6 Reasons Why Selling Your House on Your Own Is a Mistake

There are many benefits to working with a real estate professional when selling your house. During challenging times like the one we are currently facing; it becomes even more important to have an expert help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale By Owner or FSBO, please consider the following:

“As part of their training, agents are taught how to negotiate every aspect of the real estate transaction”

1.Your Safety is a Priority
During this pandemic, your family’s safety comes first. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings, but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitisation during and after a showing, and even facilitating virtual tours for buyers, agents are equipped to follow the latest industry standards recommended by the Estate Agency Affairs Board of South Africa (EAAB) to help protect you and your family.

2. A Powerful Online Strategy Is a Must to Attract a Buyer
Recent studies have shown that, even before COVID-19, the first step 82% of all buyers took when looking for a home was to search online. Throughout the process, that number jumped to 95%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?

3. There Are Too Many Negotiations
Here are just a few of the people you’ll possibly need to negotiate with if you decide to FSBO:

• The buyer, who wants the best deal possible
• The buyer’s agent, who solely represents the best interest of the buyer
• The inspection companies, which work for the buyer and will almost always find challenges with the house.
• The Bank valuator if there is a question of value

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

4. You Won’t Know if Your Purchaser Is Qualified for a Loan
Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress that’s being made toward a purchaser’s mortgage commitment.
Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and unwilling to pay their loans. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.

5. FSBOing Has Become More Difficult from a Legal Standpoint
The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped considerably over the past few years.

6. You Net More Money When Using an Agent
Many homeowners believe they’ll save the real estate commission by selling on their own. You must realise that the main reason buyers look at FSBOs is because they believe they can get a great deal. Unfortunately more often than not this is not the case as the seller has an inflated value of their home, and is not all that willing to drop their price. They don’t have the negotiating skills that an agent has so the buyer just walks away.
Recent studies show that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The studies found the difference in price between a FSBO and an agent-listed home was an average of 8%, but they remained on the market for much longer.
Your agent should also have a strong online presence and be proficient in the art of Social Media marketing, thereby increasing the number of people that see your house, a hundred-fold. The more buyers that view a home, the greater the chance a bidding war will take place.

Bottom Line
Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, speak with a trusted real estate professional to discuss your options.