If you are considering selling your home without a real estate agent, consider the costs. (iStock)
With low interest rates, many buyers are hoping to buy a new home in the current real estate market. If you are looking to cut down on your expenses, you may want to consider skipping realtors and selling your home on your own to take advantage of the high demand. However, it is important to remember that selling your home is not free.
When working with an agent, sellers can expect to lose around 5% of the selling price in agent fees. If you are selling your house for $ 400,000, the agent fees could be $ 20,000. This reduces the profit you could derive from the equity in your home.
Some sellers choose to sell their home without the help of an agent to save money. With a high market value and heavy commission fees, this may seem like the cheapest solution, but choosing to sell on your own comes at its own costs.
As you wonder if selling your home without an agent is the right choice for you, visit Credible to connect with experienced loan officers and get your mortgage questions answered.
Fees and Costs Associated with Selling Your Home Without an Agent
If you are planning to sell your home yourself, you will need to take on several responsibilities. These are things a real estate agent would handle otherwise:
1. Determine the value of the property and the 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 property too low, or you might run out of money, but if you have it too high, your home won’t attract buyers. You may need to pay an appraiser to give you an estimate.
2. Preparing the house for registration
Whether you use an agent or not, you will need to do some prep work before you put your home on the market. Marketing your home well can help bring you closer to your selling price. Preparation work includes cleaning the house, tidying up the yard, and necessary repairs to the house. However, you will not have an agent to help you identify problems. You can also hire a home inspector before listing your home to make sure there aren’t any significant issues. Remember: curb appeal is important and house selling prices are affected. If you want to sell your house, you have 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 get some attention, it might not be enough. You will want to consider listing your home on multiple websites and listing your sale on the local MLS. Signing up on MLS costs a few hundred dollars, depending on your state. However, this gives your property maximum exposure. You can also hire a professional photographer for your ad.
Do you have questions about selling your home and your mortgage? Head to Credible now to connect with experienced loan officers and get your mortgage questions answered.
Some agents provide staging services (when a house is empty, they put furniture and decor in it to make it attractive). Paying for a stager can cost several thousand dollars, or you can do it yourself.
If you are selling your home yourself, you will want to hire a lawyer to help you with the paperwork. It would be better if you had someone to prepare the purchase contract and the deed. Not all states require you to work with a lawyer, but some do. And unless you’re incredibly comfortable with legal documents, they can make this part of selling your home a lot more manageable. While you can be successful in selling your home without listing agents, a real estate attorney is essential. Real estate contracts, property tax, and home inspections are tricky, and a lawyer can help you navigate.
You may have to pay off your mortgage balance (if your home doesn’t pay off your entire loan balance, 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 money, but you will need to be available to answer phone calls at night and on weekends and be available for visits. These are the hidden costs of selling your home yourself that you should be prepared to deal with.
Refinancing Your Home May Be A Better Option
If you are selling your home to free up extra cash, refinancing your property may be a better option. By refinancing, you’ll forgo the costs of sales, home inspections, real estate contracts, and more – and potentially save money, too. If you take advantage of the lower mortgage rates, you could save hundreds of dollars a month on your payment.
At the time of publication, the average 30-year fixed-rate mortgage was 3.05%, a significant drop from early 2020. The average 15-year mortgage rate was 2.38%, also a decrease significant compared to the previous year.
Although rates have increased, they are still near their historic lows, and homeowners with higher interest rates may benefit from refinancing their homes.
If you think refinancing can be a great alternative to selling your home, you can explore your mortgage refinancing options by visiting Credible to compare rates and lenders in as little as three minutes.
The seller’s market could 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 property and save money, refinancing could have similar financial benefits without the cost of moving. To understand how much you could save on monthly mortgage payments by refinancing now, calculate the numbers and compare rates using Credible’s free online tool.
Is it easy to sell home by owner?
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Selling a home for sale by owner is not easy. This may interest you : Will selling my own home save me money?. If you find the prep work, registration process, marketing, advertising, screenings, contracts, negotiations, legalities, and closing process too much to handle on your own, it is never too late to call an agent.
What paperwork do I need to sell my house myself?
Documents you need to gather before listing your home This may interest you : Will selling my own home save me money?.
- Original sales contract. …
- Professional appraisal of the initial purchase of your home. …
- Mortgage statement (repayment amount) …
- Home insurance records. …
- Documents from the Homeowners Association. …
- Home repair and maintenance records. …
- Receipts for capital improvements.
How do I sell my house privately?
Step by step guide to selling your home privately This may interest you : Texas Mortgage Note Buyer.
- Step 1: Decide on an asking price. …
- Step 2: Make your house look great. …
- Step 3: Start advertising your property. …
- Step 4: Organize the 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 usually don’t need to hire a real estate attorney to sell your California home, in some cases it is. If the sale of your home is complicated by other parties who might have an interest in the property, a lawyer can protect your own interests and help you negotiate terms that are acceptable to everyone involved.
How can I get the most money for selling my house?
Here are a few other ways you can set yourself up to get the most out of your home selling strategy.
- Work with a local expert. …
- Time your sale appropriately. …
- Set the right price. …
- Negotiate the best deal. …
- Make essential repairs. …
- Be careful with upgrades. …
- Think about the outward appeal.
What are the worst months to sell a house?
Why Fall / Winter is the Worst Time to Sell a Home The worst time of year to sell a home is December, which is tied to October with a 3.3% seller’s premium, according to ATTOM Data. In December, the home buying activity stops and there is little inventory available.
What sells a house fast?
How to sell my house quickly
- Clean and de-clutter.
- Choose a sales strategy.
- Set an attractive price.
- Invest in minor repairs.
- Showcase and add outdoor appeal.
- Use professional photography.
- Create an SEO strategy.
- Time your sale correctly.
Which month is best to sell a house?
Typically, the best time to sell a home to maximize returns and minimize time to market is May 1–15. Homes sold in the first half of May are selling six days faster and for $ 1,600 more than the average listing.
Is selling your house by owner worth it?
Many homeowners are considering going for “owner sale” and taking on the task of selling their property on their own. … Selling a home by owner can be an incredibly difficult road to go, and often, it’s not worth the money a homeowner could save on agent commission fees.
Do Realtors get commission on For Sale By Owner?
In most cases, the commission is often added to the sale price or built into the offer. That way he will be paid on the product at close and it will not increase your cost. Question 3. So how does FSBO work for home buyers?
What paperwork is required to sell a house?
The basics first: To sell your house, you will need to provide your lawyer with some ID to show that you are who you say you are. This is usually proof of your current address, such as a recent utility bill, along with photo identification (for example, a passport or driver’s license).
How can I save money when I sell my house?
How to save thousands when selling your home
- Average savings: $ 3,693. A survey by Seattle-based real estate firm RedFin recently found that: …
- Salespeople matter. The shortage of homes for sale in many places gives sellers unusual leverage. …
- Break with tradition. …
- Understand how fees work. …
- You just have to ask. …
- Compare the prices. …
- Be respectful. …
- To be realistic.
How much money do you lose when selling a house?
Realtor Commissions The standard commission is usually 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 house for $ 250,000, $ 15,000 will go to realtors (that’s $ 7,500 each).
Should I sell my house in 2020?
Selling in 2020: You Must Move The urge to move isn’t always a positive one, however. If you lose 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, a lack of inventory can help your home sell.
Where should I sell my house for money in 2020?
Think about the proceeds from the sale of your home in 3 financial categories
- Buy another property. …
- Explore the stock market. …
- Pay off your debts. …
- Invest in invaluable experiences, memories and skills that last a lifetime. …
- Create an emergency account. …
- Keep it for a down payment on a new home. …
- Add it to a college fund. …
- Save it for retirement.
