Selling a house by the owner has become increasingly popular. Thanks to the changing market conditions and the advent of the internet for real estate transactions. It is interesting to note that the real estate market appreciated during the peak pandemic years, and now to curb inflation, mortgage prices have been increased.
This has assured the need for more affordable options to buy and sell the property. Selling without a realtor seems the best option. Here is everything you need to know about the same.
1) Selling a home without a realtor – Meaning and implications
Selling a home without a realtor simply means that a full-service real estate agent is not hired to sell a house. Instead, the owner sells the house on his own. Essentially a full-service real estate agent charges up to a 6% commission which can be avoided if you sell a house without a realtor.
Selling a house with a realtor is not as rosy as it seems because the sellers face countless challenges due to all the red tape associated with real estate.
It means that the seller handles all the legal documentation, sale disclosures, pricing, staging, and closings. This leads to certain technical difficulties, too, but luckily there is a solution to handle this and also save thousands of dollars. With technology, it is easier than ever to sell a house without a realtor.
2) Is it possible to successfully sell a house without a realtor?
Yes. Selling a house without a realtor will save you thousands of dollars and give you complete autonomy over the sale. There is a perception that the FSBO houses go for less. But that is not true if you do your due diligence and sell through the right channel.
Statistics support the claim that around 80% of the FSBO-listed houses sell faster than two weeks, which is quite an encouraging detail going in favor of FSBO sellers.
3) How to sell your house without a realtor? – Tips & Tricks
FSBO sellers have to put in hard work to make sure that their house is sold at the right price. It takes a lot of effort, but that is rewarding because, in the end, the seller gets to keep a major chunk of the profits. Here are a few ways in which you can sell your house without a realtor expertly.
Getting pricing right for an FSBO seller is everything. One needs to review the market conditions before setting up a listing price that should not be too below or above the market rate. This will lead to your property selling at the right price. One can consult an expert before determining the same.
There needs to be a lot of prep which has to happen before the owner decides to sell the house. Although it is allowed to sell your house ‘as-is’ in many states in the United States, it is still recommended to do basic repair work, renovation, and painting before selling off the property. Sellers’ disclosures are essential at the time of sale, so FSBO sellers need to get work done around the house to clear those.
Staging is making the house attractive enough to capture buyer interest. Sellers generally re-arrange furniture, make it look more appealing, or do some curb decoration and highlight all the great parts about the property to sell the house for more.
Online and offline marketing of your home plays a huge role in helping with the sale. Clicking good-quality photographs for MLS listings is a great way to attract buyer interest. Social media marketing and making customized yard signs are other ways of marketing your house.
D. MLS listing
After pricing, getting done with MLS listing is crucial for the FSBO sellers. Even realtors do not skip this step. It is important to list your house on MLS to make sure that it gets maximum exposure and attracts buyer interest. It is not impossible but difficult to sell a house without an MLS listing.
Without a realtor, the best option is to opt for a Flat Fee MLS service, which not only helps to save thousands of dollars of real estate commission but also gives the sellers autonomy and freedom to choose services.
Houzeo has great customer ratings and also is known for its amazing tech interface. With plans starting from $229, you can even opt for a full-service virtual realtor experience with their highest package priced at $999+. Other safe and known companies are Redfin, Homelight, and Howzer.
Getting your paperwork in order is imperative before attempting to sell your house without the realtor. It is important to note that you have the following paperwork in place.
- Title report
- Sellers disclosure
- Lead paint certification
- Flood zone disclosure
- Mortgage Settlement
- Closing Disclosure
While these are required documents, there are many optional forms and disclosures that the seller prepares beforehand. In addition to this, there are certain key documents particular to certain states to make a successful sale come through. FSBO seller has an added responsibility to study this in detail.
Managing the showings is an integral part of selling. If FSBO sellers go for Flat Fee MLS, then they have the facility of managing showings online through apps like Houzeo. Conducting open houses is essential to selling because that translates into more exposure to buyers.
Preparation of closing documents needs extra attention. Therefore, it is recommended for the FSBO sellers to look for a good escrow company or a real estate attorney for the same.
It certainly needs knowledge and research to compare and counter offers before closing. Sellers can pay for this service through a Flat Fee MLS to get all paperwork in order and close the deal.
4) Selling a home without a Realtor – Pros & Cons
Selling a house without a realtor is a great way to save on commission.
Here are some key benefits:
- Saving up on real estate agent commission
- Total control over the sale
- Speedy sale
- Opportunity to sell to cash buyers
There are downfalls to selling via FSBO. Here are a few of them.
- Tedious paperwork
- House may sell for less due to a lack of expert handling
- FSBO sellers can’t directly list on MLS. They have to go via Flat Fee MLS service
- Little or no legal help unless a real estate attorney is hired separately.
It is important to note that though tedious, selling without a realtor is actually a sure-shot way to make some profits if you do due diligence and get top dollar for your house. MLS listing, correct pricing, and up-to-date paperwork are the ways to make sure that you make a successful sale despite not hiring a realtor.