I think you are also a bit naive in thinking that most people are actually sophisticated enough to sell their home…. you would be surprised …. many are not and many can barely hear a counter-offer lower then their asking price without getting upset or feeling insulted….hence the usefulness in having an experienced third party….

While I think your ideas make sense on some level and are well meaning, I think you are missing the bigger point. Sure when I’m ready to sell one of my companies I could do it myself and save money, but am I really not going to hire the right legal team? I know better and realize I need their input, why gamble to save a buck that could cost me exponentially more…. I wouldn’t and neither would you….. the same can be said for selling a home. Unless you know what you are doing and are the exception to the rule, the odds are that selling your own home is being a penny wise and a pound foolish…..

First I want to make a distinction between your friend that just got a license and a seasoned professional there is no comparison.

I think the emotional factor is where buyers and sellers lose the ability to finish the deal. I am NOT saying that about all people and all transactions.

Real Estate transactions usually have a lot of emotions before the real estate ever enters in the picture.

For example- Marriage, Divorce, Death, Birth, Debt, Job Transfer, Lost a Job… I don’t know what percentage of transactions that those items encompass but based on my experience a lot.

When good folks are involved in those circumstances they are in need of a reliable and an experienced agent to help them make decisions and negotiate. They can be very vulnerable and become shark bait. The investment seminars that sell CDs and programs teach buyers to seek out this type of seller.

Then there is the selling and buying of another home. That process can be overwhelming for agents let alone a family trying to do it in their spare time. Combine that with the financial decisions that are being made. Take a family that has a total gross income of $90,000. They are selling a home for $200,000 and buying another for $350,000. Let’s say the $90,000 nets $7,500 per month, they are now involved in $550,000 worth of transactions. That is almost 75 times their normal financial comfort zone. Combine all that with moving a family and you have a lot of emotions. Not just the one family, but sometimes these transactions have a domino of 4, 5 even 6 families. This is where a well seasoned agent shines.

So in summary you do not need an agent to sell or buy a home. But like accountants, attorneys or a financial advisors, the GOOD ONES don’t cost money they make you money.

The “savings” you blog about are always in dollars and never in time, stress, or actual sale price. In fact, sales with an agent have a higher price than those without. The easiest time to try to sell yourself is in an appreciating market – but you’ll probably leave dollars on the table then also if you fsbo.

Agents get criticized because of the apparent large fee in the sale of a property. But they actully make a little on a lot of homes they sell – unless they own their company. By the time an agent sells ahome, they have been on the job for at least 60 days straight. In my market, it is more like 120-240 days. By working many properties and customers at the same time, agents can make a living. If they relied on one sale, they’d be doing more blogging than selling.

Selling a home is a major event– one of the big stresses in life. Part of the stress is inevitable. But a lot of it is due to doubt. An agent can answer many important questions for you.

Selling a home is incidental to what you really need to be doing. Let an agent do his job so you can get ready to move.

How will you set your price? If you can get the information you need, can you interpret it? Realtors don’t make real estate mysterious; it is an area of expertise that is best understood by professionals. I don’t try to repair my car because I don’t know enough about it– even though it’s just a dumb machine. I have the work done by a professional.

How will you market the property? How much time will that take? How much will it cost? And you’ll have to pay for marketing as you go.

How long will it take to sell your home? How will that affect your move or other goals?

How much will you actually net from your sale? Will you be surprised by the expenses of selling? An agent should be able to prepare you for the bottom line and how you’ll reach it.

Realtors are set up to get buyers qualified for loans. Most will not show a property to an unqualified buyer.

Having an agent gives you a level of personal safety, as you will not be personally letting strangers into your home. You also are protected from giving away information about your reasons for selling, your time frame, and other sensitive information that a buyer could use to his advantage. Most sellers are prone to say more than they should about such things.

Realtors are familiar with the psychology, logistics, and legal ramifications– required disclosures, contract procedures– of selling, and with transaction management. Did you anticipate inspections, appraisal, and repairs? Do you have time to handle them?

Buyers expect to be able to reduce offers on FSBOs by the commission amount. If you’re not paying commission, why should they?

In a buyer’s market, you need every edge in marketing and pricing to reflect market trends. Buyers in such markets can be aggressive. Are you ready to face them yourself?

You’re willing to work with a buyer’s agent? Then you’ve cut your “profit” in half right there. Never mind that you’ll be walking into an adversarial situation (contract negotiation) at a disadvantage. You can’t really expect the buyer’s agent to be as fair with you as with the buyer, however hard he might try. You should have an agent in negotiations.

All these Realtor services (for buyer and seller) are included in the commission, which is not paid until closing. What is your time worth? You have to pay yourself– and that $200-an-hour lawyer– as you go.

Research shows that you’ll net more from a sale if you have an agent.

I am perfectly capable of selling my own home when the time comes. Yet I’ll have a Realtor. It will be worth the money.

Thank you.