Compare Realtor or For Sale By Owner
| Full - Service Realtor | For Sale by Owner |
|---|---|
| Listing agent uses the Multiple Listing Service exposing the property. | No MLS. Limited advertising. |
| Seller pays a commission. | Both the buyer and seller want to save the same commission. |
| Realtor objectively prequalifies prospects to make certain they are financially capable of performing. | The seller must prequalify any prospective purchaser. |
| Realtor and associates are available 24/7/365 to show the property and close the transaction. | The seller must be available to show the property to strangers, negotiate the price and terms of sale, and the get the sale closed. |
| Realtors are generally aware of neighborhood and market sales activity and trends. | Owners are not likely to have access to current market data. |
| Realtors are trained to minimize the risks associated with showing a property to a stranger. | The seller accepts all security risks. |
| Realtors are objective in dealing with real estate transactions which is often necessary to consummate a transaction. | Most owners find it difficult or impossible to be objective. This can work to the disadvantage of the seller. |
| Realtors are knowledgeable about costs, escrow prorations, and industry standards. | Most owners have little knowledge of industry standards, customs, practices and costs. |
| Realtors have access to a real estate attorney when questions arise about legal matters. | Owners rarely have a real estate attorney on retainer. |
| Realtors often receive referrals from other agents in other cities through various national referral networks. | Owners don't have access to national agent referral networks. |
| Realtors generally receive training on how to handle multiple multiple offers so as to avoid legal problems. | Most owners do not have experience in dealing with multiple offers. |
| Realtors generally know which lenders are most likely to approve the buyer's loan application. | Most owners do not follow the mortgage market and don't know which lenders are the most and least competitive. |
| Realtors are trained to know what types of written legal disclosures are required to be provided to buyers. | Most owners don't know the most recent legal requirements for written disclosures. |
| Most buyers have confidence that a Realtor will treat them fairly and will honor the National Association Realtor Code of Ethics. | Most inexperienced buyers are fearful of dealing directly with an owner because they are concerned about the owner being more knowledgeable and taking unfair advantage of them. |
| Peace of mind. | Seller has total responsibility. |
Five Costly Mistakes Some FSBO Sellers Make
- Failing to make written disclosures required by law;
- Over-improving the property based upon the neighborhood;
- Hiring a real estate agent based upon friendship instead of solid business factors;
- Overpricing the property; and
- Getting emotionally involved in the sale of the property.
Anyone entering into a contract to sell or purchase a house without the assistance of a licensed real estate agent should be aware of the Basic Contract Provisions and Disclosures in a Real Estate Transaction.
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