In today’s volatile real estate market and with home values falling it has become common for individuals to consider selling their homes privately versus through the traditional real estate agent. This article will give you details on what to consider when deciding whether or not to sell your home privately.
Let’s look at why many people are considering the option to sell their home privately (meaning without using a real estate agent). In most cases the main reason is to save money. The research shows that you can save as much as $9,000 by selling privately but that assumes you are in a market that doesn’t require you to do a significant amount of marketing. An experienced real estate agent can give you guidance on the right price to ask for your home, has access to a network of other agents and will likely be able to reach more people who are looking for a house.
When trying to sell your home privately you must understand that it affects the marketing process. If you sell your home without the help of an agent, you must look at alternative for getting you home listed in Multiple Listing Services (MLS) – a database full of house listings given out to homebuyers. There are companies available that offer flat rate MLS listing services. This will give you the same exposure as you would get with a traditional Real Estate agent. I would recommend offering to protect any agents who bring buyers to the table with a 2% – 3% commission. This is much better than paying 5% – 6% which is the standard for a Real Estate agent fee. Of course, if you find the buyer on your own then it wouldn’t cost you anything, find more info.
In addition to getting on MLS you should look at methods of attracting attention. You could hold an open house, place ads in your local news paper and without question try posting ads on Craigslist. Keep in mind that when buyers see that you are selling your home privately they will often offer you a lower price because they assume you are saving money from not hiring an agent. Just be prepared for that to happen and have a counter offer in mind.
In today’s market selling a home privately is very common and with the unstable market many sellers do not trust anyone else to sell their home. Selling your home privately will mean that you are in control of all aspects of the listing and selling. You must make yourself available for questions and showings. You must also understand that if something goes wrong or needs to be redone that you will be responsible for fixing any issues that may arise.
If you’ve decided that selling your home privately is the best option for you then here are some extra preparations you need to be aware of. Be sure that your house is prepared for the sale. You’ll need to clean and remove clutter from your home, removing excessive personal items or photos that may be around the house. Remember that you are going to be competing with Real Estate agents in the area and any houses they may be trying to sell. Do whatever you can to stand out from the rest. Make sure your house will leave a lasting impression. Look for website that offers “selling by owner” information or kits. It is important that you get maximum exposure in both the free methods and with paid methods if you can afford to do so.
Be sure to research about the legal requirements and contract requirements in your particular area. This may take some time and may require input from an attorney so start researching now and be prepared for when the selling date arrives. Although selling a home privately can be tricky, some say that if you have three fee hours a day available to dedicate to it and your home is priced right then you will likely be more successful than a typical agent. With a little work and the right marketing you’ll sell your own home successfully and save yourself a lot of money that might otherwise be put to better use.