Selling a home is not rocket science, but it does take some work. In selling your home you have two choices: to use a real estate agent or to not use one. Selling a home on your own is possible, but in most cases is going to be a lot of work. On the other hand, using an agent eliminates a lot of work on your part, but it will cost you more money when your home sells.
Selling My Home Without A Real Estate Agent – For Sale By Owner
If you sell your home yourself, you are responsible for advertising your home, finding people who might be interested in buying it, writing your own sales contract, arranging inspections, coordinating with real estate agents who have interested buyers (if you are open to having a real estate agent bring a buyer by), coordinating with the title company once you get closer to settlement, and so on. One of the consequences of selling your home without an agent is that it might take longer to sell it because you will typically not be able to advertise it like an agent can.
Save Money – Sell My Home Without An Agent
When an agent represents a home, they have an incentive to bring prospective buyers to your home as they make money. In the opposite, by selling your home yourself, although it might take longer, you will most likely make a little more money yourself. You will not have to pay the listing agent. This typically means a savings of somewhere around 2-3% of the sales price. For example, if you are selling your home for $200,000 and you sell it on your without a listing agent then you may save yourself somewhere around $4,000-$6,000.
If you do not find the buyer, but a real estate agent brings a buyer to you, then you will most likely have to pay the buyers real estate agent. Typically this will usually be somewhere between 2-3% for their commission depending on what you negotiated with them. You will still end up doing a lot of the leg work w/ the title company for documentation etc. In this case – if a real estate agent brings you a buyer count your blessings and gladly pay the agent.
Coordinate Paperwork, Sales Contract By Yourself
Speaking of lawyers, you will need to call a title company to do your legal paperwork such as your deed preparation and other legal documents that go along with selling a home. There is some paperwork that you’ll have to fill out yourself like the sales contract if you do not use an agent. Make sure that you at least get some advice to help with your paperwork. It is possible to, in the extreme, lose your home if you do not complete the paperwork completely. When you use an agent to sell your home, they coordinate all of this for you.
Selling My Home With An Agent
Although this method of selling your home may be a more expensive way to do it, it is typically a far easier way to sell a property. Selling, or listing agents, are highly trained to get the word out about your home. They have a huge incentive to broadcast loud and clear that your home is for sale. Listing agents use all kinds of posting websites to advertise the homes that they represent. Real estate agents are all heavily networked not only with themselves, but with potential buyers. Real estate agents are “people people”.
Marketing and Advertising That Your Agent Might Do For You – The MLS
One of the first things an agent will do is enter your home into the Multiple Listing Service, or MLS. These systems are all over the U.S. Unfortunately, the MLS in New York does not connect to the MLS in Dallas. If you want to find a home in another city than the one you live in you will have to contact an agent in that new town to get homes for sale information. The system works in your favor as your agent will put you in the MLS and other agents will then have access to your property. Most agents search the MLS for homes for their clients. If yours is in there your home will at least get someone looking at it.
Other efforts that your agent might take are to enter your home’s information into other property listing websites like: Realtor.com, Trulia.com, Zillow.com, and PropertyNut.com. These sites are huge and have a lot of people snooping around them looking for a home to purchase. Another action your agent might take is to have open houses on the weekends. Maybe, to be different, you can get the agent to hold an open house on say Tues or Thursday or another day of the week. They can also put your home on a van tour route. This method brings other agents by your home so they get to look at it. These agents can then show it to their clients.
Ultimately, whether you decide to use a real estate agent or not, the decision is up to you. One thing I have been told over and over again by many real estate agents is that many homeowners selling their homes on their own eventually hire a real estate agent to sell their home. Why? Because Listing Agents sell homes, that’s their job. There are benefits to using an agent to sell your home. Good luck, and happy home selling.
Dave Mason has been in the Real Estate, Consumer Finance and Mortgage industry for nearly 18 years. He has a degree in Finance from the University of Arizona. Dave currently runs a blog on debt negotiation to help his clients become debt free through debt negotiation.
This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
