A lot of people getting ready to sell their Sotheby’s Scottsdale home might think it’s a good idea to skip hiring a real estate agent. I’ve heard arguments about how homeowners think we get rich off of selling one home. That’s not the case. Our commission is typically six percent of a sale and many times we split the money with perhaps a brokerage firm or another agent.
At the same time, it’s a big chunk of money for a homeowner trying to sell their Sotheby’s Scottsdale home. As a result, many home sellers want to remove the real estate agent from the equation. So, they try to sell their Sotheby’s Scottsdale home themselves. This is referred to as FSBO (for sale by owner).
But plenty can go wrong with a FSBO.
Filing paperwork incorrectly
When doing a real estate transaction on a Sotheby’s Scottsdale home for sale, paperwork has to be 100 percent correct. If it isn’t, a lot can go wrong. Agents have errors and omissions insurance to protect themselves in case a mistake is made. Most homeowners who do a FSBO usually don’t know about this type of insurance. Without it, you could find yourself the recipient of a lawsuit by the new buyer if a mistake is made.
When you do a FSBO for your Sotheby’s Scottsdale home for sale, you might also have fewer buyers. Often, buyers don’t like to engage with sellers who don’t hire a professional real estate agent. FSBO transactions usually take much longer and are more stressful than transactions where both sides have professional representation.
The price might not be right
With a FSBO, you also run the risk of not pricing your Sotheby’s Scottsdale home for sale correctly. If you study the market, you might be alright. However, in a 2016 National Association of Realtors profile of home buyers and sellers, FSBOs sold in 2015 on average for $185,000 compared to $240,000 for agent-assisted home sales. While the seller saved money on a real estate agent commission, they lost a lot of money in the end.
While doing a FSBO on your Sotheby’s Scottsdale home might seem like a good idea, think again. You could be liable if a mistake is made and might not end up getting as good of a price in the end.