Do you have a house that needs some work, cluttered, dirty and you don't want to fix or clean it? And maybe you are embarrassed to show it to strangers, but need to sell, and you don't want to pay high realtor's commissions - what can you do? Read on.
When it’s time to sell your house, many people assume that your only option is to hire a real estate agent.
However, the pricey fee split by the buyer’s and seller’s agent can make you think twice about calling up your local real estate firm.
Some people might choose to sell their homes on the open market without the help of a real estate agent. In fact, FSBO methods accounted for 8% of home sales in 2020.
Selling your house this way can be time-consuming, stressful, and difficult. Are you wondering how to avoid paying realtor fees when selling a house and what your options are?
Let’s take a look at what you need to know.
How Much Does a Realtor Cost?
While it can differ between circumstances, the standard commission for a real estate transaction is usually 6% of the sale price.
That might not sound like that much, but when you’re talking about something as expensive as a home, the numbers get big quickly.
Usually, the seller’s agent and the buyer’s agent split this commission. This means that each realtor gets 3% of the sales price of the home.
Selling a house can be expensive, and one big part of that expense is hiring a real estate agent.
It is common for people who are either buying or selling a property to work with a real estate professional of one sort or another. However, their commissions are quite high and can cut into the profit you stand to make from selling your home.
Is it worth it to use a real estate agent, or are you better off figuring out how to avoid realtor fees when selling?
If you are selling a house that is worth $300,000, $18,000 is going to pay the real estate agents, with each of them walking away with $9,000. That’s a pretty big fee, and it leads many to wonder if there are other options besides hiring a realtor.
4 Ways to Avoid Paying Realtor Fees When Selling a House
Hiring a real estate agent is a completely optional step in the house selling process. While it might make sense for certain types of buyers or sellers or certain types of properties, there are definitely ways to avoid paying the commission.
1. Sell Your House For Cash – Usually As-Is With No Repairs Needed
Are you looking for a quick and easy way to sell your house in Harford County, MD and surrounding areas? Have you had horrible experiences with the long, drawn-out process of selling to buyers who are receiving financing for the purchase?
If you’re wondering “how can I avoid paying commission” as well as “how can I sell my house fast,” selling your house as-is for cash might be an appealing option.
When you sell your house for cash, it doesn’t have to be a multi-month long endeavor riddled with staging, showings, cleaning, and stress.
While no deal is final until the papers are signed, the keys are handed over, and the money exchanges hands, cash sales are much less likely to fall through than normal home sales that depend on financing.
A good number of delays in closing occur because of issues that arise from the inspection. As-is buyers might not require an inspection at all. Even if they do require an inspection, as-is buyers aren’t going to require you to complete repairs in order for the deal to go through.
You won’t have to deal with the headache of readying your home for the market, either. It can be time-consuming and expensive to do everything necessary to fetch a high price on the open market.
When you sell your house for cash in Harford County, MD the investor is buying your home in the condition it’s currently in, bugs and all.
If you’re interested in selling your home in Maryland super fast, contact our team at Easy Outs Homes today and get a free, no obligation cash offer.
2. Sell Your House For Sale By Owner – Listing Your Home on The Market
Another option is selling your house “for sale by owner” (FSBO). This means that you are listing your home on the open market without the help of a real estate agent.
Some people attempt this because they don’t want to pay realtor commissions, but they might not realize just how much work they are signing on for.
Real estate agents do have a lot of responsibilities, and when you sell FSBO you are taking on the job yourself. On top of that, a realtor’s negotiating skills can help you get a higher sales price, meaning that you can actually make more money with a real estate agent even when you factor in the hefty commission.
Pros And Cons Of Selling Without A Real Estate Agent
Selling without a real estate agent is a tremendous undertaking. Before you decide to sell without an agent, you must make sure that you’re ready for the responsibility. Let’s take a look at some of the pros and cons involved, so you can decide if selling your home independently is the right decision for you.
Pros
A seller may get a greater feeling of satisfaction, knowing that they were able to sell their home without the assistance of a real estate agent. Here are a couple of more specific pros behind doing so.
FSBO sellers can save money on a real estate agent’s commission. Selling a home independently allows homeowners to avoid paying a listing agent’s commission. However, these sellers will still have to pay the buyer’s agent’s commission if the buyer is represented.
FSBO sellers have more control over the process. FSBO sellers don’t have to worry about real estate agents’ opinions differing from their own. They have the confidence in knowing that they can dictate the terms and dedicate as much time to selling their home as they desire.
FSBO homes can sell faster because they’re often sold through a non-arm’s length transaction. The National Association of REALTORS® reports that in 2020, 77% of FSBO homes sold in under 2 weeks. The speed of these sales was usually a result of the fact that the sellers sold their homes to individuals they already knew.
Cons
Selling a FSBO home is typically much harder and more labor-intensive on the seller, who often does not have the experience, access or connections necessary to price, market and negotiate the property. Let’s take a look at some specific drawbacks of FSBO sales.
FSBO sellers will still have to pay the buyer’s agent’s commission. As the National Association of REALTORS® notes, 88% of 2020 home buyers used an agent when purchasing their homes. Therefore, it’s more likely than not that FSBO sellers will be forced to pay a 3% commission – also known as REALTOR® fees – and be the only party that doesn’t benefit from representation.
FSBO sellers are more likely to over- or underprice their property. Pricing property can be challenging for FSBO sellers because they don’t have experience with the market and may be clueless as to what would constitute as fair market value for their home. Overpricing can cause the home to linger on the market while underpricing will minimize their proceeds.
FSBO listings tend to sell for less than homes sold by real estate agents. According to the National Association of REALTORS®, in 2020, the median sale price of FSBO homes was $217,900, while the median price of homes sold by agents was $242,300.
It’s harder for FSBO homes to get publicity without an agent. However, FSBO sellers must find a way to get buyers and buyer’s agents to see their home either through individual showings or open houses.
FSBO sellers are often inexperienced negotiators. Once the FSBO home receives an offer, the seller must negotiate the price and terms to ensure that they walk away satisfied. This last step again requires the FSBO seller to precisely determine what the home is worth and which types of contingent offers are safe to accept.
3. Sell Your House to Someone You Know
Maybe you’re lucky enough that you already know a person who wants to buy your house. If this is the case, you can safely forgo the real estate agent and simply hire a real estate attorney to help with the closing paperwork.
However, selling your house to someone you know can cause other issues.
No matter how close you are to the person that you are selling your home to, things can get hairy when you’re dealing with such a big financial transaction. It is definitely best to involve an attorney, which will, of course, cost money, in order to get everything and writing and try to avoid the deal breaking up your relationship with the buyer.
4. Sell Your House to a Cash Buyer
If you’re looking into how to avoid paying realtor fees when selling a house, you might be interested in selling your house to a cash buyer. This method is quick, allows you to set your own closing date, and avoids many of the headaches associated with selling your home.
When you sell your house for cash, it also means you don’t have to shell out a ton of money fixing up your place, cleaning it, and hiring a real estate agent. You don’t have to spend months preparing your property by boosting the curb appeal and repainting the walls. This is a fast and easy way to sell your home without having to worry about realtor fees.
Need to Sell Your Harford County, MD and surrounding areas Home Quickly? Contact Us for A Free Cash Offer Today
Easy Outs Homes buyers is a local home buying company near Bel Air, MD with over 10 years of experience buying homes for cash.
Our goal is to create a win-win scenario to help you sell your home, on your timeline, regardless of your situation.
If you’re in the Harford County, MD area or nearby and you’re looking to get an old property off your hands quickly, we’ll be happy to work with you.
Is it time for you to sell your house fast and move on with your life? If so, you can get a no-obligation cash offer for free today!
