Pros and Cons of Selling Without an Agent

Today’s Wiki Wednesday Feature: Pros and Cons of Selling Your Home Without an Agent

OK, now here’s a twist: real estate agent Lydia Player of Virginia Cook Realtors down in Dallas, TX, writes a Real Estate Guide article about the Pros and Cons of Selling Your Home Without an Agent. Lydia writes a thorough, well thought-out article about selling a home without an agent, the various steps involved and what to watch out for. She lists the biggest downside of selling as a FSBO to be the “…demand on your time and the legal and financial risks.”

Outtakes from the article:

• Pricing your home — “Overpricing is the most common mistake and some people actually ask too little for their house!”
• Safety comes first — “A “For-Sale-By-Owner” sign is an invitation to strangers to wander through your home. People will arrive at your home, eager for their own reasons, not all of which are honorable.”
• Finding qualified buyers — “You should pre-qualify potential buyers to ensure they can afford to buy your home, before you spend any amount of time with them.”
• Market effectively — “You should arrange professional-looking marketing materials. Prepare flyers and distribute them to all your neighbors. You’ll probably want to plan some open houses. The cost of signs, flyers and advertising can add up, but don’t skimp here. Use every advertising option you can think of.”
• Negotiate — “FSBO homes typically attract bargain hunters who often expect you to lower your price since they, too, are looking to save money on commissions. While you’re trying to avoid paying commission, if the buyer doesn’t have an agent, they are doing the same. These buyers will often deduct the commission from your asking price and then start negotiating with you.”
• Stay legal — “If you do not fully understand the legal ramifications and necessary steps required in selling a home, hire a real estate attorney. Don’t cut corners here. An attorney not familiar with real estate processes and closing procedures could cost you hundreds of dollars and delay the closing.”

Obviously, Lydia has a vested interest in working for sellers and buyers, but she makes some valid points in what to be aware of in case you are doing a FSBO. Once you read the article, you may just reconsider using a real estate agent!

Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.