How to Sell Your House without a Realtor: A Guide
How to Sell Your House without a Realtor: A Guide
The house-selling process can be difficult to navigate but not impossible without a realtor. Here is a complete guide on how to sell your house without a realtor.
When deciding whether or not to move, there will be many things to consider, from where you want to move to what style of home you want. Most people use realtors to sell their homes, but you can also sell your home for sale by owner (FSBO).
As an FSBO seller, you will have to take on all the responsibilities that a realtor would, and you might need a good amount of knowledge of home selling. Working with realtors may make your life easier, but it definitely not essential.
The average realtor commission rate in North Carolina is between 5.01% and 6.19%. In other words, if your home sells for $335,100 - the median home value in Raleigh - then that's $21,954 you will be missing out on.
Of course, there are pros and cons of FSBO, but if you know you have the time and knowledge, then you should definitely consider selling your home without a realtor. Most FSBO sellers forego a realtor because they do not want to deal with an agent, are selling to a friend, relative, or neighbor, or do not want to pay a commission fee.
No matter your reason for selling your house without a realtor, the most important thing to do is understand how. Follow our guide to learn the ins and outs of selling your house without a realtor.
Keep reading to learn how to sell your house without a realtor.
Chapters
1. FSBO Responsibilities
North Carolina is one of several states that does not require you to use a real estate agent when selling your home. If you sell your house FSBO, you will follow four main steps.
Pricing Your Home
As the first and most important step, pricing your home can be difficult without the help of a real estate agent. Many people prefer to use agents out of fear that they might undersell their home without one. On the other side, homes priced too high may remain on the market longer.
Several real estate valuation sites are available to estimate what your home is worth. It would be best to compare your home's worth to others in the area. The process is extensive, turning many people away from selling as an FSBO.
Staging Your Home
Staging and repairing your home are the easiest parts to complete without the help of a realtor. You still may need to research how to stage your home, but it is not nearly as difficult as other parts of the home-selling process.
Home staging includes decluttering, accentuating home features, depersonalizing, preparing, and more. The process can seem daunting and costly, but it all depends on how much work you need and can do on your own. If you have extra time, you can tackle this process independently, but many people hire professional home stagers to help.
Marketing Your Home
One of the realtors' biggest responsibilities is marketing a house, which will fall on you as an FSBO. This may take some creativity because you might not have the same resources as most realtors.
Most realtors also have a marketing budget, but you must pay out of your pocket to reach buyers. It would be best if you considered using social media, word of mouth, street signs, flyers, and holding open houses. Consider hosting an event to entice prospective buyers to visit your open house for entertainment.
To reach the biggest audience of buyers, list your home on the MLS (multiple listing service). Only licensed agents can list a home on the MLS, but many will do it for a flat fee in NC, and your home will still be listed FSBO. All you need to pay is the flat fee as a commission to the agent who assisted you.
Remember that you are not allowed an FSBO yard sign unless your home is on the MLS, so it might be worth considering.
Negotiating the Sale
You will be responsible for all negotiations after receiving an offer from the buyer. You must understand the contingencies, which are certain conditions that buyers usually request the sellers meet to complete the sale. You can also impose contingencies on the buyer, like obtaining a document stating the buyer has been approved for a mortgage.
After negotiating and accepting the buyer's offer, you will need an attorney to conduct the closing. Typically, real estate agents know of attorneys who can help you through the closing process, but as an FSBO, you will need to attain one on your own.
2. How to Price Your Home
Pricing a home is often when working with a realtor comes in handy. If you list for too little, you miss out on money; if you list for too much, you risk not selling your home. In order to avoid both of these problems, you will need an accurate idea of your home's fair market value.
To understand your home's fair market value, you must view comparable listings in your area. Comparable listings are similar homes in your neighborhood or area. Typically, you will look for homes worth approximately $50,000 more or less than your home's value.
Analyze comparable listings by evaluating the school districts, number of beds and bathrooms, renovations, amenities, and neighborhood quality.
In Raleigh, NC, the median home value is about $335,100, 13.5% higher than the national average. The average mortgage payment is close to the national average of $1,609.
Researching comparable listings can be harder than it sounds; many realtors have several tools and are trained to do this specialized research. Hiring a licensed appraiser to accurately assess your home's worth may be worth it.
3. How to List Your Home FSBO
After pricing your home, you must write a listing description to local buyers. This will be based on your understanding of their priorities and identify the main features of your property.
Be completely honest about your listing price, and consider looking at recent sales data of comparable homes in your area. As stated previously, you can pay a flat fee to post your home on MLS sites, but this may cost more than using a discount brokerage.
Several FSBO listing websites to check out that are free or at a small price. It all depends on how many photos you use, how long the house is on the market, and any changes you make.
The cheapest way to list your home FSBO is through free websites like Facebook Marketplace or Craigslist. This is a simple and free way to market your home, but you may need more marketing strategies to reach the most buyers. You can even use Zillow to sell your home because it doesn't charge homeowners to list their homes FSBO.
4. What is Required to Sell a House FSBO
The amount of required paperwork will vary greatly from state to state. When selling for sale by the owner, you will need a Final Purchase and Sale agreement contract. This should be signed by both the buyer and seller. A real estate attorney can draft this contract for you in NC, or your buyer's agent can draw up the contract.
Be sure your real estate contract includes all legal stipulations for both the buyer and seller, or the transaction can be negatively impacted.
If you are selling your home by owner for cash, you must verify that the buyer has the funds available in their bank account after signing the Final Purchase and Sale agreement. You can do this by asking for an earnest money deposit of 1-2% of the sales price. You may also request bank or investment statements to verify the funds.
In North Carolina, sellers typically need the following paperwork to sell their home.
- North Carolina Sales Contract
- North Carolina Residential Property Disclosure Form
- North Carolina Mineral and Oil Rights Form
- North Carolina Occupancy Agreement
- Lead-Based Paint Disclosure (required for homes built prior to 1978)
- Two forms of ID
5. What to Keep in Mind
The first thing to remember when selling FSBO is that this process will take up much of your time and energy. There is a reason why most homeowners opt for a realtor rather than selling FSBO. That said, it is absolutely possible to sell without a realtor. Don't underestimate how much extra time you will need during the process.
You will avoid paying a listing commission, but you might not be able to avoid paying a buyer agent's commission. This is paid to realtors to incentivize them to show your house to their clients. In order to avoid any commission fees, you have to sell to an unrepresented buyer.
If you already have a buyer lined up, FSBO might be the best and cheapest way to sell your home. Many people search for homes online through websites or social media, meaning you must utilize online platforms to reach the largest number of buyers.
Remember that the best season to sell a home is in the spring. If you are considering selling FSBO or with an agent, try comparing how much you will spend on research, marketing, and staging versus how much you would spend on an agent.
FAQ: How to Sell Your House Without a Realtor
Here are some commonly asked questions about how to sell your house without a realtor.
Do you have to have a realtor to buy a house in NC?
Fortunately, NC is a dual agency state, meaning home buyers don't legally have to work with an agent who has a relationship with the seller. Whether you are buying or selling, you should work with your own agent if you plan on using a realtor.
Do I need an attorney to buy a house in NC?
North Carolina does require you to have a licensed attorney to represent you in any real estate transaction.
What is due diligence in NC real estate?
In real estate, due diligence refers to the buyer's opportunity to investigate the property thoroughly during an agreed-upon timeframe. This can include professional inspections, appraisals, title searches, and more.
How much do you have to put down on a house in North Carolina?
In North Carolina, you typically have to put down 20% of the house price, which can decrease depending on your credit score. Some home buyers have been required to put down as little as 3%.
How long does it take to close a house in North Carolina?
Typically, it takes between 30 and 60 days for the closing process to be completed in North Carolina.
How to Sell Your House Without a Realtor - The Bottom Line
All in all, it is completely possible to sell your house without a realtor; you need to be completely prepared. Most use realtors mainly to sell their homes for the highest price.
Like any other field, realtors are professionals and will educate and help you throughout the home selling process. But, if you are knowledgeable and committed, you can skip paying the commission costs and sell FSBO.
If you're considering moving to North Carolina, there are many things to consider before and after buying your new home. Raleigh, NC, is one of the fastest-growing areas in the country and has many stunning homes for sale; you'll have to act fast if you want to buy your dream home in one of Raleigh's best neighborhoods.
As you buy your next home in the Triangle, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be stressful, and there are many common mistakes, so ensure you are prepared beforehand.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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