Some owners to decide to sell their house thinks that they will save money by not using a real estate agent. The task seems simple enough, just put a for sale sign in your yard that states "For Sale By Owner" and judging from yourself your house it is the best looking on the block so you can get top dollar for your house. Now sit back in the comfy of your home, and the buyers will be breaking the doors to get your gem. However, if it were that easy there would not be a real estate commission in every state in the United States, real estate associations that agents have to belong, continuing education for agents to keep up with all the law updates, state exams, licensing, Errors and Omission insurance, and the vetting of real estate agents by the real estate commission and so on.
Selling a house is not like selling a can of sardines. The law has it that your real estate is a bundle of rights that you are essentially conveying by selling your bundle of rights to the other party; it is not just a property. Just think, you can pay off your mortgage, but you cannot pay off your property taxes. Periodically taxes are assessed, and if you are delinquent in paying your property tax, you can lose your right to that property; meaning the government will take it for back taxes owed.
Where there are rights, things can go wrong, and ignorance is no exception to the law. The way most wrongs are corrected is by a civil lawsuit by the aggrieved party. If a real estate agent makes a mistake, the agent may have to answer to the Real Estate Commissioner, and jeopardy may be attached to the agent. Thus, competent real estate agents have to stay up to date on their practice. If you are without that agent, then the responsibility of the sale rests squarely on the owner's shoulders.
Real estate agents have several overhead expenses associated with the cost to do their business competently that also involves marketing the owner's property in many cases at the agent's fee. If you are selling your property yourself, you will have to put the out of pocket money to do some marketing for your property. The thing is you might be selling one house, but a real estate agent does selling real estate as their livelihood, so they are trained professionals.
9 Disadvantages of Selling Your Own House Yourself
1. There are no incentives for a professional agent to show a house sold by the owner. Most agents do not bother to look up For Sale By Owner ads to show those properties. There are many properties to focus on in the professional network. Additionally, agent most time prefers to negotiate with another professional rather than a seller that is selling their home because the liability is reduced or shared. The state's real estate commission holds real estate agent to a high standard.
2. Most homebuyers use real estate agents to do their research because of their busy schedule; it is one of the most significant decisions and responsibility of their life.
3. Most homebuyers use and depend on real estate agents to handle their real estate transaction to coordinate the overwhelming process; negotiation, inspection, title issues, appraisal issues, and protection of their interest.
4. Advertising on the internet does not necessarily give the exposure that your property needs to attract a lot of qualified homebuyers; mortgages are still restrictive today though interest rates may be low.
5. You spend a lot of time waiting for people who might not show up; the prospects are not serious buyers, not creditworthy of a mortgage, just curious people, or wishers.
6. It ties you down from going about your business for weeks or months.
7. Directly dealing with buyers leaves you vulnerable to price beat down. To beat down the price, most buyers will become fault finders of your house. You may go through all this and do not know if their loan will get approved.
8. No screening of who is coming to your home.
9. Liability for the sale. Sellers can get sued for many issues with the real estate transaction.