Selling your home on your own, without a Realtor, is becoming less and less popular. This is surprising, considering that home values have skyrocketed and commissions have risen along with them.
The money to be saved can be significant enough to attempt to sell your home on your own. Especially when the market has historically low interest rates and high demand in most areas of the country.
To sell your home on your own however, you are missing the most significant marketing tool available to you. The Realtor’s Multiple Listings Service (MLS).
70% of all home buyers start out on the web. So it is crucial for you to be in the MLS. But, the challenge has always been that to be in the MLS you have to sign with a Realtor at 6% of your sales price.
So if your home is worth $399,000. You would spend 6% on your sales commissions. Not to mention your title, escrow and other expenses.
So if you sell your house on your own you can save at least $23,940 ($399,000 x 6%).
But let’s get realistic. Most buyers work with a Realtor.
So you will be spending at least 2% to 3% for the buyers commission.
I say you will be spending because even if the buyer is paying the agent as a buyers broker, that will still reflect a lower offer to that takes into consideration the commission. So you are paying for the commission indirectly-yes?
Additionally, you will find that you will have a much better reach into your marketplace by being in the MLS.
So how do you do this? Well depending on your State you can list your home for a flat fee as low as $500. But, you get listed in the MLS with zero service.
But, you get the reach of all the buyers brokers that subscribe to the MLS and you still save 2% – 3% of the price.
by Tim O’Keefe