Selling a home by owner?

Good morning all.

After much thought, as well as some soul searching, we've decided to head back to southern Wisconsin where we'll be closer to all of our families. My wife interviewed, and was hired on the spot, for a job last Friday and I'm moving forward on several interviews as well.

So we'll have to sell our house.

Our initial thought is to sell it by owner, but neither of us have done this before.

Any tips and tricks? Or experiences, you guys could share?

We've got a few "projects" to finish up here, but want to list is ASAP.

It always seems like everyone wants their cut when you have agents involved, however you will still end up having to pay an attorney as well. If you have a lot of time to sell a house, Sale By Owner could be the way to go. It also depends on how the housing market is around there. Back in my hometown of Charleston SC, houses are barely staying on the market for a week. I'd be inclined just to get an agent you can trust and get that thing on the market.

Every home I've sold, I did by myself. There's nothing to it, really. The title company does all of the work on the transaction. I'd only ever recommend an agent in the case where you've got a poor market and think you might have trouble selling, or if you'll be in another location (out of state, etc) when the selling happens. It that case, it can be worth the agency fees to list.

You don't need an attorney to sell a house, at least in any state I've ever lived in. Check with the title company you plan to use for the title clearance, and they can get you all set up with the right forms, etc.

Note, you will likely be contacted by numerous agents attempting to contract with you as a selling agent. If they say they have someone interested, you can offer them a "one show" contract to offer them the opportunity to bring a buyer to the table. On the fee, I usually would negotiate to around 3% for such a transaction. Certainly don't offer the typical 5-7% that is paid for full seller agency.

I agree -- get a good title agent before you start. Get a list of all the forms that you will need to fill out to complete a transaction, do your research, and get them filled out ahead of time. The various disclosures will help protect you in the event that your buyer has problems after the sale.

http://helpusell.com/About.html ....an alternative

It really depends on the market you are in. When I lived in FL all the FSBO homes were on the market for a very long time - even those that paid for a MLS listing.

Years ago I sold two homes on my own. However, the ads I placed in the local newspaper were not cheap.

Another issue is that some RELO packages require you to go through a realtor. I was living in NJ when I was offered a job in CT. The CT company insisted I sell it through a realtor. I told them my neighbor's relatives wanted the house and I could save the commissions they would reimburse me - but the relo package required me to sell it through a realtor.

Using an agent can result in a faster sale, but at a higher cost. FSBO can take a while. Some agents are reluctant to show FSBO's because some self-listers are a little wacky. If you go FSBO, you will need to protect (i.e pay a commission to) any agent who brings you a buyer. That is only fair and it will expand your market.

I think the decision relates to how much time you have to sell and how much you might need the dollars paid to professionals for your next home.

Good luck and best wishes with your move.

The first 500 calls you receive will be from realtors saying they have a buyer for your house if you sign up with them.

ouch said:

The first 500 calls you receive will be from realtors saying they have a buyer for your house if you sign up with them.

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And that's what a one-show contract is for

jamesspo said:

And that's what a one-show contract is for

Click to expand...

I have bought and sold a few houses
In one location everything was done via email and attorney, no one even showed up at the closing except myself to get keys.
In NYC it was a nightmare of logistics and the buyer, seller, and both banks had attorneys present.
In another case the broker did the closing and filed the deed.
My impression is that one downfall is the qualifications and ability of the buyers. You could loose a lot of time waiting for a buyers mortgage to go through and have it fail after a long wait. That can really be a problem if you are in a hurry to relocate.

Not to be a buzz kill but just out of curiosity, how did this thread wind up being in (and accepted by the moderator) "the barber shop"? I only ask ask a frequent and often frustrated thread searcher.

When we sold our house we hired a lawyer to help with the paperwork. $600 but much better than worrying about not having the paperwork correct.

Good luck.
InNae

speedwell said:

Not to be a buzz kill but just out of curiosity, how did this thread wind up being in (and accepted by the moderator) "the barber shop"? I only ask ask a frequent and often frustrated thread searcher.

Click to expand...

The Barber Shop by description is for "This is the place to shoot the breeze, and for all off topic conversations that don't relate to shaving." Where else would you put this?

As a former Real Estate agent and broker in New Mexico, I would advise you to talk to some agents and get some baseline of what houses like yours are selling for. Go to some open houses if you can to compare condition and price. Learn the market before you start.

Depending upon state law and customs, you may or may not need an attorney but you will definitely need a title company.
In NM, FSBO would agree on conditions and write a contract, then take it to the title company to be researched and closed and money transferred. No attorney was needed.

Inspections: Environmental, Termite, Structural... and more depending on local law.

How you sell also depends upon how much time you have and how much time and money you have to support 2 households. And it may mean living apart for a while.

If it were me, I'd hire an agent to take care of selling the house while I got on with life in my new home. My stress level is high enough without creating more I can avoid.

Free advice and worth every penny.

If you go the FSBO route, I would certainly recommend one of the flat fee brokers that does nothing other than get you listed on the MLS. I used to do work with one that would get you listed for around $500 and then you can set a percentage that a selling broker would get if they bring you a buyer, usually 2 1/2%-3%. The exposure you get from being on the MLS is invaluable. In the end it really depends on the type of house and price range you are in. As your price goes up, the potential number of buyers goes down, if your house is desirable and in a price range with lots of potential buyers, go for it.