If you are thinking of selling your home without a real estate agent, consider the costs. (iStock)
With low interest rates, there are many buyers waiting to buy a new home in today’s real estate market. If you are looking to cut your expenses, you may consider skipping the real estate agents 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 you work with an agent, sellers can expect to lose about 5% of the sales price due to agent fees. If you sell your home for $ 400,000, the agent’s fee could be $ 20,000. That reduces any benefit you may get from your home’s equity.
Some sellers choose to sell their home without the help of an agent to save money. With the high market value and onerous commissions, this may seem like the cheapest way to go, but choosing to sell on your own has its own costs.
While you’re considering whether selling your home without an agent is the right option for you, visit Credible to connect with experienced loan officers and get answers to your mortgage questions.
Duties and costs associated with selling your home without an agent
If you are considering selling your home yourself, there are several responsibilities you will need to take on. These are things that a real estate agent would handle differently:
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 sales price. You don’t want to list your property too low, or you could lose money, but if you list it too high, your home won’t attract buyers. You may need to pay an appraiser for a quote.
2. Preparing the house for inclusion
Whether you use an agent or not, you will need to do some prep work before putting your home on the market. Properly promoting your home can help you get closer to your selling price. Prep work includes cleaning the house, tidying up the yard, and doing necessary home repairs. However, you will not have an agent to help you identify problem areas. You may also want to hire a home inspector before listing your home to make sure there are no major problems. Remember: curb appeal is important and home sales prices are affected by it. 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 mean simply putting a “For Sale” sign in your yard. While it will get some attention, it may not be enough. You’ll want to consider listing your home on various websites and getting it for sale on the local MLS. Listing in 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 advertisement.
Questions about the sale of your home and your mortgage? Head to Credible now to connect with experienced loan officers and get answers to 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 an attorney 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 that you work with an attorney, but some do. And unless you are incredibly comfortable with the legal documents, they can make this part of your home sale that much more manageable. While you may be able to sell your home without listing agents, having a real estate attorney is essential. Real estate contracts, property taxes, and home inspections are complicated, and an attorney can help you navigate.
You may have to pay the remaining balance on your mortgage (if your home does not pay off the full balance of your loan, you are still responsible for the remainder). If you make money on 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 will need to be available to answer phone calls at night and on weekends and be available for tours. 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 additional cash, refinancing your property may be a better option. By refinancing, you’ll forgo sales costs, home inspections, real estate contracts, and more, potentially saving money, too. By taking advantage of lower mortgage rates, you could save hundreds of dollars a month on your payment.
At press time, the average 30-year fixed rate mortgage rate was 3.05%, a significant drop from early 2020. The average 15-year mortgage rate was 2.38%, also a significant drop from the prior year.
While rates have increased, they are still near record lows, and homeowners with higher interest rates could benefit from a home refinance.
If you think a refinance can be a great alternative to selling your home, you can explore your mortgage refinance options by visiting Credible to compare rates and lenders in just three minutes.
The seller’s market could benefit many homeowners. Your home’s value may have risen 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 your monthly mortgage payments by refinancing now, do the math and compare rates with Credible’s free online tool.
How can I get the most money for selling my house?
Contents
Here are some other ways you can configure yourself to get the most out of your home sales strategy. See the article : Will selling my own home save me money?.
- Work with a local expert. …
- Schedule your sale appropriately. …
- Set the correct price. …
- Negotiate the best offer. …
- Make essential repairs. …
- Be wise with updates. …
- Think of the curb 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 related to October with a 3.3 percent seller’s premium, according to ATTOM Data. See the article : Is Now the Right Time to Sell a Home?. December is when home buying activity stops and inventory is low.
What sells a house fast?
How to sell my house quickly This may interest you : This Directory Alone Could Save You Hundreds, Even Thousands Created From The Sale Of A Business, And Most Any Other Type Of Payment Stream..
- Clean and tidy up.
- Choose a sales strategy.
- Set an attractive price.
- Invest in minor repairs.
- Organize and add curb appeal.
- Use professional photography.
- Create a listing strategy.
- Measure your sale well.
Which month is best to sell a house?
Generally, the best time to sell a home to maximize yield 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 price.
Is selling your house by owner worth it?
Many homeowners consider going the “sale by owner” route and taking on the task of selling their property on their own. … Selling a home by owner can be an incredibly difficult road to travel and is often not worth the money a homeowner could save on agent commissions.
What paperwork is required to sell a house?
The basics first: To sell your home, you will need to provide your attorney with identification to prove that you are who you say you are. Usually this is proof of your current address, such as a recent utility bill, plus a photo ID (for example, passport or driver’s license).
Do Realtors get commission on For Sale By Owner?
In most cases, the commission is often added to the sale price or incorporated into the offer. In this way, it will be paid with the proceeds at closing and your cost will not increase. Question 3. So how does FSBO work for home buyers?
Is it easy to sell home by owner?
Selling a home for sale by owner is not easy. If you find that the prep work, listing process, marketing, advertising, screenings, contracts, negotiations, legalities, and closing process are too much to handle alone, it is never too late to hire an agent.
Do I need a lawyer to sell my house privately?
Although it is not normally necessary to hire a real estate attorney to sell your home in California, in some cases it is required. If selling your home is complicated by other parties who might have an interest in the property, an attorney can protect your own interests and help you negotiate terms that are acceptable to all involved.
What paperwork do I need to sell my house myself?
Documents you need to gather before listing your home
- Original sales contract. …
- Professional appraisal from the original purchase of your home. …
- Mortgage account statement (settlement amount) …
- Homeowners insurance records. …
- Homeowners Association Documents. …
- 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
- Step 1: decide the sale price. …
- Step 2: Give your house a splash. …
- Step 3: Start advertising your property. …
- Step 4: organize visits. …
- Step 5: negotiate a price. …
- Step 6: accept an offer. …
- Step 7: Instruct a lawyer or carrier.
How can I save money when I sell my house?
How to Save Thousands When Selling Your Home
- Average savings: $ 3,693. A recent survey by Seattle-based real estate company RedFin found that: …
- Sellers have influence. The shortage of homes for sale in many places gives home sellers unusual leverage. …
- Breaking with tradition. …
- Understand how fees work. …
- Just ask. …
- Shopping around. …
- Be respectful. …
- Be realistic.
How much money do you lose when selling a house?
Real Estate Agent Commissions The standard commission is typically 6% of the sale price of your home, divided between the seller’s agent and the buyer’s agent (perhaps 3% each). So if you sell a $ 250,000 home, $ 15,000 of that will go to real estate agents (or $ 7,500 each).
Where should I sell my house for money in 2020?
Think of the income from the sale of your house in 3 financial cubes
- Buy another property. …
- Explore the stock market. …
- Pay off the debt. …
- Invest in invaluable experiences, memories and skills that will last a lifetime. …
- Set up an emergency account. …
- Save it for a down payment on a new home. …
- Add it to a college fund. …
- Save it for retirement.
Should I sell my house in 2020?
Selling in 2020 – You Need to Move However, the need to move is not always a positive one. If you lost your job, you may be concerned about your ability to keep paying your mortgage. If that’s the case, 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.
