For Sale by Owner: The Dangers Of Selling Your Home Alone

One is the loneliest number that you’ll ever do. Not only is this lyrically true, but it’s true of anyone thinking about selling their home without using a realtor. Selling your home alone (I just wrote Macaulay Culkin a royalty check) can be a major blunder.

People think that by cutting out the real estate agent, they can make a huge profit. Think again. You need that middle man or woman. There really isn’t any significant financial benefit to selling your home solo.

MLS home prices are based on the value of a home, the land, and any real estate fees. The net profit on the sale of a home sold privately will be a lot less, than one sold with the services of a real estate agent.
You have to trust a realtor more than yourself, when it comes to real estate knowledge. No matter how much studying and homework you have done, you can’t do their job any better.

Imagine yourself at your job, something you have done for years. What would you think about a person with no experience doing your job? This is what they do best. They’re experts in pricing homes correctly in order to secure the best sale price possible under current market conditions. They’re also skilled negotiators. Not everyone can be a master of this art. Realtors have access to the latest housing market info and trends, so their knowledge and experience will best represent a seller’s interest against a potential buyer’s. An agent works for the buyer for free, while the seller pays the agent’s fee. That means the buyer gets the assistance of an experienced agent at no cost. Buyers and sellers normally hate confrontation, so having an agent handle the negotiations eases the transaction process. Realtors are the referees of the housing universe.

Then there is the nightmare of doing your own paperwork. There’s an enormous amount of paperwork that a seller needs to comb through and understand in order to make an offer. Most home sellers are unfamiliar with real estate laws, contracts, disclosures, liability, etc., so they will be at a severe disadvantage during the closing procedure. Hiring a realtor means one less headache in that department. It also helps to have realtor handling this entire process, especially if the buyer is new to the area. An agent can help them select a neighborhood that suites their needs, or their family’s needs. Having an experienced real estate agent to assist with home inspections, appraisal appointments, and insurance requirements is invaluable. Otherwise, you are wasting your time and effort doing work that a buyer frankly isn’t even remotely qualified to do.

Someone reading this might still see enough advantages to sell their home on their own. The idea of cash offers or flexible payment options all sound nice and easy, but what about the possibility of dealing with con artists? The real world is full of scammers and none more than in the real estate world. Financial transactions are always a fraud risk, but especially when dealing with such a large asset like a home. We have all been taken for a ride once or twice in our lives, so imagine those moments, except with the financial stakes driven way up. Hiring a real estate should negate that queasy feeling in the pit of your stomach.