How To Sell Your House Without a Realtor
Your home is likely your most valuable asset, and selling it through a real estate agent can cost you thousands of dollars in fees. If you’re up for the task, you can cut out the middleman and sell your house by owner. However, be aware of the time and energy required in property marketing and sales, and be prepared to do the necessary research and paperwork to complete the deal. Here’s what you need to know about how to sell your home without a real estate agent.
Get Your House Ready To Sell
The first step in how to sell your house privately is to make sure your home is sellable. Make those minor repairs you’ve been putting off, repaint the walls and shampoo the carpets. Take a pass through all the rooms and declutter by trashing, recycling or donating anything you longer need. Consider renting a storage unit for a short time while your home is on the market. Basically, you want potential buyers to find your house clean, open and spacious, so anything unnecessary must go. Small fixes and updates are often simple and inexpensive, and completing them will add value to your house and help it sell quickly.
Find Out How Much Your House is Worth
Ahead of listing your property for sale, determine its value. If you ask too much upfront, you’ll alienate potential buyers. Conversely, if you ask too little, you’ll cheat yourself out of the value of your house. Even if someone is willing to pay more for your home than it’s worth, the mortgage lender could disapprove the loan based on the required appraisal. You don’t want to be considered a predatory seller, so be diligent in estimating your home’s worth by conducting research and hiring a professional to evaluate and appraise your property.
Study the Local Market
Are you in a buyer's market or a seller's market? You’ll need to know so you can determine a fair asking price for your house. Do some local research to discover what’s happening with the real estate in your zip code. Are sellers dropping their asking prices? Are homes going “under contract” as quickly as they are listed? The answers to these questions and more will help guide your decisions for your sale and move.
Market and Promote Your House to Potential Buyers
Real estate is one area where traditional marketing tactics still reign supreme. Let your neighbors know that your home is for sale by posting a sign in the front yard. Chances are, someone in the local area is looking to buy, or they know someone who is. Passersby will take note of your listing and follow up with you later. Additionally, upload your home’s details to popular listing websites like Zillow, ForSaleByOwner or multiple listing services. Make sure to highlight the primary selling features of your property to attract interested buyers.
Disclose Any Problems
Before scheduling a walk-through, you should prepare a disclosure statement that outlines any defects or dangers relating to the property such as structural damage or mold. Telling buyers about these issues is not only fair, but it’s your legal responsibility. If you fail to disclose a problem, the buyer can make claims against you for a fraudulent sale even after the contract is signed.
Show Your Property
In addition to making sure your home is in good shape and aesthetically pleasing, you need to channel your inner salesperson and walk strangers through your house, letting them imagine themselves in the dwelling. Organize an open house event, set out some appetizers and see how many people show interest in your property. You may receive an offer for your home and all your furnishings, or if nothing else, you may learn what work you can do to make your home more appealing.
Be Open to Negotiations
When you do receive an offer, it’s time to start negotiating. Commonly, buyers will offer below what you’re asking, hoping you’ll settle for a lower price or agree to cover the closing costs. Depending on how quickly you need to move, this may be in your best interest, or you may have time to wait for a better offer. You may even get multiple offers, meaning you get to choose who you want to take your home.
Prepare the Contract
After you’ve accepted an offer, it’s time to write up the contract. This is the most critical part of selling your house because it’s a legally binding agreement. The contract should outline the details of the agreement between you and the buyer and should include, but is not limited to the following items:
- Property details and characteristics: The type of home, lot size, address, parking, etc.
- Purchase price: The agreed-upon price of the property after negotiations.
- Personal property and fixtures: Everything included in the price.
- Earnest money and financing: The deposit to enter the contract as well as financing details.
- Desired closing date: The date intended for the sale to conclude.
- Closing costs: Notice of who will pay for which costs.
Make sure you and the buyer are able to execute and review the contract thoroughly.
Close the Sale
The closing of the sale will happen on the date agreed upon by you and the buyer in the contract. Depending on the laws in your state, the closing will take place at the office of a real estate lawyer or title company. All documentation must be in order for the sale to conclude, so make sure you communicate fully with the buyer and the closing agent up to this point.
Pay Your Portion of the Closing Costs
As the seller, you will most likely have to pay all or a portion of the fees to complete the sale, even if you’re not using a real estate agent. Some of these costs include transfer tax, attorney's fees and the title policy. Of course, because you are selling privately, these costs are negotiable.
Selling your house by the owner is a lot of work, but once you’ve completed closing, your home is sold and you are ready to move on to a new chapter of your life. Who knows, you may truly love the process and decide to become a real estate agent yourself.
