For Sale by Owner or Realtor?

What makes sense!

"Selling my own home can't be that hard, can it? Plus... I'll save money not paying a realtor!"

This question is both true and false. And I know, because I've done both in my time!

Before I was an agent, I'd already bought and sold 6 properties. Some on my own, and others with an agent. There are pros and cons to both. It's more a question of your own priorities, capabilities, comfort level, and at the end of the day, how much work you want to put in!

In today's world we have the internet at our fingertips. So yes, you can sell on your own by hiring an attorney to provide all the forms needed to sell your property. You can create your own content using marketing tools like Canva to post about your home. And then it's just the waiting game until you get a buyer you can finally negotiate with!

"I mean, what do Realtor's do anyway that I can't do?"

Pros and Cons of Selling on your Own

Here's the good:

The biggest Pro of FSBO is not paying commission fees. We all know this. And it can be a gut punch when we see that line item in the closing disclosure of how much our agent made on the deal. I mean, what do they really do?

Not to mention, I'll have complete control over my own selling process and the price of my home!

Here's the difficult:

I'll have to figure out all of the paperwork that goes along with selling. There are certain forms and information I have to provide any buyer in the state of North Caroline like...

• Residential Property Disclosure

• Mineral Oil and Gas Disclosure

• Lead Based Paint Disclosure (if my home was built before 1978)

• Gen X Disclosure (is my home in this area?)

• Permits (do I have any for my home?)

• Should I get my home inspected or appraised before I sell?

• What issues in my home HAVE to be repaired just to sell or will I have to sell for CASH only?

How do I get my home out there?

• I can market on social media platforms and create my own marketing ads (through tools like Canva).

• I can do a FSBO on Zillow and other sites.

• I can even hire a realtor just to promote my home on the MLS in my region; which is typically a one-time fee, but I do all the work!

And once I get an Offer to Purchase from a Buyer:

• Do they have a Buyer's Agent? If so, and I accept, then I'm potentially paying their agent a commission.

• They'll also have a skilled negotiator on their end to help them through the process.

• I'll need to understand what they're asking for in their Offer to Purchase (but this is why I have an attorney!)

• Once they do their inspections, they may send over a Due Diligence Repair Request so I'll have to negotiate repairs. Especially if the appraiser comes back and says certain repairs MUST be made for them to get their loan.

• I'll have to know exactly what I'm responsible for in that circumstance.

• Do I know what I have to leave in my home when I sell it and what I can take with me? (What are fixtures?)

• Do I know who to contact for Roof Repairs, Moisture and Mold Mitigation, Termite Issues, Foundation Complications and more.

If my answers are YES, I can do ALL of this... then you're ready to sell on your own!

But what if I use a Realtor?

Pros and Cons of Using a Realtor

Most folks don't realize what a Realtor does behind the scenes. So let's find out...

Here's the good:

• Realtors know exactly what forms your home and property require to be marketed into the world.

• They know what each form is legally telling a seller their responsibilities are and are not and can easily explain those items and issues to you.

• They work with you to know exactly what you're looking for in selling your home (highest price, quick sale, no/min repairs...), and ensure you know exactly what is required of you as a seller.

• They have the tools and marketing expertise to have your home professionally photographed, marketed legally with the appropriate information, connection to an MLS platform so that your home can be seen by the public on every real estate platform, and connections with other realtors that may help sell your home faster.

• They can do a market analysis to see what your home, in its current condition, and location, may sell for and provide guidance and advice (but remember... you as the seller have the final say!)

• They have connections and the capability to find an attorney, licensed and certified repair persons or companies for property issues. And they can coordinate all of it!

• They know how the lending processes work and exactly what may be required of a seller in order to get your house sold.

• They can easily explain all the required forms a seller needs to provide a buyer.

• They are skilled negotiators to get the best price for your home as well as negotiate repairs and other options a seller has in lieu of repairs.

Behind the Scenes:

• Before they meet you, they'll do an analysis of the market and do their research on your home and any issues you may face in order to sell.

• Once they meet you and walk through your home, they'll analyze what must be done in order to sell, and what could make your home more appealing to buyers.

• They'll find a professional photographer and create marketing content for you.

• They'll measure your home to ensure the correct square footage is marketed. This is a material fact and of great importance when it comes to the appraised value of your home!

• They will put all material facts into the MLS so your home can be marketed to the widest range of buyers. This takes time to put together.

• They'll connect with other realtors to find the best buyer.

• Once you receive offers, they analyze each one and discuss best options or potential ways of negotiating to ensure you receive what is realistic in your home sale.

• If repairs are requested by a buyer, they can help you navigate and negotiate what makes the most sense, and what you as the seller are required to do in relation to repairs (such as a functioning HVAC, or mitigating moisture over 20% in a crawlspace, etc)

• Meanwhile communicating with the buyer's agent, your attorney, the buyer's lender, coordinating repairs, reviewing documentation, obtaining signatures, ensuring correct documentation is sent and received to/from all the right people, collecting and distributing checks and paperwork.

• and so... much... more...

Here's the difficult:

Well... there's the obvious... paying your agent a commission!

Good news, this is negotiable!

• Everything is negotiable.

• Who wants to do right by you. But don't forget, Realtors do a lot, and they spend months working with you. Calming your fears, ensuring the best deal, communicating with all the right people, putting documents together on your behalf. Most of what they do you'll never see.

• Understanding what they're really doing for their paycheck is key to understanding the commission percentage they're earning.

  
  

But What Else?

• Finding the right agent can be tough!

  • Talk to several

  • Who knows your area best?

  • Who is giving you the real deal, and who is blowing smoke?

  • If they're making promises, move on to the next agent! No agent can promise you anything. Real estate is all about negotiating so don't fall into a trap of promises!

  • You've just read a play by play on what you'd need to sell your home yourself, so which agent is knowledgeable regarding all those factors!

  • Are they listening to you. Do they understand your needs and wants?

  • But also, are they telling you things you may not want to hear but what you need to know about your home, the market, and how to sell it the best and right way!

  • And, are they explaining the process in a way you can understand?

All of these factors come into play when determining whether it's worth it to YOU to sell on your own, or hire an agent!

Key Considerations for Home Sellers

• Do I know whether it's a sellers' or buyers' market?

• Do I know what homes like mine are selling for and how to determine my list price?

• Do I know how to negotiate my sales price with a buyer; what repairs are required or not; what I can and cannot take from my home?

• Do I know how to market my home to the public?

• Do I have time to deal with all of this?

• And... am I acknowledging the emotional aspect and stress involved with selling my home?

Tips for FSBO Home Sellers

If I decide to sell on my own because I've answered YES to all of the above, here's what I need to do:

• Talk with a Real Estate Attorney and obtain required forms.

• Make required repairs.

• Prepare my home for photographs.

• Create an account on different real estate websites. Then create my FSBO property and submit it for public marketing.

• Ensure my contact information is correct so I can take calls, and emails regarding my home.

• Get educated on what fixtures are so I don't get sued by taking something from my home that should remain.

• Get educated on what repairs are required and what are negotiable.

• Negotiate, negotiate, negotiate.

• And meanwhile, take time to breathe through the process as it can and will be stressful managing documents, material facts, repairs, negotiating, and getting to the closing table!

Tips for Working with a Realtor

If I decide to use a realtor:

• Go back and look at the "But What Else?" section above!

• Communication is key. Find the realtor that works and talks with you, not at you.

• (Here's the plug!) Start with Team | Red Glasses Real Estate!

  • Kind and professional;

  • Asks the right questions;

  • Gives you the honest answers;

  • Ensures you have everything you need to get started, and walks you through the entire process;

  • Answers your calls!

  • And knows the ins and outs of real estate to streamline your process.

    
    

The Bottom Line

• FSBO can be done, and many people do it. You just need to know what you're walking into so that you sell your home legally, get the best price based on your property condition and location, and have the know-how and stamina to communicate, negotiate, and get to the closing table without delay!

• A Realtor is not just a figure head. Countless hours, days, weeks, and months of work is completed beyond what you see on a sign in the yard or on a park bench. Hours of paperwork, analysis, communication with all parties (this includes attorneys, lenders, inspectors, appraisers, repair companies and more), negotiations, more paperwork, all occur both where you can see, but mostly where you can't.

• Weigh your options. Weigh what your time is worth. Weigh the stress you will encounter.

• There's no right or wrong answer to whether you decide to sell on your own, or use a Real Estate Agent.

It's a question only YOU can answer!

But it never hurts to call and find out. I call it your "Fact Finding Mission." There's no contract involved in just talking to an agent to find out your options. Every seller is different. Every property is different. Your needs are all your own, and only you can decide your path!

Call to Action

• Looking for personalized information and advice? Check out our website Red Glasses Real Estate

• Or contact us directly at (919) 478-5895 / RealtorintheRedGlasses@gmail.com