Why would you want to sell a house without a real estate broker?
With the downturn in the economy, real estate values have dropped in many areas. If you’re needing to sell, one way to recoup some of your home’s value would be to sell it without using a real estate agent or broker to avoid their commission fee.
With the advent of the Internet, selling your home without a real estate agent or broker is easier than it used to be. And, just as selling without an agent saves the homeowner money, some savvy homebuyers seek out for sale by owner listings in hopes of getting a better deal on a home purchase. You can buy a for sale by owner (FSBO) kit that contains the pre-printed forms you need and can list your home on MLS (Multiple Listing Service) sites yourself for a fee. There are even package deals which include listings, signs, and advice. Try using a website set up just for FSBOs such as www.fsboguide.com or www.owners.com.
How much money could you save without a real estate agent or broker?
A real estate agent typically charges anywhere from a 5 to 7 percent commission. Let’s say your real estate broker charges a 6 percent commission; if your house sold for $300,000, you could save $18,000, greatly reducing the costs involved in selling your home. You could pocket the savings or even subtract it from the sales price of your house to make it more competitive on the market.
Here are some things to think about if you’re considering not using a real estate agent to sell your home.
- You need to do major research on the topic because you’re entering into a binding legal agreement. Each state has different laws and requirements you need to be aware of.
- It helps to have a job with a flexible schedule. Prospective buyers may want to look at your house in the middle of the day.
- You will have to pay costs that the real estate agent normally pays such as for-sale signs, classified ads in your newspaper, real estate attorney fees, and listing your home on MLS sites.
- You need to determine the fair market value of your home. Do research online to find out what comparable homes in your neighborhood are selling for.
- You will want to hire a real estate attorney to look over the forms so there are no issues further down the road. A few states do require a real estate lawyer to handle the closing. Check your state requirements.
- You may not be able to negotiate the selling price of your home as well as an agent.
- You may take longer to sell your home without a real estate agent; after all, they are experts.
Why sell a house with a real estate agent?
Selling a house can be complicated. You are entering into a legally binding contract with another party. If you make a costly error, ignorance is no defense. Real estate agents go through extensive training and are licensed to interpret contracts and negotiate on your behalf. If you don’t do enough research into selling your home without an agent, you could encounter financial risk and a possible lawsuit. Real estate agents carry errors and omissions insurance and have real estate attorneys on call for any questions or issues that may arise. There are also many details and legalities with titles and mortgages.
Here are a few reasons you may not want to sell your home without a real estate agent or broker:
- You may not feel comfortable showing your house to potential buyers. Not everyone has the confidence, personality and “deal closer” skills needed.
- You may not have the time or motivation to do the reading and research necessary for you to become an “expert.”
- Your job may prevent you from being available to show your house to clients. Real estate agents work seven days a week. Forget relaxing evenings at home after work until your home is sold.
- You may give the buyer the upper hand when it comes to negotiating house price. Agents are skilled negotiators and can help you get the best possible price for your home.
- You may not be able to sell your house as fast as a real estate agent. Again, they are experts in their field.
- You may not be able to market your home as well as an agent. They know simple tricks that can give your home more appeal to prospective clients.
- You will not have access to the professionals a real estate agent would, such as attorneys, other real estate agents, lenders, inspectors, or reliable contractors for landscaping, painting, etc.
Ultimately, you will be the one to make the decision whether selling a home without a real estate broker is for you. Do not make the decision lightly. Selling a home without a real estate agent/broker will take a lot of work and preparation on your part. However, in the end it can save you thousands, possibly tens of thousands of dollars if done correctly. If done incorrectly, it can end up causing you more headaches than it is worth. Whatever you decide, happy selling.
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