THE COST OF SELLING YOUR HOME WITHOUT A REAL ESTATE AGENT
Saturday May 09th, 2020
Those who are planning to sell themselves, through Purple Bricks or other similar services out there, be aware.
Sellers are always attached to their homes and can easily become emotional during negotiation process when a lowball offer comes in (and it WILL come in). Negotiations simply do not end up well, home goes back on the market and in 90-95% of cases is re-listed on the Market with an agent, who then sells it.
Everyone makes mistakes. A seller (or buyer) who doesn’t have the representation of a licensed agent pays for those mistakes. Attorneys can close a real estate transaction, but they don’t carry errors and omissions (E&O) insurance. Homeowners selling by themselves simply don’t have the time to devote to the process, don’t know the market value, don’t understand market reports and don’t properly market the property.
The biggest cost to a homeowner is their time. You might hear the argument that it doesn’t take an agent that much time to sell a house. And honestly, given the technology at our disposal, that’s true - to an extent.
But it will take a homeowner a whole lot longer. They don’t have the expertise or the access to the resources agents have. What is their own time worth to them? How much time will the seller spend researching the market and contracts? Is the seller going to leave work to unlock the house each time there’s a showing?
Unless you want to be home every time there is a showing (happens a few times a day); or provide a lockbox number to strangers who would access your most valuable investment; or receive and not be able to negotiate a potentially winning offer for emotional reasons, take my advice - hire a Professional.
At the end of the day Homes for sale by owner receive lesser value offers as a non-presence of Listing Agent representing you is already priced into it.