What is the Most Profitable Way to Sell My House?
Many are attracted to the prospect of selling their home without help as this circumvents agency commissions. That said, despite the fees your real estate will claim from a sale, realtors often sell for a higher price, which is one of many factors to consider.
It’s essential to be realistic about what you can achieve and how much money you’ll save by taking the reins. Remember: if you find yourself over your head, you can always turn the duty to a licensed realtor!
Those who like to roll up their sleeves and tackle projects themselves can sell a home without relying on an agent. Learning how to sell a house by owner is ideal for motivated, organized individuals who would like to avoid the costs of working with an agency.
To sell your home successfully and maximize earnings requires motivation and attention for favorable outcomes. Of course, it requires much more involvement than simply relying on a real estate agency – so here, we’ll walk through the steps to selling your house with an FSBO sale.
What to Do Before You Sell Your House?
Before listing your home and sticking a for sale sign in the yard, you’ll want to sift through as much information as possible. First, deciding if you should list your for sale by owner means candidly answering the following two questions:
- What do you stand to gain?
- Do you have the time to invest in the sale, or can you make concessions in your schedule to tackle tasks promptly?
Most people want to avoid realtor commissions, which usually run around 5% to 6% of the home’s sale. Saving this amount can be helpful for those with the means to learn how to sell a house by owner, as it allows you to collect the maximum possible amount from the sale.
With that said, you will need to sacrifice time and money to market the home, show it to interested parties, and complete the various administrative functions necessary to finalize a sale successfully.
Before moving forward with the steps for selling a house by owner, use our home value estimator and data from other home sales in your area to understand how much you can earn. Know that most sales often rely on concessions averaging between 3% and 6% for a successful sale. Though you may be able to avoid paying commission to a real estate agent, seller concessions are typical in either case.
If the numbers make sense, you’re ready to proceed to the next steps for how to sell a house by owner.
What is Most Important When Selling a House? 5 Steps to Consider
First, review our steps for selling your home. We don’t discuss how to lay tile, safety when working with 110 and 220 electrical systems, or how to specifically stage your furniture – but we do cover the bases for making your home presentable and mechanically sound. You’ll likely need to perform regular upkeep when still living in the house, which also helps ensure that repairs and renovations go smoothly.
Once this portion is complete or plans have been set in motion to tackle this journey’s functional and aesthetic portions, you can move forward with the process to sell a house.
1. Price it Right to Sell Fast
Setting an attractive listing price is key to a smooth FSBO sale. Overpricing discourages buyers and lengthens selling time. Aim for a competitive price based on recent sales of similar homes in your neighborhood (within the last 3-6 months). Utilize online tools and public records to find comparable properties. Consider a professional appraisal for extra accuracy, though a buyer’s appraisal will likely still be required. Remember, faster sales often lead to higher offers, thanks to increased buyer interest.
Of course, if you’re in no hurry, you can price a home on the higher side. Just be sure to look into sale data for your area by assessing the final sale price of homes over the last several months.
2. Market Like a Real Estate Professional
Learning how to sell a house by owner requires proactive marketing and all the collateral that comes with the territory. High-quality photos are crucial, as most buyers search online first. You’ll also need to craft an engaging description highlighting your home’s best features and using relevant keywords.
Utilize free FSBO listing platforms like Movoto or other places where people list and sell items, like community pages on social media. Put up yard signs and consider additional signs to direct potential buyers if the home is off the beaten path (remember to get permission). You can also consider a flat MLS fee or a discount broker (around 1% commission) to get wider exposure without full-service agent costs.
The nice part about listing with MLS is that many sites like ours automatically pull data from various MLS providers, which saves sellers considerable time during the process to sell a house.
3. Act Like a Real Estate Professional
Overcome buyer hesitation by conducting yourself professionally during every engagement. A few tips for how to sell your house by owner:
- Respond promptly to inquiries, even outside typical business hours.
- Be flexible with showing requests, and consider a lockbox for easy access.
- Actively listen to feedback on price, condition, and features.
- Don’t take criticisms personally, and understand that some people window shop and make empty promises.
- If no offers emerge, adjust your pricing or host an open house to generate buyer interest.
Remember, price reductions are common – most sellers make concessions, and all but the most desirable homes usually undergo at least one cut.
4. Verify Buyer Credentials
For safety and to gauge buyer seriousness, request ID, pre-approval letters (for financed offers), and proof of funds (for cash offers) at showings.
This step for selling a house by owner can feel difficult or even awkward, as there is balance in ensuring the safety of yourself and your home during showings. Consider purchasing in-home cameras to keep an eye on your property, especially if you’ll rely on a lockbox for buyer agents to show the home when you’re not there.
It can also be helpful to purchase plastic storage totes to quickly collect and hide loose items (e.g., valuables, media, etc.) around the home before a showing. This minimizes the opportunity for potential ne’er-do-wells who might be keen to take home a souvenir.
5. Consider a Real Estate Attorney
For complex paperwork and peace of mind, consult a real estate attorney, especially if required in your state (AL, CT, DE, FL, GA, KS, KY, ME, MD, MA, MS, NH, NJ, NY, ND, PA, RI, SC, VT, VA, WV).
Even when not required by law, an attorney fee to review some paperwork can help prevent extremely costly oversights that can occur during the many steps for selling a house by owner.
How to Sell a House by Owner: Alternative Options
Things can happen during the steps to selling your house that are beyond your control. And in other cases, you might find the time you need to dedicate to learning how to sell your house by owner.
If it comes down to it, a real estate agent can always pick up where you left off when things don’t work out. Often, realtors are able to close sales at a higher dollar amount comparatively, which helps alleviate costs from the commission.
