How to sell your house privately?
FSBO listings have a bad reputation, primarily for two reasons. Statistics show that “for sale by owner homes” sell for less compared to agent-assisted sales. The saying goes that if you try to sell a home by owner, you’ll end up working with an agent. You will work hard for weeks without seeing any results, and in the end, you need to hire a realtor to sell your home.
Both are famous statements, but we are not yet sure about their correctness.
For instance, there is a debate about whether FSBO homes sell for less price or not. You cannot compare apples to oranges. So, if you’re comparing a million-dollar property sale (agent-assisted) with a $50k (FSBO) house, you know that’s not a fair comparison.
Most of us don’t have expertise in selling or buying properties. We deal with real estate transactions a few times in a lifetime, so it’s a given that we don’t feel comfortable with the sale. That’s why if you look closely, you’ll see that people don’t sell a million-dollar property without hiring an agent. People choose FSBO when the profit margin is low, the house is priced for a few hundred thousand dollars, and the owner wants to save money on commissions.
For the same reason, if you compare MLS listings with private home sales, you’ll see that a realtor sells the home for a higher price which might not be accurate. We’re publishing an article series to help you sell your home privately in New Mexico. It’s going to be a 4 or 5 parts series that discusses each aspect of selling a property on your own. In other words, you’ll learn to sell the home without hiring a high-priced realtor. Beginning from this article, we’ll guide you step-by-step as to how can you sell the house by owner in New Mexico.
People believe that either you sell a home by owner or you list home with an agent. There are alternatives paths, and you can choose them. For example, you can go with a fixed-price realtor, or you can outsource a task. If you’re not good at negotiations or need help with paperwork, you can hire an agent to do these specific tasks. You’ll save money on commissions, and by paying a few hundred dollars, you’ll make your job easier, and your home will sell fast.
Many people will say that you end up hiring a realtor. I will say that’s okay. We all need help at some point. But if I can obtain a fast sale of my house by hiring a fixed-price realtor, I will do that. After all, I am saving the 6% commission while successfully selling my house. At the end of the day, that’s what matters.
If you’re planning to sell the home yourself, it’s best to start earlier. Selling a home in the retail market requires both effort and time. Spare a few months. We suggest getting started six months before your planned date.
If you want to sell the house in the retail market, at the least, you’ll need to:
These steps require preparation. You’ll need to understand the legal process for selling a home by owner. You are not engaging in a complicated real estate transaction. Since it is a sale of the house, you can get help from various resources. However, selling a home involves multiple steps. From title search to the actual closing, there is legal paperwork to be solved. You’ll need to negotiate like a pro. Set the right price and market your home like an agent will do it.
We’ll begin the journey in the next post.