If you want to sell your home, then most probably you will work with a realtor. A realtor is a real estate agent or broker who will help you sell your house.
The agent will ensure your property is listed on various databases. They will also help you negotiate with buyers until the deal is closed.
In exchange for this service, they charge a commission on the sale price. The commission charge would be around 3%.
This is the commission charged by the listing agent who represents you. If the buyer also has an agent, then they would also charge 3%. The overall commission would be 6%, which is a big amount.
Can you then save on the commission by selling with a realtor? The answer is yes. You can sell your home without using the services of a realtor. In this guide, we tell you how to do it.
A Guide to Selling your Home with a Realtor
1) Why Sell Your Home Without a Realtor
There are many benefits of selling your home by using the services of a realtor:
- The biggest benefit is the savings on commission. You can save anywhere from 3% to 6% of the sale price, which is a substantial amount.
- You can directly deal with the buyer by using an intermediary. This allows you to ensure the transaction happens in the way you want. You don’t have to do what the realtor tells you.
- When you work with a realtor, you may end up with a person you don’t like or someone who is not competent. This can be frustrating. Working with a realtor helps you avoid these problems.
- When you sell without a realtor, you can use the services of a technology company like Houzeo. This will allow you to list your home for sale within 24 hours.
2) Are There Any Cons of Selling a Home with a Realtor?
There are some drawbacks to selling your home without using a realtor. You need to be aware of the:
- When you want to list your home for sale, you need to list it on MLS (Multiple Listing Service), a database of properties.
When thinking of how to list on MLS the main issue is, that you cannot access the MLS on your own. Only agents and brokers can access it. You need to work with a website that employs agents to list the property.
- A realtor will help you negotiate and will be with you through the closing. Without a realtor, you will not be able to get this service. You have to do the negotiations and manage the closing yourself.
- If you are not experienced in this field, it can be tough doing everything on your own.
3) Options to Sell Your Home Without a Realtor
Having gone through the pros and cons of selling your home with a realtor, you should now be able to decide if you want to proceed. If you decide to go ahead, then here are the options available.
a. Use the Services of a Discount Brokerage
This option does not completely eliminate the real estate agent. Instead, you work with the type of agents who are known as discount real estate brokers. These Realtors offer substantial discounts on their services.
This works to your advantage. Depending on the brokerage you select, you can end up paying only 1% to 3% of the commission. This allows you to save money while still getting to work with a realtor.
b. Using an FSBO MLS Listing Service
The easiest and best way of selling your home without a realtor is using the best house for sale by owner websites. FSBO is For Sale by the Owner.
This approach allows the seller to sell their property all by themselves. This means the seller can sell without using an agent. Such real estate companies like Houzeo are technology-enabled.
They would have a website and allow sellers to get their property listed on the MLS without hiring an agent. For this service, they would generally charge a flat fee.
The fee would cover the listing of the property on the MLS and also on other real estate websites. There is no commission charged and hence the seller would save a lot of money.
Such websites offer various other services like professional home photography, home cleaning, staging the home for sale, etc.
These services are optional and if the seller wants they can pay extra to use the services. This is the best way for a seller to sell their home without having to pay the realtor’s commission.
4) How Does the Process Work?
The first thing is to find a good website that allows you to use the FSBO service. The website should have a flat fee MLS model where you can pay a flat fee to register your property on the MLS. You need to check if there are any hidden fees, so you don’t get a nasty surprise at the end.
Choose a real estate company that has an intuitive website that makes it easy to manage your listing. They should preferably have an app to use on your mobile. Look for a company that has good reviews with a rating of more than 4.75/5.
Once you finalize the real estate company and website, the following are the steps involved:
- Register by paying the flat fee and get your property listed on the MLS. Look for a provider who does the listing quickly.
- You can do your own marketing to attract buyers. You can share information about the listing on social media. This is a great way of letting people know about your property.
- Prospective buyers would want to see your house. Make it look good for house viewing. Clean up the house and spruce it, so buyers would like it.
- Put a ‘For Sale sign in the yard. Taking professional photos will help attract buyers.
- If needed, you can use the services of the real estate company for all these.
- Start negotiations with the buyers. Once you finalize the price, close the deal. Ensure all paperwork is complete. You can again use the services of a provider like Houzeo to get all this done seamlessly.