How to Sell Your House Without A Realtor

Selling a house isn't exactly a walk in the park. It takes time, effort, and money. And if you're short on any of those, selling your house might seem impossible.

Unless, of course, you know how to sell your house without a realtor.

Now, before we dive in, let's be clear: selling your house without a realtor isn't for everyone. If you get nervous about negotiating, it might not be your best bet.

But if you're willing to put in a little extra work, you could save yourself a lot of money in the long run.

This article will go over everything you need to know. Whether you're trying to avoid those commission fees or just want more control over the selling process, keep reading for some tips and advice on how to sell your house without a realtor.

#1 Make A Deal With A Cash Buyer

If you need money fast or want to sell your house without a lot of hassle, try selling your house for cash.

You could look into cash buyers like Sell Your Property Fast or other big house-buying companies.

When you sell for cash, there's no need for bank financing, which makes the whole process simpler and more straightforward.

This approach can make your deal quick and easy, but keep in mind that you'll probably get less money for your house and might have to pay a higher transaction fee.

Positives of Cash Selling

Selling for cash has other perks too:

Avoid Inspection Delays

The National Association of Realtors did some research that showed about 16% of delays in closing house sales are because of long, time-consuming home inspections.

If you're selling your home for cash, the buyer will probably take your house as it is, which saves a lot of time on unnecessary delays related to full home inspections and fixing things up.

If your cash buyer isn't too worried, they might even skip the inspection altogether, making the deal quick and easy for everyone.

Avoids Hectic Home Showings

One big relief when you sell your house to a cash buyer is that you don't need to keep cleaning your home over and over to attract buyers like you would if you were selling the traditional way.

You don't need to spend extra money on fixing up or maintaining your home to make it look good for buyers. Usually, homeowners spend around $2,000 to get their homes ready to sell.

You can save time, money, and effort by avoiding the stress of home showings when you sell your house for cash.

No Need For Home Repairs

When you make a cash deal, the customer buys your house as it is, so you don't have to worry about repairs and paint jobs you'd otherwise have to do.

Also Read: Should I Repair Distressed Homes

This also means you don't have to make small changes to your home's appearance or style it to look flashy for customers.

This method also gets rid of the need to visit lots of hardware stores and spend a lot of money on fixing up the property and paying contractors.

Negatives Of Cash Selling

It would be too good to be true if we thought the cash selling process was perfect. There are some things that can have negative impacts on your sale this way:

Lower Rate

The biggest downside to selling your house for cash is that you'll probably get a lower offer.

In most cases, selling your house for cash means you'll get less money than what the market might have paid.

This happens because you're selling your house directly to the customer, and there aren't any middlemen involved who might have helped you get a higher price.

The fast and smooth selling experience that cash offers comes at a cost - the price of your house. Buyers use the ease and convenience of the deal for sellers as a reason to offer less for houses.

As most of the cash buyers are investors that have to sell the house themselves, they generally offer less profit.

It is estimated that the houses sold via realtors may have about a 10% higher price than those sold in cash, but the total costs selling with a realtor could be 8-10%, making it a wash.

No Bidding

Competition of buyers in the market during bidding can dramatically increase the value of a house.

Two investors might get into a bidding war and the value of the home could skyrocket.

But with cash selling, you miss out on the chance for bidding and competition between investors, which might mean you get less money.

Because cash buying is generally commercialized, sellers are often offered small amounts as the buyers are only interested in their money in exchange for quick financing and fast deals.

This is one of the drawbacks you'll face for being your own agent and selling your house by yourself.

#2 Sell To A Relative Or Close Friend With The Aid Of A Real Estate Attorney

Having a close relative or friend who wants to buy a house can be a relief as a seller.

It makes your deal more straightforward and trustworthy, and you might not even think about hiring a realtor to sell your house.

But you will need a real estate attorney who can guide you and your friend through the process.

Even if you're selling to your cousin or an old friend from college, involving an attorney is a must when selling or buying a house.

This is to make sure that the deal happens legally and smoothly and that you don't have to face any complications in the future.

Benefits Of Hiring A Real Estate Attorney

Having a real estate attorney on your team ensures that any deal involving buying and selling houses goes through without trouble.

Keeps Record of Legal Proceedings

The attorney keeps track of the whole process of appraisals, inspections, and any conditions the contract might have.

Also Read: Selling a house with unpermitted work

If there are any legal disputes in the future, the attorney can show all the documents as evidence to help you win the case.

Because all the details of closing the contract, along with the dates, are written down with the attorney, it makes it a fair deal that everyone understands and generally follows, as the attorney has everyone involved in the deal agree on all the important issues.

Serves As Legal Expert In Case Of Disputes

Even family members can disagree on the legal parts of the deal because of the large amount of money involved from both the selling and buying sides.

Any claims about hiding or not disclosing property problems, or disagreements over a closing date, might seem to ruin the deal.

The attorney would act as a middleman and advise sellers and buyers to agree on a reasonable middle ground that follows legal rights.

The job of a real estate attorney isn't simple, and they have a lot of work to do to complete your deal. Because of these factors, having an attorney is more of a necessity than a choice.

Having an Attorney Can Actually Be Economical

Hiring an attorney might cost some money, but considering that the deal is worth so much, hiring an attorney is economical.

An attorney would take a fixed amount of $2,000 to $3,000 per transaction compared to the 5%–6% a realtor charges.

You'll save money that you can use somewhere else.

Drawbacks Of Hiring An Attorney And Selling To A Relative

Hiring an attorney is a great idea if it fits your situation, and we've already talked about this.

However, this step might come with some drawbacks as well:

An Attorney's Skills are Purely Legal

The deal you make with your relative or a friend requires an attorney, but that's not the only thing this deal needs.

You might not have any legal problems with the buyer, considering the legal insight of an attorney would solve those problems.

But the attorney probably wouldn't be able to negotiate the price or market your home better from an economic point of view.

A realtor, on the other hand, would help you set the perfect market value for your house.

Deals with Friends and Family May Result in Disputes

Selling your house to someone close to you might result in small or big disagreements because this deal involves a lot of money and time.

This could cause problems in your relationships, and once sweet and trusty friendships can turn into bitter rivalries.

To avoid this, stay professional during the entire sales contract and make the deal as a separate legal entity.

#3 Make The Sale Yourself On The Open Market (FSBO)

You can also sell your house without help from a realtor and use the open market to make the deal yourself.

This could be more economically beneficial than agent-assisted home sales, giving you complete control over the process.

But with the money saved and the added control comes a huge burden of responsibility for making such a big deal that you should be fully committed to.

You'll need to arrange the advertisements for your house yourself and decide the price by analyzing the current trends and estimating the value of your house.

This process would also require you to arrange an open house and walk-throughs for potential buyers.

After all this, you still need to be aware of the legal stuff and get a real estate lawyer to help with the paperwork and avoid any mistakes.

FSBO Benefits

FSBO sellers enjoy certain benefits over other sellers, and choosing to sell your home alone can have some advantages.

You Can Keep The Realtor's Fee

The biggest benefit you get from cutting out the agent from the deal is that you save on the fee the agent would charge if you used their services.

But there's a catch: you need to put in a lot of effort as the marketing and negotiating part all falls on you.

Moreover, you need to be careful as any legal mistake can result in losing money. You should keep these important things in mind while selling your house.

Multiple Listing Services Can Be Used

Selling your house faster requires advertising and marketing it to people who need a house.

You can use a Multiple Listing Service to achieve these goals to the fullest and market your home to people who are buying a house.

This would put your home in front of a larger audience, greatly increasing the chances of selling your house as quickly as possible.

It's recommended to list your home on a Flat-Fee MLS Service, which costs a few hundred dollars to provide better MLS service.

Cons Of FSBO

I've already talked about the advantages of selling your home as an FSBO, but this technique has drawbacks that you should think about before going ahead.

"For Sale By Owner" Houses Generally Sell For Less

Selling your home by yourself can bring you less money than one sold by a realtor.

According to research, the houses sold via FSBO, on average, sell at 30% lower than those marketed and sold by real estate agents.

Most real estate agents would be better at their job than you, and they'll probably be able to sell your house for an amount that you can't.

FSBO Brings The Risk of A Scam And Is Less Safe

Most FSBO sellers feel at risk when they're solely responsible for all the home showings and other repairs. A lot of people don't even intend to buy a house but waste their time and the owners' time by coming for a showing.

Additionally, you might not be able to figure out the market value of your home as well as an experienced real estate agent.

When you're selling your house through a realtor, they would take care of the home showings and bring only those people who are genuine buyers.

FSBO sellers are also at risk of scamming as they're generally not experts in handling such large transactions.

Scammers can even trick the sellers into tricky paperwork and legal complications.

If you're aiming to sell your house via FSBO, be sure you don't lose it to scammers. A real estate attorney could be hired as they would help you avoid any legal troubles.

FSBO Is Time Consuming

When you choose to sell your house without hiring an agent, you should be prepared for the challenges that come with it. One of the biggest challenges is that it takes a lot of time.

You must do many things on your own, including making phone calls, setting appointments, marketing your house, negotiating with buyers, and closing the deal.

You should only choose FSBO if you're ready to put in the time and energy required to successfully sell your house.

Hiring a real estate agent would help you free up some time as the agent would be handling most of the work.

What Realtors Say About FSBO

Joel Carson, a realtor from Salt Lake City, Utah, has some interesting thoughts about people trying to sell their homes on their own.

He points out that for most people, selling a house is a really big deal - probably the biggest financial move they'll ever make. Carson says it's "the largest transaction that people do in their life," and he talks about how not having a good real estate agent can make things tricky.

It can be hard to keep everyone on the same page, leading to mix-ups and confusion between sellers and potential buyers.

He also mentions that there's a lot to know about the real estate business. It's not as simple as it might seem at first glance. There are plenty of complicated bits to figure out.

Carson's advice? Even if you're thinking of selling on your own, it's worth chatting with an agent.

They can fill you in on what's happening in the market right now - what kinds of houses are selling and for how much.

He also suggests taking some time to figure out what your own home might be worth and what you might need to do to get it ready for showings.

Final Words

Selling your house without a realtor has advantages and disadvantages that you should think about before making a decision.

Weigh the pros and cons to see if selling your house as an FSBO is the right choice for you.

If you choose to sell your home without a realtor, take the necessary precautions to avoid any legal trouble. Marketing your home is essential to ensure it sells as quickly as possible.