The first half of 2017 has been a strong seller's market in virtually every area of the country. And with inventories remaining low and new buyers continuing to come into the market, that trend is likely to continue for the rest of the year and beyond.
Because so many houses are selling for astounding numbers in record time, some sellers are being led to believe that hiring a real estate agent simply isn't necessary. Nothing could be further from the truth, and we have seven reasons to illustrate just how difficult it can be to list your own house in a seller's market.
1. You Could Be Leaving Money on the Table
Because we are experiencing a season of low inventory and an increasing number of buyers, the laws of supply and demand dictate that prices should be on the rise. By partnering with an experienced local agent, you are sure to know that your house is priced in a place where it will sell fast, but not too fast.
Many FSBO sellers make the mistake of celebrating a quick sale, but that typically means that they simply weren't asking enough for the house in the first place.
2. You Could Be Pricing Too High
The flip side of that argument is that just as many FSBO sellers set the price of their home way too high and end up taking far too long to sell their homes. Time equals money, and every day that your house is listed is a day that you aren't moving on with your plan for what to do after it sells.
By partnering with an experienced agent, you will make sure that your house is listed right in the pricing sweet spot for your local market.
3. Time Cost of Money
One of the main things that sellers who go the FSBO route fail to account for is the amount of time that is required for showing a house to potential buyers, holding open houses, and handling the marketing for a listing.
When most FSBO sellers put a dollar-figure value on their free time and start adding up how much it will take to sell their home, they almost always realize that hiring a qualified agent is a better deal in the long run.
4. Paperwork is Difficult
Another reason that you should still hire an agent during a seller's market is that all of the paperwork that is required to buy and sell real estate is extremely complicated.
There is a ridiculous amount of paperwork that needs to be signed throughout the process, and you want to be sure that someone is double checking everything you put your name on.
5. Negotiations Are Tough
During the course of selling a home, there are going to be a number of different parties that you will have to negotiate with. This can be incredibly stressful, so it is always good to have a local expert to ask for advice.
Sometimes, it will make more sense to hold your ground on certain issues. Other times, you will want to be more flexible. A competent agent will know from experience how to get the best deal for you.
6. Inspection and Appraisal Issues
One specific set of negotiations that is especially difficult is what to do with the results of an inspection or appraisal. Depending on what those results are, you may be asked to make a number of repairs or concessions, and having an experienced agent to guide you through that process could save you an enormous amount of money.
7. Marketing is Constantly Evolving
When was the last time that you sold a house? The odds are pretty good that any agent you hire has sold quite a few more than you since that sale. And during that time, the marketing that goes into selling a house has constantly evolved.
You probably don't have the free time to catch up on everything that goes into listing a house with the major websites and marketing it over social media.
No matter what type of house you are looking to sell or what type of market you live in, it is always a good idea to have an experienced real estate agent in your corner. So don't be fooled by the hype of a seller's market and attempt to go out on your own.
Any time you hire a qualified agent, they should bring enough to the table to cover their commission many times over, regardless of the current market conditions.