Why Use A Realtor: #1

Owners don't come out ahead when they sell "For Sale by Owner":

Buyers often feel that owners overprice their homes and that the owner has inflated the asking price by the amount of the brokerage fee. If the homeowner had listed the home with a realtor the selling price would be sufficient to pay the brokerage fee and still net the homeowner what he actually wants to get. Thus, buyers dealing with homeowners will argue, and insist, in most cases, on a reduction in price at least equal to what the brokerage fee would be.

Why Use A Realtor: #2

Under-pricing Danger:

Owners are not familiar with rapidly changing market conditions. An experienced professional salesperson in knowledgeable and abreast of the always changing supply and demand criteria for various types of homes in various locations. Owners do sometimes under-price and, by the time all costs and expenses are paid, receive considerably less cash than if the sale were handled through a real estate salesperson.

Why Use A Realtor: #3

Not at home problem:

The seller is rarely home all the time to receive visitors and answer telephone calls. When the prospective buyer finds no one at home they go to the other houses and often do not return to the home where they didn't get an answer. The real estate representative is available to show the house at virtually anytime. When prospects drive by a property and like it, they simply take the real estate company's telephone number from the sign, call an agent, and arrange for a showing.

Why Use A Realtor: #4

Wasting time with "Lookers":

Homeowner ads bring a great many lookers who aren't qualified to buy. They waste an owner's time and can cause him to lose a serious prospect. Real estate salespeople bring people who are financially qualified to buy and who are definitely interested in the specific type and location of a home.

Why Use A Realtor: #5

Lack of follow-up system:

Often, visitors to a "For Sale by Owner: house refuse to give their names to the owner and, since homes are frequently sold on the second visit, the owner can't follow-up on the prospect and get them back for a second look. The realtor, however, has a follow-up list on all prospects who haven't yet bought and will often bring them back to a home they've already seen because the agent knows that house is better than anything else they've inspected. The owner can take none of these steps. Again, the owner is at a distinct disadvantage.

Why Use A Realtor: #6

Lack of prospect sources:

It is a truism in real estate that the more exposure a home has to qualified buyers the more likely there will be a quicker and more favorable sale. Most owners are very limited in their sources for prospects. The successful real estate agent has a large and constantly renewing flow of prospects. The sales agent can select a number of prospects who are qualified to buy the owner's home.

Why Use A Realtor: #7

Lack of advertising exposure:

The owner is advertising one home—his own, while the realtor is advertising many. Frequently, a prospect will call a real estate company on one ad but end up buying another home. Thus, through advertising multiple properties, sales agents are provided with more opportunities for qualified prospects.

Why Use A Realtor: #8

Inability to discover prospects hidden objections:

Prospects are often reluctant to discuss objections with an owner. Because of the personal element involved, they do not want to put the owner in the position of defending his own home. Thus, an owner can't properly represent himself. The real estate professional, however, is in an impartial position and the prospect expects, and does, freely discuss objections with the salesperson.

Why Use A Realtor: #9

Inexperience in handling objections:

Overcoming a buyer's objections is one of the most difficult techniques to master in selling. A seller seldom has this kind of training and experience. Thus, when major objections are raised, the professional realtor can overcome them, while the inexperienced owner does not know how to properly proceed, resulting in a lost sale. In addition to objections on price, buyers are certain to raise as many objections as they can on other points, putting the homeowner at a serious disadvantage in trying to sell his home.

Why Use A Realtor: #10

Buyer's reluctance to thoroughly inspect:

Many buyers, when they are going through a home with an owner, are reluctant to open closet and cupboard doors, medicine cabinets, etc., because they feel they are intruding on the privacy of the owner. This feeling does not exist with the impersonal real estate representative. Buyers are interested in closets, cupboards and bathroom cabinets; not inspecting them can dampen interest and cause a sale to be lost.

Why Use A Realtor: #11

Difficult in contract negotiations:

Owners—inexperienced in real estate transaction—can, and frequently do, encounter difficulty in negotiating price, terms, conditions, contingencies, closing date, occupancy date, and other matters; thereby losing a qualified prospect. The salesperson, as the impersonal, professional "go-between", is in a far better position to handle negotiations in a way that leads to a sale.

Why Use A Realtor: #12

Qualifying experience:

The owner has had neither training nor experience in qualifying buyers from all aspects, including financial ability and the purchaser's qualification to buy the home. Thus, sales are lost through poor qualifying, or contracts are signed with buyers who cannot secure the necessary financing. The owner loses valuable time, money—and must start all over again with someone else.

Why Use A Realtor: #13

Problems in financing:

Even though the buyer is supposed to secure his own financing, it is normally arranged by the selling agent. Since the selling realtor is involved with many loans through several lending institutions, he is in a position to get a quicker and often more favorable loan than the purchaser can get on his own.

Why Use A Realtor: #14

The settlement problem:

Once a sales agreement is signed by seller and buyer, a complicated process starts which leads to the date of closing when the owner gets paid for the home. The loan processing can run into snags. These and other matters must be coordinated on a time schedule that will assure completion of the various steps in time for the closing date. The purchaser must be advised on all that he must do. Someone's got to make sure he does all that's required. When concessions are involved and the owner must fulfill certain conditions before closing can take place. Rarely can an owner set up and schedule the necessary events that lead to the settlement, and make sure that everything is done when it should be done, including the preparations with the escrow officer.

Why Use A Realtor: #15

Lack of future interest:

Many buyers often feel that the owner has no interest in them after he sells and moves away. On the other hand, the buyers knows that the real estate representative has an interest in him as a satisfied customer and as a source of referrals. Thus, the buyer accepts readily the representations of the real estate representative.

Why Use A Realtor: #16

The stale problem:

When an owner fails to sell his home himself, and then house has been on the market for a fairly long period of time, it becomes "stale". Market age is a deterrent to later selling the proper market price. Buyers invariably ask, "How long has this home been for sale?" If it has been around for awhile, buyers tend to think something's wrong with it. Consequently, the home becomes more difficult to sell and the offering prices will be lower as the prospective buyers raise more objections.

Why Use A Realtor: #17

The urgency situation:

When a seller has to sell quickly it is unwise for the owner to try to sell the home himself. If he fails to sell it and then selects a realtor, the professional, depending on market conditions, may not have enough time to market the home properly to get it sold before the owner moves. An empty home, even when redecorated, is usually more difficult to sell than one which is being lived in.