Selling home without a realtor- Need Advice

[PapaDawg]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

 

[jethreauxdawg]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

Realtor will make it easier, but it hurts seeing that money go to them for basically posting photos online (yes, there are some exceptions).
you can probably find one willing to work for less than the previously assumed 3%. I got a mailer for one recently saying she’d work for 1.5%.
A closing attorney should be able to handle everything for you, including providing a generic contract for you and the buyer to sign, for a few grand.

 

[OG Goat Holder]

One big thing that may affect attracting a buyer if they have their own realtor - they will have to pay the realtor's fee, if you are not willing to do so. And most times, buyers don't consider that because the seller cover's that in most instances. So.....you're going to have to deal with another negotiating point there.

 

[CoastTrash]

Realtors can help navigate the details. Push a buyer or sell when they get cold feet etc and just generally help.

However, it’s not that hard to manage directly and can save substantial money. You can still use the realtor form contract (it’s online for free)

also, your buyers may be represented so just pay a buyers agent 2.5% or less and let them prepare the documents (but you really need to read!!!!!!)

 

[Bulldog45]

I sold one without a realtor with no issues but that’s been about 15 years ago. Did have an offer from a realtor represented client who asked me to pay the fee and I told them no, their client could pay out of pocket. Don’t know if the realtor delivered the message but they walked and sold it with no problem to someone else.

 

[patdog]

Recently bought a house without using a realtor. The seller's realtor drew up the contracts, etc. and I hired an attorney to review them and handle the closing. Went pretty well. Might could have saved some on the price, but I had a pretty good idea what houses were going for just from some online research. Might could have save some money using a realtor, but then a 2nd realtor fee gets added into the deal, which the buyer pays indirectly if not directly. I figured a realtor probably wouldn't save me enough to recoup their fee. Plus I was very specific as to what I wanted and inventory of what I wanted was next to zero (like this one house), so I intentionally offered a couple thousand more than I might could have gotten the house for. Still came in a few thousand under appraisal (funny how often that happens) and right around where comparables were selling for. Not sure if I'll use a realtor or not when I sell my old house.

 

[dawgman42]

If you were in Madison, the choice of realtor can REALLY pay off for you . . .

 

[skipperDawg]

Have sold both ways a few times.
Seller definitely doesn’t need realtor.
Basically all seller has to do is have a good attorney draw up paperwork.
The buyer is the one who has to jump through hoops
This being said only because you mentioned it was in a desirable area and will sell quickly.

 

[johnson86-1]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

I have sold two houses without a realtor. Biggest advice is to make it clear on the zillow and whatever other listing that buyer's agents are welcome. Not sure they are really worth 3%, but I do believe a lot of agents aren't going to take their buyer to a house where they're going to hassle to get paid. Might want to try it without for a few weeks if you're not in a hurry, not sure.

Second thing is you need to do a background check on the buyer's agents. Make sure they are legitimate agents and ideally know some people you know because I have heard of people posing and then stealing once they're in the house.

Third is to ask for a pre-approval letter. Realtors probably aren't going to waste their time showing houses their clients can't afford. I wouldn't go through the hassle of showing an unrepresented buyer without knowing they are at least serious enough that they've gotten a pre-approval letter. Doesn't take much or mean much to get one, but it's an easy screen.

Using this, I sold one house to a represented buyer and one to an unrepresented buyer. Both were easy. The unrepresented buyer was savvy enough to recognize that his starting price for negotiation was basically 3% less than list.

 

[Darryl Steight]

Personally I think it's a gamble to do it without a professional, especially in your situation where the house is paid for. Even if the realtor doesn't literally save you money (which they could very well), it's worth a few thousand dollars (to me) to be protected and to make sure you've covered every angle. Things go wrong in transactions all the time, so I'd rather have someone walking through it with me, not to mention someone to point the finger (and thumb) at if something bad does happen.

I feel about this similarly to how I feel about someone representing himself in court.

“He who represents himself has a fool for a client” — Abraham Lincoln

 

[The Peeper]

I've been really lucky selling. 1st one I sold the agent came on Saturday to fill out paperwork and said she'd put it in the MLS Monday morning and asked if she could go ahead and put a sign up Saturday, sure why not. She called me Sunday night with an offer from an agent that wanted the house for herself and already knew the house previously and had seen the sign Sunday afternoon and made an offer to us sight unseen. We countered and they accepted before the house was even technically listed.

Two houses ago my buyers agent sold me a house she also was the selling agent on. The seller, agent, and I agreed on a reduced commission to split since there was only 1 agent involved and I was the first person to look at it, it wasn't even listed yet but she knew it was about to be so showed it to me anyway and we offered. Easy money for her.

When I sold it a few years later I didn't use an agent and neither did the buyer. I told a neighbor about it who knew somebody that was looking and we sold it to them and closed a cash deal about 2 weeks later. We agreed on a local closing attorney and split his fee. Easiest house sale I've ever been involved with.
I say all that to say you don't always need 2 agents in a brisk selling market with a good property, but make sure you have a good closing attorney at least representing you and not some "jack of all trades master of none" attorney that isn't a real estate attorney

 

[patdog]

Personally I think it's a gamble to do it without a professional, especially in your situation where the house is paid for. Even if the realtor doesn't literally save you money (which they could very well), it's worth a few thousand dollars (to me) to be protected and to make sure you've covered every angle. Things go wrong in transactions all the time, so I'd rather have someone walking through it with me, not to mention someone to point the finger (and thumb) at if something bad does happen.

I feel about this similarly to how I feel about someone representing himself in court.

“He who represents himself has a fool for a client” — Abraham Lincoln

If you don't get a realtor, you do need to get a good real estate attorney.

 

[dudehead]

Personally I think it's a gamble to do it without a professional, especially in your situation where the house is paid for. Even if the realtor doesn't literally save you money (which they could very well), it's worth a few thousand dollars (to me) to be protected and to make sure you've covered every angle. Things go wrong in transactions all the time, so I'd rather have someone walking through it with me, not to mention someone to point the finger (and thumb) at if something bad does happen.

I feel about this similarly to how I feel about someone representing himself in court.

“He who represents himself has a fool for a client” — Abraham Lincoln

I concur. We just listed our house for similar reasons. I prefer to engage pros to help me do things like sell my residence, prepare my tax returns, or guide me about my investments or my health. I suppose cleaning up legal messes over the years for clients that should have gotten a lawyer to do something has influenced my thinking about this. I know pay a bit more over time for things, but the peace of mind is worth it to me.

 

[Darryl Steight]

I concur. We just listed our house for similar reasons. I prefer to engage pros to help me do things like sell my residence, prepare my tax returns, or guide me about my investments or my health. I suppose cleaning up legal messes over the years for clients that should have gotten a lawyer to do something has influenced my thinking about this. I know pay a bit more over time for things, but the peace of mind is worth it to me.

Yep, tax prep is a great example. I also spend a lot of money on insurance every year for the same reason. Will hopefully not need it, but peace of mind is worth something.

 

[greenbean.sixpack]

I’ve bought and sold several with no realtor. I always add the caveat, “realtor’s welcome.” If a realtor sells it he/she gets 1/2 the commission. Go ahead answer find the closing atty who does the most work in your area and touch base with him. I just sold a rental and neither side had a realtor.

 

[Crazy Cotton]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

I was in a very similar situation, and just used an attorney to draw up the contract. I put the house on Zillow for the price I was willing to accept. I loved it because I ended up accepting an offer from some insanely picky buyers, and their relator had to deal directly with me, and my answer was always "nope". They ended up picking up the tab for the 10 different inspections they insisted on, having the septic serviced, etc. I invited them to walk away anytime and I'd be glad to keep their earnest money and move on to the other people waiting in line. They really wanted the house, I had given them a fair price, and I paid my attorney a flat fee for protecting my interests.

I imagine it would be much more useful to have a relator in a soft market, but in my area houses are on Zillow for days not months. I didn't need any help marketing, which is what a realtor seems most qualified to do. I'd much rather have an actual attorney doing the paperwork.

 

[NWADawg]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

Only did it once and the buyer (buying for his kid) just brought a certified check for the entire amount. I had help from a family member that was a loan officer to get proper paper work for contract, earnest money, etc. Used a title company/lawyer to do all of the closing.

 

[johnson86-1]

Personally I think it's a gamble to do it without a professional, especially in your situation where the house is paid for. Even if the realtor doesn't literally save you money (which they could very well), it's worth a few thousand dollars (to me) to be protected and to make sure you've covered every angle. Things go wrong in transactions all the time, so I'd rather have someone walking through it with me, not to mention someone to point the finger (and thumb) at if something bad does happen.

I feel about this similarly to how I feel about someone representing himself in court.

“He who represents himself has a fool for a client” — Abraham Lincoln

If it was a few thousand dollars, that'd be well worth it. But 3% of the median home price is over $13k. Even if you negotiate down to 2.5%, it's still around $10,950. For the median home price in Mississippi, it's still almost $7,500.

 

[patdog]

Yep, tax prep is a great example. I also spend a lot of money on insurance every year for the same reason. Will hopefully not need it, but peace of mind is worth something.

Advice on tax prep from someone who gets paid for it. If you've just got a basic return with W-2s, interest & dividends and sales of stocks/mutual funds, property taxes, mortgage interest, car tags & contributions, and kids (no education costs), you can just do it yourself with Turbo Tax or something like that. If you have a business or get K-1s from passthrough investments, or have any tax credits you can take, you may want to consider a professional.

 

[goindhoo]

Advertise by owner, but offer 2.5-3% to buyer agents, and bake that fee into the sales price you willing to accept. If someone without an agent comes along, you can drop price 3% if needed. Find a good real estate attorney (like myself) to review contract. Message me if needed. Good luck.

 

[Pookieray]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

Well Coach Lemonis, it'll be a hard sell if you left a shat stain in the middle of the living room as big as the one you left in the middle of Dudy Noble. *****

 

[goodknight]

Sold one we listed by owner and had a realtor w/client stop by. We negotiated a lower fee since only 1 realtor was involved. If person buying is using a realtor to find a house you’ll get no traffic or get low ball offers.

 

[horshack.sixpack]

Our home is paid off and we live in a sought-after area where homes typically sell in less than a week.
I want to sell without using a realtor. Wife wants to use a realtor. I am a glass half full person. She is a half empty personality.
Any issues selling without a realtor? I know we will need an attorney, but I don't see the benefit of a using a realtor if a home/location will sell itself.
I might consider a realtor if we negotiated a significantly reduced commission.
What says The Pack?

List it on Zillow. Get an offer. Call a realtor friend and ask them see it through closing for 2%.

 

[PapaDawg]

Thanks for all the responses. They will surely help us make a decision.

 

[onewoof]

Drop a few hundred to an agent that will list it on MLS. Should be all you need. In other words, you do not need a seller's agent. At all. I've done this 3 times.

 

[BulldogBlitz]

Lemonis getting a realtor.

 

[Darryl Steight]

If it was a few thousand dollars, that'd be well worth it. But 3% of the median home price is over $13k. Even if you negotiate down to 2.5%, it's still around $10,950. For the median home price in Mississippi, it's still almost $7,500.

Yes, but:

- That's not much, relative to the price of a home. If my asking price was $300,000 and someone offered me $293,000 as-is (so I don't have to do any work), I would probably take it. Similarly, if I can sell the house at or near asking price and pay a realtor $7,500 to do all the work associated with selling it... I'm taking that deal.
- I don't know how much it costs in time or money to sell your house FSBO, but it's not nothing.
- If your buyer has a broker representing them and you don't, you are at a disadvantage in a negotiation scenario.
- As I said above, to me this is like buying insurance. The real estate broker has E&O coverage, so if something goes wrong, I'm covered.
- A lot of this probably boils down to each person's metrics and the time value of money. To me, it's not worth doing myself. I'll pay the professional to take care of it all. Same reason I don't change the oil in my car. I could do it one Saturday, I guess, and save $50 or $75. But I won't.

 

[johnson86-1]

Yes, but:

- That's not much, relative to the price of a home. If my asking price was $300,000 and someone offered me $293,000 as-is (so I don't have to do any work), I would probably take it. Similarly, if I can sell the house at or near asking price and pay a realtor $7,500 to do all the work associated with selling it... I'm taking that deal.
- I don't know how much it costs in time or money to sell your house FSBO, but it's not nothing.
- If your buyer has a broker representing them and you don't, you are at a disadvantage in a negotiation scenario.
- As I said above, to me this is like buying insurance. The real estate broker has E&O coverage, so if something goes wrong, I'm covered.
- A lot of this probably boils down to each person's metrics and the time value of money. To me, it's not worth doing myself. I'll pay the professional to take care of it all. Same reason I don't change the oil in my car. I could do it one Saturday, I guess, and save $50 or $75. But I won't.

I was compensated for my time at about $2,500 an hour on my last house. Probably around $800 an hour on the one before that. That was an after tax number, since I wasn’t exhausting our exemption on either house. Even if you aren’t comfortable selling on your own, you can probably come out ahead hiring an attorney by the hour.

 

[Doubledawgblitz]

Easy to do without a Realtor - get a lawyer to draft a simple contract. If he/she handles the closing there may be no charge.