When you hear that someone managed to sell a home without representation, it’s likely that the sale was to a family member, close friend, or a tenant who was already renting and living there.
These exceptional cases are not the norm, and there are powerful reasons why it is so difficult to make a sale by owner.
The biggest roadblock is that for-sale-by-owners aren’t included in the Multiple Listing Service (MLS) that licensed Realtors and organizations use. A sign in the yard and an ad in the newspaper is no match for the widespread exposure gained from a listing visible on the MLS.
Since the homeowner has no listing agreement providing for a sales commission, many Realtors won’t show these homes without promise of compensation.
Again, this greatly reduces the number of potential buyers exposed to the offering, not to mention the fact that buyers who do express interest will not have been screened by a professional to determine their qualifications.
Perhaps the most hazardous aspect of selling “by owner” is the potential for legal oversights and complications. Real estate transactions are loaded with potential liability for unrepresented and unwitting sellers.
Just as you wouldn’t enter the courtroom without an attorney, you shouldn’t sell without professional representation.
The Placer County Association of Realtors is at pcaor.com.
