So, you want to sell your home but don’t want to pay that high commission rate to a REALTOR. The question you should be asking yourself is: “can I sell my house without an agent?” The answer is: YES. Just run a quick search online for FSBO (for sale by owner), and you will find hundreds of articles, listings, and information about this very process.
Just because you aren’t willing to dish out the fees, and look for an reputable agent to help you list your home, certainly doesn’t mean you can’t sell your house on your own with a bit of research of your local market.
1. Do Your Research
It is imperative that you know your market. Before listing without an agent, you should:
– Be aware of current market trends (are prices going up or down)?
– Know the comparatives in your area.
– Read the contracts and paperwork which is involved.
– Learn about the negotiations, closing, and everything involved in the sale.
It is also a good idea to have an inspector set up, to run full inspections of the home, so you can present the potential buyers with this information. The more you know, the more informed you are, and the more information you gather prior to listing, the quicker you will sell, and for the highest profit possible.
2. Know The Listing Price
Lets look at a pricing example. Say you hire a realtor to list your home for $200,000. At 3% commission, they would make about $6000. But, you don’t want to pay this. What can you do? Change the asking price of course. If comparable homes in the area are selling for $198,000, you can still turn a profit by listing your home for $195,000. Instead of the $6000 your realtor would get, you are lowering the asking price by $5000; this means $1000 in your pocket.
Of course this is a simple scenario, so you have to know comparable values, what local realtor fees are, and the current market, in order to determine the lowest asking price you can accept, to turn a profit. “It is possible to sell your house “as-is” on your own (FSBO), and if you know the current market trends, make a profit on the sale.”
Your home has to look good. Curb appeal is key; if they see old broken down furniture on the lawn and dead grass, they won’t even enter your open house. So, properly stage your home. Do research online, learn a few DIY projects, freshen up the paint, and make sure the interior of the home has a generic setting, rather than that personalized property full of family photos in it. If the home looks good, if it is updated and has few (to no) issues to fix, and if it is properly listed, you can believe it is going to sell, even if you don’t have it listed by an agent.
The art of negotiations is critical in the sales process, especially if you are doing it on your own. Imagine yourself as the buyer; even if you love the home, you are going to look for a better deal. The same goes for us, but we are different than traditional buyers, cause our goal is not only to quickly buy your house as-is, but to find a solution for both parties, where everyone wins. So, keep an open mind, especially if the offers are close to your asking price. There is a buyer for your home, but you have to be willing to negotiate if you want to get the property sold.
If your home isn’t marketed online, if you don’t list it on MLS boards, or set up flyers and brochures, who will know it is up for sale? Sure, a “for sale” sign will elicit some attention, but the more people who know about the home, and the more appealing you make it seem, the easier it will be to get it sold, and to sell it in a short period of time for the highest value possible.
An agent can facilitate your life, but they are costly. Further, some agents won’t do nearly as good a job as others, so it is a hit or miss market when trying to hire the best agent. A FSBO is a possibility in today’s market, especially if you are willing to do the work. You can sell your home without an agent, and receive the best possible offer, if you are willing to put the time and effort into the sales process.