Nobody likes paying commissions to any sort of experts but at the end of the day this might be not only inevitable but also very much needed. Completing a real estate sale is a tough ordeal which requires knowledge in many fields and if you are to sell house privately then you ought to be prepared for the worst.
Don’t worry, by “the worst” we only mean that you will need to go through the whole process alone and will need to be absolutely impeccable and most of all lucky if you want to make a decent profit. Not hiring a real estate agent and deciding to represent yourself sounds like a load off your chest but actually it might be quite tricky.
Determining the price is definitely something you can do yourself and in all fairness requires just a few phone calls and perhaps a little Internet browsing. Once you have a number in mind, you need to be prepared to go way below it because you will not have the leverage that you would otherwise have, had you hired a realtor.
Then you need to do advertising yourself. This is a tough challenge and will require some investment of time and money. You had better hire a professional photographer who will take decent photos of the property with the “For Sale by Owner” sign on the lawn. Then, you should perhaps add your property to a multiple listing service (MLS). This will cost about $1,000 so be ready to spend that money if you want your house to get the proper internet exposure.
The MLS is a very useful step because you might not be contacted by potential sellers but agents instead. And there’s nothing wrong with that because these agents will likely bring you verified buyers. What does that mean? When you want to sell house privately you do not have the time to do any vetting of your buyers. You can attempt such a ludicrous thing but it would probably drive you mad. You will need to show your house to dozens of people and 80% of them will be timewasters. Rely on realtors to bring you buyers – it is as simple as that.
Be prepared to pay the commission of the buyer’s agent, however. This is something that you won’t be able to avoid and need to plan for it. Instead of paying a total commission of 6% to two agents, you will pay only 3% to the realtor of your buyer. There’s no way around it so thing again whether you really want to sell house privately. A study shows that such sales typically go through for about 14% less money.
And finally, don’t forget about the paperwork. You have two options here. Pay an solicityor to help you with that part or try to go through this ordeal on your own. If you have thorough knowledge and experience with all the contracts and mortgage regulations then please, go ahead. If not, don’t be ridiculous and pay a real estate agent to take care of your sale.