We live in a world where some people like to do things without expensive expert service providers. People trade stocks without a stockbroker. People create wills and trusts without attorneys. Many even remodel homes without contractors. As independent as everyone is, why wouldn’t you want to look at the benefits of selling your house without an agent in Utah?
What is Involved in
Selling Your House Without an Agent
Some people want to do things themselves like selling a house, and agents cost money. It’s that simple. A real estate transaction can cost four to six percent of the final property sales cost for the agent commissions on the sell side and the buy side of the transaction. Keep in mind that if an agent brings a buyer, which often happens, they will want the seller to pay them their 3%. It is worth it to get a good buyer for your property. So most of the time people will save about 2% selling a house on their own by not paying a listing agent (as of this writing listing agents are discounting fees from the traditional 3%). On a $250,000 house 2% is $5000.00…that is a lot of money.
That is a considerable amount of money that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage. Sellers of houses are always looking to increase their bottom line as much as possible. Keep in mind, just because you don’t have an agent as a seller doesn’t mean you can preclude the buyer from having an agent. Like mentioned above, sellers will pay 2% to 3% to a buyers agent most of the time.
When a seller does not hire an agent to represent them, the seller must take over the duties of the listing agent. These duties include getting the house in the best condition possible for buyers, marketing the property, paying around $1000 to get the property listed on the MLS, taking calls from buyers, scheduling your house showings for at least a week to give enough time for the best buyers to see your house, reading the details of each offer, reviewing loan approval letters, calling the lender to verify approval letters, read the details of each offer again, accepting an offer, sending disclosures to the buyer, scheduling inspections, scheduling repairs, scheduling the appraisal, working with the title company, signing the closing papers and getting your money in 1 or 2 days. Sometimes a sale will fail usually near the end of the 30 to 45 day process. If it does, you need to start over.
Selling your house without using an agent can be a lot of work, but the $5000 savings is a great payoff.
All of the tasks listed at the end of the above paragraph require negotiation skills. The most intensive areas of negotiation will be working through the offers, the repairs requested by the buyer can be the most time consuming negotiation and the price of the house if the appraisal does not come in at or above the agreed upon sale price.
Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the escrow process. When a seller is comfortable dealing with a buyer or buyer’s agent, he can save the listing agent commission of 2% to 3% by representing himself. Again, that is about $5000 on a $250,000 house.
Hopefully the transaction is very straightforward. Maybe your buyer will come in and make an offer without expectation for repairs or credits. Maybe the seller that gets their price and is able to provide all disclosures and documents properly to the buyer or buyer’s agent might not see a need for agent representation.
Selling your house without an agent will definitely require good negotiating skills.
Keeping Things Personal
There are times when a transaction is among well-known parties. Well-known could be family members, close friends or even business partners. A lot of times situations like this come up when an estate is selling a house. Often times estate sale houses require quite a bit of fix up before the house can be sold. Many times one of the heirs or a neighbor will want to buy a property that is part of an estate. And sometimes a house buyer that is a family member or long time neighbor wants to buy the house to fix up themselves. In cases like this where everyone is clear who the parties are and what to expect in the sale, there may not be a need to bring on an agent. Of course, there needs to be a lot of trust among all parties in this type of transaction scenario.
When a private sale is a possibility, usually the biggest hurdle is establishing a fair price for the house. In general, find out what the nicest & newest remodeled house in the neighborhood is selling for (must be same size and style), deduct the cost to get the house to be the newest remodel condition, subtract the sales cost (- list agent – buyer agent – closing fees) and deduct a reasonable profit. Professional House Buying Companies will typically want to make a profit of $20,000 on a $275,000 house. A buyer that wants to live in the house will usually pay more than someone that wants to fix the house up to sell it because profit has to be made for the person reselling.
Even when parties to a sale know each other, legal sale requirements must be followed. Adhere to all Salt Lake City or what ever Utah city you are in codes for disclosures and timelines. The last thing you want as a seller representing him or herself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.
Selling your house without an agent will probably be just fine if the parties know each other or are family and trust each other. Perhaps get an attorney to review the paperwork and always use a reputable title company.
Is There Another Way to Sell Your House
On Your Own in Utah?
Yes. Professional House Buying Companies can offer you a solution. Here are some of the benefits of selling to Gary Buys Houses:
- Very Quick Close often in 2 days if there are no payoff amounts to order.
- Sell Now Move Later Program. Please call for the fantastic details.
- Transparency in our offer. We show you how we get to the amount we offer.
- Of course we buy houses as-is with no repairs required.
- Relocation help for family members or tenants.
- And More! Please ask us about your situation.