Homer decided it was time to sell his house. He’d put in plenty of elbow grease over the years and his home had a lot to offer. Surely it would sell for top dollar. He didn’t need to hire a realtor, he could sell it himself. How hard could it be?
He didn’t need access to MLS data or facts that industry professionals like appraisers and lenders rely on. He could use the publicly available Zestimate provided for free from Zillow. What could be more reliable than an ambiguously automated algorithm arbitrarily assigned to homes to determine value?
He could handle the negotiations, contracts, addendums, due diligence, due diligence fees, earnest money, additional provisions, home inspections, home inspection repair requests, appraisal issues, and mandatory regulations and disclosures he would be responsible for. Piece of crumb cake.
Homer was going to buy a new yellow boat with a built-in stereo (and cooler!) with all the money he was going to save by not hiring a realtor. He couldn’t wait to get started! He tied a bouquet of red, white and blue balloons on a new “For Sale By Owner” sign he bought at Walmart.
The phone started ringing almost immediately! Homer diligently spent his time showing prospective unqualified buyers all the fine features his home had to offer. He was so busy with would-be buyers that he missed the latest report that home sales using a real estate agent sell for approximately $46,000 more than a home that sells by owner. But who could blame Homer for missing the news? He didn’t have time to listen to foolish fact based findings, he had a house to sell!