The explosion of the internet over the last decade has made the sharing of information more effective than ever before. If you have the motivation and time to learn a new skill set then doing some research on the internet can often times help you get the job done. For example, many home owners reference You Tube or search Google to learn how to do their own basic home repairs. So, when you are ready to sell your house why not try and use the same DIY approach to save some money. In today’s post we will take a look at a few of the benefits for selling your house without an agent.
Agents cost money. It’s that simple. In many cases, it’s a lot of money. A real estate transaction can cost six percent of the final property sales cost. If a property sale price is $500,000, this can cost sellers $30,000. This amount is split between both the buyer’s and seller’s agent.
This is a considerable amount that is taken from the final sale price. If a seller still has high mortgage balances that need to be paid off, eliminating commission costs is a huge advantage. Just increase net profits is attractive to sellers. Keep in mind, just because you don’t have an agent as a seller doesn’t mean you can preclude the buyer from having an agent.
Most sellers end up paying between two to three percent to the buyer’s agent in self-represented sales. However, if you are new to real estate sales, the buyer’s agent might try to negotiate a bigger commission because he will most likely be doing work on both ends of the transaction to make up for your lack of experience and understanding.
Even though you can’t force the buyer to not have an agent, it doesn’t become negotiating power to say you are more flexible in the price if there is no outside representation. Buyers might feel they are able to negotiate a better price without an agent because they know the amount of savings in the transaction.
Beyond negotiating the sale price, sellers might feel they are more qualified to sell and negotiate the transaction than an agent. Sellers well versed in real estate transactions might be comfortable walking through the process and negotiating items at different points in the escrow process. When a seller is comfortable dealing with a buyer or buyer’s agent, he can save at least three percent of the commissions by representing himself.
It is also possible that the transaction is very straightforward. Perhaps it is a new construction or being sold as is and the seller isn’t willing to negotiate on anything. Buyers can come in and make an offer without expectation for repairs or credits. Sellers set with their price and able to provide all disclosures and documents properly might not see a need for agent representation.
Keeping Things Personal
There are times where both parties know each other well and the sale of the property happens through their personal relationship. A common example of this would be when the parents own the house and decide to sell it to their children. Since the seller doesn’t have to worry about finding a buyer for the property then they may not need to pay for the services of an agent.
Even when parties to a sale know each other, legal sale requirements must be followed. Adhere to all Chicago codes for disclosures and timelines. The last thing you want as a seller representing himself is to find yourself in a legal battle down the road for a property you thought you no longer had any ties to. Follow the rules to avoid legal ramifications and penalties.