The Risks of Not Working With a Realtor

A do-it-yourself mentality can be great—in certain circumstances. Performing a DIY upgrade on your kitchen can save money and provide a fun learning experience. But buying or selling a home without a real estate agent is a higher-stakes activity to do on your own. 

Real estate transactions involve complex legal agreements and the transfer of large sums. Working with a professional can ensure you don’t lose money, end up in legal trouble, or have a stressful time buying or selling a home. 

Before you attempt this transaction yourself, consider the risks of not working with a realtor. Here are the potential setbacks of flying solo.

If you’re a seller 

Home sellers generally want to earn the most possible and have a smooth transaction with a buyer. A real estate agent can help ensure both of those aims are achieved by avoiding the following negative situations. 

Buyers lacking trust

An article from the National Association of Realtors (NAR) cites a survey with revealing data on the for-sale-by-owner (FSBO) approach. One of the biggest issues cited by survey takers—43% of them, to be exact— was not being able to gain potential buyers’ trust. 

Buyers want to know the property they’re purchasing will be transferred legally and with all the due paperwork, that there are no issues with the home, and that they’re not paying an unfairly high price. Only when both parties—the buyer and the seller—work with agents can a buyer reasonably set those expectations.

Problems can ensue even if the buyer has an agent but the seller doesn’t. Traditionally, sellers pay the real estate commission out of their sale, by which all agents involved—including the buyer’s agent—get paid. But if the seller works on their own, it’s unlikely they’ll want to pay a commission—especially to someone else’s agent. The buyer’s agent, therefore, doesn’t have much incentive to facilitate a transaction with that seller. And if you’re that seller, you may miss out on an interested buyer.  

Taking longer to sell

The same article by NAR also states that independent sellers take longer to move their properties. Most sellers working with an agent accept an offer within a month, while those who don’t take over three to seal the deal. 

If you’re hoping to sell your property quickly it may be because you need the funds for another endeavor—perhaps buying your next home. And your timeline can stall if you don’t work with a realtor, putting your dream (or, even, financial needs) on hold. 

Partner with a Titus agent and work with a professional who sells fast. Titus only partners with realtors who have an above-average sell-through rate, meaning they move their inventory more successfully than the competition.

Not getting the most for your property

Perhaps one of the most convincing reasons to work with an agent is making more money. Some believe they’ll save by not working with a realtor because they won’t have to pay a real estate commission. However, the NAR reports that homeowners are three times more likely to lose money on a sale by not working with an agent. 

A good agent gets you more for your property. So, in the long run, you have plenty of earnings to cover the realtor’s commission and keep something for yourself. Think of it this way: agents’ commissions have historically been around 5%. But if your agent helps you sell your home at 10% over the asking price you’d projected, you’ll make back what you spent on the realtor’s fees and then some. 

Real estate agents have excellent insights on getting your home to sell for more. They recommend renovations that’ll attract buyers and study the market to suggest a particularly lucrative moment to sell. And Titus partner agent goes a step further, not just providing excellent insights but also gaining you access to a zero-interest credit line for renovations.

If you’re a buyer

Perhaps you feel nervous anytime you make a major purchase. That’s understandable; after all, your money is at play. So, it makes sense that you’d want to consider working with a buyer’s agent on a home transaction—if for the sole reason of ensuring your funds are safe. But there are a few other reasons that working with an experienced real estate professional makes sense. You’ll avoid the following pitfalls. 

Limited listings

Agents are the first to know when the right home for you comes on the market because staying on top of listings is their full-time job. Plus, realtors have access to a wider range of listings than those you could find on your own. Some agents even see exclusive real estate listings: properties that only one seller’s agent can promote. 

What’s more, a buyer’s agent facilitates visits to properties their clients are interested in. If you don’t work with a realtor, you may have a tough time visiting homes you wish to pursue. 

Unseen faults with a home

A formal real estate transaction with a buyer’s and a seller’s agent at the helm can surface issues with a property. The buyer’s agent will likely insist on a home inspection (if the seller’s agent hasn’t already taken the initiative). A professional home inspector will uncover costly and potentially dangerous faults with a property, like water damage, structural issues, and pests. 

Plus, realtors are knowledgeable on buyer’s contingencies and seller’s disclosures, two essential processes in real estate transactions that protect the purchaser. Through disclosures, a seller makes a buyer aware of issues with the property, and, through contingencies, the buyer can make the home purchase “contingent” on certain repairs being done. If the seller doesn’t wish to make those changes, the buyer can negotiate down the price with their realtor’s help.

No matter if you’re a buyer or seller 

Whether you’re buying or selling, an experienced agent brings key assets, like negotiation skills and procedural know-how, to the transaction that can save you a headache—or a lawsuit. Here are two key issues you’ll avoid by working with a realtor. 

Errors and legal issues

Agents aren’t only knowledgeable about the local market, fair home prices, and the steps in a real estate transaction. They understand the paperwork, which is vast. If you do this documentation without help and make a mistake, you could land in legal trouble. But an agent spares you that hassle; realtors are backed by errors and omissions insurance, so even if they make an oversight on the legal documentation they know how to complete, you’ll be protected. 

And while agents aren’t lawyers, they can help you understand the contract you’re signing. Better yet, they can involve a trusted legal professional in the dealings to ensure that both parties are signing onto a fair transaction. 

Inefficient negotiations

Buyers and sellers have emotions wrapped up in a real estate transaction. A buyer has their heart set on a dream home and a seller is hoping to make a lucrative transaction. Either party can lead with those emotions during a negotiation, forcing a poor choice. A buyer may pay too much because they want their new home so badly, and a seller might accept a less-than-ideal offer because they’re impatient. 

But agents navigate negotiations on their clients’ behalves, keeping emotions out of the mix. Level-headed decision-making around offers and contingencies ensures a better, fairer outcome for all parties.

Home sellers: work with a Titus partner agent and go further

Real estate professionals have expert insights on how to make your property attractive to prospective buyers. They know what color to paint your living room and whether it’s smart to renovate your kitchen or leave it as-is. Taking their renovation advice can mean you sell for more—and quickly. 

If you’re tight on cash, renovating may seem out of the question. But when you sell your home with a Titus partner agent, you gain access to an exclusive, zero-interest credit line for repairs and renovations. Learn how to get your home in great shape with a Titus closing line of credit (CLoC).