I work with a lot of investors, which require me at times to get creative in searching for properties. Investors are looking for a good Return on Investment (ROI) and in this current market, it can be difficult in finding these houses listed in the Multiple Listing Service (MLS). As an agent, I have to follow the Texas real estate laws and I personally follow the National Association of Realtors (NAR)’s Code of Ethics in conducting my business. So, I don’t break any laws or ethics when looking for off market properties. One avenue I am allowed to take is to approach For Sale By Owners (I have Buyer’s Representation Agreements with some investors so my commission is paid by them).
I have learned a lot of about selling a house on your own and I know a lot about how to do it through an agent. Here are three things you might know about selling a house yourself.
1. Profit – NAR did a study to research on selling a house on your own. and discovered that the typical median sale price of a For Sale by Owner (FSBO) is $208,000 while with an agent is $235,000. If you take the usual 6% commission on a $235,000 house, you will pay the agent $14,100, which means you would net $220,900. I think you can see that using the Agent to do the other two items on this list would well worth the trouble, because even with the commission, you still net more on the house.
2. Negotiation – One aspect of house selling that many individuals are not prepared for is how many different people you end up having to negotiate prices. First, you have to negotiate with the buyers and the buyer’s agent (if you are willing to give them a commission). You have to find a Title company that is willing to handle your closing (not all of them will be willing to do it). At times, you might have to work with a house appraisal company or a property inspection company. Oh, don’t forget the survey company if you don’t have a current survey.
3. Marketing – The same NAR study found that most FSBOs do not do any marketing on their own beyond putting sign in their front yard. Few people today find their homes by driving neighborhoods. In fact, most of my clients find homes online. If you sell your home on your own, you are facing a lot of expense and work to get the word out about your house. By listing with an agent, you get your property listed in the MLS, which is accessed daily by thousands of agents, each one with potentially several buyers looking for a home. With Keller Williams, you get exposure through internal processes to over a 100,000 more.
I hope this helps you to better clarify the challenges facing you to get your house sold on your own. If my list doesn’t do the trick, here is an infographic from Keeping Current Matters that supports my list. If you are thinking about putting your house up for sale, let’s chat.