Do I need a realtor in order to sell my home?

Do I NEED a realtor in order to sell my home?

In short - no. 

You do not NEED to use a realtor in order to sell your home. 

At this point you are probably thinking to yourself, wait....isn't this a real estate company? Why would they be telling me that? The answer is simple, we believe in telling people the truth. The truth is that you have zero legal obligation to use a realtor to help you sell your home (unless you've already signed paperwork), and yes - it can be done on your own.

That being said, it is almost always in your best interest to interview and hire an experienced professional (not your sister's cousin's boyfriend) to help you through the process. 

Here are some of the common reasons why people choose NOT to use a realtor to help them sell their home: 

 - To cut out the agent's commission (standard commission paid by a seller is 6%, 3% goes to the listing agent and 3% goes to the buyer's agent)

 - They've had a bad experience in the past with a previous agent

 - They believe the job isn't that hard and would rather do it themselves 

Here is the truth on each of those points:

 - Saving on commissions

Many times a for sale by owner (FSBO) property will still have to pay the commission of at least 3% to a buyer's agent. When a buyer signs up to work with a real estate agent, they sign paperwork that states that their agent is eligible for a commission of 3%. If the seller is not willing to pay the commission then the agent will ask the buyer to pay the commission. If the buyer is unwilling (or more likely unable) to pay the fee, then the sale will not be able to proceed. As a result most for sale by owner properties do offer a commission to a buyer's agent. 

You are probably asking yourself, well wouldn't we save the other 3% from the listing side? Well yes, but does it matter if you save 3% on commissions if you sell your home for significantly less than you could with a top tier professional? According to the NAR, sellers using the FSBO option sold their homes for less than the median selling price of other homes. FSBO homes sold at a median of $217,900 as compared to the median of agent sold homes of $242,300 (https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers). 

You definitely have the opportunity to save on the commission amount you will pay to an agent, but statistics show us that the home is likely to sell for a lower amount which results in less net money (i.e. - lower profit). 

 - Bad experience with a previous agent

Experience matters. Unfortunately many people have had a less than ideal experience with a real estate agent in the past. Whether it was communication, work ethic, or simply lack of expertise - it's painful nonetheless. It's important to realize that not all real estate agents are the same. Make sure to interview multiple agents, and ask hard questions regarding their experience and performance. The Dave Ramsey team recommends finding an agent that closes at least 35 sales per year, this would put them in the top 10% of agents (https://www.daveramsey.com/blog/questions-to-ask-real-estate-agent).

 - The job isn't that hard, I can do it myself 

No one will mistake selling houses for brain surgery anytime soon. However, the complexity is also vastly underestimated. While preparing for your "go-live" it pays to have someone in your corner who lives and breathes real estate every day when it comes time for professional staging and photography, as well as expert advice on the ROI (return on investment) of various home improvement projects you may be considering. Effective marketing (social media, print, direct) plays a major role in determining how quickly, and for how much, your home will sell for. In addition, coordinating showings and open houses is not quite as easy as it seems either. If you are able to balance those items, and receive an offer for your home, next comes the legality of contracts, inspections, and appraisals. I'm not saying it can't be done without professional help. It can be. I'm just saying it isn't quite as "easy" as many people expect it to be. 

Back to the original question....do I need a realtor in order to sell my home? 

No. You don't need a realtor in order to sell your home.   

My question would be, based on the above, why would you want to sell it without one?