Don't sell your home FSBO (pronounced fizz-bow) or For Sale By Owner until you read this. No one wants to tell you the truth because they want you to be able to save on commission, but it is not worth it. The follow are reasons not to sell on your own.
1. Time: Selling a home is not easy. You need to make sure that it is kept 'show ready', which can quickly prove to be difficult when you have so many other tasks to juggle. Selling FSBO adds another level of responsibility -- responding to inquiries, managing web and social media marketing, and paperwork -- that you just do not have time for.
2. Days on Market: Research has shown that it takes 20 days longer to sell a home FSBO than with a licensed agent. While that may seem like forever to some sellers, others may think that waiting it out is okay. The problem, however, is that houses grow 'stale' as they linger on the market unsold. People start to wonder what is wrong with the house, and it can be a hard feeling to shake.
3. MLS: One of the many reasons FSBOs take longer to sell is that they generally are not listed on the MLS, a database of available houses accessible only to licensed agents. If you want to sell your house, you need to be listed in the MLS. If you aren't, your main sources of traffic are yard signs, free websites, and the newspaper.
4. Sell for Less: Shockingly, while most FSBOs start off with the intention of making more money in their real estate transaction by cutting out the middle man and his commission (A.K.A. the Realtor), they end up making less money in the deal. How is this possible? According to NAR (the National Association of Realtors), houses sold with a licensed real estate professional sold for an average of $249,000 while FSBOs only averaged $190,000.
5. Paperwork: A real estate transaction involves a ton of paperwork with many, many i's to dot and t's to cross. A Realtor not only has years of experience and closings under their belt to handle all the paperwork, but he or she is specifically trained to do this. It's technical, complicated, and not for the average Joe; even lawyers have to take additional classes to specialize in real estate law.
When you keep this information in mind, you'll understand that a professional real estate agent is worth every penny.