If you’re considering selling your home without a real estate agent, consider the cost. (iStock)
With a low interest rate, there are enough buyers who want to buy a new home in the current real estate market. If you want to cut your expenses, consider skipping real estate agents and selling your home yourself to take advantage of the high demand. However, it’s important to remember that selling your home isn’t free.
When working with a broker, sellers can expect to lose about 5% of the sale price in brokerage fees. If you sell your home for $ 400,000, the brokerage fee can be $ 20,000. That lowers the profit you can make from the equity in your home.
Some sellers choose to sell their home without the help of a real estate agent to save money. With the high market value and high commission costs, this may seem like the cheapest way to go, but choosing to sell alone comes at a cost of its own.
If you are considering whether selling your home without a real estate agent is the right choice for you, visit Credible to connect with experienced credit reps and answer your mortgage questions.
Duties and costs associated with selling your home without a middleman
If you are considering selling your home yourself, there are several responsibilities that you will need to take on. These are things that a broker would handle differently:
1. Determining the home value and listing price of your home
One of the most important parts of selling your home is finding the right listing price. You don’t want to list your real estate too low or you will lose money, but if you list it too high, your home won’t attract buyers. You may have to pay an appraiser to give you an estimate.
2. Preparing the house for listing
Whether you are using a real estate agent or not, you should do some prep work before you put your home on the market. Promoting your home the right way can get you closer to your selling price. Preparatory work includes cleaning the house, tidying up the yard, and making necessary home repairs. However, you don’t have an agent to help you identify problem areas. You can also hire a home inspector before listing your home to make sure there are no issues worth mentioning. Remember, restraint is important and it affects home sale prices. If you want your home to be sold, you need to prepare it.
There are several ways to sell your home. When you decide to sell, it doesn’t just mean putting a “For Sale” sign in your yard. While you will get some attention, it may not be enough. You may want to consider listing your home on multiple websites and have your sale listed on the local MLS. A listing on the MLS costs a few hundred dollars, depending on your state. However, this gives your property maximum exposure. You may also want to hire a professional photographer for your ad.
Do you have questions about selling your home and your mortgage? Visit Credible now to connect with experienced credit professionals and answer your mortgage questions.
Some agents provide staging services (when a house is empty, they place furniture and decorations to make it look attractive). Paying a stager can cost several thousand dollars, or you can do it yourself.
If you are selling your home on your own, you will want to hire a lawyer to help with the paperwork. It would be best if you had someone to draft the purchase agreement and deed. Not all states require you to work with an attorney, but some do. And unless you’re incredibly comfortable with legal documents, they can make this part of the sale of your home much more manageable. While you may manage to sell your home without any real estate agents on the list, a real estate attorney is crucial to have. Real estate contracts, property taxes, and home inspections are tricky, and a lawyer can help you navigate.
You may have to pay off the remaining balance of your mortgage (if your home doesn’t pay off the full balance of your loan, you’re still responsible for what’s left). If you make money from the sale of your home, you will likely have to pay capital gains tax.
Selling your own home can save you some money, but you need to be available to answer phone calls in the evenings and on weekends and be available for screenings. These are the hidden costs of selling your home yourself that you should be willing to deal with.
Refinancing your home may be a better option
If you’re selling your home to free up extra cash, refinancing your home may be a better option. By refinancing, you forgo the costs of sales, home inspections, real estate contracts, and more – and you potentially save money, too. Taking advantage of the lower mortgage rates can save you hundreds of dollars a month on your payment.
At the time of publication, the average 30-year mortgage interest rate was 3.05%, a significant decrease from early 2020. The 15-year average mortgage interest rate was 2.38%, also a significant decrease compared to the previous year.
While rates have gone up, they are still near historical lows and homeowners with higher interest rates can benefit from a home refinance.
If you think a refinance could be an excellent alternative to selling your home, explore your mortgage refinancing options by going to Credible in just three minutes to compare rates and lenders.
The seller’s market can benefit many homeowners. The value of your home may have increased recently, making selling costs negligible. However, if you want to stay in your current home and save money, refinancing can bring similar financial benefits without the expense of moving. To understand how much you can save on monthly mortgage payments by refinancing now, analyze the numbers and compare rates with Credible’s free online tool.
How can I get the most money for selling my house?
- 1 How can I get the most money for selling my house?
- 2 Is selling your house by owner worth it?
- 3 Is it easy to sell home by owner?
- 4 How can I save money when I sell my house?
Here are some other ways you can set yourself up to get the most out of your home selling strategy. Read also : Will selling my own home save me money?.
- Work with a local expert.
- Time your sales the right way.
- Set the right price.
- Negotiate the best offer.
- Make essential repairs.
- Be careful with upgrades.
- Think about restraint.
What are the worst months to sell a house?
Why fall / winter is the worst time to sell a house? The worst time of year to sell a home is December, which equates to October at a seller’s premium of 3.3 percent, according to ATTOM Data. Read also : Will selling my own home save me money?. In December, the buying of houses comes to a halt and there is little stock available.
Which month is best to sell a house?
In general, to maximize returns and minimize time in the market, the best time to sell a home is May 1 through May 15. On the same subject : Will selling my own home save me money?. Homes sold in the first half of May will sell six days faster and for $ 1,600 more than the average listing.
What sells a house fast?
How can I sell my house quickly
- Clean and tidy up.
- Choose a sales strategy.
- Set an attractive price.
- Invest in minor repairs.
- Add stage and restraint.
- Use professional photography.
- Create a listing strategy.
- Time your sales right.
Is selling your house by owner worth it?
Many homeowners consider going the “for sale by owner” route and taking on the task of getting their property sold themselves. … Selling a home by the owner can be an incredibly difficult road to navigate, and often it’s not worth the money a homeowner could save on brokerage commissions.
Do Realtors get commission on For Sale By Owner?
In most cases, the commission is often added to the sale price or included in the bid. This way, it will be paid from the proceeds at closing and will not increase your costs. Question 3. So, how does FSBO work for home buyers?
What paperwork is required to sell a house?
Basics First: To sell your home, you must provide your attorney with ID to show you are who you say you are. This is usually proof of your current address, such as a recent utility bill, plus photo identification (eg Passport or Driver’s License).
Is it easy to sell home by owner?
Selling a home for sale by the owner is not easy. If you find that the prep work, listing process, marketing, advertising, impressions, contracts, negotiation, legality and closing process are too much to handle alone, it’s never too late to hire a broker take.
How do I sell my house privately?
Step-by-Step Guide to Selling Your Home Privately
- Step 1: Determine an asking price.
- Step 2: Freshen up your home.
- Step 3: Start advertising your property.
- Step 4: Arrange viewings.
- Step 5: Negotiate a price.
- Step 6: Accept an offer.
- Step 7: Instruct a lawyer or carrier.
Do I need a lawyer to sell my house privately?
While you don’t usually need to hire a real estate attorney to sell your California home, in some cases it is required. If the sale of your home is being made difficult by other parties who may have an interest in the property, a lawyer can protect your own interests and help negotiate terms that are acceptable to all involved.
What paperwork do I need to sell my house myself?
Documents to collect before listing your property
- Original sales contract.
- Professional appraisal of the original purchase of your home.
- Mortgage statement (installment amount) …
- Homeowners insurance.
- Documents Owners Association.
- Home Repair and maintenance records.
- Receipts for capital improvements.
How can I save money when I sell my house?
How to Save Thousands on Selling Your Home
- Average savings: $ 3,693. A survey by Seattle-based real estate company RedFin recently found that: …
- Sellers have influence. The shortage of homes for sale in many places gives home sellers an unusual leverage.
- Break with tradition.
- Understand how benefits work.
- Just ask.
- Be respectful.
- Be realistic.
How much money do you lose when selling a house?
Brokerage Commissions The standard commission is typically 6% of the selling price of your home – split between the seller’s agent and the buyer’s agent (maybe 3% each). So if you sell a $ 250,000 home, $ 15,000 of that will go to the real estate agents (or $ 7,500 each).
Where should I sell my house for money in 2020?
Think about the proceeds from your home sale in 3 financial buckets
- Buy another property.
- Explore the stock market.
- Pay off debt.
- Invest in invaluable experiences, memories and skills that will last a lifetime.
- Create an emergency account.
- Save it for a down payment on a new home.
- Add it to a college fund.
- Save it for your retirement.
Should I sell my house in 2020?
Selling in 2020: you have to move The need to move is not always positive, however. If you’ve lost your job, you may be concerned about your ability to keep paying your mortgage. If so, selling may be a valid option. If you are in a market with fast home sales, the lack of inventory can help sell your home.