It may seem that when you sell your home yourself you can save a lot of money, but while this does look tempting, in most cases the risks of doing it alone likely outweigh the benefits. Those risks include having less potential buyers (let alone qualified buyers), making emotional decisions, not knowing how to negotiate properly, not having enough free time to decide and work on your sale, and not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.
Buying or selling a home is a major financial and emotional undertaking. Here are some reasons why you shouldn’t discard the notion of hiring an agent just yet.
BETTER ACCESS
Firstly, you have to keep in mind that Real Estate is a full-time job. In general, agents are available 24/7, while you still have your job, family and other business you have to take care of. Secondly, agents know what needs to be done to get a deal together. For example, if you are looking to buy a home, real estate agent will track down homes to meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you’re buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.
And thirdly, agents access large networks. Even if you have a large personal or professional network, those people will likely have little interest in spreading the work that your house is for sale. Agents, on the other hand, have relationship with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.
WEEDING OUT UNQUALIFIED BUYERS
Agents are trained to ask qualifying questions to determine seriousness, qualification, and motivation of a prospect. They are also trained to ask closing questions about how long buyers have been looking, whether they’ve seen any other homes that what would work for their needs and so on.
Meaning, they are also qualified to know who can actually afford the property and who is only wasting your time. It is important to only work with clients who will carry out the business to the end and not cancel the last minute.
NEGOTIATING SKILLS
Many think that direct negotiation between buyers and sellers is more transparent and allows the parties to better look after their own best interests. Unfortunately, not every buyer and seller is a reasonable and understanding person, meaning, this isn’t always an easy relationship. Moreover, even if you do have sales experience, you don’t have specialized experience negotiating a home sale.
Not only you are inexperienced, you’re also likely to be emotional about the process and – without your own agent to point out when you’re being irrational – you’re more likely to make poor decisions.
If you are working with an agent, you can express your contempt for the current owner’s decorating skills, in case you don’t like them, and rant about how much it’ll cost you to upgrade the home without insulting the owner. Your real estate agent can convey your concerns to the sellers’ agent. Acting as a messenger, the agent may be in a better position to negotiate a discount without ruffling the homeowner’s feathers.
Further more, agents know the market and what’s driving demand, which gives the an advantage by knowing what terms are worth negotiating for and which are worth letting the other party win. The agent also knows local customs, such as whether the buyer or the seller typically pays fees such as transfer taxes
LEGAL RISKS AND CONTRACTS
A lot of legal paperwork is involved in a home sale, and it needs to be completed correctly by an expert.
An experienced real estate agent deals with the same contracts and conditions on a regular basis, and is familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you’re buying or selling your home. Moreover, agents usually work with law firms, who offer them professional help.
AGENTS AVOID EMOTIONAL SALES
Selling your home can be an emotional process. Having an agent keeps you reasonable and less likely to make mistakes, such as overpricing your home, refusing to counter a low offer because you’re offended, or giving in too easily when you have a deadline for selling.
An agent can take take the sting out of the rejection and put a positive spin on any negative feedback.
THE BOTTOM LINE
Selling your home might be the biggest transaction of your life. You can try to do it alone but hiring an agent has many benefits. Agents get broader exposure for your property, help you negotiate a better deal, dedicate more time to your sale, and prevent your emotions from sabotaging it. While there are people who are qualified to sell their own homes, the process isn’t as simple as many people assume. And when you get into a difficult situation, it can really pay to have a professional on your side.
Source: Forbes, Investopedia
