- March 28, 2024
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In a seller’s market some homeowners are bound to look around at how fast homes in their neighborhood are selling and wonder, why list my home with an agent? After all, at the end of the day the goal for any seller is clear: sell their home for the most money. Being a real estate agent myself I’m clearly biased, but not for the reasons that you may think. It’s definitely a seller’s market here in Orlando and the greater Central Florida area. If you can place a sign in your yard or put an ad on craigslist, people will inquire about your home. But how many, and will they be real buyers? More importantly, will their offers be worth your consideration?
Let’s take a look at for-sale-by-owner versus agent-managed home sales.
It’s estimated that as many as 80 percent of for-sale-by-owner properties are eventually listed by a real estate agent. Also notable and slightly hilarious to me, the founder of arguably one of the largest and most well-known websites promoting for-sale-by-owner properties sold his home with an agent.
Let’s look at why.
Numbers
As mentioned above, an overwhelming majority of for-sale-by-owners sell their homes with an agent. According to the National Association of Realtors 2013 profile of Homebuyers and Sellers, 88 percent of sellers were assisted by a real estate agent when they sold their home. The same percentage of buyers hired a real estate pro to help them find their dream home. In fact, only 9 percent of home sellers did it without an agent.
People
I grew up in a family where both my parents were Realtors and real estate investors. So for many years I have seen the difference the right agent makes in the sale of a home. The real estate business at its core is about relationships and people. I learned firsthand the value of building relationships with my customers and with fellow agents. This has created for me, and likewise other Orlando real estate agents, a broad network of people who see me – or their own agent – as a resource for buying and selling property in Central Florida. Realtors are constantly striving to expand and nurture their sphere of influence. Why? Year after year more homes are sold this way. Realtors are a resource worth utilizing for sellers because of their nonstop personal branding and networking efforts.
Flexibility
Selling your home yourself most likely means you need to be there to show it. If you work this can be difficult, not to mention the buyer calling on your sign or ad may or may not be qualified. Realtors always pre-qualify their buyers prior to showing them any homes, and buyers understand this protocol. Buyers feel safe providing this type of personal information to their agents knowing they are licensed and regulated professionals.
In terms of when your home can be shown, most agents work full-time as Realtors and are free to show your home whether you are there or not. In fact, it’s best that you aren’t there. Homebuyers need to be able to visualize themselves and their families in the home they are purchasing. It can be harder to do that if the owner is there or worse, telling them everything they love about the home instead of letting the buyer explore. Every buyer has a different wish list for their home, and their priorities may not match the sellers. Best case scenario is for the owner to be absent during the showing and have a trained sales professional accompany them.
Marketing and negotiating
With the advent of the Internet, it’s much easier to get information regarding your home out there. But you never get a second chance to make a first impression. Agents make sure your home is seen in the best possible light the first time around. We place your home on hundreds of sites and pay for upgraded and premium placement on the most well known real estate websites. We blog and create websites exclusively for your home in addition to hiring professional photographers and, most recently, using social media to gain exposure for your home. Then we bring you offers from qualified buyers to purchase your home. That’s when our job really starts. Realtors negotiate on your behalf to get you the best price for your home. Buyers typically factor in that a seller is not paying a real estate commission into their offer price when considering for sale by owner homes.
In another recent NAR survey, it was documented that the average sales price of a for-sale-by-owner was $174,900 versus $215,000 when the seller hired an agent. If a seller is able to sell their home for $40,100 more, even after paying a commission, that’s still a lot of profit. Getting a contract in a hot market may not be the most difficult thing to do. Getting a contract for more than what your neighbor sold his home for and getting the sale closed efficiently is another matter. Spring selling season is in full bloom so choose wisely when listing your home to take full advantage of the housing recovery.