Thinking about selling a house without a realtor? Selling a house is one of the biggest financial transactions a homeowner will make in their lifetime, and the process can be complicated. Most homeowners consider selling their homes without a realtor because they want to save on the commission fee.
However, working with a realtor offers a number of advantages in the selling process that make them well worth the expense.
In this post, our team at Your Home Sold Guaranteed Realty — The Nathan Clark Team will discuss what you need to know about selling a house without a realtor, so you can make an informed decision on the best way to sell your home.
Benefits of Selling a House For Sale By Owner
1. Save on Commission Fees
As a home seller, you are traditionally responsible for paying both the listing agent’s commission and the buyer’s agent’s commission.
The average commission rate is around six percent of the home’s final sale price, with each agent receiving three percent. This can be a significant amount of money, especially if you’re selling a high-value home.
It can also feel pricey on top of closing fees and other expenses related to the selling process, like renovating your home.
While commissions are technically negotiable, a lower commission isn’t automatically a better deal for you. Instead, you need to consider the value the realtor brings to the table.
2. More Control Over the Process
Without a realtor, you can set the selling price, do all the marketing, host open houses and showings on your own schedule, and interact with buyers directly.
So if you want to control your home sale from start to finish and have marketing and negotiating experience, you may be fine taking on all this work.
However, most home sellers are busy with finding their new home, packing their belongings, and getting their home in move-in-ready shape. These tasks are overwhelming enough without worrying about the sale on top of it all.
So it can be well worth the cost to have someone else market the home, schedule showings, review legal documents, and handle all the small details of a transaction.
Drawbacks of Selling a House Without a Realtor
1. Pricing Your Home Incorrectly
Selling your home without a realtor means you don’t have access to the same professional resources.
As a result, it’s harder for you to see long-term data about the historical pricing patterns in the area. It’s also more challenging to find the most up-to-date information on currently listed and recently sold homes in your area.
Without this data, you could end up setting an asking price that’s too low or too high. Either way, you’ll miss out on thousands in potential profit.
Buyers will jump on the opportunity for a home priced lower than market value, or ignore a home priced too high in favor of other options.
2. Exposing Yourself to Scammers
The major risk of selling a home on your own is exposing yourself to financial or personal danger. Selling a house without a realtor opens you up to scam artists who can steal your money or personal information by posing as buyers or title company representatives.
It’s also a risk to have strangers enter your home for showings. You can’t be sure who exactly will show up at your home, and it can be dangerous to meet them alone.
With a realtor, you have someone who can vet home buyers for you and be there with you during showings and open houses. Realtors also take steps to ensure you and your personal information are safe, such as using a lockbox and pre-scheduling showings in advance.
3. Spending More Time, Effort, and Money
Selling a home is much harder without the same resources or networks as realtors. For example, you won’t be able to list your home on the Multiple Listing Service (MLS) without going through an agent. Even if you don’t hire one, you’ll have to pay a fee to a company to get your home listed on the platform.
In addition, realtors have a large network of buyer’s agents and other real estate professionals that they can use to get the word out about your property. This allows them to get it sold fast, especially if they have a good reputation as a realtor.
If you decide against hiring a realtor, you may find that any savings you made from avoiding the commission fee get drowned out in the marketing costs associated with selling a home.
4. Buyer’s Agents May Not Want to Work With You
Buyer’s agents may hesitate to work with FSBO home sellers because they often prefer working with a colleague who is familiar with the ins and outs of real estate transactions.
They may be concerned about the deal falling through at the last minute or wary that you might ask them for advice. Regardless of your experience, they might also have a negative impression of FSBOs as unreasonable or difficult to work with.
5. Potential for Legal Issues
Lastly, selling a house without a realtor means that you’re the one taking legal responsibility for the home sale. You’ll have to follow all laws and regulations regarding real estate transactions in your state and county.
You’ll also need to read through the purchase agreements and other closing paperwork, which can have dense legal language.
If you make a mistake in the process or a dispute arises between you and the home buyer, they could take legal action against you.
Our Team Can Help You Sell a Home in New England
It’s not impossible to sell a house without a realtor. However, a realtor gives you the best chance of selling your home fast and for top dollar, and ensuring the entire transaction runs smoothly from start to finish.
This is why it’s key to find an experienced professional with in-depth knowledge of your neighborhood and the area as a whole.
At Your Home Sold Guaranteed Realty — The Nathan Clark Team, we’ve been serving New England for over 21 years. During that time, we’ve developed a reputation as one of the best home sellers– and that isn’t an exaggeration. Our data speaks for itself. On average, we sell homes 30% faster and for nearly 7.5% more money than our competitors.
In addition, we offer several seller guarantees, such as our Guaranteed Sale Program, that make selling a home with us as risk-free as possible.
To learn more about our guarantees or what it’s like working with our award-winning team, give us a call at 401-288-3557 or fill out the form below.