Today’s home sellers are looking to maximize the profit on their property. For some, this means hosting an open house or taking out a home improvement loan. Others, meanwhile, choose to sell their home without a realtor.
It may seem like a sensible decision when you consider that real estate agents earn a commission on every home sold. And yes, this figure can be significant depending on the property’s value and final price. But don’t just think that selling your home on your own will be a piece of cake.
Here are a few things to keep in mind before selling your home without a realtor.
There’s a lot to learn
Get ready for a crash course in real estate. You’ll need to understand such transactions and any laws that relate to your property’s sale. But before doing any of this, be sure to have a solid grasp of general real estate terminology.
Once you’re comfortable with the selling process, it’s time to obtain the documentation required for closing. Note that you’ll be reaching out to various professionals such as attorneys and appraisers along the way. Between educating yourself on real estate and sifting through paperwork, you might find selling your place to be another full-time job.
Calculate your home’s fair market value
Colorado remains a hotbed for real estate. But just because we’re experiencing a favorable market doesn’t mean you can take a haphazard approach to pricing your home. The last thing you want is for your residence to sit for an extended period of time without selling.
Online pricing calculators make determining your home’s value easier than ever. Spend some time obtaining estimates from popular sites such as Trulia and Zillow. Then reach out to a local agent and ask if they would provide a competitive market analysis.
Prepare your home
This becomes all the more important if you decide to go through this process without a realtor. In addition to performing a thorough cleaning, you should also complete any repairs or projects that were previously put on hold. The only way you’ll receive top dollar for your home is if it’s evident that you maintained it.
Advertise, advertise, advertise
At this point, your home looks stunning. But it’s not going to sell itself even if you hoped it would. That’s why it’s important to market the house in a number of ways.
Think of how an experienced real estate agent would advertise your property. Sure, an old-fashioned “for sale” sign is a decent place to start, but it shouldn’t be your only tactic. Make it a point to create flyers and post on multiple real estate websites, too.
It may also be worth signing up for the Multiple Listing Service. Doing so allows you to reach more potential buyers and gives you access to what brokers use. Just see that you would benefit from the MLS, as it costs about $400 per year.
Negotiate and close the sale
You essentially act as your own agent in a “for sale by owner” (FSBO) scenario. Since a realtor typically handles the negotiating and closing steps, you’ll have to handle these responsibilities without assistance. Fortunately, you can negotiate a good deal for both sides and get to the finish line.
Something else to be aware of here is that you’ll communicate with the title company on more than one occasion. This back-and-forth keeps sellers on track with a property inspection, appraisal, and title insurance. Failing to work effectively with the title company could lead to closing delays.
Why use a real estate agent?
Taking the FSBO route is easier said than done. Obviously, it’s tempting to save thousands of dollars by not hiring a real estate agent. But a lot can go wrong when selling a property yourself, especially with the legal liability involved.
Rather than spend countless hours learning how to list a home FSBO, why not put your trust in a realtor? An experienced real estate agent will do all the heavy lifting so that you only have to worry about moving out of one home and into another. Plus, many realtors have a list of qualified buyers who are ready to put in a competitive offer for your home.
But don’t make the mistake of assuming that all realtors are the same. Read up on how to choose a real estate agent for selling your home, and then call our team at American Home Agents. We always have sellers’ best interest in mind.
Get in touch with American Home Agents at (303) 695-5900.