The Land Up Dirt to Dollars Series

If you’re planning on selling your property, a thought that may have crossed your mind to go the for-sale-by-owner, or FSBO, route. In theory, sellers consider this option because it seems like a great way for them to save money with closing costs.

By taking a listing agent out of the equation, some seasoned landowners and/or homeowners have put those extra thousands of dollars in their pockets - which may have you asking yourself “why hire a real estate agent?” or “is it better to sell by owner or realtor?”

While this is a tempting option to consider, the majority of the time the risks outweigh the benefits. Here are 7 reasons on why you should consider working with a real estate agent to sell your property.

1. Getting the Top Dollar

One of the main reasons a seller takes the FSBO route is to save money on the cost of selling a property with a real estate agent - commission costs. Typically, a listing agent makes around 3% when a transaction goes through. So, if your property sells for $300,000, your agent would make $9,000.

Most of us could think of many other things we’d rather spend $9K on. However, the in 2021 the National Association of Realtors found that the typical FSBO home sold for $260,000, compared to $318,000 when sold with an agent. That’s $58K - even with a 3% commission at $9,540, most of us could think of things we’d rather spend $48,460 on too.

2. Determining The Best Listing Price

Having a real estate agent in your corner will allow you to stay up-to-date on local and national market trends, how similar nearby properties are doing, upcoming developments, and the strong selling points of the area.

Pricing your property is an art and a science. Too high and you may have a limited amount of offers to choose from. Too low and buyers may think that something is wrong with the property or that you’re desperate.

An agent is able to assess the current market and comps in the area, buffer any emotional elements that could impact your price, and help you set an effective strategy to determine what offers and timelines would work - so you don’t settle for anything less.

3. Marketing With Greater Exposure

Let’s be frank - in real estate, an agent has a larger network than you do. Potential buyers, other agents, and just contacts in the industry, an agent comes equipped with the personal relationships to help get your property in front of the right eyes.

Another huge benefit of a real estate agent is their access to online marketing platforms - and we’re not just talking facebook and craigslist.

Agents are well-versed on marketing their properties in the MLS, or the Multiple Listing Service. On the MLS, a listing gets even more exposure - it’s the first place most agents start when looking for their clients, and the way to get your property on sites like Zillow, Trulia, and Realtor.com.

A professional has the know-how to market properties through a number of online platforms, social media, their brokerage’s resources, tours, mailers, emails, signage, and more.

4. Vetting For High Quality Buyers

How do you know if a buyer is qualified or even serious? When you put your property up for sale, people are likely going to want to see it in-person. While showing your property is an important part of the process, it’s not the most convenient.

An experienced agent knows how to assess the seriousness, qualification, and motivation of a prospective buyer - helping determine if your property would check their boxes, if they’re pre-qualified or what financing options they’d be pursuing, and ultimately if this buyer will cross the finish line. This helps narrow down the number of showings needed and the interruptions to your life.

5. Negotiating For The Best Offer

When it comes to buying or selling real estate, negotiation is to be expected. However, it’s not just throwing around numbers until one sticks - while purchase price is one of the most common places to start, other elements - such as closing timelines, seller concessions, inspections, resource rights, and beyond - can come into play to craft an offer that both the seller and the buyer will accept.

An experienced agent is already well-versed with the financial and legal aspects of negotiation, and can help you navigate whether an offer is one you should accept, refuse, or make a counteroffer - all while continuing the keep the potential buyer interested.

6. Lowering Your Risk

If you originally purchased the property you planned to sell, you may remember signing documents until your hand hurt. If you didn’t, this is a heads up that you can expect quite a bit of paperwork throughout the process.

With all of the legal paperwork required in the sale of a property, it needs to be 100% correct. Without the support of an expert, you put yourself at risk of being sued. It’s important that you are equipped to complete the transaction legally and safely.

7. Working With Someone Who Does It All

There’s a lot that happens in between deciding to sell your property and closing day. Listing, taking professional photos, marketing, showings, inspections, repairs, and the list goes on and on. Agents are the project managers and the liaison between sellers, buyers, legal and financial professionals, and any and everyone who makes the transaction a success.

All of these tasks and relationships need constant attention to detail, follow up, pivoting, and to be documented. Despite all of this work, as a seller, you don’t pay anything until the transaction closes.

The Bottom Line - Your Agent Doesn’t Make Money Unless You Do

It’s in everyone’s best interest that you get the best offer possible.

This blog is just the beginning of what to expect when selling your property with an agent - and we’re happy to loop you in on more benefits of using a local real estate agent. If you’re planning on listing your land, home, or commercial real estate, connect with one of our land specialist real estate agents and work with the best in Central Texas!