Selling your home by yourself in this market is not only possible, it may be the best way to get your hard earned equity out of your home!
Here's why, the multiple listing data base is flooded with sellers that are led to believe that they must discount their property to sell. It is a well known fact that only in rare instances does a buyer pay list price when buying through an Realtor. If the home is listed at $179,995 it is understood that the seller will be willing to accept an offer that is less. Real Estate Professionals everywhere will tell you that nationally the sales price will be somewhere between 95% and 97% of the list price.
Then you have to factor in that a qualified buyer, who can buy almost any home in their price range has leverage and will ask that the seller kick in an additional 3-6% for the buyers closing costs.
You also must consider that a qualified buyer will also ask for repairs that will be revealed after your house is inspected. Because the qualified buyer has leverage, you will be well advised to either spend the money to fix the issues or reduce the price so that the new buyer can repair or fix these revealed repairs.
In the worst case scenario, you refuse to make the repairs, or deduct the repairs from the sales price and your buyer walks away, three bad things happen:
- If you did not disclose these revealed repairs, you now have to.
- You will have to make or pay for the repairs yourself.
3. You will have to go through the marketing of the home all over again.
Finally we get to the commission, I believe that Realtors earn every penny of their commissions. It is hard to market a property in these times and it is expensive to place ads, network with other realtors, pay for subscriptions, keep up with their Continuing Education requirements, drive potential buyers all over the city to find just the right home. But it costs you 6% in this example that is $10,476 Dollars.
Here is an example of what you would end up with if this scenario played out for you and your selling experience.
Realistic Example Of What You Get Using The MLS Model
| Sales Price |
$179,995 |
Best Case |
| Sales Price Discount 97% |
$5,400 |
$174,595 |
| Contribution To Buyer Closing Cost 3% |
$5,238 |
$169,357 |
| Repairs @ 1% |
$1,750 |
$167,607 |
| Seller Closing Costs |
$1,500 |
$166,107 |
| Realtors Commission @ 6% |
$10,476 |
$155,631 |
The Costs add up to $24,364 of your dollars! WOW....
If you are aware that it will cost that much then you have no argument, but since you are on this site, I am guessing that this is not only distasteful but may be your worst nightmare. You may not have that much equity.
Here's A Better Example:
Selling By Owner
| Sales Price |
$179,995 |
Best Case |
| No Sales Discount |
$0 |
$179,995 |
| Contribution To Buyers Closing Costs |
$8,099 |
$171,896 |
| Repairs @ 1% |
$1,800 |
$170,096 |
| Seller Closing Costs |
$1,500 |
$168,596 |
| Your Marketing Expense @ 1% |
$1,800 |
$166,796 |
| You Keep |
$11,165 |
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The Costs add up to $13,199 that's $11,165 of your hard earned equity still in your pocket!
Here's what just happen, you made it better for the Buyer, by reducing the costs of getting into your house. You have a valid message to get out. You just have to figure out how to do that with a $1,800 dollar budget. I believe that spending $600 dollars a month in the right places will yield enough eyes on your property to get it sold.
Anybody with a brain would choose to sell their home for a higher price and keep more of their money. But most don't have a clue how to start the process of marketing their home and selling without a Realtor . They don't understand:
- The intricacies of Real Estate Contract Law,
- The subtleties of Negotiation,
- The Best Marketing Tactics & Strategies For Attracting Qualified Buyers,
- Innovative Ways To Set Your House Apart From The Competition,
- What To Spend Your Money On When Getting Home Ready To Sell,
- Best Way To Show Your Home When Someone Is Interested,
- Ways To Stage Your Home For Success,
- Financing Strategies That Will Make Your Home Attractive To More Buyers
- How Do You Know If The Buyer Is Qualified
- You Must Protect Yourself & Your Family From Letting Just Anyone In Your Home
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