“Don’t Throw the Baby Out with the Bath Water”
Have you ever wondered if home sellers who opt for FSBO (for sale by owner) listings had doubts about not using a professional? No need to guess.
According to a recent survey, almost "three-quarters of sellers who don’t plan to use an agent (71%) have concerns about that decision".
Specifically, of that 71%, their concerns include:
19% fear unexpected issues during the home-selling process (if they only knew the half of it!)
10% acknowledge their marketing knowledge gap
10% recognize the legal mistakes that can be made if they wing it
And frankly, they should have concerns, especially if they have not had to sell a home in the last economic topsy turvy decade -- God forbid, never before.
Why?
Because there are many things that we are comfortable learning by doing that have low costs associated with them: Learning a foreign language, Sudoku, the latest dance trends, etc.
However, selling a home, which for many people is one of their most financially significant lifetime transactions, requires more care. Learning real estate by doing cannot only be cost-prohibitive but could lead to you "catching a case" if an ill-informed home seller, for example, breaks a fair housing law or commits mortgage fraud (even unintentionally).
Oh, you did not know that the home seller cannot secretly agree to refund part of the sale price to the buyer after closing? Oh, you did not know that is lender fraud?
Oh, you did not know that a home seller’s marketing ad should not say, “Great Christian neighborhood, perfect for small families”? Oh, you did not know home sellers should not ask, “Are you planning on starting a family?” or "Will your parents be living with you?" Oh, you did not know those all violate fair housing laws?
Although unlicensed home sellers are not held to the same standards as licensed real estate agents, home sellers still have laws to follow.
But what about the 22% surveyed who had bad experiences with real estate agents in the past? They tried to work with professionals, and it was a no-go.
This is one of those moments where folksy American sayings like "Don't throw the baby out with the bath water" come into play.
For instance, if you have a bad experience with a grocery store, do you stop buying groceries and farm your food? Some of us might, but many of us will simply go to a different store with higher standards. I encourage disappointed home sellers to do the same regarding real estate deals.
How?
Tips for Agents
Although it "generally takes 10 to 25 showings to sell a typical home (resulting in an average of 2.6 offers)", the magic of a 22-minute house-hunting TV show has likely unintentionally set unrealistic expectations for both house hunters and home sellers. However, similar to most Instagram feeds, such TV shows are really the highlight reels of the home-selling process. It would be great if TV shows had disclaimers like commercials that include the side effects of different medications, ha! But since they do not, as a real estate coach, I encourage real estate agents to be sure that they set realistic expectations while reviewing their brokerage engagement contract.
In order to mitigate common issues, it is important to ask (and listen for myths):
What have you heard about this market?
What were the pain points of your last real estate deal?
What's on your wishlist for selling this home?
Based on the responses, the agent can more readily address facts versus myths as well as properly set expectations going forward.
Tips for Home Sellers (that Agents Should Know and Proactively Offer)
To expound on the questions above, one way a home seller can diffuse anger and disappointment with a previous home closing is to list out all of the issues she had with her prior real estate agent. Next, turn those grievances into a checklist for any upcoming interviews with prospective real estate agents. For extra razzle dazzle, use generative AI like Deepseek or ChatGPT to craft those home-selling pain points into expert interview questions.
Furthermore, home sellers should not be shy about checking a real estate agent's credentials by visiting their state's real estate commission website. There, home sellers can see if a prospective agent is actually licensed, has had any prior disciplinary issues or perhaps has been working with an expired license, yikes.
Also, be sure to check to see if your real estate agent is a "Realtor”. This means she has pledged to uphold the REALTOR® Code of Ethics, which gives you an extra layer of support where you can file grievances (beyond what your state may offer).
In short, if 71% of those surveyed who plan to sell their home without an agent have doubts, such transparent information may sway them on your integrity and forthcomingness, helping them off the fence to make you their agent of choice.
Dr. Lee Davenport is an MBA/graduate school adjunct professor, executive/real estate coach, and author (including Be a Fair Housing D.E.C.O.D.E.R. and How to Profit with Your Personality). Dr. Lee trains learners around the globe on how to work smarter with their unique personalities and how to “advocate, not alienate,” so everyone has access and opportunity in real estate.
Name: Dr. Lee Davenport
Title: Fair Housing DECODER® | MBA/Graduate School Adjunct Professor | Corporate Trainer | Executive Coach
Company (with link): Learn with Dr. Lee® (https://www.learnwithlee.realtor/)
Location: Atlanta, GA
Social media link 1: https://www.youtube.com/@LeeDavenport
Social media link 2:https://www.instagram.com/learnwithdrlee