4 Ways You Can Sell Your House Without a Realtor
Thinking of ways to sell your house without a Realtor? You’re not alone. Over the last 10 years, the real estate market has changed considerably. With the advent of sites like Zillow and Realtor, consumer access to inventory has changed how people access listings. The shift in consumers looking for alternative ways to sell their house without a realtor has also increased.
Why are consumers looking to sell their house without a realtor? There are many reasons but price and ease seem to be the leading reasons. If you sell your house without a realtor, you can save significant amounts money and in some cases, time.
Keep in mind however, selling your home without a Realtor can have some negative outcomes that you should be aware of. In each of the scenarios, we will review the good and the bad of attempting to sell a home without a Realtor.
1. Sell Your House Without a Realtor by Selling For Sale by Owner
The most common way you can sell your house without a Realtor is selling for sale by owner. There are many pros and cons to selling for sale by owner but if you are successful, you can save tens of thousands in some cases. Be sure to do your homework and prepare for different scenarios. Here are 5 things you can do to prepare your home to sell for sale by owner and successfully close on your house without a Realtor.
When selling For Sale by Owner, most people still payor offer a buyer agent commission. This commission usually ranges between 2.5% and 3%. Compared to a full 6%, the savings is still pretty significant. Other fees that are often overlooked in a FSBO transaction are additional closing costs. In the states BlueMatch operates in, a licensed agent or attorney must facilitate the transaction. Most people selling for sale by owner will either hire an attorney or use the title company to close. In both of these cases, you will usually take on additional fees. These fees will usually range between $500 and $2,000. Again, these fees still beat what a traditional listing agent charges.
If you are successful selling your home directly to a buyer without an agent, your savings could rack up into the tens of thousands of dollars. Keep in mind, this is rare and requires a great deal of patience. At BlueMatch for example, less than 5% of our homes are sold without a buyer agent. The key to this is not having any urgency in having to move. If you can wait for the perfect buyer, this option can be worthwhile.
The Not so Good
If you decide to take the route of FSBO as an alternative to selling your home without a Realtor, your marketing options are limited. Most consumer facing real estate sites only allow syndication through the MLS. This leaves you with the only option listing as a FSBO on Zillow and Trulia. Listing on Zillow and Trulia are great because they are clear market leaders when it comes to site traffic in their space. Listing as a FSBO however is a different story.
Anyone who has ever listed as a FSBO on Zillow knows that right after you list, your phone will be bombarded with agents calling to try and list your home. This can be incredibly frustrating and annoying. The other major issue FSBO’s deal with is agents flat out not showing your listing. Statistically speaking, almost 90% of all homes purchased in the US were purchased using a Realtor. By cutting out 90% of your potential market, you severely hurt your chances of maximizing sale price and selling in a timely manner.
2. Sell Your House Without a Realtor by Selling to an iBuyer
Another alternative to selling your house without a Realtor is with iBuying. iBuying is a fairly new concept that is gaining popularity. Sites like Zillow and Offerpad are buying homes with instant offers. iBuying mostly appeals to people looking for a convenient and fast way to sell their house. If you are in a hurry to sell your home and don’t mind taking less than it is worth, iBuying is a great way to sell your house without a realtor. The downside to iBuying is you usually get below market value for your house and iBuying is only available in a few markets.
If you reach out to an iBuyer and they deem your home to be a good fit, you can close and fund in a matter of days. You don’t have to worry about showings, staging, or investing in repairs. If you have urgency in needed to relocate for a job, you can be out of your home very quick. There is no negotiations, concessions, or general back and forth. The friction is almost 100% removed and the process is usually very seamless.
Think of iBuying as a no-haggle car lot. CarMax shook up the car buying world when it first came out with its no haggle car buying and selling. People were willing to take less and buy for more to avoid the haggling and stress of traditional dealerships. The same is now true when it comes to the antiquated and stressful process of home buying and selling.
The Not So Good
Although iBuying is a very convenient and easy way to sell your home, it comes with a high price tag. Most offers are fairly close to market value. Once an iBuyer determines the buying price, they will deduct their fees. These fees are usually around 11%-12%. This is pretty steep considering a traditional agent is only 6%. On a $500,000 home, the additional cost equates to about $30,000. that is a pretty big price to pay for convenience.
Most iBuyers purchase homes in the $350,000 and under range. The fees on a less expensive home are less compared to our example but they are still relatively high in relation to the sale price. If you are willing to lose thousands in your home transaction in order to avoid the real estate process, iBuying is a great option.
3. Sell Your House Without a Realtor Using a Flat Fee Services
So this is technically not selling your home without a Realtor but it can be a good alternative. Many flat fee services can save you thousands in commission and sell your home about as well as a traditional agent. Not all flat fee agencies are created equal so you will need to do your homework. Look up reviews, past sales, and research them online. Make sure that the price they charge is in line with the service they are providing.
Depending on the flat fee real estate company, many offer full service or close to full service realty without the percent based fees. Fees for flat fee Realtors usually range between $2,000 and $5,000 dollars. The other upside is that you do not have to pay additional closing fees through title or hire an attorney. The savings using a flat fee Realtor vs selling FSBO are comparable. Flat fee Realtors are slightly higher but they usually come expertise and less stress. When you list with a flat fee Realtor, it is also illegal for agents to solicit your business. This is great if you are coming from a FSBO listing and received nothing but annoying agents trying to get your business. Once you list with a flat fee brokerage, those calls stop for the most part.
The other great thing about flat fee Realtors is that agents for the most part, do not boycott their listings. You should see a significant increase in showings compared to FSBO.
The Not So Good
Flat fee Realtors vary company by company and state by state. Some provide excellent services while others could leave you hanging out to dry. Almost all flat fee Realtors lock you into a listing contract ranging from 3 months to a year. Many also charge upfront fees and cancelation fees. When signing a contract with a flat fee Realtor, understand the terms and conditions. Make sure you aren’t signing anything that binds you for long periods of times. If there is an upfront fee or cancelation fee, we highly recommend looking around for another company. Any reputable company will only charge you fees upon successful completion of your home sale.
4. Sell Your House Without a Realtor Using Alternative Real Estate Platforms
Alternative real estate platforms like BlueMatch allow you to list and sell your home with the same tools and support Realtors have. These platforms are gaining popularity in many markets and are great alternatives to listing your house without a realtor. You can usually sell your home with the same success as using an agent but without the commission. The downside to these platforms is they are not available in most markets and they lack human interaction.
Whether you decide to sell your home to an iBuyer or use a new method to list and sell, selling your home without a realtor can be greatly beneficial to your bottom line and time. As home prices rise, so do agent commissions. This is real money that can add up very fast.
As always, happy selling!