Selling Your Property Without an Agent (Part-1)

Selling Your Property Without an Agent (Part-1)

how to sell house privately

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.

You Don’t Have to Go Alone

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.

Start Planning the Sale Today

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:

  • Make the house sellable
  • Set a competitive price
  • Market the home
  • Obtain access to MLS
  • Work with a real estate attorney           
  • Negotiate the cost of the house
  • Close the deal

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.

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