Are you ready to move on to your next home but don’t want to pay those *pesky* Realtor fees? Read on to discover how you can sell your home on your own without utilizing the services of a real estate agent.
1. Declutter your home
First, set up your home to have pictures taken that can be posted online or sent to friends/family who may be interested in purchasing your home. The key here is to declutter your home as much as you can-donating items to local charity or having a garage sale are great ways to get rid of unused or unwanted items. It’s recommended to touch up paint, trim, and even have flooring deep cleaned to make your home as visually appealing as possible.
2. Schedule an independent inspection (optional, but highly recommended)
Next, get in touch with an inspector who can do a full home inspection on the mechanical and structural components of your home. The cost is usually $300-500. He or she will give you a detailed report of what are major safety concerns as well as more minor repairs. At that point, you have a choice of whether or not to complete the repairs; your buyer will most likely perform his or her own inspection so at least you won’t have any surprises! Once you have this information, you will need to report it on the “Seller’s Residential Real Estate Sales Disclosure” that is required by Indiana law once you put your house on the market. This disclosure is required whether or not you have the inspection performed.
3. Schedule photos and begin marketing home
You can either take photos of your home yourself or hire a professional photographer which costs $120-$250, depending on the number and type of photos you order. Once you have the photos, you will want to create a listing either on Zillow (free to seller) or hire a “flat fee MLS” service provider so that your home gets on the MLS and multiple other websites (not just Zillow). The flat fee service companies charge $500-$1000. In both instances, you will upload your photos to these websites, input your home’s technical information (both exterior and interior) and set the asking price.
4. Schedule showings
If you are living in your home, you will need to coordinate with buyers and their agents directly to coordinate showings of your home via phone and/or e-mail communication. You will have to coordinate how they can access your home as well as following up with them to get their feedback and level of interest. You will also be responsible for taking their feedback into consideration and making any necessary changes to your home. If you are not living in your home, you will still need to do these activities, it will be slightly less to coordinate as you won’t have to “reset” your house to make it show-worthy before potential buyers come over.
5. Negotiate sale
Once you have an offer, you will now be responsible for negotiating the terms of the sale. This means you will have to interact with the buyer’s agent (as 89% of buyers utilize a real estate agent’s service) or with the buyer directly. This is not just about the purchase price of the home: does the buyer want closing costs? Or have a close/possession date that is earlier or later than what you would like? Do they want to use a different title company than you do? What about financing? Are they pre-approved for a loan with a reputable lender? How long will you give them to perform an inspection? The standard Indiana Association of Realtors Purchase Agreement has these items and more that are all negotiable between the buyer and seller.
6. Coordinate buyer’s inspection and negotiate response
After the purchase agreement is agreed upon, the buyer will most likely want an inspection performed on the home. They will then provide a response to the inspection and ask for certain items to be replaced/repaired. At that point you will negotiate what you will/will not repair or if you will provide seller’s credits at close. Again, you will be most likely doing these negotiations with an experienced Realtor who knows how to get the best outcome for their buyer.
7. Coordinate close of sale with the title company
In addition to the seller’s disclosure and purchase agreement, there are other required documents that the lender and title company will need to complete the sale. They will be able to help you fill out those forms. When you get to the closing table, depending on what you negotiated, you will be paying at least $1000 in closing costs. This could include seller’s credits as well as a Realtor commission for the buyer.
So, are you up to selling your home on your own? Keep in mind, according to the National Association of Realtors, homeowners who list on their own typically earn 5.5-26% less on the final price of their home compared to homeowners who utilize the services of a real estate agent. Is it any wonder why? During a real estate transaction, there are many points of negotiation and coordination to make sure the process happens smoothly.
A better alternative-you could hire me to help you net the most amount of money, in the last amount of time, with the least number of problems so that you can focus on living your life. Statistically, the 3% commission you would pay me to list your home will help you net much more than if you list your home on your own, saving you both TIME and MONEY.
I’m curious…do you have what it takes to sell your own house? I’d love to hear your thoughts on how you would sell your home on your own!
