that understanding paperwork was one of the most difficult tasks for FSBOs. Depending on the state, there are a variety of legal forms that are needed, including but not limited to a sales contract, property disclosures, occupancy agreements and lead paint records. Sure, ready-made contracts can be downloaded easily enough. But does an untrained seller understand what all that means? Would the seller know how to customize that one-size-fits-all contract?

4. Sellers can get stuck in a bad deal

FSBOs who sign on the dotted line and then realize an error are stuck. They have to pay the buyer (if they’re willing) to get out of the contract or just take the deal. There’s also a good chance your home will be priced incorrectly. Price your home too high and you won’t have buyers coming to see it. Too low, and you’re out thousands of dollars. Having a Realtor do an in-depth market analysis of your home is a surefire way to make sure you’re going on the market at the perfect price to get the most people looking at your home and finding a buyer quickly.

5. FSBOs spend more time on the market

Unless the seller knows someone who wants to buy the home, FSBOs take longer to sell than homes listed with an agent. For the same reasons, they can’t get the right selling price.

No one is “behind the curtain” running the marketing show. On average, 18 percent of FSBOs were unable to sell within their chosen time frame in 2017.

6. Inspections are problematic

Sellers who don’t know the rules can get stuck with unnecessary and costly repairs. During an inspection, if requests are made for major changes, do you know all of the laws regarding whether the changes should be made? For instance, an inspector could say stairs leading into a garage need to be replaced, but because they were to code when the structure was built you may not be required to make those changes. Not knowing the rules can be expensive!

7. Marketing is limited

FSBOs have limited resources to market their home. If you don’t know someone personally that is interested in the home, many sellers have to only rely on posting on Zillow and Craigslist. Realtors have hundreds of websites they have access to for posting your home, along with pools of buyers and other agents who are always looking for the perfect home for their clients.

8. Hidden costs add up

The mindset for most FSBOs is saving money. Chances are, these sellers are being nickeled and dimed into a pretty big chunk of change. They’re paying for a lot of extras: signage, flyers, photography, MLS listing, attorney (required in multiple states for FSBOs), home warranty (optional but hard to sell without one), home inspection, a wood destroying pest inspection, credit report for buyers (if applicable), contracts and the list goes on. Listing agents don’t charge anything up front to sell your home. If they spend thousands and can’t sell it for the price you want, they are out the thousands, not you!

9. Time costs the seller money

The biggest cost to a homeowner is their time. You might hear the argument that it doesn’t take an agent that much time to sell a house. And honestly, given the technology at our disposal, that’s true — to an extent. But it will take a homeowner a whole lot longer. They don’t have the expertise or the access to the resources agents have. What is their own time worth to them? How much time will the seller spend researching the market and contracts? Is the seller going to leave work to unlock the house each time there’s a showing?

So much more goes into selling a home than one would initially think. Grey Duck prides ourselves with being honest, upfront, and hardworking to get your home sold as quickly as we can for top dollar. Contact us today to find out more!