Homeowners pay about six percent in commissions when selling their property using the traditional realtor model. To break it down: you’ll pay three percent to the buyer’s agent, and the other three percent is for your listing agent.
For many people, that six percent is a big chunk of change that’s taken off the top of their house’s selling price. No wonder why more homeowners are exploring options other than hiring a real estate agent in selling their homes. But, other than the traditional real estate transaction that involves two agents, what other options do sellers have?
Below are your three options to sell without paying commissions:
1. Selling FSBO (for sale by owner)
If you aren’t on a tight timeline and have plenty of time to deal with buyers, FSBO selling may be a good option. If the house you intend to sell is in a hot market, FSBO is a particularly great selling method.
When listing a home for sale by owner, being confident that you can connect and communicate with the right professionals without any issues is essential. If you’ve sold several homes on your own before, getting a sale done through this option shouldn’t be a problem.
However, if it’s your first time selling FSBO, you have to keep in mind that it’s not as simple as putting a “for sale” sign on your front yard. You have to be patient and make sure to do the following:
- Analyze area home sales before setting a price
- Draft a description of your home that entices buyers
- Take photos of your property
- Declutter, clean, and make repairs
- Post your listing online and possibly pay for social media and print ads
- Create a flyer that potential buyers can read
- Set appointments at the buyers’ convenience
- Show your house to interested buyers
- Prepare a sales contract
- Negotiate a closing date
Probably the best thing about listing a home for sale by owner is that you can use your knowledge about your property to your advantage because you’re in control of the entire process.
2. We Buy Houses Companies
Accept an offer from We Buy Houses companies if you want to sell your house fast. These companies are real estate investors that follow a simple and effortless buying process. They simplify the challenges associated with finding a suitable buyer that many sellers encounter. If you’re desperate to sell, We Buy Houses companies will help you avoid the difficulty and stress of trying to sell your property at a good price. You only have to contact them and get the available offers.
The following are the perks of selling your house to a real estate investor like We Buy Houses companies:
Quick Closing Process
Who doesn’t want a quick closing process? When choosing the option to sell to We Buy Houses companies, you don’t need to bother with the traditional aspects of selling, such as home staging and open houses. As you might know, the traditional aspects of selling can take weeks or months. Real estate investors will provide an offer that you can look over after you give the information about your home. You can close within days once you accept.
Cash Payment
To ensure fast closings, We Buy Houses companies offer cash payments. That means sellers can avoid wading through inspections, traditional financing concerns, and other factors that can only cause delays when offloading their properties this way.
No Need For Repairs
A home inspection can bring surprise repairs and costly expenses up for the sellers in traditional real estate deals. You’ll need tens of thousands if you want to bring your house to the required standard and get full retail, especially if your home is very worn out. These are things that you can avoid when you work with real estate investors that buy homes for cash. If you’re like many homeowners, you don’t have the budget, talent, or time to give your property a full remodel. A real estate investor is an expert at doing just that.
Note that there are several types of house-buying companies, including house flippers, buy-and-hold companies, and iBuyers. In spite of providing generally the same benefits, each of these house-buying models may vary slightly. Nevertheless, We Buy Houses companies, indeed, have changed the realty landscape. Is it a better option for you? Only you can decide.
3. Tech-Powered Brokerage
Consumers have relied on real estate agents to help in marketing their home to buyers and help in determining a fair market value for the longest time. But, today, homeowners who want to sell their properties have nearly the same access to real estate data as agents. That being said, most consumers can now determine an accurate selling price. Also, marketing occurs via MLS (Multiple Listing Service) distributions on the Internet automatically. That leaves savvy sellers with only the contract to think about.
Online brokers charge a fixed fee of just around USD$5,000 to list your home on the MLS. What you’re paying for includes help with negotiation and even professional photos. With the tech-powered brokerage option, you can say goodbye to the six percent agent commission.
Home sellers seem to be more open to the idea of opting for realtor alternatives now that data and digital real estate apps have become more prevalent. Tech-powered brokerages emerged to meet the needs of consumers who don’t need the hand-holding of traditional agents anymore. Sellers can save thousands with an online broker compared with the standard agent commission.
Final Thoughts
There are now more ways to sell a house. Deciding on your best option is essential now that alternatives to a standard real estate agent-assisted sale are increasing in number. When you want to avoid commissions, dealing with a real estate agent may not be for you. The good news is that you have other options: You can either sell FSBO to have complete control over the sale process, sell to We Buy Houses companies to sell fast, or sell through a tech-enabled brokerage to receive full service for a much lesser fee than hiring a realtor. Which do you think is the best way to sell your house without paying commissions?
