As the housing market continues to struggle, some sellers decide to try to sell their homes on their own without the professional guidance of a Realtor. Although eliminating the cost of a Realtor might seem appealing, selling a home on your own can create several difficulties. If you're weighing the options, see Selling Homes Without a Realtor: Pros and Cons for a closer look at common trade-offs.
Five reasons to reconsider a FSBO transaction
Use of MLS: FSBOs are not allowed to list their property in the multiple listing service because the MLS only accepts listings from licensed real estate agents and brokers. FSBO ads in the newspaper won’t generate near the exposure that would be achieved through the MLS, and a “For Sale” sign in the front yard typically yields only very limited exposure.
Realistic asking price: FSBOs typically overprice their homes. Because homeowners have a strong emotional attachment to their own homes, they are often tempted to overprice their property. This action can slow the sales process. A real estate agent has a realistic picture of market conditions, runs comparable-sales reports, and provides an accurate assessment of a likely selling price. Realtors also offer ideas for improving curb appeal.
Freedom to communicate: In a FSBO situation, a prospective buyer might feel intimidated. While a buyer may feel free to ask questions about a home’s pluses and minuses with a real estate agent, they might feel uncomfortable asking the same questions of the homeowner. Potential buyers are often less interested in making an offer if they expect to deal directly with the homeowner instead of a more neutral agent.
Security during the sales process: Homeowners holding public open houses may not know whether every visitor is a qualified buyer or a potential threat. A real estate agent can pre-qualify potential buyers and typically accompanies them while showing the home.
Avoidance of legal troubles: Real estate transactions involve required forms and disclosures. A seller who overlooks a required form or legally-mandated disclosure could face a claim after closing. A licensed agent conducts the transaction with experience in necessary paperwork and disclosures, which can reduce risk.
When all is said and done, selling a home is often more complicated than it appears. A licensed real estate agent provides value and service on many levels and brings professional experience to the sales process. For more ideas about selling online and managing listings, see Online Selling and Business Strategies. If you want personalized help, you can talk to an agent.
Frequently Asked Questions
Can I list my home on the MLS if I sell it myself?
Generally no — most MLS systems accept listings only from licensed agents or brokers, though some flat-fee MLS services exist to help sellers gain exposure.
How does a Realtor set a realistic asking price?
Agents analyze recent comparable sales, current market conditions, and property features to recommend a competitive price rather than relying on emotional attachment.
What steps can I take to keep my home secure during showings?
Limit access by qualifying buyers, accompany visitors, secure valuables, and consider scheduling showings through a professional agent to reduce risk.
Do I still need to disclose problems with my property if I sell it myself?
Yes — sellers are required to disclose known material defects under state law, and working with an agent can help ensure required disclosures are completed.