We live in a world where everyone does everything without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even remodel homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent in VA?
Why Selling Your House Without An Agent could be beneficial.
– Saves Money
The biggest reason for selling your house without an agent is, it saves you money!! YES, we did say “SAVES YOU MONEY”. In many cases it can be a lot of money. Agents cost money. Selling your home with an agent can cost as much as 6% of the final property sale. For Example: If the property sale price is $500,000, the commission could be $30,000 (split between two agents).
Six percent is a large amount taken from the final sale price. You may have a high mortgage balance that needs to be paid off. Eliminating commission costs are a huge advantage, it increases your net profit.However, just because you are representing yourself doesn’t mean that the perspective buyer does not have an agent.
If you represent yourself and your buyer has an agent, you will end up paying between two and three percent to the buyer’s agent at the time of the sale. Being new to real estate sales may have the buyer’s agent trying to negotiate a larger commission because he/she will likely be doing work on both ends of the transaction, making up for your lack of experience and knowledge.
What Helps Sell Your House Without An Agent.
– Being A Qualified Negotiator
Even though you can’t force the buyer to not have an agent, it does become negotiating power to say you are more flexible in the price if there is no outside representation. Buyers may feel they are able to negotiate a better price without an agent if they know the amount of savings in the transaction.
Beyond negotiating the sale price, you may feel you are more qualified to sell and negotiate the transaction than an agent. Being a well versed seller in real estate transactions will make you more comfortable walking through the process and negotiating items at different points in the escrow process. When you,the seller, are comfortable dealing with a buyer or buyer’s agent, you can save at least three percent of the commissions by representing yourself.
It is also possible that the transaction is very straightforward. Perhaps your home is a new construction or being sold as is and you are not willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Being set with your price and able to provide all disclosures and documents properly may have you feel the lack of need for agent representation.
Things To Know About Selling Your House Without An Agent.
– Keeping Things Personal
There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. In cases like this where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Of course, there needs to be a lot of trust among all parties in this type of transaction scenario.
Even when parties to a sale know each other, legal sale requirements must be followed. Adhere to all Winchester codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.
Responsibility, there is a lot of that. As the seller without an agent, you will have to keep track of appointments so that you do not overlap potential buyer showings. Try not to persuade the buyer, let the house, property, area, and neighbors (if good ones) convince the buyer. Answer any questions straight forward and honestly (honesty is STILL the best policy). Try not to talk too much,buyers may think you are trying to hide something.
Part of the responsibility is to make sure that you have all the necessary paperwork completed before the sale. All the “I”s are dotted & “T”s are crossed. Make sure there are no leans on the property you are selling (clean title). If there are they should be made known to the buyer beforehand. Asking yourself a few questions before you decide to go ahead without an agent is a way to make sure that it is the right thing to do, as Rachel Witkowski asks in her November 14, 2017 article in Real Estate
There are a lot of responsibilities when selling your house without an agent and if you are up for the challenge it can be rewarding both financially and emotionally.