For many homeowners, the thought of selling a home without going through a Realtor is tempting. After all, you can save up to $18,000 in commission fees, and you are not bound by any of the agent’s rules or conditions. But before you jump into listing your home as FSBO (“For Sale by Owner”), experts caution that there are some advantages and disadvantages to consider.
Benefits of Selling Your Own Home
Selling a home on your own brings certain advantages. One of the most obvious benefits is that you can avoid the commission fee associated with hiring a real estate agent, which can add up to about six percent of the home’s price. Sometimes, homeowners must pay commission for two agents: the buyer’s agent and the listing agent. In that case, you may need to fork over an extra $12,000 – $15,000 in addition to the home’s cost.
Along with saving you money, selling a home on your own can also save time. Studies show that homes listed as FSBO sell up to 58% faster than homes advertised through a real estate agent, with an average sale time of just two weeks or even less. Most homes listed as FSBO are also ultimately sold to acquaintances, including friends, family, neighbors, and co-workers, which expedites the sale process and makes closing easier.
The Downside of Selling Without an Agent
While there are several advantages to selling your home without using a real estate agent, there are some potential disadvantages that you might encounter, too. For starters, working with an agent can help you get the most amount of money for your home. In 2019, for instance, research indicates that homes sold by their owners had a median sale price of $200,000. On the other hand, homes sold with the help of a real estate agent had a median sale price of $280,000.
Additionally, selling a home without using a real estate agent means that you are responsible for preparing your home for show and sale. That means cleaning the home, making any necessary improvements to make it more show-worthy, and possibly even staging the house to be more attractive to prospective buyers. When someone shows interest in your home, you will also need to be prepared to negotiate the sale’s financial elements, including negotiating the final price and the closing terms. Real estate agents normally handle the various aspects of closing, which means you’ll have to set aside the time to handle closing deals independently. You should also be familiar with the general concepts and principles of closing.
How to List a Home as FSBO
All things considered, if you have decided to pursue the route of listing your home by yourself, there are certain steps you should follow to have a better chance of a faster and smoother sale. Your FSBO checklist should include:
- Assessing your home’s worth
- Preparing your home for sale
- Marketing your property
- Answering questions and negotiate
- Completing paperwork and the closing
The first step in selling FSBO is to do some background research to determine your home’s value. To find a suitable price, look at the average price of comparable homes in your neighborhood to see what other sellers have asked and what buyers are willing to pay. You’ll also want to look at how quickly homes in your area have sold recently. If they take longer to sell, consider dropping your listing price to attract buyers.
Secondly, you will have to get your home ready for sale. Deep, thorough cleaning is recommended to make your house as clean and spotless as possible. Repaint the walls if necessary, and try to remove as many personal belongings from sight before you schedule a showing or photograph your home using staging. The wood floors should be polished, and the carpets should be thoroughly cleaned to remove any stains. If your home needs renovations or upgrades, you may need to consult a mortgage company Las Vegas to ask about taking out a loan for home improvements. If you’re wondering, “where do I find loans near me?” rest assured, an expert loan officer could assist.
Once your home has been cleaned, you’ll need to market the property. You can hire a staging photographer to help take the best pictures possible. You can use several websites to post a free listing, including Facebook, Zillow, Redfin, and Trulia.
Once you’ve received some interest from buyers, you should be prepared to negotiate the closing. Naturally, prospective buyers want to pay the lowest possible cost for the home, while you will want to get the highest asking price available. As you’re screening prospective buyers, consider prioritizing buyers who have already gotten pre-approved for a mortgage Las Vegas. You can also consult an expert if you need assistance with navigating the closing, including consulting a real estate attorney or consulting with a real estate agent.
Similarly, you may need an expert’s help to close the deal and handle the paperwork, including handling papers involving a mortgage lender. If you don’t hire an attorney or real estate agent, you’ll want to make sure that you thoroughly understand the real estate laws in your state.
Tips to Keep in Mind When Selling Your Home Without a Realtor
As you are getting ready to list your home by yourself, there are several important tips to remember to ensure a successful sale.
First, put your emotions aside when you are finalizing the price and interviewing buyers. Asking too much for your home based on its sentimental value can prolong the sale process. Additionally, avoid making improvements that are not essential. Improvements don’t always add to the home’s property value, and they might not provide a return.
Selling your own home can be a great way to save money in 2021. However, being prepared for an FSBO sale first is essential. Contact an expert loan officer today for further advice in selling a home without hiring a real estate agent.
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