How to Do for Sale by Owner
You have options when selling your house. You can list it through a traditional realtor or you can simply place a “For Sale By Owner” sign in your front yard and market the house yourself. There are a few things to keep in mind if you’re planning to sell your home without a realtor.
Why Would You Sell Your House Without a Realtor?
In a typical real estate transaction, the seller generally pays the commissions of both the buyer’s real estate agent and their own. This can be up to 6% of the home’s selling price, and, if you haven’t owned your house long enough to have built substantial equity in it, that 6% can make a difference in your profit.
Another reason that many people choose to sell their house themselves is to avoid being locked into a contract with a real estate agent. These listing contracts can be up to 6 months, and if your home isn’t selling, you don’t have any other options beyond the services that the realtor provides.
Disadvantages To For Sale By Owner
While there are some significant financial advantages to a sale by owner transactions, there are also disadvantages to not using the services of a professional realtor. First, a real estate agent has access to a large database of potential buyers and can help find people that have an interest in your home and the budget to afford it.
Not only that, a real estate agent’s job is to market your property. This includes open houses, putting it into a shared listing database for other buyers’ agents to find it, and arranging showings and tours for potential buyers. As an owner-seller, you’ll be responsible for making the house yourself, as well as fielding calls from interested parties and scheduling tours. Many busy people don’t have the time to add this added stress to their daily lives.
What Do I Need For Sale By Owner?
Before you place a Sale By Owner sign in your yard and take out advertisements, you’ll need to acquaint yourself with the ins and outs of real estate law. Most of the information you need about selling real estate can be found online, but if you have doubts consult with a real estate lawyer so that you don’t make a mistake that can cost you the sale.
Preparing your home for sale yourself is the same as preparing it as you would with a traditional real estate agent. Take the time to give it some curb appeal, as well as making the interior attractive to buyers. Consider giving your walls a fresh coat of paint, and if you have bold colors on the walls, replace them with more neutral colors. Clean out much of the clutter and remove personal items and photos, as well, so that buyers can easily envision themselves living there.
Make sure that your house is clean, and remember to contain your pets during showings. Curb appeal is important, too, so ensure that your lawn is mowed often and that any landscaping is in good condition and weed-free.
Alternatives to Owner House Sales
You have options when it comes to selling your house, besides listing with a realtor or selling it yourself. You can opt to sell your home to a cash investor or group of investors that will buy your home as-is. No need to repair or paint, and no lengthy wait time between listing and closing. Cash buyers don’t need to apply for a traditional mortgage loan because they have their own funding. This means that you can close quickly, in as little as ten days.