More and more homeowners are turning to selling their own properties rather than using real estate agents. This trend has mostly been driven by people’s displeasure with agent fees that can be greater than 2%. Given that in a seller’s market a lot of properties can be sold in a matter of days, it is of little surprise people are dubious whether the commission fee they collect is deserved for the time the agent puts in.
For many who want to sell without an agent, it can be hard to know where to start. However, it is strikingly simple if you have a plan. The first time I wanted to sell my house privately I admittedly made it more difficult than it should have been. I have since found it is best to keep it simple. Here are 3 steps to getting starting in the right direction.
- Get ready to sell privately- The first thing that you should do when selling your house privately is to get a lawyer or a seller’s agent to draft up the appropriate documents for you. You won’t require them to actually sell your house but having the correct documentation is mandatory. Luckily this step is also relatively cheap. While you have their attention you could quickly pick their brain on their knowledge of property sale prices in your area or the general market demand. Framed correctly they will more than likely be willing to chat about this since they are living it every day – every bit of information you can get will help.
- Take photos and advertise- Photos can make or break your property listing. As most people typically research properties online before visiting them on location, you’ll need to provide them with appealing pictures. This means that prior to taking photos you should clean the house, ensuring to clear away any loose items lying around the room. A cluttered room doesn’t look appealing and many people will subconsciously be deterred from messy-looking properties. Clean and clear rooms are always best as it portrays a better sense of space and size. Additionally, ensure you step back enough to capture the open areas sufficiently. A photo of the corner of a room or mostly the ceiling will also dampen a prospective buyer’s interest.
- Know your selling points & show your house- Whether you decide to advertise yourself or pay an agent to place your property on the real estate listings, you’ll have to do all of the leg work yourself. This includes running home opens and showing the property, receiving calls about the property, and answering questions about the property. If you feel uneasy about what to cover yourself then visit a few homes open in your area. Listening in on others’ questions and how an agent handles them will be an invaluable experience. When it comes to your property, no one knows it as well as you do so who else is better to sell it? Just know all the positives of the property – make a list – and be prepared to answer some challenging questions.
Definitely going to be looking into FSBO or a fixed cost seller’s agent when it comes time to sell my place. Given the average home price in Silicon Valley is around the $1M mark, the thought of paying $60K (6%) for the few week’s work on a property that will sell itself is sickening.