Neither the State of Virginia nor the District of Columbia require that homeowners use a Realtor® or real estate agent to sell their home. Homeowners have every right to sell homes on their own (a for-sale-by-owner or FSBO). Today's real estate market also offers homeowners limited service brokerages where for a fee, companies put your home into the MLS, but leave you to handle everything else as you are essentially selling your home on your own. Before you consider selling your house yourself or using a limited service brokerage, ask yourself if you are going to have the time needed to sell your house -- even if you just cover the basics.
Will you commit the time needed to:
Complete an extensive research of local market conditions? At a minimum it should include the following:
the listing and selling price of all houses in your area for the last 90-180 days?
the listing price of houses currently on the market in your area?
the listing prices of houses that were on the market but did not sell in your area?
the condition of all these homes and how they compare with your home? and
comparing your home to all of these market comps?
Put together a marketing plan?
How will you market your house to Realtors®? Most buyers use a Realtor®, so marketing to Realtors® is essential.
How much money can you afford to devote to advertising? Where will you advertise? How often? Who will write your ad copy?
Are you tech savvy enough to establish an online presence as 75% of all homebuyers start their searches online?
Who will create your sales flyers? Buyers expect fact sheets to take with them when they drive-by or tour a house for sale. Who will take your photos? How many should you use? What are the best photos to take and use?
How does your home show? Do you need staging?
Will you use signage? If so, where will you place it? What are the rules for signage placement your neighborhood and jurisdiction?
Who will take inquiry calls and schedule appointments for showings of your home? Will you use open houses? Who will host them?
Confirm that the potential buyer has pre-qualified for a mortgage?
Negotiate and manage the sales contract and closing?
Are you prepared to negotiate the contract?
Do you understand the contract, especially your rights and obligations as provided by your local jurisdiction?
Do you know what the legal responsibilities of the seller are in your area?
Who will write the contract? Will you need to hire an attorney? If so, what will be the attorney's fees?
Who will monitor the buyer's performance according to the contract?
How will you handle contingencies and problems that may arise?
Do you understand your right and obligations for closing/settlement?
Are you familiar with the standard closing documents for sellers, especially the HUD-1 settlement statement? Will you be able to spot errors?
If you're still not sure, also consider:
Will you offer a commission to buyer's agents? You don't have to, but offering a commission to a buyer's agent is a good way to increase the pool of potential buyers who will see and perhaps buy your home. If you offer no commission, then you are either depending on the buyer having no agent or that the buyer will compensate their own agent -- not likely given the high number of sellers out there who are willing to compensate a buyer's agent in today's market.
Be aware that there will be competition from other sellers for buyers and buyer's agents in today's market where lots of homes are for sale. Different sellers have different strategies, including what they're willing to offer buyers and buyer's agents.
Don't expect the buyer's agent to do your work for you. Since you are serving as your own agent, you need to have done your homework on how to respond, negotiate, and follow through on any offer and eventual contract. The buyer's agent works for the buyer, not you.
These are only a few of the items that you will have to handle if you choose to sell your home on your own. If you'd rather hire a professional Realtor® like me do all the above and more, please contact me so that we can discuss your specific goals and timetable.
