Sometime's seller's still believe they will save the agent commission cost and put that money in their own pocket if they just sell their property themselves. They plan to find a service where they pay a fee to get it listed on the MLS and expect to get the buyer's agent to do all the work. Sounds easy enough?... until buyers don't show up.
So below is a list on why this approach is a huge risk, and I will try not to get on my soapbox. The truth is, I had a partner who didn't want to hire an agent when we were flipping a house together. I disagreed but gave him a chance just to prove him wrong. In short, we lost 30% of the value of the property. Walking away with less, not more, is the norm for sellers who try "For Sale By Owner" or FSBO - pronounced "Fiz-Bow."
1) one of the most important jobs a listing agent does is help you price your home right using numerous tools and a detailed analysis that includes information sellers don't have access to; 2) buyer's agents won't want to show a home where they have no chance at a commission - that forces them to get a contract from their buyers to pay them directly so their buyer's price on your home just went up; 3) if the buyer's do go for that and are the only ones with an agent in the mix - that agent is working for their best interest - not yours; 4) do you know how to properly screen buyers to be sure they have qualified funds? - a buyer can tie up your home for months costing you thousands of dollars; 5) you are responsible for several statutory actions when you sell your home - do you know what all of them are and how to perform them and pay for them?; 6) if you omit any facts at all about your home (even something like a barking dog next door) you can be sued for huge sums of money for non-disclosure; 7) a large chunk of an agent's commission is spent on marketing your home properly to potential buyers - if all you do is put it on the MLS you are narrowing your buyers and reducing competition along with your final selling price; 8) numerous studies have been done which show that FSBO sellers take home anywhere from 6%-16% less (1,2); 9) it takes about 750 pieces of paper with required disclosures to sell a home in CA - do you know what that paperwork includes and how it all relates to your liabilities and responsibilities?
The bottom line - properties with agent representation sell quicker, for more profit to the seller and with less risks for lawsuits. After the crash of 2008, so many laws have been put into place to protect buyers and sellers by requiring each side to complete many steps and take prudent actions. Real estate agents provide the service of educating their clients and steering them through the process to be sure both sides meet all of their responsibilities and reduce their liabilities. Okay, that was a bit of a speech, but I hope it was worthwhile.
1. Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think. Amanda Riggs; November 9, 2015. National Association of Realtors. / 2. Agents sell homes for more than FSBOs. Teke Wiggin; August 16, 2017. Inman.com