Should I Sell My House For Sale by Owner?

We are all trying to save money wherever we can. Andwith all of the information available to us todaythrough Google, Pinterest, Youtube, etc. DIY seems like one of the best ways to save money, whatever the project may be.Why hire someone else when I can read a few articles, maybe watch a few videos, and then do it myself?

I agree that there are many projects worth tackling on our own. I've been amazed at the ease ofcertain projects that I never thought I'd be able to do until I looked at plans on Pinterest or watched someone else do it on YouTube (i.e. build a farm house table or install speakers in my first car). However, selling your home is not one of those projects. How do I know? First of all, experience. Secondly, because aNovember 2015 study done by the National Association of Realtors showed that only 8% of homeowners trying to sell on their own were actually able to do so. 8%. That's not a very good success rate.So if the success rate is so low, why are people still trying to sell on their own?

Money. Plain and simple. People do not want to pay the commission. It just feels like another useless fee for a seemingly simple task.But is it? My goal in this blog post is to help you consider four areas where a Realtor brings value when selling your home and to help you understand why the commission isworth it. Thesefour areas arerelated topricing, marketing, transaction skills, and networking.

First of all, lets talk about price. Everybody thinks that what they own is worth more than it actually is. This is known as the endowment effect.So oftentimes when a homeowner tries to sell their home on their own, they overestimate its value and cannot get any interested buyers because they are simply asking too much. At other times, this same lack of knowledge will causea homeowner to underprice their home. In this situation, the home may end up selling, but for less than it could have sold had a Realtor been consulted.Here in Texas, it is hard for homeowners to know how to price their homes accurately because sales information is not available to the public. That is something that only Realtors have access to. So from the get go, a FSBO seller is at a disadvantage because they often do not know how to accurately price their home.(If youre interested in understanding how I determine pricing for a home, look up my blog post How do you determine what my house is worth?)

Secondly, lets talk about marketing. If you think that all you need to do to sell a home is to throw a sign in your yard, you would be dead wrong. In todays marketplace, 90% of homebuyers begin their search online. So although a sign in the yard is a helpful tool, I can tell you from experience that a small minority of the calls I receive about my listings for sale are due to a sign in the yard. More often, the calls I get from signs are from nosy neighbors who want to know whats going on. Do you know how to market your property online if you plan to sell it on your own? Do you know what the most commonly viewed home sites are? Are you aware that by not having a license to list through the local MLS that your home may have a very small online presence?

Along with marketing skills, there are a handful of other skills needed in the process of selling a home. Phone skills, for example.Are you able to take every phone call that someone might have to inquire about your home? If you work a full-time job, how do you plan to accomplish this? Are you available to show the home? And how do you even know if you should be showing the home? Do you just show the home to anyone who asks? How do you know that they can afford it? I can tell you from experience that buyers are not always willing to work around your schedule. If its too much of a hassle for them, theyll move on to the next house. And possibly the biggest question regarding this transaction is, are you prepared to do all of the paperwork necessary to sell your home? Are you even aware of the paperwork needed for a real estate transaction? Did you know there is special paperwork if you live in an HOA or a MUD district or if your house was built before 1978? Do you even know what a MUD district is? How do you find out if you live in one? And let's just say you get all of this paperwork and then get itfilled out. How do you know that it is correct? Could it cost you if it is not? What do you do with the paperwork then? Where does it go? How does the house get transferred from buyer to seller?Feeling overwhelmed? It's a lot to keep track of. There's a lot you need to know. Thankfully,Realtors are experts when it comes to the required paperwork and the processof selling your home.

Finally, theres one last thing I want you to consider that most people will overlook, but its a pretty big area to consider. When most buyers are serious about buying a home, they hire a local Realtor. When local Realtors start thehome search for their clients, they always start with listings on the local MLS (Multiple Listing Service). Most agents don't have time to search Craigslist and Zillow and anywhere else where you might put your FSBO. So as far as an agent is concerned, whatever is available on the MLS is what is available. That is what they will show their clients and perhaps the only chance you'll have at them seeing your house is if they happen to drive by and see your sign on their way to another listing. And unless you are readily available to show it to themat that moment, you may miss out on that opportunity. I would not underestimate the power of the network that Realtors have among Realtors through the local MLS. We are trained to buy and sell homes and thats what we do.

Will hiring a Realtor cost you? Yes. But will it save you? Yes. Time. Headaches. Stress. Potential transaction errors. And when it comes to selling a home, it's all about leveraging your time and money. Hopefully this post has helped you to understand the value that a Realtor like myself brings when selling your home. If I haven't convinced you, send me an e-mail at realtor@jonathanbrubaker.com or give me a call today at (832) 405-5959and if you're in the greater Houston area, I'd be happy to come out for a free home evaluation and help you understand why I am best suited for the job of selling your home!