If you are interested in selling your home, you may have looked into selling with a realtor. Selling your home with a realtor is the most common method of how to sell your house. It is also one of the most tedious methods.
One of the easiest ways how to sale your home without a realtor is with a real estate wholesaler. They can quickly pay for your real estate and then use it how they please. This will take your real estate out of your hands quickly.
There are problems taking either of these two routes though.
Problems With Realtors
The average time it takes to sell your property with a realtor is about 118-120 days, or about 4 months.
Furthermore, a realtor costs money, just like any other service. A realtor will charge 2-5% of the house sale in fees, sometimes more. This could easily cost an additional $10,000 or more. Chances are these numbers will increase during hard times.
Another issue selling with a realtor is the fees. The main cost of using a realtor is the commission, which only applies after the sale. However, there are many fees associated with listing including photography, staging, and when required, the home inspection the seller is legally required to do. These fees can be upfront and they are not inexpensive. You could spend a few thousand even if they never sell your property.
Problems With Real Estate Wholesale
If you want to sell a house without a realtor, you may consider a real estate wholesaler. They buy property quickly with cash in as little as a few days. However, real estate wholesalers need heavy discounts on the seller’s property to sell it for profit. You will probably sell your house for less than it is worth.
Sometimes they look for people who a desperate to sell their property including people who had an income shock or people who need to move quickly.
Therefore, you may not want to take this path if you are not desperate to be rid of your property. If you need to sell your house but cannot use a realtor for money or time restrictions a wholesaler may be the right way to go. Selling your home by traditional listings with the intent to make money requires time and some upfront costs. If you do not have either then using a wholesaler is one of the few viable options to sell your home but it could cost you.
However, there are other ways to profit from your current house during hard times that do not include selling with an agent or a wholesaler. You can even try these ways yourself.
Selling A Home Yourself
There are many advantages to selling your house yourself. You do not need to pay a commission to a real estate agent so you could make more money.
However, the National Association of Realtors reported that for sale by owner (FSBO) houses typically sell for $200,000 while houses sold by agents sell for $280,000. That is over a 25% discount compared to the 2-5% commission and the potential fees that may not cost as. Furthermore, FSBO houses sell at slower rates than with realtors.
FSBO may not work using a traditional listing. You may need to try less traditional routes.
Other Ways To Sell Properties By Yourself
If you expect to sell your property by yourself without a realtor nor a wholesaler you are likely to find difficulties in selling using a traditional listing. You may receive less money and probably even spend more time trying to sell your property. If you are looking for a way to sell your house without a realtor nor wholesaler you are trying to find a way to make good money and sell quickly.
There are still many other ways to sell your house that could speed up the sale and possibly even get you a good price comparable to that from a realtor. This may sound too good to be true, but they are just creative ways to sell in which both the buyer and seller need to show vigilance and effort.
One of the best ways to sell a house without a realtor is with a private treaty. A private treaty is where the seller sets a price range for the house instead of a listed price with no expiration date on the sale. Buyers may be interested in buying that property within that price range. The buyer and seller then negotiate a price that may be within that price range before the sale is completed.
While a realtor can help in the sale the realtor should only advise on when to sell the property or maybe help in advertising. They largely stay out of negotiations or the closing of the sale.
Private treaties give power to the buyer and seller to act as their own agents. The price can be adjusted based off buyer feedback and the markets. Sales by private treaties are also faster than using a traditional agent. However, neither party should enter a deal like this completely alone and some expertise can help to make sure the sale is fair to both parties.
Expressions Of Interest
Auctions can be good ways to sell property, however, it requires extensive planning and frequently a realtor auctioning the property. Auctions can be stressful. After all, it is selling a house with multiple potential in a single day. Expressions of interest are a similar way to sell a house but without the stress.
Instead of auctioning to the highest bidder in a single day, you will ask potential buyers what they are willing to pay for the property, how they would pay for it, the time they would pay it, and any other details. They will make an offer that should be like their final offer at an auction.
There are some advantages:
- These can be carried out in a matter of weeks so perspective buyers could inspect the property and make an offer quickly.
- Using set closing dates could create a feeling of urgency among buyers and can create competition.
- Asking for expressions of interest shows you believe the property is very desirable.
- Buyers are allowed to keep their expression of interest between themselves and the seller.
This could backfire though. If there are no expressions of interest or even just a few, you may not receive a great offer.
It could be argued that expressions of interest are methods to sell a house completely dependent on the market. If buyers are interested, they will try to put in a higher valued expression of interest with hopes to buy the property, especially in a competitive market. If no one is interested, you may never sell your house, or maybe even sell it for a low price as a buyer could offer only a low-valued expression of interest because they know the property is not very desirable as is.
Technically, both the potential buyers and sellers can back out of an expression of interest which may result in a new call for expressions of interest or even bringing the property on the market as a private treaty sale.
If you are considering selling your house quickly and for a good price maybe selling with a realtor or to a wholesaler is not the best idea. Some may consider going at it alone, but selling a house by yourself using traditional listing methods can take even longer and bring you a lower price.
Nontraditional methods for selling still exist if you want to sell without a realtor. Private treaties and expressions of interest are good ways for sellers to quickly sell their property. However, these methods will require much effort to pull off properly. Be careful if you want to try this out.