How to Sell Your Home Privately: Is It Worth the Hassle?
Professional representation services are a major part of today’s business and there are no signs that this trend will change. Virtually no trade deal happens without the presence of an attorney or some sort of an agent. There is a reason for that and it is because the average Joe simply cannot be aware of all the regulations and procedures surrounding any type of deal. There are those, however, that do not want to deal with realtors and pay the commissions that go with it. There are ways to avoid those fees and in this piece, we will talk about how to sell your house privately.
What this basically means is that you do not hire a real estate agent to put your house up for sale. Some folks decide to ditch their realtors as they are sure that they can advertise their home and bring a deal to the end all by themselves. So the question at some point changes a little and it is no longer whether you know how to sell your house privately but whether it is worth it or not.
There are a few steps to consider and we will walk you through them so that in the end you can decide if you really won't need any professional representation for your sale. After all, you are selling a product, so the mechanism is pretty clear – it begins with you estimating the price. For that purpose, you will need to do some benchmarking and see the average price of a house similar to yours. From there you need to make adjustments to your numbers corresponding to the condition and location of your soon to be ex-home. If you aren't sure how to approach this matter (as it is rather important) you can still contact a real estate company and get them to help you with that part only. Many agents will provide you with a consultation and will help you determine the price of your house without further obligation. You still get to find a way how to sell your house privately afterward. One of the more serious problems of people looking to sell without an agent is that they are unable to properly estimate the worth of their house and from there, the whole mechanism starts failing.
Next comes advertising. This is an exceptionally vital part of your sale and without it, there will be no sale at all. If you think that a small sign on the side of your building with a phone number on it is going to cut it, then think again. Also, just a single ad online is not going to get your house sold. You need a full-blown marketing strategy as your property has to be seen by as many people online as possible. Start with a sign, yes, then move on to the local paper and eventually look to end up on the MLS. The Multiple Listing Service is the place where your house for sale will definitely be noticed, if not by a potential buyer, at least by other agents. Getting on the MLS, however, typically costs some money and you will still end up paying a company for it. It might be anywhere between $500 and $1000.
The fact that you are looking for ways how to sell your house privately does not defeat the need to have ads and we mean lots of them.
A real estate agent will also make you aware of the condition of your house. Without professional guidance, it is your personal duty to make sure your house is renovated and good-looking. Many people neglect that part and go on the market with a home that looks discouraging to buyers. Put in a new layer of paint, clean your roof, change a few doors or fix the floor here and there. A well-maintained house will sell for a lot more than you think. Before trying to make any money from your house, make sure it is ready.
The final and perhaps most important part of this procedure is related to paperwork. This is where the presence or should we say the absence of a representative can really be felt. There is a ton of paperwork to be handled. We are talking about bank statements, written consents, co-ownership, heritage, taxes, debt, liens and many other things that need sorting out from both sides of the deal. An important cog in the mechanism of how to sell your house privately is the flawless documentation and paperwork. An attorney here will make sure that everything is communicated properly even during the negotiation stages. A professional will make sure that the buyer and the seller have everything in order before signing the dotted line. Unless you yourself are not an attorney then you might find this part overwhelming and frankly, very tough to deal with.
So once you start welcoming potential buyers to take a look at your home, you will notice that they typically come with agents. If you have your house listed on the MLS, then every realtor in the area will know about it. This means that if you reach an agreement, you will still need to pay them 2% - 2.5% of your sale price as a fee. But wait, isn't the whole point of this sale to avoid such a fee? Well, you might be able to avoid half of it by not paying a realtor hired by you. So instead of paying a 5% fee, you only pay about 2.5%.
And it's not the end of the world because this fee just might be worth it. Such an agent brings you educated buyers. They have been looking at homes for months and these people are now cultivated by the realtor. He's got their financial background checked and is bringing you, solid buyers. They will know what to look for and you will get a no-headache sale. Imagine having to cultivate dozens of buyers yourself. It's tough, isn't it?
As a final word, we will only mention that homes which are for sale by owners typically sell for about 14% less money. You decide whether a sales fee is worth it or not.