So what does it mean to sell your house without a real estate agent? Read on and we’ll show you! We live in a world where everyone does everything without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even remodel homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent?
Agents cost money. It’s that simple. In many cases, it’s a lot of money. A real estate transaction can cost six percent of the final property sales cost. If a property sale price is $500,000, this can cost sellers $30,000. This amount is split between both the buyer’s and seller’s agent.
This is a considerable amount that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage. Just increasing net profits is attractive to sellers. Keep in mind, just because you don’t have an agent as a seller doesn’t mean you can preclude the buyer from having an agent.
Most sellers end up paying between two to three percent to the buyer’s agent in self-represented sales. However, if you are new to real estate sales, the buyer’s agent might try to negotiate a bigger commission because he will most likely be doing work on both ends of the transaction to make up for your lack of experience and understanding. Don’t let this prevent you from keeping more money in your pocket by hiring a real estate agent. Do your research and know what steps need to be taken and in what order before you sign anything.
Even though you can’t force the buyer to not have an agent, it doesn’t become negotiating power to say you are more flexible in the price if there is no outside representation. Buyers might feel they are able to negotiate a better price without an agent because they know the amount of savings in the transaction.
Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the escrow process. When a seller is comfortable dealing with a buyer or buyer’s agent, he can save at least three percent of the commissions by representing himself.
It is also possible that the transaction is very straightforward. Perhaps it is a new construction or being sold as is and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.
A Few Things To Consider When Selling Your House Without A Real Estate Agent
Once you’ve done your research and know what your house is worth and have successful negotiated a sales price that makes you and the buyer happy, you are not quite done negotiating yet. You will need to negotiate a closing date that works for both you and the buyer. There will also be an inspection, especially if selling your house to a traditional home buyer that is acquiring a mortgage to purchase the house. Then there will be an appraisal of the property. This is where, by putting in a little extra work, you can ensure your house appraises at or above the sale price. Go through your house and take note of all recent improvements. This can be a whole new kitchen or just new counter tops. Did you add additional insulating to the attic to improve the efficiency of your home? An appraiser isn’t going to know how old those cabinets or counter tops are and by telling him or her of their recency you’ll be setting yourself up for success.
There are services out there that, for a flat fee, will list your houses on the MLS so it gets maximum market exposure. This is just what a real estate agent is going to do. You can hire your own photographer to take photos of your home or put that photography hobby to work and save $300 to $500 by doing it yourself.
Keeping Things Personal
There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. In cases like this where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Of course, there needs to be a lot of trust among all parties in this type of transaction scenario.
Even when parties to a sale know each other, legal sale requirements must be followed. Adhere to all Indianapolis codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.
Avoid All The Hassle Of Selling Your House
There is another option to consider, selling your house for cash to Ittenbach Capital. We are real estate investors that buys houses in Indianapolis, Noblesville, Westfield, Carmel, Lawrence, Fishers, Greenfield, Greenwood, Avon and many more cities in and around Indianapolis. We pay cash for your house and can close on your schedule; as fast or as slow as you like. We buy houses in Indianapolis for cash and in as-in condition. You won’t have to worry about an inspection or an appraisal. You won’t have to worry about a buyer dropping out at the last minute because of a change in income or marital status. Our process of buying houses for cash is fast and simple. If you would like to discuss selling your house for cash then give us a call today at (317) 648-7766 or fill out this form and we’ll get in touch with you.