For Sale By Owner

I’ll address it right up front: Yes, I am a Realtor, and as a result I come at this with a clear bias. I understand completely that many people bristle at the thought of paying the commission a Realtor will expect in order to sell their home. With that said, let’s talk about the pitfalls of selling a house yourself.

Let’s start by talking about friction. An overlooked benefit provided by a Realtor is the way that they reduce friction in a transaction. What do I mean by that? Let’s say a buyer comes along. Do you go to one real estate lawyer together to do the paperwork? Can you as the seller do the paperwork? Do you both agree to work with a real estate agent to handle the paperwork? In each of these scenarios it’s a matter of trust - if you are both working with the same lawyer or a single real estate agent, who is actually being represented? Why would a buyer trust you to do the paperwork? It’s not hard to see why a buyer would want to bring their own agent who can represent their interests and can guide them through the process.

That’s just the paperwork. Major repair issues can come up in an inspection. Appraisals don’t always come back at the agreed upon price. When conflicts come up in the transaction, both parties can benefit from having intermediaries who are experienced in bringing parties together and bringing other resources and professionals together to resolve the concerns.

This is all secondary to the marketing efforts of a real estate agent. In attempting to sell the house yourself, you are missing out on the professional photography, videography, drone videography, copyediting, signage, social media, 3D mapping, and online syndication that a professional real estate agent can provide. These tasks and skills all yield faster sales and higher prices for sellers that can be challenging to achieve on your own. All of that overlooks the additional burdens of staging and coordinating showings.

As a seller you might hate the idea of paying a commission, but in the big picture you are making it easier for someone to buy your house when you choose to list with a Realtor. The reduction of transactional friction, the wider exposure, fewer days on market, and effective pricing that a professional real estate agent can easily justify the cost of a real estate agent.