Why Do REALTORS Net More Money Than FSBO’s?

Some sellers mistakenly think they can save money by excluding a Realtor. Invariably, they learn the hard way that selling a home is an extremely complex and time-consuming undertaking and that, in the end, the savings might not even exist. These sellers usually don’t reduce their price by the amount of the commission they would have paid, in hopes of pocketing the perceived profit. Likewise, buyers take into account that there are no commissions to be paid and reduce their offers accordingly. So, many sellers end up right where they would have been price-wise if they’d used a Realtor’s service, but without any of the benefits of the expertise of this professional.

Not utilizing a Realtor’s services also means your property will not be marketed through MLS or shown to the largest pool of potential homebuyers. Most important, when it comes to knowing the intricacies associated with this transaction, working without a Realtor is like bungee jumping without measuring the height of the bridge first. For instance, there are mandatory disclosure rules a seller must follow and the seller is liable for damages if he or she fails to do so. The entire escrow is extremely tedious and complex – miss one crucial step and there can be delays, cancellation, even lawsuits.