A Cautionary Tale on Skipping Real Estate Agents
In the fast-paced world of real estate, some sellers choose to go solo, thinking they can navigate the selling process without the help of a professional real estate agent. However, a recent survey by Clever Real Estate sheds light on the regrets and pitfalls faced by those who opted to bypass professional representation. Let's delve into the reasons why these sellers regret not using a real estate agent and explore the consequences they encountered.
1. Satisfaction Levels:
Homeowners who decided against hiring a real estate agent were twice as likely to express dissatisfaction with their selling experience. Clever Real Estate's survey of 1,000 home sellers in 2022 and 2023 revealed that these sellers realized they made less money on their home sale and experienced more stress without a trusted adviser.
2. Misconceptions vs. Reality:
Many sellers who chose to forgo a real estate agent believed that professionals were overpaid and not more knowledgeable than the average seller. However, after the closing reflections showed that these sellers admitted to making mistakes without professional guidance.
3. Challenges Faced by Non-Agent Sellers:
Over a third of non-agent sellers, including For Sale By Owner (FSBO) sellers and those selling to iBuyers, found the process more challenging than expected. Issues included buyer distrust due to the absence of an agent (43%), difficulty understanding contracts (40%), and legal mistakes (36%).
4. Financial Consequences:
Sellers without a real estate agent were three times more likely to report losing money on their home sale. Clever Real Estate's survey revealed that those with agents earned an average profit of $46,603 more than those without. Half of unrepresented sellers wished they had priced their homes differently, believing it would have resulted in a higher sale price.
5. Extended Selling Process:
Sellers without agents were nearly twice as likely to wait at least three months before accepting an offer. Ironically, many of these sellers initially chose to go it alone to sell faster.
6. Emotional Toll:
The survey uncovered that half of sellers without an agent experienced emotional distress during the process, with 52% of the sellers feeling overwhelmed. In contrast, those with professional representation reported feeling more positive about their sale and expressed less stress.
7. Agent Grievances:
While sellers who used an agent had fewer complaints, some expressed dissatisfaction with their agent's focus on making a sale, perceived annoyance, or feeling pressured. Despite these grievances, 77% of respondents were satisfied, and 72% would use their agent again.
The survey highlights the substantial benefits of having a real estate agent during the selling process. Despite the growth of online home searches, a significant majority of buyers and sellers still rely on real estate agents, as indicated by the National Association of REALTORS®. The cautionary tales of sellers who went solo serve as a valuable reminder of the expertise and support that professional representation can provide.
If you're looking for more than just a sale, call Kenson Dhanie for the Dhanie Experience.