Are you considering trying to sell your home without a Realtor?
In an era where real estate listings are available online and there’s no shortage of data through sites like Zillow, Trulia, and Redfin, it’s reasonable to wonder if you truly need a Realtor. Perhaps you could do it yourself.
Here’s the REAL answer to this common question.
What’s the Difference Between a Realtor and a Real Estate Agent?
Before we get to the heart of the question, we need to address a small technicality. People often use the terms Realtor and real estate agent interchangeably. But they are actually different. Anyone with a state license to sell real estate is a real estate agent, but a Realtor (REALTOR® to be completely accurate) is a real estate agent who has committed to the Code of Ethics upheld by the National Association of Realtors (NAR).
Having said that, as a Realtor, I’m going to use “Realtor” throughout this article, except when the difference is material (like in statics). Now, on to the important question.
Can You Sell Your Home Without a Realtor?
Technically, yes. It’s perfectly legal to sell your home without a Realtor.
But should you?
For-sale-by-owner homes account for just 8% of American real estate sales? Let’s take a look at the reasons for and against trying to sell your home without a Realtor to see if you want to be in this small minority.
Reasons Why You Might Try to Sell Your Home Without a Realtor
First, the three reasons why you might consider selling your home without a Realtor.
Reason #1: To Save Money on the Real Estate Agent Fees
Saving money on real estate agent fees is easily the top reason sellers give for trying to sell their home without a Realtor. And it makes sense. With the median sale price in Litchfield County at $275,000 and the standard commission at 6%, there’s typically around $16,500 at stake.
But there’s one thing many sellers forget. The fee covers both their agent and the buyer’s agent. So if a buyer’s agent brings you buyers, you may still need to pay a 3% commission to the buyer’s agent to complete the deal (because buyers typically aren’t willing to forego an agent, especially when it’s typically free for them). Suddenly, you’re only saving half of the real estate agent fees, so around $8,250 on average.
Reason #2: You’ve Had a Bad Experience with a Real Estate Agent in the Past
I know first-hand what it’s like to have a bad experience with a real estate agent. That’s actually why I become a Realtor.
I had a disappointing experience with an agent trying to sell my home, and then I saw first-hand what a difference it makes to have a resourceful, efficient, and (most importantly) passionate Realtor in your corner. Since then, I’ve been committed to becoming the most dependable, innovative, and enthusiastic Realtor in the Connecticut market.
I wouldn’t fault anyone for wanting to sell your home without a realtor after a bad experience. But I would ask you to consider a different Realtor. We’re not all the same.
Reason #3: It Honestly Doesn’t Look that Hard
The fact that selling real estate looks easy is a testament to the hard work and dedication of the majority of real estate professionals.
The fact is, real estate sales are far more complex than they appear. From pricing to disclosures, marketing to showings, and negotiating to navigating escrow, there is a lot more to a real estate transaction than you may think.
Reasons You Should Hire a Realtor to Sell Your Home
We’ve considered the common reasons people give for trying to sell without a Realtor. Now let’s look at seven reasons why you should hire a Realtor.
Reason #1: To Net Higher Profits
In 2019 (the most recent year for which full data has been analyzed), the average for-sale-by-owner home sold for only $217,900, while the average home sold through a real estate agent was $295,000. To be fair, these figures may be a bit skewed because sellers of higher-value homes are more likely to hire a real estate agent than sellers with lower-value homes. But the fact remains: using a professional Realtor to sell your home typically results in a higher sales price.
The higher sales price is often the result of having a professional negotiator in your corner. Realtors negotiate for a living. I know how to get you the best price with the best terms.
Reason #2: To Reach A Broader Audience of Buyers
One possible reason for the higher sales price is that real estate agents can reach a wider range of buyers. As an owner, you can list your home on Zillow, free of charge. And yes, Zillow has a large user base of looky-loos, but serious buyers are working with agents.
As your Realtor, I can list your home on the MLS (Multiple Listing Service) to notify every other real estate agent of the new listing so they can notify their buyers. This service also syndicates to sites like Zillow, Trulia, Redfin, and Realtor.com, giving you wider exposure than you could achieve alone.
Reason #3: To Avoid Upfront Marketing Expenses
Listing your home on the MLS is just one way your Realtor can help you reach a larger audience. But it’s not the only way. As a professional Realtor, I customize a marketing plan for each seller, complete with:
- Professional photography
- A single-property website
- “Just listed” eFlyers
- A slideshow property tour
- Print advertising
- TV and online promotion
- Mobile brochures
- Neighborhood announcements
- Targeted online advertising
- Area Realtor® notifications
- Online syndication
- Social media promotion
- Email marketing campaigns
- Signage
- An open house (to area brokers and/or the general public, depending on what’s best for your unique situation)
Naturally, all this marketing comes at a cost. My business plans for these costs so I can absorb them on the front end and reimburse myself from the commission once your home sells.
Are you willing to pay these costs upfront if you market the home yourself?
Reason #4: To Get Professional Guidance on Preparing the Home for Sale
It’s always difficult to see your own home through fresh, unbiased eyes. With my experience in the market, I know what buyers expect to see, and I can direct you on ways to quickly and inexpensively improve your property so it will sell faster and for more money.
And then there’s determining the listing price. If you price too low, you leave money on the table. Price too high, and you won’t generate any interest. Then, by the time you reduce the price, people may think there’s a problem with the home since it’s been on the market for so long and the price has been reduced. Without the knowledge that comes with working in the industry day-in and day-out, pricing a home can be a challenge.
By the way, I offer this guidance for free to anyone interested in selling. So if you’re considering selling, contact me for a free, no-obligation consultation.
Reason #5: Because Fielding Buyer Inquiries is Incredibly Time-Consuming
Selling a home typically takes somewhere between 20 and 200 hours of active work (every home and every market is different, so there’s a wide range of “normal”). Most of the time is in crafting your marketing materials, showing the home, and (perhaps the most time-consuming of all) fielding buyer inquiries.
And if you’re trying to sell your home without a Realtor, get ready for lots of bogus inquiries and low-ball offers. When real estate investors see homes for-sale-by-owner, they often try to take advantage of the seller’s lack of industry experience to get the home under market price. They will take hours of your time asking questions, arguing with you over details, and insisting on multiple viewings.
Reason #6: To Avoid Costly Legal Mistakes
Do you know how to complete a residential purchase and sale agreement? Do you know which disclosures are legally required in Connecticut? And do you understand enough about fair housing laws to avoid accidentally breaking them with a line in your advertising about a “perfect family home”?
There are so many areas in the real estate transaction where a simple mistake can have expensive legal repercussions. Real estate agents are legally required to take courses in contract law and real estate law every few years to make sure we are up-to-date with these laws so we can represent you safely.
Reason #7: To Coordinate the Escrow Process
Your work isn’t done once your home is under contract with a buyer. You still need to get through escrow, and this is where it once again pays to have an experienced real estate professional in your corner.
Opening escrow, completing the required steps prior to the dates outlined in the contract, and renegotiating if unexpected issues arise during the inspection all require the skill and experience that most homeowners simply don’t have because they’ve never navigated the process before.
Conclusion
Unless you have professional real estate experience, selling your home without a Realtor almost never makes sense. It ends up costing most sellers far more time, effort, and frustration than expected. And in many cases, the reduced sales price more than offsets any potential real estate agent fees you would have saved by not hiring a Realtor.
So while you technically can sell your home without a Realtor, you probably won’t want to.
If you’re ready to sell (or you’re still on the fence), contact me. I’m happy to take a look at your unique situation and offer professional guidance through a no-cost, no-obligation consultation. Looking forward to hearing from you!
