When preparing to sell my house without an agent, there are various choices to make. The critical considerations are when to “sell my house,” where to sell it, and how much you want to make. If you’re the independent, do-it-yourself sort, you may think of skipping the real estate agent completely.
The fascinating aspect of selling by owner is the elimination of real estate agency sellers. Make sure you have a firm knowledge of the procedure and the effort required before deciding based on financial considerations alone.
Sellers that go the FSBO route may not realize how much work is involved in relocating, so we’ll lay out the steps below.
There are three main choices to sell a house without an agent:
- Look for a cash buyer
- Consider hiring a real estate attorney
- For Sale By Owner (FSBO)
We will analyze the advantages and disadvantages of each method, as well as provide you with some guidelines to follow if you choose to “sell my house without an agent.”
3 Main Choices on How to Sell Your House Without an Agent
Choice 1: Look for a cash buyer
If you are in need to “sell my house fast,” you might want to sell it to cash buyers. Cash buyers are persons or corporations that acquire your home entirely without requiring a lender to finance the transaction. These include iBuyers and house-buying companies like 3 Step Home Sale.
Advantages:
You can sometimes skip home inspection delays.
If you sell your home “as is” to a home cash buyer, they might not ask you to fix any problems that were found during the home inspection. A house inspection might not be necessary for all cash buyers.
You do not have to bother about an open house and home showings.
Put aside the cleaning supplies, and don’t bother with the cleanup. There will be no last-minute showings if you’re selling for cash. Just think of how much time you’ll save each week if you don’t have to find a babysitter for an hour.
You don’t need a home makeover.
Since the property is sold in “as-is” condition, there is no need to inspect the roof, repaint any rooms, or hire contractors. It is unnecessary to do the cosmetic repairs and additions that would ordinarily make your home more appealing to buyers. You can forget about cleaning up the mess, setting up a staging area, painting, and replacing worn-out appliances and cabinet pulls.
Disadvantages:
Sale prices tend to be lower than desired.
As was suggested before, there is a price to pay for ease of use. Many cash buyers take advantage of a seller’s need for ease of transaction to negotiate a lower selling price.
Many cash buyers are investors or flippers who aren’t interested in paying the whole asking market. When making an offer on your house, they want to play the “how low will you go” game. After buying the house, they intend to make improvements to sell it as soon as possible for a high price. Also, they know that certain sellers are prepared to reduce their profit margin in favor of greater efficiency.
It’s pretty unlikely that this will result in a competitive bidding process.
Bidding wars are expected in a seller’s market, which drives up the price of a home. When this occurs, the selling price often exceeds the asking price by a significant margin. However, if you “sell my house” to a cash buyer, you won’t be able to take advantage of the competitive bidding process.
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Choice 2: Consider hiring a real estate attorney
You might skip the real estate agent if you already have a buyer lined up. Instead, get a lawyer specializing in real estate transactions to help you.
Real estate attorneys can write and explain the various contracts and legal documents required for a successful closing. Even if you’re working with a real estate agent, you could be obliged by law to have an attorney present at closing in some states.
Advantages:
A real estate lawyer can write out a legally binding agreement.
Your lawyer will draft contracts outlining the terms of the sale, such as the purchase price, closing date, and the timeline for inspections and appraisals.
You have access to legal counsel for conflict resolution.
In the event of complications, having legal representation can be extremely helpful. They can mediate conflicts and even stop them from escalating.
Disagreements usually arise when one or both parties neglect to disclose property defects or when a mutually agreeable moving date cannot be settled.
You can still save money compared to hiring a real estate agent.
Hiring an attorney isn’t cheap, but it’s less than paying a real estate agent’s commission.
Disadvantages:
A lawyer won’t assist you in negotiating the best deal possible when you sell my home.
A lawyer can ensure that the sale of your home goes through smoothly without any snags, but they can’t increase the amount you get for it. If you have your heart set on doing business with a specific buyer, the attorney has little room for adjustment in terms of price. An excellent real estate agent is essential for this.
Real estate agents are trained specialists who can help you set the right price for your home and negotiate the most significant sale price. It’s risky to sell a home without an agent, especially if you’re selling it to a friend or family member and there are emotional considerations involved.
You might lose a relative or friend.
Dos and don’ts exist in selling a house to a relative or friend. Keep your cool during price negotiations to reach a deal that benefits both sides and helps you maintain a positive business relationship.
Choice 3: For Sale By Owner (FSBO)
In addition to avoiding paying a commission to a mediator, selling FSBO allows sellers more say over the sale. A catch, though, is that with power comes responsibility. You will have to market the listing, set a reasonable price, and have open houses and walk-throughs.
However, few homeowners are ready to take on these projects and perhaps lower their selling price. When asked what percentage of house sales were FSBO in 2020, the National Association of Realtors reported that figure at 7%. However, success is possible if you are skilled in areas like advertising, interior design, networking, and negotiation.
Advantages:
You save money on real estate agent fees.
You get to keep the three percent commission if you decide to “sell my house” without using a real estate agent. A buyer’s agent’s commission usually is 3% of the sale price, so keep that in mind.
Your home can still be listed on the MLS.
You can spread the word about your house listing on your personal Facebook page, as well as through Facebook groups and on other localized websites. However, nine out of ten real estate sellers use the Multiple Listing Service (MLS) to advertise their homes for sale. To get your property seen on the MLS, you need to use a flat-fee MLS listing service, costing you between $50 and $500.
FSBO Homes can sell more quickly.
Homes For Sale By Owner (FSBO) often sell and close more quickly than those listed on the open market because the parties involved in the transaction have a personal stake in the outcome. Seventy-seven percent of for-sale-by-owner houses sold in 2020 were done in less than two weeks. The National Association of Realtors claims these transactions typically finished swiftly because the sellers sold their homes to people they already knew.
Disadvantages:
You will likely get a lower price if you try to “sell my house” without using a real estate agent.
There are several explanations why FSBO houses usually sell for less:
- The buyers’ agents always out-negotiate the FSBO sellers.
- FSBO sellers frequently over- or under-price their homes when selling on their own. They lose money if they list their homes too low. Those who overestimate their home’s market can have their listings sit for months before finally selling at a loss.
- If there are problems with the home, it may be highlighted in the inspection report, and the seller may have difficulty fixing them. They might agree to have too many repairs and lose money when selling their house. Or they could resist too vigorously, causing the buyer to back out of the contract.
FSBO takes a lot of time because you have to handle marketing and communication.
Planning to be your agent is like taking on a part-time job. The homeowner is responsible for advertising the home for sale using online platforms, printed materials, and in-person events like open homes and open houses.
If you’re going it alone as a seller, you need to be able to respond quickly to inquiries at any time of day or night. You risk losing a potential buyer if you take too long to respond to their email or phone call.
You are in charge of photos and staging.
You need to engage a professional photographer to get quality photographs of both the inside and outside of your home. You may expect to spend between $120 to $350 on average and several hours of your time. If the house is messy or badly set, no amount of professional photography can help.
Threats to your security may arise
To protect you and your property, a real estate agent will do more than just schedule buyers; they will also do background checks on prospective buyers to ensure they are serious about purchasing. If you choose to sell FSBO, you invite total strangers into your house.
There is a possibility of being scammed.
For-sale-by-owner (FSBO) sellers must also be wary of online phishing schemes and wire fraud.
Scammers commit wire fraud when they trick sellers into sending money by emailing them what appear to be wiring instructions from a title firm. It’s usually impossible to get something back once you’ve lost it.
Be wary if you get a call from a potential buyer who says they’re interested in your house but can’t make it out to see it. They might offer a money order as a down payment. Later on, they’ll want their money back. If your bank finds out that the money order was fraudulent after you’ve already sent the refund, you won’t get it back.
You’ll have to negotiate on your own.
Skilled negotiators and agents seek out the best possible outcomes for their customers. During negotiations, the buyer’s agent isn’t looking out for your best interests and may try to take advantage of your inexperience. They can require unusual deadlines or contingencies.
Is it okay for you to decline, and do you know the norms of the market? Can you remain level-headed during tense talks and come on top with what you need? If you consider to “sell my house” without a real estate agent, it’s essential to be realistic about your negotiation skills before jumping in.
Final Thought: Take into account the advantages and disadvantages.
You will have to act as a scheduler, marketer, legal expert, and more if you decide to “sell my house” without a Real Estate Agent. Most real estate brokers work full-time because the profession requires it.
If you decide to sell with a Cash Buyer, you might want to consider us, 3 Step Home Sale. We buy houses fast, for cash, and “as-is.” It just takes a few minutes to fill out our online form. Get a cash offer today, and our best agents will call to guide you through the process.
