June 28, 2020
Are you looking to sell your house but aren’t sure where to start? Or perhaps you really don’t want the hassle of working with a Realtor? We get it. That is why we have put together this blog. We want to provide you with detailed information about selling your house without a Realtor.
Yes, you can sell your house without a Realtor. In fact, many people are now opting to go this route due to the extremely high real estate agent commissions involved. However, selling your house without a Realtor is not easy.
Yes, when using the for sale by owner option (FSBO) you will not have to a high real estate commission, but keep in mind, it would be in your best interest to at least offer a buyer’s agent commission. Otherwise, the area real estate agents might be less inclined to show your home to their clients.
The typical agent’s commission for a real estate sale is 6%. Half goes to the buyer’s agent and the other half goes to the seller’s agent. Therefore, if you are selling the house yourself and you decide to offer the area real estate agents a commission, that means you will still be paying a 1-3% commission to the agent who sells your home (unless you end up selling it to someone who does not have an agent). Additionally, you also must pay some of the closing costs on top of that.
That means the money you thought you were saving on Realtor or brokerage commissions has just been cut in half. Additionally, with an FSBO you also must do all the work yourself. That kind of changes things doesn’t it?
However, we want to give you a better picture of what you will have to do to sell your house without a Realtor. Keep reading to learn more about what all will be involved in this process.
Here are the steps required for selling your house using the FSBO option.
Tally the cost of repairs and replacements needed before putting your home on the market. Keep that tally handy so you can add it to the sale price of your home. Just remember the sale price of your home should be in line with what other similar homes in your area have sold for.
Determine what your home is worth using a market analysis that is based on comparable homes that have sold in your real estate market. Then factor in the age, size, and condition of your home after repairs and replacements. You will then need to find an attorney to review the purchaseagreement for legal ramifications and a title company to handle the transaction.
Complete all the repairs and replacements needed to sell your home. Do not forget to keep a running total of what you have spent.
Declutter and clean your home from top to bottom including the insides of all cabinets and drawers, the garage, shed, yard, and any other exterior areas.
Stage your home in a way that highlights the selling points and the best qualities of the space and your home. Don’t forget the exterior curb appeal as well.
Design sales materials to advertise your home. This could be flyers, yard signs, street signs, online ads, print ads, as well as Facebook and other social media marketing resources. You can also use an FSBO listing service that will list your home on the Multiple Listing Service (MLS) for a flat fee.
After you have done all the repairs, replacements, decluttering, cleaning, staging, and anything else you need to do you can then put your home on the market to show to prospective buyers.
Plan and advertise an open house to show your home to prospective homebuyers and area Realtors who will also want to walk through your home.
Now you will have to keep your house clean and orderly 24/7 and be ready to show your home at a moment’s notice. It is also very likely you will have random people knock on your door without an appointment wanting to tour your home. This can be dangerous so be aware of that.
You will at some point receive an offer(s). That means you will need the proper paperwork to give the buyer. You will have to give your buyer a contract with the purchase price and all the required disclosures as well. More about that in a moment.
It is rare that someone will initially give you the asking price of your home unless you live in a high demand area or you have drastically underpriced your home. Therefore, you will need to negotiate with potential buyers to the point you both agree upon the purchase price valuation and contingencies for the home sale. Often negotiating directly with buyers results in emotional entanglements, and might cause the deal to fall apart
Once you both agree on the purchase price, you can fill out and sign a sales contract, schedule a home inspection, and set the closing date. However, keep in mind the sales contract is not the only paperwork you will need to give the buyer.
Now let’s talk about the paperwork for selling a house without a Realtor.
In Minnesota, you will need the following paperwork for an FBSO home sale.
It is recommended that you get a real estate attorney to advise you and review all the documents related to this transaction. There are serious legalramifications if you do something wrong even if you didn’t know what you were doing was wrong.
After all that is done, your house is then considered in escrow at which time you might have to wait for the home buyer’s lender to approve their mortgage application. However, in the meantime, you can begin to get more serious about your new home.
Are there any alternatives to selling your home other than using a real estate listing agent or trying to sell the home yourself?
Yes, there are. Keep reading to learn more.
One thing to think about before making any decisions is how much you will have to spend on repairs, replacements, marketing materials, advertising, Realtor commissions, and any other out of pocket expenses, not to mention the exorbitant amount of time, legal issues, and the danger involved. Tally all that up and deduct that number from your sales price and what do you have left?
Then consider whether it would be the same, if not cheaper to sell your house using an all-cash, quick close home buying service company.
Would you like some information about selling your house without a Realtor and without having to do it all yourself for a quick turnaround? If so, we can help. Please Contact OneStep Offer today. We will answer all your questions. Then, if you would like, we will provide you with a fair, all-cash offer on your home. This is a simple, quick, no-obligation, hassle-free way to sell your home without all the time-consuming protocols of selling your home the traditional way.