how do I legally sell my house without paying realtor commissions?

Answer 1

There are no legal issues limiting your selling your own home. Just be certain that you have the right forms (including disclosure forms) and know the process for your city. You might want to check with an attorney who handles real estate ahead of time to ensure you know the process, costs and pitfalls. However, I have to ask why you want to sell the property yourself? A good agent does far more than just stick a sign in your yard, list it on the MLS and hope someone else sells it. However, finding a good agent is as difficult as finding a good dentist, doctor or mechanic. I will give you some questions to ask when interviewing agents a little later. Know that I am a Realtor in Las Vegas and my personal belief is that if an agent can’t save you money, time and risk, they have no value.

Generally, the only reason people choose to sell their own home as opposed to working through an agent is the perception that they will get a higher net. Unfortunately, that is rarely the case and I will explain why. First, here is the situation as most people who have attempted to sell their own home in any but the strongest seller's market can attest to. And, most of the US is in a strong buyers market with excess inventory! Also, here is an interesting:

• Over 10% of ALL properties for sale are FSBOs
• Fewer than 13% of FSBOs will eventually be sold by owner
• Over 87% of FSBOs will end up selling through agents

The problem is perception vs. reality.

Perception:
• A higher net by not paying a commission to an agent.

Reality/Other Considerations:
• FSBO buyers expect a large discount since they know you are not paying agent fees. They typically offer 8% to 10% below market; not below asking price. In a national study, "The median home price for sellers who use an agent is 16% percent higher than a home sold directly by an owner; $230,000 vs. $198,200".
• Security – people coming into to your home are not screened; you have no idea what their motivations are.
• Requires a more knowledgeable buyer who is willing to trade off business risk and time for a much lower price (bargain hunters).
• Limited access to the most qualified, most motivated and least price-sensitive buyers – out of town buyers.
• Takes longer to sell since you are drawing from a much smaller pool of buyers and your home is not available during key out-of-town buyer times (weekdays).

Beyond the perception issue are the realities of marketing reach. When you sell your own home, you are competing with every other home on the market. And, it becomes largely a marketing event, with agents having far more resources. I have some a chart and a table on my website on buyer sources and a financial comparison. http://www.iselllvhomes.com/fsbo.html#buyerSources .

About finding a good agent; plan on interviewing several before selecting one. You need to develop a list of questions and look for tangible and measurable differences. Here is a sort of scoring system but you will need to adopt it. Also, focus as much on their value they provide as the fee they charge. If their answers center around, “I’ve been selling real estate for xxx years”, next agent!

Zero points for the following; every agent does this.
• Place a sign in your yard
• Create a (bland) flyer
• Take 8 basic photos (usually bad) of your home
• List your home on the MLS (which automatically puts it on www.realtor.com).
• List your home in the local “Homes for Sale” magazine
• Hold an impromptu open house
• Virtual tour with the same (usually bad) photos that appear on the MLS
• Having your home appear on their agency’s website

Added value
In the past, people found homes through the news paper, real estate magazines, and drive-bys. Now over 90% of buyers research properties on the internet. And, buyer’s expectations of marketing are not set by real estate agents; their expectations are set by Dell, Amazon, Apple, etc. The agent who markets your home must have a world class internet marketing process. Very few do. Evaluate prospective agents based on the following. Note that the agent will have different methods but must accomplish most of the following:
• An existing, proactive and successful internet marketing campaign. Ask for specifics and homes sold this way. Call their references. I sell almost all my listings through the internet to out of town buyers.
• The agent’s personal website should have at least a Google PR 1 or better (mine is a PR 2). This proves that they have a sustained internet marketing effort.
• A virtual tour that is compelling and provides a lot of information about the home. If someone out of town is looking for a home, they need to have a very positive feel for your home. Your home is far more than: “3 bd, 2 ba, 2 car, 1,500 SqFt, built in 1995” and the marketing material must reflect this. Here is an example of one of mine: http://www.2636PineRunRd.com
• The physical flyer must be equally compelling since this is all the potential buyer will have after they visit your home. Here is an example paper flyer: is an example: http://www.iselllvhomes.com/sampleflyers.html . Notice that I take the time to draw floor plans. How else can people remember the home and know where their furniture will fit, etc.?
• Ask the agent how people find their personal website. For me, type “realtor in Las Vegas” into Google. I am always on the first page and usually in the top five. Look for “Foreclosures, Short-Sales, Builder Fall-Outs. Don't pay list price” and my website is www.ISellLVHomes.com. This costs a lot of money but having such a path for serious buyers to find me and the properties I represent is critical.
• Photos – the photos are the most compelling elements of marketing a home. If the agent uses a cheap digital camera and does not property stage and light the home, it will not look inviting. Here are some examples of my photos. Note that my camera is a high-end 10 megapixel, low light Cannon SLR and I bring in photography lights. By the time I take 20 to 30 photos and correct them with Photoshop, it takes at least 8 hours. Here are some example photos: http://www.iselllvhomes.com/samplephotos.html
• Open house – most agents stick a sign on the street and hope someone comes by. I research the area and locate renters that are paying rent close to what a mortgage payment on the home would be and send invitations to them. I average mailing between 300 and 500 invitations so my open houses actually bring in potential buyers – not just weekend lookers. I also normally have a mortgage person with me so that potential buyers can get immediate information on loans.

If you select an agent that does all the above does that guarantee your home will sell quickly? No. In Las Vegas there is a lot of excess inventory and few buyers. So, it will take time and your price must be near market price.

In summary, finding a good agent is difficult. However, a good agent will get you a higher price, in a shorter time and with lower risk than selling your home yourself.

I hope this helped.

Eric Fernwood
[e-mail]
http://www.iselllvhomes.com/

Answer 2

There's no law that states you must have a realtor to sell your home for it to be legal. Do a FSBO (For Sale By Owner) and use various marketing activities to spread the word. If you're in a good neighborhood, you probably won't have to try very hard to get your home noticed. You can save a ton of money on commissions, but if you're not in a hot area, it may take a while to sell the house on your own. If you're in no big hurry, then the extra wait will pay off from what you save in commissions.

Answer 3

You start by not hiring a real estate agent.

Then you do all of the things that an agent would have done like using market data to come up with an appropriate listing price, marketing, negotiation with potential buyers, contract preparation, closing coordination.

Then shazam, you have legally sold your house without paying a commission.

Answer 4

The hardest part in selling a home yourself is getting it noticed. Marketing your home can be done in various ways depending on what is available in your area. Besides the online sites to post your listing, you can list in your local newspaper. In smaller communities, some places have bulletin boards you can place a listing. Make sure you check you state's website, sometimes there are links on there for property listings. You will need an attorney to draw up a sales contract and the deed. Good luck to you!

Answer 5

If you are already listed with a realtor then you can't. You can wait until your contract expires and then you are free to sell it yourself as the owner.

Answer 6

There are many places online to list and sell your home yourself. buyowner.com, fsbo.com etc.

They can help you.

Answer 7

sell it yourself.

Answer 8

www.jayadad.com