Last updated on June 25th, 2021 at 05:40 pm

Last Updated on June 25, 2021 by

Should you sell your property yourself, for sale by the owner, or should you consider working with a Real Estate Broker? Usually, the person writing this type of article has landed on one side or another of the topic. I have. Being a real estate broker, I have a vested interest in promoting my business and encouraging people to use brokers to list their property for sale. It’s important that you, the reader understand the biases on both sides.

You can of course sell your home in any state without the need of a real estate agent. No person who is not a real estate agent can sell property belonging to another unless the person doing the selling work is an employee of the property owner. This is why you will probably not be approached by someone who simply states they can sell your home for a commission, it would be illegal without a license in all states.

There are those who play both sides, the fashion themselves to be “wholesalers”. If you are approached by someone who said they can buy your house be wary. If you see placards stapled to trees and utility poles that state they will pay cash for your home, be wary of them as well. I will make a statement here that using a real estate agent will probably earn you the highest price for your house than selling it yourself or using one of those third parties.

Selling a house is much more than just the amount you will pay for the service of selling it (the commission). Selling a home is a legal transaction. Are you a lawyer? Neither are real estate agents however, real estate agents belong to organizations such as the National Association of Realtors who have staff attorneys and who have created the legal documents necessary for a sale. Further, real estate agents attend many hours of classroom education on the legal and other aspects of selling and buying homes.

Real estate agents do not pretend to be lawyers nor do they take the place of lawyers but they do act as advocates for you, the seller. They have a legal obligation called “fiduciary” to ensure your best interests are first in any transaction. This responsibility includes among other things the need to meet your expectations regarding selling price.

Keep in mind that while you may at first think you can save some money by selling yourself, buyers understand that you are not paying a real estate commission so they may expect a discount on the selling price to reflect your savings. I know, I have asked for this discount when buying from a person selling their own property (and I got it).

The complexity of selling a home is increasing. Government agents have so many requirements to ensure that no protected class of people (almost everyone), is discriminated against that it takes hours of classroom education for agents to understand these rules. Do you understand what you can say and not say?

One example: A couple approaches you and you notice they are “Hispanic”. You want to sell your home so you point out that there are Hispanic families living at xx and xx on your block. Be aware, you just violated the law and the prospective buyers could bring legal action against you.

Back to the legal aspects of selling a home. Have you disclosed everything wrong with the home to the prospective buyer? If not, you could be sued after the sale when they find mold from a previous leak. A real estate agent would have discussed the possibility there may be issues with the home and perhaps found the issue and suggested you list it on the disclosure.

What forms may apply to the sale in your area? An agent would be prepared to guide you through the process. As I mentioned above, it’s not just about the commission or even the actual act of finding a buyer. Frankly, in my opinion, it’s about protection from legal action during and after the transaction. Your agent can not prevent actions taken by third parties but they can help you avoid such actions by using their skills to guide you through the sales process.

You can buy a for sale by owner sign at any hardware store. This is just the start. Will you be home every time someone wants to look at your home? Do you know anything about the people who may be wandering through your home while you are occupied by one in the party? If you have to move before the property closes, who will ensure the lawn is mowed and the property is looked after?

If you are sued by someone for something, you have the right to defend yourself in court without hiring a lawyer. Would you? Just because you have the right to sell your own home without professional help, is it the best thing to do?

Most buyers work with real estate agents for two key reasons. First, they are professional advocates who can help them through the ever more difficult process, and second, they are available at no cost to the buyer. Agents use the “multiple listing service” in their area to locate properties to show prospective clients. If your property is not listed, it will probably not be shown by a real estate agent.

By working with a real estate broker/agent, your home will be listed for all to see. Sure, you can list with one of the third-party websites but that’s one site and not the MLS where all sites coordinate. In addition, agents bring a variety of tools to help market the property including professional photos, staging, targeted marketing efforts, etc. Remember, if your home does not sell, they do not get paid, yet, they will make an investment in your property based on their knowledge and belief it will sell for close to what you expect from the property.

One last push to use a real estate agent. Bidding wars. Recently, it is common in many areas including the Mississippi Gulf Coast, to receive multiple offers from buyers. Some agents expect this as part of their pricing strategy. Working with multiple agents and their offers can be a challenge. Your agent wants the best deal for you and this requires working with you to discuss your needs and a strategy that works through all of this without causing future legal issues.

In the end, if you decide to sell your own home, consider offering a commission to a real estate agent who can bring a buyer to you. The agent will not be representing you but may have a buyer who is fully qualified to buy your property for a price acceptable to you.

Logan&Anderson, Gulf Coastal Realtors can help you sell your property or find that property you most desire. Please call Sean or Bill at 228-215-0031