How to Sell without a Realtor
Here is the truth, these are the best things about selling without a Realtor, and yes, we recognize them as true.
Commission savings, typically 3-6% of your listing price.
Total control of marketing
Privacy of home’s exposure and personal belongings.
Counter that to the 3 worst things about selling without a realtor and you can determine the value.
Statistically the home sells 12-15% less than a FSBO (For Sale By Owner) property.
Your ability to spark a bidding war as a non-professional is limited.
Management of contractual obligations requires more time than most expect.
Nonetheless, here is our suggestion on how to sell without an agent representing your home.
Research the market for comps and set a price.
Market extensively, this means going beyond placing it on Zillow and by using social media and local partnerships.
Host multiple, well advertised, Open Houses to drive to traffic from the current locations of buyers to your area.
Prepare and be ready to negotiate contract within your market’s current expectations.
Manage showings, inspections, appraisals, verify buyer’s financing and prepare COO & OPRA documents
From there it’s a simple matter of of valuing your time with a quantifiable #. How much is an hour of your time worth? Once you determine that figure use this formula.
FORMULA: Selling without a Realtor
Sale Profit - (Value of Time X Man Hours to sell) = Total Net Profit
Profit (assume 12% less than comps and deduct any mortgages or liens from your sale as well as closing costs and taxes)
LESS
(Value of your Time multiplied by the Hours need to sell the house)
*Assume 40-60 hours per month with a current average of 55-70 days on the market to sell and include pre-listing hours in document and marketing preparation.
Now compare that to selling with a Realtor
FORMULA: Selling without a Realtor
Sale Profit (add back 12% from comps) - 6% commission
That’s it. Figure out which is more profitable for you and which produces greater value in use of time. Then you decide.