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What To Know About Selling Your Home Without A Realtor
  • USA - English


News provided by

Loan Love

May 23, 2014, 02:00 ET

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San Diego, CA (PRWEB) May 22, 2014 -- A new guide on “What to know about selling your home without a realtor!” from LoanLove.com looks at the pros and cons of going it alone when putting a home up for sale. This new guide continues to fulfill Loan Love’s goal of keeping home buyers and owners up to date on the latest news and loan issues that could affect their homeownership experience.

This new guide titled “Selling Your House Without A Realtor (PROS & CONS)” explains that there are many reasons that a homeowner might wish to put their house on sale and choose “For Sale By Owner” (FSBO). The most tempting aspect for homeowners is that cutting out the realtor can save them up to 6 percent of their profit on sales commission. This real estate agency commission will usually come out of the home seller’s pocket, unless something is worked out with the buyer, and even then the seller will need to take this into account when negotiating the price of their home. This percentage is usually split between the seller’s agency and the buyer’s agency. The Loan Love article gives an example – “If your house sells for $275,000, for example, you could expect to pay a total of $16,500 to the two brokerages involved if you owe a 6 percent commission.”

The article also lists a few other perceived advantages to FSBO. These include –

• “As the owner, you may feel you are better-prepared to show off your property’s best assets.
• Negotiations may be easier for you because you won’t have to take into consideration the cost of the real estate commission.
• The growing number of housing market sites offering free listings, such as Zillow and Trulia, make it easier for home owners to market their properties inexpensively to wide audiences.
• You have complete control over showing requests, the negotiation process and marketing of your property.”

However, Loan Love also states that there are drawbacks of selling a home without a realtor. The article states that the reason most home owners decide to choose For Sale By Owner is if they already know the person that they are selling to, or have had an offer on their home, and do not need a middle man to find a buyer. Only about 9 percent of homes are sold in this way, currently. In addition, FSBOs typically have a lower median selling price, with the typical FSBO home selling for $174,000 compared to $215,000 for agent –assisted sales. The article says, “Even after commission is paid at the full 6 percent, the agent-assisted home owner would receive $202,100 compared with $174,000 for the FSBO. Suddenly, the commission becomes less of a factor once the expected difference in selling price is taken into account.”

The article goes on to list some of the benefits of a realtor, and ends by saying, “Bottom line: Paying a commission to real estate agencies is more likely to bring you top dollar for your home. Unless you are a lawyer well-versed in real estate law, it also brings the benefit of knowing your paperwork and transactions are thorough, legal and meet all local requirements. Finally, your investment provides you with an experienced professional who knows the real estate market, knows how to price your home, understands how to incrementally lower the price to stir interest, and has access to some of the best marketing tools available. If you still aren’t convinced, you may want to look into a limited service provider, such as a discount broker, to at least help you through the legal work.”

For more information on this topic, visit LoanLove.com for the full guide to selling a home without a real estate agent.

Kevin Blue, Loan Love, http://www.LoanLove.com, +1 (949) 292-8401, [email protected]

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