Should I sell my own home?

A friend asked me recently if I truly thought he needed to use a Realtor(R) to sell his home. After all, if the market is so good, shouldn't it just fly off the shelf?

Anything is possible. It's completely possible that he might be able to find a buyer on his own, and he's a smart man, he should be able to figure out the contracts etc. But the reality is, I cannot in good conscience recommend that course of action to a friend, or anyone else. It is a dangerous, and potentially lengthy road he'd be traveling down. Here's why:

Cannot advertise on MLS - only licensed realtors are able to post listings on MLS. It is estimated that up to 99% of buyers search MLS first and foremost to find their next home. To sell your home on your own, you would be cutting yourself down to nearly 1% of all possible buyers. Less buyers means less interest, which, chances are, means a much longer time on the market, and a lower selling price. In fact, most 'For Sale By Owners' end up working with a Realtor(R) after several months on the market for this reason alone.

Attracting deal hunters - Many of those who do look for listings in places other than MLS are looking for a real deal. The mentality is that if you are saving the cost of a Realtor(R), that savings should be passed on to them. Often you will end up with offers much lower than your asking price.

Legal recourse and contract omissions - One of a Realtor's(R) main jobs while listing your home is to ensure, in every way they can within reason, that you are protected. They ensure your beliefs about your property are indeed fact, to be certain there are no misrepresentations in the contract or on your Property Disclosure Statement. There are serious financial consequences if it is found that your home was misrepresented in a sale. Certainly, your lawyer will be able to help you to a certain extent, but how much do they know about buried oil tanks and termites? We are trained with the most up to date information regarding contracts and property law, and we know how to double check your information for you.

Loss of negotiation power - Negotiating on your own behalf can be sticky. Especially when selling an item like your home, it's very easy to get emotional, flippant, or worn down. A Realtor(R) soothes these troubles by being your front man. They will represent you, get the low down, and then can discuss the details with you privately, let you vent, consider low offers etc, without giving away your position to the buyer. You never even have to meet the buyer if you don't want to. By having a representative, you have a much better 'poker face' for the negotiations - which can lead to a much better price and terms.

Time demands - Can you honestly say you are available to show your suite any time? Do you have the inkling to hang around letting strangers into your home for hours at a time when doing an open house? Do you have spare hours to put together marketing materials and advertisements? These days, the answers to most of these questions is no. We are a busy culture. The process of selling is stressful enough as it is without having to cut into your routine to be at the beck and call of potential buyers.

The fact of the matter is, it'll be less stressful, less dangerous, and it's likely you will actually make more money (even after the commission) if you work with a Realtor(R). In fact, even I, as a licensed Realtor(R), would not sell my own home just for the points on negotiation and liability. And if I wouldn't even consider it myself - how could I recommend it to anyone else?

If you have any questions, please let me know. All the best - N