Your home is typically the most valuable asset that you own, which is why most homeowners are more comfortable hiring a real estate agent to sell their home as they are the professionals. Sellers typically pay 6% + of the sales price in real estate commissions, of which 3% will go to the listing agent, and 3% will go to the buyer’s agent. Imagine selling a home for $250,000. A seller would pay a whopping $15,000 in commissions alone, not to mention, buyers generally want 3-4% of the sales price in closing cost assistance. Considering the commissions and closing cost assistance to the buyer, this can be quite a huge sum of money for the seller to pay. That being said, sellers can do most of what real estate agents do to sell their home; however, sellers must be cautious when selling their home without the assistance of an agent. The following will discuss the steps and advantages of selling your house with no real estate agent:
Steps involved to sell your house with no real estate agent:
The steps involved to sell your house with no real estate agent are similar to a conventional sale with the exception that the role of the real estate agent will be eliminated. Here are some key steps to sell your house with no real estate agent:
- Ascertaining a fair price, which must not be too high or unrealistic.
- Listing your house on for sale by owner websites, many of these sites are completely free and will allow you to post pictures or videos.
- Be readily available, being available and answering queries of the potential buyers avoids the chances of missing a sale.
- Negotiate and accept an offer, make certain that you can justify your price with properties that have recently sold in your area that are comparable to your home. Consider hiring an attorney to help with the negotiations.
- Finalizing and closing the deal, after agreeing on the price and the terms and conditions of the contract, you will need to hire an attorney or escrow/title company to manage the closing process.
Advantages of selling your house with no real estate agent:
There are a number of benefits associated with selling your house with no real estate agent. Here are some as follows:
- No agent fees/commissions: Sellers typically pay 6% + of the sales price in real estate commissions. If you sell your house with no real estate agent, you will save thousands of dollars in commissions alone. Sure, you will have to be responsible for showing and marketing the property, but the extra money you would save in commissions would be well worth it. Just think, these savings will come in handy when it comes time for you to move into your new home!
- Appointment scheduling: You run the show when scheduling appointments! Keep in mind that you do want to be flexible when setting appointments with prospective buyers, but you are in control of when those appointments are set. However, if you were to list your property with a real estate agent, you may face issues regarding his schedule as the real estate agent will be responsible for handling the appointments and the open houses. For you, that would mean he may schedule appointments at his convenience, which may not necessarily be convenient for you.
- Direct communication and greater chance of finding a cash buyer: Since you will be meeting the buyers yourself instead of an agent, there will be plenty of opportunity to find a cash buyer. Finding a cash buyer means you can save a lot of time, energy, and effort as cash buyers have the ability to buy your home quickly without the hassle of dealing with a lender. Another benefit of direct communication with the buyer is that you don’t have to worry about an agent standing firm on a price when you may be open to negotiation because they are looking at what they will make off the sale of your home.