Why You Should Hire A Real Estate Agent

When you sell your home yourself - also known as "for sale by owner” (FSBO) - it may seem like a great way to save thousands of dollars. After all, a real estate agent’s commission could amount to 4 to 5 per cent - that’s $20,000 to $25,000 on a $500,000 home. Given the size of this fee, you may think that acting as your own seller’s agent will surely be worth the savings.   

Realtors May Not Show a "For Sale By Owner" Home 
In an FSBO deal, the buyer’s agent understands there won’t be a professional colleague representing the Seller on the other end of the transaction. If a Buyer client wishes to see your home, their agent would have to notify the Buyer that they may be liable for payment of the commission under their contract as the Seller may not pay it. Further risks may occur with Seller’s disclosures and or lack of disclosures that may affect the closing which a Seller’s representative would have to undertake on behalf of the Seller. This may require further conditions and due diligence on behalf of the Buyer/client.

Still, there are buyers’ agents who will show your property under the right conditions. That may mean signing an agreement with the agent that states the percentage fee that you, as the seller, will pay the agent. An agreement should also clarify that the agent is only working on behalf of the buyer. It may also state that as the buyer’s agent, the real estate agent has a duty to disclose to the buyer/client all the information the seller provides to them, such as the need to sell by a certain date. 

Selling a home is a complex process so If you want to be taken seriously as a seller hire a seller’s agents, get the best price possible, and make sure you don’t miss any key steps in the process - or risk a lawsuit - it’s better to use a real estate agent than to try to sell your home yourself.  

Agents Avoid Emotional Sales 
Selling your home is typically an emotional process. Having an agent keeps you one step removed and makes you less likely to make mistakes such as; overpricing your home, refusing to counter a low offer because you’re offended, or giving in too easily when you have a deadline for selling. If you forgo an agent, you’ll also have to deal directly with rejection every time a buyer’s agent tells you that the client isn’t interested. An agent can take the sting out of the rejection and put a positive spin on any negative feedback. For instance, if the property sits on the market, the homeowner doesn’t know the reason the home is not selling. Constructive criticism can be easier to digest for the seller when it comes from a broker who is on their side, trying to get the best for them.  

Real Estate Is a Full-Time Job 
Can you rush home from work every time someone wants to see your home? Can you excuse yourself from a meeting every time your phone rings with a potential buyer? At the end of a long workday, do you have the energy to take advantage of every possible opportunity to market your home? Are you an expert in marketing homes? Do you have any experience doing so? Your answer to all of these questions is probably “no.” An agent’s answer to all of these questions is “yes.” In addition, by going through an agent, you’ll get a lockbox for your front door that allows agents to show your home even when you aren’t available. 

Agents Access Large Networks 
Yes, you can list your home yourself on Kijiji, Facebook Marketplace and even the multiple listing service (MLS) that agents use. Even if you have a large personal or professional network, people will likely have little interest in spreading the word that your house is for sale. You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth. A good real estate agent should have a number of potential buyer names and contact information, so they can quickly spread the word about the property they just listed. Then start to market the property in every available website, MLS, and site for real estate to keep the momentum and [to keep] showings consistent. 

Price Negotiations Take Skill 
Even if you have sales experience, you don’t have specialized experience negotiating a home sale. The buyer’s agent does, so they are more likely to succeed in the negotiation, meaning less money in your pocket. An experienced buyer’s agent may have negotiated 100’s of home purchases and know all the games and warning signs of a nervous or disingenuous buyer and most of all be able to qualify financially as ready buyers who can afford a home being shown. 
Not only are you inexperienced; you’re also likely to be emotional about the process, and—without your own agent to point out when you’re being indecisive—you’re more likely to make poor decisions. Sellers who go it alone also typically aren’t familiar with local customs or market conditions. Agents know the pulse of the market and what’s driving demand, which gives them an advantage by knowing what terms are worth negotiating for and which are worth letting the other party win.  
You Ignore Your Home’s Flaws 
Agents are experts in what makes homes sell. They can walk through your home with you and point out changes you need to make to attract buyers and get the best offers. They can see flaws you’re oblivious to because you see them every day—or because you simply don’t view them as flaws. They can also help you determine which feedback from potential buyers you should act on after you put your home on the market to improve its chances of selling.  

Exposure to Legal Risks 
A lot of legal paperwork is involved in a home sale, and it needs to be completed correctly by an expert. One of the most important items is the seller’s disclosures. A seller of real estate has an affirmative duty to disclose any fact that materially affects the value or desirability of the property. A seller can be held liable for fraud, negligence, or breach of contract if they do not disclose properly. Unless you’re a real estate attorney, your agent probably knows more about disclosure laws than you do. If you fail to disclose a hazard, nuisance, or defect—and the buyer comes back to you after having moved in and found a problem—the buyer could sue you. Agents can make mistakes, too, but they have professional errors and omissions insurance to protect themselves and give the buyer recourse, so the buyer may not need to pursue the seller for damages. 

Selling your home will likely be one of the biggest transactions of your life and learning how to sell your house without a  REALTOR®  can make the process unnecessarily more stressful. You can try to do it alone to save money, but hiring an agent has many advantages. Agents can get broader exposure for your property to many potential buyers, help you negotiate a better deal, dedicate more time to your sale, and prevent your emotions from sabotaging it. An agent brings expertise, which few FSBO sellers have, to a complex transaction with many potential financial and legal pitfalls.