Looking to sell my house soon and I am curious to know if anyone here has sold their home without using a real estate agent? What are the pros and cons of each way? Looking for advice before making a decision. The thought of giving someone 4%-7% to sell my house doesn't sit well with me... what does a realtor actually do for this money?
Has anyone sold their home without a realtor?
- Thread starter JW03
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4-7% is a bit high for seller costs. I have sold multiple houses, most realtors have a flat 3% fee. But YMMV with that. Redfin, I think, is one exception.
OP - Got any attorney friends?
We sold our past house referred to as FSBO (for sale by owner). Had our home inspected and provided the report to prospective buyers. Used an attorney for the paperwork. Saved a few grand. In a sellers market, it can really be a great way to go.
We sold our past house referred to as FSBO (for sale by owner). Had our home inspected and provided the report to prospective buyers. Used an attorney for the paperwork. Saved a few grand. In a sellers market, it can really be a great way to go.
Around here realtor fees were 4-6% last I checked, with that being split 4 ways between the buying and selling agents and agencies. We bought out house off the market and the seller ( friend of our family ) had an ex-realtor do the paperwork. Saved us about $15k which was great.
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I always viewed the fee as being paid by the buyer. Cutting the commissions
allows the seller to have flexibility on helping with closing cost or price to get a deal done. The paper work is almost alway the same.
Commissions around here are paid by the seller. By selling the house off the market, our seller ended up getting the same net amount, while saving us $15k.
The buyer only pays for the house, and possibly a portion of closing costs not included by the seller. Ive never once heard it even suggested that the buyer pays either realtor. Pretty much any new construction home is offered with 3% of closing costs so resales generally have to offer the same. So yes, you could end up coughing up as much as 9% of the sales price!!
Typically the realtor just brings a potential buyer and then fills out a computer generated purchase contract. After that the bank and escrow company do all the work. Sometimes the selling agent wont even show up and does little more than list the house for sale on the MLS and then forward the home owner a contract. If if there are negotiations its rarely more than a few emails or texts.
A friend just did something where he paid a realtor/broker $400 to list his house. No representation. A realtor did bring the buyer so he paid the standard 3%. Had a signed contract in 7 days. One realtor can easily handle all of the work to get a contract rolling.
With FSBO youll get much less exposure along with the potential of paying 0 realtor commissions. If you really want to do FSBO, Id contact a local escrow company and see if they will explain what they need from you.
Typically the realtor just brings a potential buyer and then fills out a computer generated purchase contract. After that the bank and escrow company do all the work. Sometimes the selling agent wont even show up and does little more than list the house for sale on the MLS and then forward the home owner a contract. If if there are negotiations its rarely more than a few emails or texts.
A friend just did something where he paid a realtor/broker $400 to list his house. No representation. A realtor did bring the buyer so he paid the standard 3%. Had a signed contract in 7 days. One realtor can easily handle all of the work to get a contract rolling.
With FSBO youll get much less exposure along with the potential of paying 0 realtor commissions. If you really want to do FSBO, Id contact a local escrow company and see if they will explain what they need from you.
This is an excellent way to make your home much more attractive and get a quick sale.
My wife works for Redfin. They only take 1.5% commission for writing a sale.
I'm going through this right now, actually. We listed our house FSBO on Zillow, had a buyer contact us within 30 minutes to schedule a showing. We negotiated the sale price, hired a real estate lawyer, and a title company to handle the docs. House closes next week, and we saved 7% on realtor fees after we interviewed 3 different firms, and they all wanted 7% commission, so we said screw that, and decided to try it ourselves.
I bought our current house from my inlaws FSBO. I didn't see anything along the way that was too hard for someone to do on their own, an inspection had to be scheduled and there was title/closing/legal stuff at the end, but overall a pretty simple process. Based on my experience, the only value that a realtor brings to the table is market exposure - everything else is pretty simple. Doesn't hurt to try and advertise your house FSBO and see what happens, then list with a realtor if you don't get any bites within a certain amount of time.
Typically there are two premiums paid when realtor's are involved. A commission to the selling agent and a commission to the buying agent. When using a realtor, you're pretty much locked in to the buying commission but some may negotiate on the selling commission.
By going FSBO you get to dictate what you are willing to spend on commission. You automatically cut out the selling commission as you're doing the leg work. You have to do the advertising and the pavement pounding, plus facilitating all the paper work etc.
You can choose to completely omit the buying commission but some will tell you it's wise not to do that. If you are not willing or able to pay a buying commission, most people looking for a house with a realtor won't be knocking on your door as the realtor won't/can't work with you. As some have already pointed out, this is mostly an issue when it's a buying market. If you're in a market that leans heavily towards the seller, this is likely not an issue.
If however you're in a market that leans towards the buyer and you are pressed for time to get your house sold, paying a buyers commission (whatever is average in your area) will get more eyeballs on your property.
I would put it like this. If you want your property sold and don't want to do anything but show up at closing to sign papers, get a realtor. If you don't mind doing the leg work on paperwork, sell the property yourself. If you don't mind doing that leg work, but need your home sold quickly, consider paying the buyers commission to increase visibility and foot traffic.
By going FSBO you get to dictate what you are willing to spend on commission. You automatically cut out the selling commission as you're doing the leg work. You have to do the advertising and the pavement pounding, plus facilitating all the paper work etc.
You can choose to completely omit the buying commission but some will tell you it's wise not to do that. If you are not willing or able to pay a buying commission, most people looking for a house with a realtor won't be knocking on your door as the realtor won't/can't work with you. As some have already pointed out, this is mostly an issue when it's a buying market. If you're in a market that leans heavily towards the seller, this is likely not an issue.
If however you're in a market that leans towards the buyer and you are pressed for time to get your house sold, paying a buyers commission (whatever is average in your area) will get more eyeballs on your property.
I would put it like this. If you want your property sold and don't want to do anything but show up at closing to sign papers, get a realtor. If you don't mind doing the leg work on paperwork, sell the property yourself. If you don't mind doing that leg work, but need your home sold quickly, consider paying the buyers commission to increase visibility and foot traffic.
Bought mine without a realtor involved. Easiest transaction ever.
I sold my house with a company like redfin. I paid to put it on the market but did all the showings myself and saved myself over 7k in fees. They did all the paper work for a small fee. I will never use a realtor again if you don't mind showing your own house
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If you can tie your own shoelaces, then you're intelligent enough to sell your own home. I've done it several times, and saved a bundle of money.
Find yourself a real estate lawyer. I paid .5% of my house value and he deals with everything except finding a buyer. When you do find a buyer he deals with all title changes, contracts etc. Very easy to do and saves a bundle without the headache of leaving yourself open to potentially being sued for something wrong with the home.
Just bought my first home it was FSBO. Nothing to it. Myself and the lender did all the paperwork. I set up the inspection/any appointments. If you are a grown up, FSBO would be my option when buying every time and when selling depending on the area/market.
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