Why you should NOT sell your home for sale by owner

Thinking about selling your home by yourself? Make sure you have done your research and understand why there are Realtors in the first place.

1. Texas is a non-disclosure state- In the state of Texas, home sales prices are not public information (non-disclosure). This means that as a homeowner, you cannot accurately price your home. Sure, you can ask neighbors what they sold a home for and hope they are honest about the price, you can also find out what neighborhood for sale properties were listed at, but there is no way you can find out what a home actually sold for unless you pay for a comping service like investors do, or talk to an agent. Zillow does not have sales prices, nor do any other free sight you visit. The Zestimate on Zillow is almost never accurate, and more likely to be off by close to $50,000 or more. The tax assessed value is completely inaccurate as to the market value of your home as well. While knowing list prices on homes comparable in square footage and condition can help you get a general idea as to price, you will not be able to get an accurate market price. You have no way of knowing if homes in your neighborhood sell for more or less than list price, and how much the difference is. When pricing a home, you need the final sales price, not list price. 
2. Realtors know how to qualify a buyer- Real estate agents have a way of pre-screening their buyers before they even let them in their car to look at homes. As a homeowner, your family's safety should be one of your top concerns. You do not want to open your doors to just any stranger claiming they want to look at your home to purchase, and accidentally let a predator into your home. The dangers of meeting a stranger are well known, and can end up with detrimental consequences. Realtors also know which lenders have reputations for pulling funding last minute and ruining the entire transaction, and often have back up lenders that may be able to save the contract and close on time. 
3. Negotiating experience- Experienced agents have the negotiating skills developed specifically for real estate transactions. They have knowledge of the current market and what is typically paid by buyers and sellers, and know how to talk to buyers and/or buyers agents to negotiate the best terms for you. The Realtors job is to work for their clients best interest and get their clients the best results possible. 
4. FSBOs get on average 10% less than a home listed with an agent- Yes, you read that correctly, on average for sale by owners transactions sell for an entire 10% less than the same home would if it had been listed with a Realtor. Many FSBOs pay the 3% buyers agent commission on top of selling the home for more than 10% less than homes listed with agents, which means even less money in your pocket. If you pay a listing agent, you are still making over 4% more than if you elected not to.
5. Investors and buyers agents know they have the advantage on a homeowner- Investors and buyers agents know the stats on the market. They know how to talk owners down on homes, and they know how to use actual facts to convince the homeowner a property is not worth what the homeowner thinks it is. An experienced listing agent knows how to weed through deception and help you understand if what the person is saying is true or false. Investors specifically target FSBOs because they know it is much easier to get a deal from a homeowner than from a property listed with an agent
6. Marketing your home- Marketing is the number one thing that can be done to increase exposure to your home and generate the most offers, pushing your walk-away cash higher with more and better offers. Good agents know about how to market your home in a way buyers appreciate and can often generate a frenzy of buyers before the property is officially entered into the multiple listing service (MLS), especially in the current DFW real estate market.
7. There is more to making money on your property than just the sales price- There is more involved in a transaction than just selecting the offer based on sales price alone. There are terms like home warranties, survey, title policy, and seller contributions for buyer closing costs. A Realtor can tell you what is customary for sellers to pay, and break down each of the different amounts and what they will be for the home being sold. Realtors have gone to school for and studied contracts, and understand what different contingencies are and if and how they can hinder the sale of your home. They know what is typical for option periods (both the length and amount), the length of time financial contingencies should be, what type of loans are more likely to close and which loans take longer to close. When dealing with real estate, time is money. 

If, after reading this, you are thinking about speaking to an agent, make sure you interview them thoroughly. Understand what their marketing plan is, how they work, what they provide, and how much they know. It is pretty easy to spot a rock star agent among a group of average agents, don't sell yourself short by hiring someone that is less knowledgeable and experienced because you think  you'll save money on a reduced commission. There is a reason people pay the full commission, and the results speak for themselves.