A couple of neighbors are interested in the house I am preparing to sell. If you sell a house without a realtor, what should you expect?
To save a lot of money.
But you may hire one or a lawyer for a fee to handle all the paperwork.
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In my state you require a lawyer at a real estate closing - I think without a realtor the lawyer will make sure everything is done right.
I am looking to sell soon and a friend of a neighbor has expressed interest. I am going to list instead because in this crazy market I could get an offer high enough over my list price to pay the realtor (plus I am considering using a discount realtor so it will be a lower commission).
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How do you get a discount realtor?
I’d call a reputable local realtor and offer to pay a percent or some reasonable amount to handle the transaction if your state doesn’t require an attorney for closing.
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We’ve sold two houses without realtors (once about 22 years ago, once 18 years ago), but not to friends. This is what we did:
- Conducted significant market research so we could price correctly
- Listed house in MLS thru a realtor that offers that service. Cost was something like $500?
- In MLS listing showed that we would pay the buyer’s realtor the market rate commission (I think we did 2%, market rate is different in different markets)
- Held a couple of realtor weekday open houses with food and water bottles labeled with a pic of the house, address, phone number (open houses advertised in MLS and in newspaper)
- Took out a couple of newspaper ads (now that would be web-based advertising, lol)
- Vacated the house for showings
- Handled all the negotiations with the buyers’ realtors
- Paid lawyer to be at closing
- Saved the 2%-3% typical selling realtor commission
We plan on doing this again with our current house. Just have to get H to agree to move. Sigh.
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I sold my first house without a realtor to friends who wanted to buy it. We both had lawyers who dealt with the paperwork and closing documents. They paid less, and I got more than if we had used a realtor.
You need to find out what your state requires…I’d suggest getting a consult from a real estate lawyer who can do this for you.
Unless you need listings and showings, you don’t need a realtor in many cases.
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Yes, it’s very state dependent. Where I live now, Washington, it’s easy, you just need a title company. When I lived in Massachusetts you would need a lawyer, and a lot of patience!
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A neighbor just sold her very desirable house in our neighborhood.
A couple wanted to buy it.
My neighbor got 3 quotes from 3 realtors.
The couple decided that the house was more than they wanted to pay in the end.
She listed with a realtor and it sold in 3 days for more than list.
I’d be wary and do your research before selling a house without representation
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FYI old thread.
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People like Redfin charge a lower percentage than other realtors. (1.5% instead of 2.5-3%)
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More on this topic of commission rates Should a Discount Real Estate Broker Sell Your House? | Bankrate
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I would be wary of using Redfin or other discount realtors. The real estate market is made up with many micro-climates, and it is important that your realtor really knows your area. The discount agents like Redfin do not specialize in one area. As @deb922 states, a good realtor can help you get top value for your home, but it’s important to do your due diligence and research before choosing one.
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Did all of what MWfan1921 described above!
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If all the realtors agree on the listing price (including the discount one), there is very low inventory in my market, most homes in my price range are selling in a matter of days, my house will be listed on all the MLS places (realtor, zillow, etc.) with professional photos and walk through, and I will be hiring a lawyer to handle the contract. Why do I need a more expensive realtor? (Am I missing something?)
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I don’t think you need a realtor. I have sold and bought houses sans a realtor, though I do rely quite a bit on my real estate attorney. But you also need the nerves to be able to negotiate details of the sale AND feel good about it after all is said and done. Complexities come up with inspections and financing as well as many other details.
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It can be easy until it’s not. It’s not just about marketing the house or finding a buyer. It’s also about hanging on to the deal. A zillion things can go haywire between the offer and contract, and between the contract and closing. A good real estate agent either a) prevents things from going haywire, or b) fixes the situation when it goes wrong.
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From discussions with 2 people I know who work with real estate lawyers, it seems like (at least in NJ), the lawyer handles a lot of these issues,between initial signing and closing.
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Sometimes having a realtor is actually worth it, especially if it involves some negotiation and doing a lot of extra things to help the sale.
We had 4 offers on our last house, almost the exact price range. Our realtor was able to pick out which offer was likely to close, conveyed that we were adament about our price and helped with some little things here and there.
Plus she promoted it within her agency to get more interested buyers to facilitate more interest overall that generated the 4 offers which helped us stay fiirm during negotiations. We may have saved a few bucks here and there but she provided great service that we were happy with.
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If a lawyer did what our RE agent did when we sold my MIL house, we would have paid quite a bit more.
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