Why FSBOs Regret Not Using a Real Estate Agent

When selling a home, some people opt to list their home as For Sale By Owner and skip using the guidance of a real estate agent to save money on agent commissions. While the idea of cutting costs may be appealing, FSBO sellers often find themselves regretting this decision in the long run. In a recent survey by Clever Real Estate, those who listed with a real estate agent were 50% more likely to say they had no regrets than those who listed their home FSBO. Those who sold without an agent also faced lower sales prices, a longer selling process, and more stress than those who used an agent. In this article, we'll explore the common reasons why FSBOs often regret not enlisting the services of a professional real estate agent.

Pricing:

One of the largest drawbacks of FSBO is the challenge of accurately pricing the property. Real estate agents have access to extensive market data and experience that enables them to perform a comparative market analysis to determine the optimal listing price. FSBO sellers, who lack access to such resources and knowledge, are likely to underprice or overprice their homes, resulting in losing money on the sale or extended time on the market. Third party valuations, like Zillow’s Zestimate, are often inaccurate and don’t reflect the full picture of pricing a home at current market value.

Limited Exposure and Marketing:

Real estate agents have a broad network of clients and access to multiple listing services (MLS), ensuring your home gets maximum exposure. FSBO sellers, on the other hand, may struggle to reach potential buyers. This limited visibility for FSBO homes can lead to longer listing periods, decreasing the chances of attracting the right buyer at the right price. Getting the highest price on your home also requires an effective marketing strategy. Real estate agents are knowledgeable and skilled in creating captivating listings, high-quality professional photographs, and showcasing what makes your house special to buyers. FSBO sellers may lack this expertise and by failing to show your home in its best light, you may lose out on money on the sale or spend more time on the market.                 

Negotiation Skills:

Negotiating a real estate deal is a unique skill that real estate agents develop after years of professional experience. In the case of a challenging negotiation, an FSBO seller might feel unprepared and unsure of how to proceed due to a lack of experience. This can lead to lost money on the sale or agreeing on unfavorable terms. Real estate agents are experts at handling negotiations, which will ensure that both parties reach the best possible terms and conditions.

Legal and Contractual Mistakes:

Real estate transactions involve complex legal documents and contracts. FSBO sellers risk committing to unfavorable terms and conditions due to being less experienced in the jargon and intricacies of real estate contracts. Real estate agents, however, are experienced in the legal aspects of the home-selling process and will ensure that all documents and contracts are accurate, compliant with regulations, and understood by the seller.

Stress:

The process of selling a home takes a lot of time and work, from depersonalizing the home, staging the home,  taking photos, marketing the house, hosting open houses, choosing an offer, negotiating, doing inspections, and more. Without an experienced agent to guide you through this process, taking care of all steps, hiring the best photographers and stagers, developing a marketing plan, and more, this process can take a toll on the sellers. With the help of a real estate agent, selling your home can be a positive experience that you can look back on with no regrets.