FSBO Jane

I came across this recent article from About.com: “10 Reasons to Hire an Agent.” Let’s talk about the reasons given for the importance of an agent, and let me tell you why they’re not enough to make you sacrifice 6% of your home’s worth:

Reason Given: Education & experience
Truth: Minimal requirements
OK. I’m almost embarassed to admit this, since I was an agent myself not too long ago. But it’s time someone burst the bubble: it doesn’t take that much to become an agent. The rules differ from state to state, but consider this: Agents don’t have to have a college degree. Agents only take a certain required number of real estate classes, and then they take the state licensure exam. In Illinois, candidates get three tries to pass and only need to score a 75 or better on each portion. Do the math: an agent only had to get the equivalent of a D in order to pass the test. Is this worth thousands of dollars to you?

Reason Given: Agents are buffers
Truth: No more than you are
The article says real estate agents keep away the just-looking visitors and engage the serious buyers. How? Interestingly, it doesn’t say. Ask yourself: when your agent holds an open house, is he/she bringing in ONLY serious buyers? All the agent can do is require the visitor to be prequalified; you can do this too. Don’t give your address in your advertising, but provide tons of photos, info and virtual tours. Then require callers to provide prequalification proof before showing the home. Done.

Reason given: Neigborhood knowledge
Truth: No one knows it like you do
Remember, You’re the Expert. You have the ability to communicate your neighborhood’s features better than anyone.

Reason given: Price guidance
Truth: You can do this
The article even admits the price is up to the seller. I recommend working with a knowledge company like Buy Owner and being wise about your decision. You’ll still be saving thousands and still won’t need an agent.

Reason given: Market conditions info
Truth: You can do this too
See the response to the last point. This isn’t a magical formula they’re using, folks. With a little help, you can learn all about the current market.

Reason given: Professional networking
Truth: The only networking is for their own mailing lists
Did you know they hold open houses to gather more clients, not just to find a buyer for your home? An agent doesn’t care if it’s your house or another that sells, as long as the commission is coming. As far as professional networking, the agent lists your home in the local MLS, where other local agents can look. Those agent show their buyers, and they may call your agent. A lot of middle men, if you ask me.

Reason given: Negotiation skills & confidentiality
Truth: You can negotiate, and no one will look out for you as well as you can
Again, the agent doesn’t have magical powers of negotiation that you lack. The article suggests agents will present your home/offers in the best light; well so will you, obviously.

Reason given: Handling volumes of paperwork
Truth: Yes, there will be paperwork
There are purchase agreements, disclosures, etc. In some states, lawyers handle this stuff. Either way, a discount company like Buy Owner can help you figure stuff out, and they can refer you to attorneys.

Reason given: Answer questions after closing
Truth: Not all even do this
The article is saying what a supposedly good agent should do, not what they all do. Plus, post-closing questions aren’t undoable for you, either.

Reason given: Develop relationships for future business
Truth: They sure do
This reason is pitched as the incentive for your agent to treat you right. Come on, though, let’s be honest: the agent wants as many clients who buy/sell as possible, because each one is more money. An agent doesn’t just work for you; he or she works for himself, for other exisiting clients, for future clients, and so on. This will guide actions, even when they don’t suit you.