What would I have to do if I wanted to sell my home without using a real estate agent?

Question

In other words, what legalities would I have to observe? What do I have to disclose to prospective buyers? Or should I spend big bucks fixing it up only to have the new owners rip everything out and put their own fixins' in it? I live in New York State.

Answer 1

To be perfectly honest, if you need to ask these questions, you are probably better off hiring a Realtor. If for no other reason than to help you understand the legalities of how you market the house, how to receive an offer and counter in a legally recognized manner, what comparable homes on the market are selling for and what types of renovations have been done, etc.

Also, if your buyer is working with an agent, you will almost certainly have to pay their agent's commission, which is @ 3% of the purchase price. You are probably better off hiring a Realtor at the full commission (the Realtor will split the full commison with the buyer's agent) and having a professional who will design and pay for the advertising and marketing, be able to show your home when you're not there (which is much safer) and has a vested interest in selling the house. You may end up making even less money by going in underinformed than by using a Realtor and paying the full commission, as a Realtor may be able to negotiate a better price for you.

Answer 2

You can check the laws of your state to figure out what responsibilities you have as a seller. It is against the law in all states for non licensed people to advise in Real Estate matters......meaning Title Companies, Escrow Officer etc. cannot legally advise unless they are licensed real estate agents.

Because your buyer will be spending hundreds of thousands of dollars to purchase your home, you (the seller) will be held to a higher standard than the buyer in a court of law if your transaction goes sour.

In many states Lawyers cannot act as brokers without having a real estate license......this means dealing with representing you through contracts.

It is not impossible to sell your house without a Realtor, but what you are trying to gain is not as big as you think.

I say this all the time....If Newpaper ads and magazine ads and the internet sold homes then Realtors would not exist.

The market is slow, buyers think there is a fire sale going on and they are going to expect a lower price from you, because you dont have to pay a commission since you are selling it yourself.

Ted
Realtor
Simi Valley, CA

Answer 3

Again, nothing can substitute for a professional, but everything can be done without one as well.

I have been involved in 3 sales/purchases without a Realtor. It is easier and cheaper. So, what's the difference?

Well a Realtor will get your place on the MLS, which will make the home easier to find. A Realtor will ensure all necessary documents are handled, and they will be paid well to do so.

A home sold through a Realtor will be sold for more, but generally speaking you lose the additional funds to commissions. What you are paying for is the Realtor to market the home and to do paperwork.

If you are willing to market the home yourself, hire an attorney to do the documentation.

It will cost less, but your home will sell for less.

Also many brokers recognize the DIY trend and may offer modular services at a reduced fee. In other words you might find a broker who will list it in the MLS for you for a fee, but do nothing else at all for you. Check around.

GL

Answer 4

If you really want to do this without an agent, talk to an attorney now about what it will cost to have them draw up your contract.

Here are some things to keep in mind:
-Will you pay a buyer’s agent’s commission? I hate to say it, but some agents shy away from sellers who aren’t going to pay them.
-Without an agent, how will prospective buyers know your property is for sale?
An agent will add your home to the MLS, which is the source of the data on most major real estate websites.
-What factors will you use to determine your asking price? In other words, how are you going to identify comparable properties?
That doesn’t just mean the place next door. It could vary wildly from yours in condition and amenities.
-Are you willing to be available anytime, all the time to show your home and to take calls from buyers and buyer’s agents about your property?
-Who is going to help you find your next home?
-How good are you at negotiating?
-When it comes to fixing things up, an agent could advise you now if the improvements you have in mind could.

Answer 5

You can of course sell, For Sale By Owner, FSBO, but in this kind of a buyer's market why wouldn't you want to draw as much attention as you can to your property?
If you are sick you go to a professional, a doctor?
If you need legal advice you hire an attorney?
So, unless you want a fulltime job selling your home and making it the best that it can be and pricing it correctly, why not hire a professional Realtor?
now, there are differences between agents...ask lots of questions, hire a team, do they have buyback guarantees? what are their marketing strategies to sell your house? etc. Listen to what they say, not what you want to hear.
Oh, and by the way...I am not a Realtor...just someone who appreciates professional advice.

Answer 6

I am a Realtor, and there are so many disclosures and particulars in contracts, it can be a bit overwhelming. In all cases, overdisclose rather than under. The only thing that withholding disclosure information will get you is sued.

Ask a title company if they have the disclosures that apply in your area.

So many people are out looking for fixers, I'd sell it the way it is and let the new owners deal with upgrades.

Answer 7

i beleive the correct answer is hire a realtor.
I also beleive in paying for service and making it a successful transaction. However there is that website redfin.com that is aiming to help people like you in select cities.

Answer 8

Hire an attorney. You are dealing with contracts for HUNDREDS OF THOUSANDS of dollars.

Hire an attorney.