If you want to save time and as much as 7% commission on the sale price of your house. You’ll want to read this article completely. Selling your house without an agent on a house that sells for $400,000 comes to $28,000 extra that ends in your bank account. To top this off, selling your house without an agent can help you sell faster. The National Association of Realtors reported that homes listed for sale by owner sold most time in as little as 2 weeks.
Consider that the process is far from easy. You’ll have to invest your time but the result will be worth it.
Why sell your house without an agent?
A real estate agent’s role is to help sell the property. They do this by providing advice to the owners, conducting walkthroughs with buyers, and negotiating the sale price between the seller and the buyers.
Saving on Commission
Homeowners tend to look at the option of selling their property without a real estate agent to save the commission paid to the agents. In most states, the commission ranges between 6-7% of the home sale price. This tends to be substantial savings to the homeowners. On a house that sells for $100,000, the savings end up between $6,000 to $7,000. I think everyone likes the potential to have an extra $7000 in their account for a small amount of effort.
No doubt, selling without an agent saves time. The National Association of Realtors stated in 2018 that homes sold without an agent sold in as little as 2 weeks. By removing the middle person from the scheduling process of showing your home dramatically improves the selling time. Another reason homes sell faster without an agent is that all real estate agents have multiple clients whose homes they are selling. Coordinating between all of these properties means that your home is not shown for days. Even if buyers want to see it the same day they call.
What do you need to successfully sell your house?
o sell your home without an agent, you’ll need to replicate the marketing and research regularly performed by the real estate agent. You will need to determine the price to sell your home, how to market it online, and how to close the deal. When you are done with this walkthrough, you’ll be able to do it all.
Ways to determine the best price to list your house
This is known as creating a comparative market analysis. You’ll need to go to sites like House Quote Form or Zillow.com to compare homes that have sold in your area to yours. You’ll look for houses with the same amount of bedrooms and bathrooms. And close proximity to the square footage of your home (sqft). Compare the quality of the materials used throughout the homes that sold to yours. For example, things like impact windows, a new roof, updated kitchen. Or if the homes that sold had no repairs or updates.
Staging your house to sell
Next, you’ll need to prepare how your house looks to take pictures and videos with your cell phone. This is a crucial moment because it is the first impression buyers will see of your home. If your home has been neglected and is in need of repairs it is best that you read this article. However, if your home is in good condition make sure all of your windows and lights are on to ensure the most amount of light. Giving your home a welcoming feel to every interested party that sees it online. Cleaning up the clutter can go a long way to allow buyers to imagine your home with their furniture. Having a clean landscape outside your home helps as well.
Marketing your house without an agent
The majority of home sale transactions occur through the MLS (Multiple Listing Service) which is controlled by real estate agents. In most states, you can list your home on the MLS by paying a small fee between $200-$300. The MLS allows you to list all of the details of your home including photos and your contact information. Once completed, the information is spread throughout your city to every agent and buyer looking for a property like yours. You can also use free listing services like zillow.com, fsbo.com, or realtor.com. Sites like these are frequented by buyers without agents and can allow for faster home sales.
How to finalize the sale of your house without an agent
Once your home is listed, buyers have seen it and you have received an offer from an interested party. You’ll need to read the contract that buyers submit to you. The contracts are standard real estate contracts that can either sell your home as-is (meaning in the current condition it is in) or the “Residential contract for sale and purchase” which gives the buyer more control of the sale to request concessions in the event issues are found.
Receiving an offer on your house without an agent
Receiving offers can be an exciting time during your home sale process. But at this moment you need to take your time to ensure the information is correct. When receiving an offer from a buyers agent or an interested home buyer they must include:
Florida Realtors Residential Contract for Sale and Purchase filled out
Proof of Funds Letter (Extremely Important). This can be from the bank the buyer is receiving financing from. Or a copy of their bank statement if buying the property in cash.
Accepting an offer on your house without an agent
After reviewing the contract, and verifying the funds, it’s time to accept the offer. Ideally, you receive an offer for your asking price. At this moment you’ll want to take the contract to the closing company and have them collect the deposit to make the contract binding. If there is no deposit within the time frame of the contract, the buyer is not serious and you need to move on to the next buyer. Once the buyer deposits the funds you’ll receive an escrow letter from the closing company or attorney that they will start the process of:
Verifying the title of the home, including that you are the owner.
Checking for liens on the property
Checking for violation fines with the water department, or building department
And providing Title Insurance on the property
Finalizing the Sale of your House without Agent
At last, you are ready for the closing day. You’ll go to the closing company or attorney with your ID and other information they might require. Sign the contracts and receive payment via wire transfer to your bank account. By this point, you would have moved out of your home and found a temporary place to live. Or have arranged with the buyer an extended time to stay at the property. Either way congratulations on the sale of your home. You did it!
The Bottom Line for Selling Your Home
Price your House
Prepare your house to be marketed by listing it on the MLS
Know your home’s good selling points
Find a good closing company or attorney to complete the sale