(Published on - 4/2/2023 9:22:03 PM)
Back in the early 2000s, I lived in a neighborhood in Knoxville. Occasionally, someone would put their house up for sale. I used to drive by those places with my family and we would talk about how when the time comes for us to sell our house, we were going to do "for sale by owner (FSBO." At that time, we wanted all of the profit and besides.....it couldn't be that hard? We didn't want to pay a REALTOR® when we could just go to the Walmart, pick up a for sale sign and stick it in our front yard just like some people do.
Oh friends.... let me tell you that is a HUGE mistake on so many levels. The main reason that most people want to list their house as "for sale by owner," is because they ant to keep every cent they can and they can do that IF they do not have to pay an agent. However, what most people don't know is that what the agent gets paid .... is not entirely all theirs. Most people don't know that REALTORS® are independent contractors ,so ALL expenses for marketing, gas, signs, Open House supplies, lockboxes, software so the lockboxes will work, scheduling services, etc., and are paid for by the agent BEFORE an offer is ever accepted. Also, each independent contractor works under a broker and when someone lists their home for sale, the brokerage also get a portion of the payment. There are many other charges that I haven't even listed.
When someone chooses to sell their home independently, they will put a sign in their yard and possibly get it on Zillow. However, it will not be on the MLS (multiple listing service) which is where REALTORS® and brokerages get their information about houses for sale. Therefore Realtor.com, Redfin, and real estate brokerages will not even "see" your listing. Some FSBO get frustrated as they're not getting many showings scheduled on their house. They forget or don't understand that when a FSBO house is for sale, it doesn't
go into the Multiple Listing Service (MLS) so your window of people seeing that your house for sale is very, very limited. They might only see it if they drive by and see your sign. If you use an agent or a REALTOR® then that expansion window is so much broader because we can put it on the MLS (as we pay for this service) and even people from other states can see it and even view videos if the agent provides that as part of their marketing.
It will be much harder as you are responsible for taking photographs of your property in great lighting (we don't want to see your flowers), scheduling showings (and ANYBODY could schedule a showing as someone could view your property, but may not have been vetted by a loan officer to even be able to purchase and here you have wasted time and energy to allow a complete stranger into your home), you have to have all of the necessary paperwork completed correctly (in which many of them are legal documents), follow timelines as laid out in the contract, understand your rights and responsibilities as a seller, give required information to the buyer's lender and title company, while still maintaining everything that you do. I am ALL for saving a buck, but are you sure you want to take responsibility of having your largest financial investment sold by someone who has NEVER done it before and has little to no experience?
Another reason why a lot of people want to put their house on the market themselves is they have a buyer in mind. Maybe someone at some time mentioned something like, "let me know if you ever want to sell it. I'd be interested in buying it." Rarely that happens. Most of the time when someone says that, they are thinking you will sell it to them cheap, but a lot of times they are just being nice and the deal will fall through.
The third reason is a lot of people put their house for sale by owner is they think "well it's easy....anybody can do it." Let me reassure you it is not that easy. Often times a FSBO will have a price in mind of what they want to profit from the sale of their home. Then they will get an offer and it's not what they wanted and the deal just ends. When you have an agent or a REALTOR®, they have negotiating skills and know different things can be considered to keep the deal going. A real estate agent knows the market and they can give you comparables of houses with your square footage, year built and number of bedrooms of houses that have recently sold or are currently on the market. If that price is not offered, then a REALTOR® can do some negotiations.
Why should you hire a REALTOR® or a real estate agent? They can get more exposure on your home if you are selling. They can list your house on the MLS, do all your marketing, do all your advertising, put the sign up, get the appointment schedule set up, get the lockbox on the door, and share the listing on all of their social media such as Facebook, Instagram, Twitter, and their website or on their app. Remember, REALTOR® or real state agents have some tools in our negotiation tool belt that we can pull out that the average Joe may not have if they're for selling by owner.
Every agent has to be licensed through the state of Tennessee. However if they are only licensed by the state of Tennessee, they are called a real estate agent. A REALTOR® is someone who is not only governed by the state, but also is a member of the National Association of Realtors. A REALTOR® has a code of ethics that must be adhered to. If we do not adhere to it, then we are either heavily fined or there's other consequences. Therefore, a REALTOR® has two governing bodies to abide by. If you'd like to know if someone is a a REALTOR® or not, look for word REALTOR with a capital R with a circle around it. That registered trademark means that we are a part of another governing body who has to watch all of our business practices and make sure that we are doing what is always best for our clients and customers.
To verify if someone is a REALTOR®, look at the National Association of REALTOR® website: https://directories.apps.realtor/directories/index.html?type=member