Updated: Jan 31
In most cases, people work with a real estate agent when they want to sell their home. While it can be helpful to have the support of a realtor, it can also be frustrating. If a realtor successfully sells your home, they’ll be entitled to a commission, which is usually between 5 and 6% of the sale price.
If you want to hold onto the entire proceeds of your home, there are other options. The first option is listing your home without a realtor or broker. You could also work with a home buying company like Homefront. Taking the time to learn more about your options will make it easier to decide what you should do next.
Why Sell Without a Realtor?
There are definite advantages to working with a realtor. An agent can handle many of the responsibilities associated with selling a home and can also ensure that your listing gets plenty of exposure. However, commissions aren’t the only drawback to hiring a real estate agent.
People often assume that working with a realtor means that your home will sell faster, but this isn’t always the case. Even though the current housing market favors sellers, buyers are usually looking for properties in excellent condition. If a property is dated or needs repair work, it could languish on the market.
On top of that, working with a realtor means you’ll have to give up a great deal of control. You’ll have to go along with the agent’s strategies. If the realtor you hire is busy, they may not be able to give your property much attention. You could find yourself scrambling to clean your home for an open house or renting a storage unit so that you can follow the realtor’s instructions for staging your property.
It’s also important to remember that the commission isn’t the only cost you’ll have to cover. In addition to covering the commission of the realtor you’re working with, you’ll be responsible for covering the commission for the buyer’s real estate agent. It’s also likely that you’ll be asked to cover closing fees and other costs.
Working with a real estate agent can be costly and time-consuming. Beyond that, it can be stressful to feel like you don’t have control over the sale of your own home. Thankfully, there are ways to sell your home without a realtor?
How Do FSBO Listings Work?
An FSBO (for sale by owner) listing is a way to sell a property without working with a realtor. In most cases, sellers choose to sell a home on their own because they don’t want to spend thousands or more on a commission. These transactions require the seller to handle all responsibilities and assume all legal risks associated with the sale.
FSBO listings require the seller to handle many tasks. Sellers must decide on an appropriate asking price, manage the marketing, and stage the home for sale. Sellers will need to schedule property showings and negotiate with potential buyers. If an offer is accepted, sellers will also have to prepare legal documents and close the sale.
However, there are also definite advantages to an FSBO sale. Firstly, you’ll be able to set your asking price and dictate the terms of the sale. Secondly, although, you’ll still have to cover the commission for the buyer’s realtor, you won’t have to pay a commission to your agent. With that said, for most sellers, the benefits aren’t enough to outweigh the drawbacks.
Selling a home can be a full-time job. You’ll be expected to take on a wide range of responsibilities. If you don’t have experience with home sales, you may find the process to be overwhelming. Although you won’t owe money to your realtor, you could wind up spending your own money to market your property.
To make things worse, FSBO listings usually sell for less than homes that realtors list. Even when taking the realtor’s commission into account, you could wind up taking in less overall. Moreover, since buyer’s agents are often reluctant to show buyers FSBO properties, it could also take your property longer to sell.
Listing as FSBO can be a great option if you plan on selling to someone you already know. It can also be a good choice if you have experience with real estate and time to devote to selling your home. However, if you have a full-time job or your real estate experience is very limited, this may not be the best choice for you.
Are There Other Ways to Sell Without a Realtor?
If you’d prefer not to hire a real estate agent, but you’re not sure that you want to take on the responsibilities of a FSBO, there’s another option to consider: selling for cash.
Homefront is a house buying company that purchases homes in any condition. There are no realtors involved, and the process is virtually hassle-free.
When you work with Homefront, you won’t have to get your home ready for buyers or wait for an offer to come in. You can simply provide some basic information about your home and set up an in-person or virtual showing. After we’ve had the chance to see your home, we’ll present you with a free, no-obligation offer. If you accept our offer, we’ll work with you to find the best closing date.
Not only will you be able to avoid paying commissions, but you won’t have to cover closing costs as well. We’ll cover all fees associated with your sale. You won’t have to make any improvements or do any staging. You’ll be able to get money for your home right away.
Accepting a cash offer means that you won’t have to have your home appraised. Unlike traditional financing, you won’t have to worry about our offer falling through. Since cash sales aren’t contingent on lenders, you can be confident that you’ll receive your money on time.
Because we pay in cash, we can also make offers on properties that would normally be difficult to sell. We can work with homeowners facing foreclosure or homes that need major repair work. Lenders often refuse to issue loans for homes in poor condition, but we’re happy to buy houses in any shape.
Working with us also means that you’ll have a lot of control over the closing process. We’ll work with you to set a closing date that fits your needs. If you want to get out of your home right away, we can close in as little as seven days. If you need to stay in your home for longer, we’ll help you find a closing date that’s a better fit.
By selling to a home buying company like Homefront, you can sidestep many stressors associated with selling a home. We’ll take care of everything for you and can help you get your home off the market quickly. We can help you if you’re in a difficult situation and will help you find the best solution for your home.
Selling for Cash vs. FSBO
Whether you sell for cash or try an FSBO listing, you’ll have a lot more control over the selling process. You’ll be free to handle things on your terms and can stick to solutions that are right for you.
Still, selling to Homefront and selling your home on your own are very different experiences. Before you make any commitments, you’ll want to better understand how these options compare.
Selling for Cash Is Faster
If your goal is to get your home off the market as quickly as possible, accepting a cash offer is your best option. After you contact Homefront, you can expect to receive an offer on your home very quickly. You won’t have to wait for a buyer to come along, and you won’t have to deal with any delays. Since we pay in cash, we can close on your home immediately.
In contrast, FSBO homes usually take much longer to sell than homes listed by a realtor. On top of that, it’s more likely for an offer to fall through. FSBO can be a valid option if time isn’t an important factor for you. However, if you need to sell right away, the quickest way to sell your home is to sell for cash.
FSBO Listings Require You to Handle Legal Paperwork
There are several legalities that must be taken into consideration during the selling process. When you sell a home yourself, you’ll be responsible for completing some documents, including:
· Mortgage payoff statement
· Certificate of compliance
· Property survey
· Comparative market analysis
· Preliminary title report
· Seller’s net sheet
You’ll also need to consider factors like land laws, look carefully at any purchase offers you receive from buyers before deciding whether you want to accept them, and make sure that you’re fully aware of seller disclosure laws and disclose all required information about your property.
All this paperwork can be overwhelming, especially if you don’t have much real estate experience. Some homeowners that choose to sell by owner wind up hiring a lawyer to help them manage the legalities of the sale, which can lead to additional costs.
Homefront has extensive experience buying homes and will handle all of the legal issues when we buy from you. You won’t be responsible for any documents or paperwork, and you won’t have to read up on local real estate laws. Legal issues are complex, and mistakes can lead to significant setbacks. If you’re not prepared to deal with paperwork, selling for cash is the best solution.
You Can Skip Open Houses
Open houses aren’t a requirement for an FSBO listing. However, because realtors won’t always show FSBO properties to buyers, an open house can be one of the most effective ways to get the attention of potential buyers.
Preparing for an open house can be a big challenge. You’ll need to get rid of clutter and stage each room in your home. You’ll need to deep clean the interior of your home, and clean up the exterior as well. You’ll need to depersonalize your space, handle repairs, and to top it all off, you’ll need to be at home to supervise the people visiting your home.
If you sell to Homefront, you can skip all of these steps. You won’t have to prepare your home for prospective buyers. In fact, we won’t expect you to do any cleaning before we buy your home. Even if your house is filled with clutter, we’d be happy to make you an offer.
Home Buying Companies Can Work With Sellers in Difficult Situations
Listing as FSBO means that you’ll have an uphill battle ahead of you. Many realtors won’t show their clients FSBO properties unless the price is unusually low. You’ll have to handle the marketing yourself and negotiate with potential buyers.
That can be tough enough in an ideal situation, but things can be a lot hard if you’re dealing with additional challenges. If you need to sell a home that’s occupied by difficult tenants or are trying to sell a property that’s not up to code, finding a buyer that’s willing to make an offer on your home can feel impossible.
Homefront buys all kinds of homes and can help you overcome any obstacles that are making it harder for you to sell. We can help sellers facing foreclosure, dealing with divorce, or trying to get rid of inherited property. We can work with you if you need to sell a home in another state, can help you get immediate cash. No matter what your issue is, we can help you find a solution.
FSBO Can Still Be Expensive
You might be able to save on commission fees if you list a property as FSBO, but there are still a lot of other costs you’ll be responsible for. In order to attract buyers, you may need to put money towards repairs and renovations. You might have to take time off from work for open houses, and you’ll still have to pay a commission to the buyer’s realtor during closing.
If you can’t afford to cover all these costs, selling for cash is a cost-effective solution. When you work with Homefront, you won’t be responsible for any extra fees. We’ll cover closing costs, and you won’t owe any commission fees. We’re prepared to renovate the homes that we buy, which means you won’t have to put your own money towards repairs. If you want to sell without spending money, you’ll want to work with us.
There are definite advantages of selling your home without a realtor, but doing things on your own can also be a big challenge. Many people underestimate just how much work is involved in FSBO listings. The majority of FSBO sellers already know the buyer of their home. If you’re still looking for a buyer, and you need to sell quickly, this might not be the right choice for you.
Thankfully, it’s possible to avoid realtor commissions and retain control without handling your sale yourself. Selling for cash is the fastest and simplest way to get your home off the market. If you work with Homefront, you’ll be able to customize your home closing and find a solution that’s right for your situation. Reach out to us today at 509-381-4663 or fill out an online form if you’d like to learn more.