Are you thinking of selling your property without the help of a realtor? Before proceeding, make sure you understand all the challenges you might have to face when selecting this option.
Online property portals or other types of classifieds with the For Sale By Owner (FSBO) feature have led many homeowners to have a go at trying to sell their property by themselves.
However, the entire process isn’t as clear-cut as it may seem. And bypassing the associated expenses of a real estate agent doesn’t necessarily mean you’ll earn more from the property’s sale.
The problem with Online Property Portals
Those Online portals where you can post your property for sale are solely taking care of the sale’s advertising, nothing else. You might be able to reach some prospective buyers in the area, but that is only the first step into trading a property.
When you place your house for sale in an online portal, it is only the start of an arduous and time-consuming task until all processes are concluded.
Furthermore, carrying this whole process by yourself will expose you to several risks and possible problems. Below, you can find examples of potential repercussions that can result from not hiring the services of a real estate agent to sell your house:
Setting the Wrong Price on your Property
One of the critical factors to successfully selling a house is to get the right appraisal for it, and this is where most people get it wrong when trying to sell their property.
The price will be the first impact on someone browsing for a property and can make or break the deal. There’s no second chance for first impressions, right?
Overpricing will scare possible buyers who won’t spare a second to think about it because it far exceeds their budget. This will mean a longer time of the property on the market too.
However, low-pricing your property will also give the idea that there is something sketchy about the house and can even drive interest away.
Many sellers believe that setting the price on a house is only about asking how much you want for it, but it isn’t that straightforward. To determine the appropriate listing price on your property requires some research and in-depth knowledge of the current housing market, your surrounding area and an extensive understanding of the industry itself.
A real estate agent can provide you with a comprehensive comparative market analysis (CMA), a report on the recent deals on properties in the area, complemented by their experienced insight on the market’s trends to set a realistic and correct price to sell your house.
Failing to Screen Unqualified Home Buyers
Selling a house is a time-consuming process. Regardless of every other aspect involved in selling a property, there is a lot of work and a lot of time that needs to be spent dealing with prospective buyers.
They will want to visit the house and get all the necessary information, and you most likely will have to dedicate many hours of your working and weekend days just for showcasing the place. After that, be prepared to have to spare some more time to be going back and forth messaging with interested individuals about price, conditions, dates and every other question you can imagine. The time-consuming aspect of selling a house is pretty much a full-time affair.
Real Estate agents can manage all processes related to the sale, unlike FSBO’s, having not only dedicated time for these purposes but being also experienced in screening potential buyers. Seasoned professionals will be capable of assessing any interested person and quickly know if they are serious about purchasing the house or just shopping around and wasting your time.
What’s more important is that agents have the necessary tools to perform a thorough check on possible buyers and protect the sale from bogus deals and dishonest individuals.
When opting for the FSBO approach, you might be targeted by unscrupulous individuals looking to capitalise on unprepared house owners. Although there is a chance that all goes well, you should not overlook these possibilities and should seriously consider hiring a reputable agent to avoid these risks.
Failing to Negotiate a Good Price
Buyers and Sellers are two parties pulling in two different directions – the prospective buyer will be looking for the lowest possible price. In contrast, you, as the seller, will try to get the highest value as close to the initial set price as possible. Therefore, you have to be a sharp negotiator to get the most favourable deal for yourself.
An inexperienced negotiator has higher chances of being at a disadvantage when it comes to agreeing on a price. And you can be sure it will quickly drift away from the asking price.
If that is your case, what can you do? Learn how to negotiate in just a few days? As appealing as it may seem and how confident you may feel, the best way to assure a good deal is to resort to the service of experienced professionals that will pull in the same direction as you.
Real estate agents have the know-how and the experience in terms of negotiation that the regular house owner doesn’t have. Professional agents are experts at what they do and are prepared to help you get the highest possible price for your property and not be misled by buyers’ attempts to lowball your sales price.
The Emotional Factor of House Selling
Selling your home and leaving a place that gave you a lot of good memories is always an emotional process. All these feelings and emotions can be a deceiving factor that may lead you to hold on too much to a price and losing a sale.
There have also been situations where a low offer has offended the seller which in turn refused to counteroffer. Or cases of sellers ignoring a possible sale after a potential buyer made a depreciative comment about the home. Sometimes it may be tough to set your emotions aside and act rationally and with professionalism. Once again, real estate agents excel at this, since they aren’t attached emotionally to the property and will carry the sale with pragmatism.
Not Focussing on the Essential Tasks of Selling a House
Selling a property isn’t just listing the sale, showing the buyers around, getting a deal and signing some papers. There are several other steps, including obtaining a BER certificate, getting a property valuation and even performing house renovations but not only that.
What often happens in FSBO listings is negligence in some or many of these steps to save time and work, but that eventually might be harmful down the road. For example, failing to get all the necessary papers and certificates before striking a deal will result in delays when signing the contracts which can make the buyer call off the deal.
Following the FSBO route may seem like a good idea at the time, but it is a highly time-consuming task that presents multiple risks for the unprepared seller.
It is always best to opt for selling your house with the help of a reputable real estate agency to assure you get the best deal for your property. At Team Lorraine Mulligan, RE/MAX Results we will be happy to assist you. Having sold over €1 billion worth of property in the last 20 years, we are experts at what we do.
Contact us today to learn more about our services.