It’s tempting for a home seller to just put the for sale sign out themselves and foot the bill for the whole selling process, but selling a home without a licensed agent isn’t an easy answer. Yes, homes do sell in private “for sale by owner” situations, but there are some snags and concessions that most sellers don’t consider until they’re neck deep into negotiations and realize that there’s a reason real estate agents get paid for their work.
There are several considerations that a seller should note before they make the decision to go through the home selling process alone.
MLS listings aren’t available to everybody
MLS (multiple listing services) are exclusive to licensed real estate agents. Professional real estate agents have networks that help them find buyers and properties that fit their signature market. Private sellers can't post their listings to an MLS. They can search for MLS listings, but they can’t buy space in the listing themselves. However, they can pay a real estate agent a flat fee to post their listing. It’s worth noting that a flat fee broker does nothing else for a seller other than posting their listing to an MLS organization’s site; there’s no lead for potential buyers or representation of any kind.
Not every realtor has access to MLS listings. There are fees to use it and an agent may have access to many MLS listings. Since it isn’t a given, it should be one of the top items on a list of questions for a prospective real estate agent. A home seller should second guess their choice to sell without an agent based on this point alone. MLS organizations are crucial to the modern real estate market, and you may do your home a disservice by trying to sell it without the benefits the MLS provides to both buyers and sellers.
MLS listings make the potential buyer pool wider
Photo courtesy of Unsplash
Since realtors maintain the MLS listings, they can monitor them for their clients and cherry-pick which properties fit their potential buyers. The MLS allows realtors to better serve their selling clients with insight into the current real estate market. This knowledge is priceless to a seller looking for the best possible return on their investment.
A seller will eventually sell a property if they stick to the course long enough, but the majority of for-sale-by-owner homes close at a lower price than a similar property that was sold by a real estate agent. Homes that have MLS listings sell faster because they’re easier for agents to find and recommend to their clients.
The lack of an MLS listing is a red flag to realtors
This point is linked to the lower closing costs. Many realtors won’t show a home to a client if it’s for sale by the owner. There are many laws and regulations to follow to ensure the homeowner has full rights over the property with a clear deed and title. Professional real estate agents are bound by these laws and won’t risk entering into a faulty contract with an unknowledgeable seller.
An MLS listing proves to a realtor that the owner has done their due diligence and is serious about the sale of their home. An MLS is a sign that money has been reinvested back into the property to make it more marketable. It’s a sign that potential buyers aren’t wasting their time or money.
It’s too easy for a seller to low or high ball themselves
One of the trickiest parts of selling a home is arriving at a realistic price. Most home sellers want to sell their property with as little repair and updating as possible. Sellers often want to work on a shoestring budget.
A benefit to using MLS listings is that the real estate agent can see what similar properties are selling for and can set a reasonable listing price for the current market. As mentioned before, properties sold by private owners tend to settle for lower prices.
A fundamental truth in any home sale is the owner doesn’t always see the property's flaws or unmarketable qualities. Real estate agents are trained to pick these up immediately and address them with their clients. MLS listings are a crucial piece of homework that makes the reality of the situation a little clearer. A seller without an MLS listing could be cutting their nose off to spite their face, and the chances of leaving money on the table are extremely likely.
Selling a home is hard work
Having an MLS listing cuts down on leg work an owner has to do just to put their home on the market. This doesn’t include responding to offers, hosting showings, and negotiating bids. Real estate is a career, not a hobby, and most home sellers come to realize that the cost of hiring a professional is worth the peace of mind that everything is handled above board. Even the most passionate seller will burn out if a sale process lasts longer than they anticipated. Real estate agents are part consultants, part therapists and, sometimes, the owner needs to hear that a buyer is out there. For-sale-by-owner sellers cheat themselves out of the peace of mind that they’ve done everything possible to get the best price, experience, and transfer of ownership. A realtor is an ally to the owner, which is worth the price of hiring them.
Jeff Ward is a Wyoming-based realtor who has been helping clients find homes for sale in Jackson Hole since 1995. His deep family connection to the
Jenny Lake Lodge in Grand Teton National Park brought him back to the area to serve homebuyers looking to move to Wyoming. Jeff specializes in the Jackson Hole, Wilson, and Teton Village region. Reach out to Jeff through his
website.
*Header photo courtesy of Pexels
