When it comes time to sell your home, you have a lot of options.
- when to market and sell
- where you want to relocate
- how much money you intend to make
These are all important considerations
If you’re the “do-it-yourself” type, you might think about selling your home without a realtor.
A qualified real estate agent can help you sell your property faster and for more money than you could on your own. However, the majority of agents charge a commission based on the purchase price of the home, which reduces your net proceeds from the sale.
This is why selling a house without the assistance of an estate agency, often known as “For Sale By Owner” (FSBO), can be an appealing alternative for homeowners wishing to save money on real estate agent commissions.
However, this strategy has its own set of obstacles and issues that must be carefully evaluated before making a decision.
In this blog post, we’ll explore if it’s worth selling your home without a realtor.
Do you need a real estate agent to sell your house?
There is no legal requirement for homeowners selling their property to hire a real estate agent, broker, or estate agent (a member of the NAR). The services they provide can, in certain cases, be duplicated by an astute and ingenious vendor.
However, a for-sale-by-owner (FSBO) deal calls for patience, expertise, and assurance.
If you’re not confident in having all three, it’s in your best interest to hire an agent who is well-versed in the process of marketing and selling homes.
4 Pros of Selling Your Home Without a Realtor
If you are considering selling your home without a realtor, here are some benefits you could enjoy:
1. Cost savings
The biggest incentive for going it alone when selling a home is avoiding the commission that real estate brokers normally want.
The average realtor commission in the US was 5.34%. For more expensive homes, this can add up to a sizeable sum.
For a $500,000 house, that comes to $24,030 – no drop in the bucket!
2. Control and flexibility
When you sell FSBO, you get to make all the decisions yourself, down to the price, the terms of the sale, and the calendar for open houses. You have the freedom to act in accordance with your own values and schedule.
3. Personal involvement
Some property owners like to be involved in the selling process and make themselves available to prospective purchasers.
4. Don’t need an expensive home makeover
You won’t have to worry about getting contractor bids, painting walls, or checking the roof because everything is being sold “as is.”
There is no need to invest in superficial repairs and renovations to boost your home’s appeal to potential purchasers. Don’t bother cleaning up the debris, staging the space, painting it, or replacing the hardware and fixtures.
6 Cons of Selling Without a Realtor
1. Limited exposure
A real estate agent’s access to the Multiple Listing Service (MLS) and their network of potential purchasers will greatly increase the exposure your home receives.
When going it alone, your pool of possible customers could shrink.
2. Pricing challenges
Without the assistance of a realtor who is familiar with the local market trends and can provide comparative market studies, setting the correct selling price can be difficult.
3. Negotiation expertise
Professional real estate agents have honed their negotiating skills and can help you get the best deal possible.
You might have trouble negotiating without their advice.
4. Complex paperwork
There is a mountain of paperwork associated with buying or selling property.
A real estate agent can help you understand this paperwork and make sure it is filed away correctly.
5. Time and effort
There is a lot of effort involved in selling a home, including advertising, open houses, negotiating, and paperwork. It can be difficult to handle everything on your own if you have a full schedule.
6. Emotional attachment
Selling a home can be an emotional process.
A realtor can provide an objective perspective and help you make decisions without being influenced by emotions.
When it Might Be Worth it
Every situation is different, and you might find yourself wondering if you need an agent.
To arrive at the best decision, here are some things to consider:
You have a solid grasp of what your home is worth.
Your real estate agent will use comparable houses in the area to determine a fair asking price.
But there’s no reason you couldn’t do the same. You can save money by selling your property without an agent if you know how much comparable properties have sold for.
You have experience in real estate transactions.
If you want to sell your property without using a realtor, it can help to have some background knowledge in the real estate market.
Your familiarity with the market, standard industry procedures, and the finer points of real estate transactions will serve you well as you go it alone.
Since real estate transactions are subject to varying laws and regulations, it’s important to stay up-to-date on the rules in your area. When interacting with prospective purchasers, your ability to negotiate in their favor will be invaluable.
You have time on your hands.
There is a lot of work involved in selling a home. Self-selling entails a lot of work, including:
- taking high-quality images
- promoting the house online
- screening and greeting potential buyers
A real estate agent’s work can be done by anyone with an open schedule and a knack for advertising.
When You Should Reconsider
You should reconsider selling without a realtor if:
- You have no idea how real estate transactions work or what factors influence prices in your area.
- You need help with the sale because you just don’t have the time to do it yourself.
- You feel uneasy or inexperienced when negotiating.
- Your home is one of a kind or you lack the necessary skills to promote it successfully.
- You need to have access to more potential buyers, which realtors may facilitate.
Selling Your Home Without a Realtor
The commission paid to a real estate agent can eat into the profit you make on the sale of your property, and well-prepared sellers can do just fine without one. However, the old adage “you get what you pay for” rings true in many situations.
Whether or not you choose to sell without a realtor relies on:
- your level of confidence
- your level of experience
- the particulars of your property
Before going the FSBO route, it’s wise to familiarize yourself with the real estate selling procedure, local regulations, and current market trends. You may also want to talk to a real estate lawyer for advice on the sale’s legalities.
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Editor’s note: This article was originally published Sep 2, 2023 and has been updated to improve reader experience.
