How to Sell Your Home Without a Realtor: A Step-by-Step Guide to a Successful Sale

by Aaron Gobble

Looking to sell your home without a Realtor® in Ohio? Look no further! We get it – the thought of shelling out 6% or even 7% of your home's value to someone else can be disheartening. You've put in the time and effort to build equity in your house. But fear not! In this comprehensive guide, we'll equip you with everything you need to successfully sell your home. Our topics will include reasons to sell FSBO, pricing strategies, effective advertising techniques, navigating contracts, and the final closing process. Let's embark on this exciting and rewarding journey of selling your home together!

Your Big WHY

To get us started, let's talk about your burning desire to sell on your own! Understanding your motivation sets the stage for the methods you'll employ to make it happen.

In this portion, we'll discuss the biggest reasons for selling FSBO, and whether they are worth it or not. We'll discuss motivations like:

Avoiding a Realtor® commission
You already have a buyer
Not in a hurry to sell
It's a seller's market
Avoiding an agent

Avoiding Realtor Commissions

Avoiding Realtor® commissions is the primary reason FSBOs choose to sell on their own. According to NAR, 44% of homeowners opt out of using an agent for this very reason. While it's understandable to want to save on fees, it's important to consider the potential consequences. In 2021, the average sales price of owner-sold homes was 5.5-30% lower compared to those sold with a Realtor®. This can be attributed to various factors, but the concept of supply and demand plays a significant role. We'll delve into this further when discussing home marketing strategies.

Another decision to contemplate is whether to accept buyers with or without representation. It's a tough choice: on one hand, you aim to avoid Realtor® fees, but on the other, you limit your pool of potential buyers. NAR reports that 86% of homebuyers used an agent in 2021, significantly reducing your buyer pool. Additionally, if you decide to pay a buyer's agent while selling FSBO, your savings may dwindle to a mere 3% compared to the traditional listing method. It's a gamble to expect the same or higher net proceeds from your home sale.

When it comes to sellers opting out of using a real estate agent, one reason stands out: the fear of losing money. While the allure of making more money is tempting, it's the haunting worry of agent fees that truly drives people. But here's the catch: our intense focus on avoiding those fees can blind us to the potential for even greater financial loss. Don't let the pursuit of short-term gains overshadow the long-term consequences.

You Already Have a Buyer

If you've got a buyer already lined up or you're selling to a family member, you might just skip a few steps and make the process smoother. According to NAR, selling to a friend or family accounts for 29% of sales, while a buyer reaching out to you makes up another 16%. Talk about convenience!

There are quite a few perks in this situation. If you currently live in the home, you can wave goodbye to the hassle of countless showings. Plus, you could have the freedom to pick a closing date that suits you better. But here's something to think about: by limiting your potential buyers to just one, you might end up selling below market value. If that's not a problem for you, or if avoiding strangers in your home is more important than making more money, then this approach could be a perfect fit for you.

No Rush To Sell

Having ample time to sell your home can be a significant advantage. Picture this: you've paid off your mortgage or your property is currently rented out. Now, here's an interesting tidbit: homes listed for sale by owner tend to sell slower compared to those listed by an agent. But hey, there are exceptions to every rule. For instance, if you already have a buyer lined up or if you're open to selling to companies like Redfin or Opendoor.

Let's talk benefits. When you have more time, you can set a target price that aligns perfectly with your financial goals and the current market value of your property. No need to rush and accept lower offers—instead, you can patiently wait for a buyer who's willing to meet your desired price. This approach lets you avoid hastily accepting undervalued offers due to time constraints. Keep in mind, though, that the real estate market is always changing, so a bit of flexibility may be required.

As a seller, having time on your side not only gives you a sense of control over the selling process but also increases the potential for better financial outcomes. However, it's important to note that in certain situations, the opposite effect may occur. In a high-demand market, some might assume that a house that's been on the market for a while must have issues. This could attract lowball offers and unfavorable terms from opportunistic buyers.

All things considered, taking the time to sell your home can offer numerous benefits. It allows you to carefully weigh your options, set a fair price, and increase the likelihood of achieving your financial goals. Just remember to stay mindful of market conditions and be prepared to adapt if necessary.

You Want To Avoid Agents

Real estate agents, just like professionals in any field, are not immune to criticism. Some sellers find them frustrating due to the commission-based pay structure, which may appear as a significant chunk of the sales price. Communication issues can also arise, with agents not always being readily available or as responsive and proactive as sellers would prefer. In fact, 5% of FSBO sellers opted to sell by owner to avoid dealing with agents altogether.

But let's not forget, the real estate industry grapples with public perception issues, with some skeptically viewing agents and likening them to used car salesmen. However, amidst these criticisms, it is crucial to acknowledge the undeniable benefits of working with a real estate agent. The key lies in finding someone you truly connect with. Having an agent on your side, and avoiding negotiating against another who has experience in the industry can create a more positive experience than a negative. Despite all the challenges, a skilled and compatible agent can make a world of difference in your real estate journey. So, don't let the naysayers discourage you—find the right agent and embark on an exciting real estate adventure!

Preparing Your Home For Sale

Prepare to showcase your home to potential buyers! Here are some essential steps to elevate its appeal and increase its value. These practical tips can easily boost your home sale by 5-10%. Preparing your home may seem overwhelming, but it's a crucial task for sellers. It often feels like the to-do list keeps growing, but it's one of the most cost-effective ways to enhance your home's value. Let's dive in and get started!

Start by giving your house a thorough cleaning, leaving no corner untouched. Create an atmosphere that's so fresh and inviting, it'll make potential buyers feel like they've discovered a hidden gem. And hey, don't forget to give some extra tender love and care to those high-traffic areas like the kitchen and bathroom—because first impressions truly are everything.

Next, tackle any necessary repairs, big or small. Fixing that leaky tap, replacing cracked tiles, or addressing a faulty doorbell can have a huge impact on how your home is perceived.

To get a fresh perspective, invite a friend or family member over to provide objective feedback. Sometimes, we become blind to issues or smells that others can easily spot. Their insights can make a world of difference in presenting your home in the best possible light.

Investing in strategic updates can also be beneficial. For instance, a fresh coat of neutral paint can transform a space, but please don't make EVERYTHING gray and white. Lighter colors can make it appear larger and more illuminated. Similarly, updating outdated fixtures and fittings, such as cabinet handles or light switches, can have a surprising impact on the aesthetics of your home.

Lastly, declutter to maximize space. A decluttered home looks larger and more inviting. Using less furniture that flows well can make a huge impact. If you have a wall of family photos, take those down. Prospective buyers should be able to envision themselves living in the space, which is easier when it isn't littered with personal items.

These preparatory steps, while requiring an upfront investment of time and money, can significantly increase the appeal of your home, leading to quicker sales and a more significant return on investment.

Pricing Your Home

In the era of the internet, it may seem effortless to determine the right price for your home. With websites like Zillow or Redfin providing instant valuations, what could possibly go wrong? However, the issue lies in the accuracy of these websites, which can often be significantly off the mark. Relying on them blindly could lead to potential financial losses or overpricing your property.

Determining the optimal price for your property involves assessing comparable sales. However, it's crucial to focus on homes within your specific market, which may extend beyond your immediate city. Each market possesses its own unique characteristics, necessitating awareness of neighborhoods that align with your property.

Begin by conducting a comprehensive search for homes sold in your area over the past six months. Narrow down your search to properties with similar bedroom and bathroom counts, ensuring the square footage falls within a 10% range of your own. If your home features a finished basement, seek out comparable properties with the same attribute. Platforms like Realtor.com or this website can provide valuable data on comparable sales. Examine photos of sold properties to gauge their condition and ensure they align with yours.

To ensure an accurate pricing strategy for your home, aim to identify at least three comparable properties. However, keep in mind that relying solely on your neighbor's home as a benchmark may not always be reliable. Even homes built simultaneously in close proximity can vary significantly in terms of sales prices. This is where websites like Zillow face limitations. They lack the ability to assess the unique upgrades and level of care given to each individual home.

It's important to remember that the initial listing price of your home may not necessarily reflect its final selling price. To attract more potential buyers and maximize offers, it is crucial to competitively price your home. By doing so, you can foster healthy competition, potentially driving up the final sale price.

Once you have a general idea of your home's market value, it is time to do any preliminary paperwork necessary for selling your home.

Pre-listing Paperwork and Point-of-Sale Requirements

Paperwork can seem intimidating, but with proper research, you'll be well-prepared. Each municipality has its own requirements, so it's crucial to check your county and city websites for specific disclosures and point-of-sale (POS) obligations. For instance, in Ohio, one county may necessitate a well and septic inspection for title transfer, while another may not. Cuyahoga Falls mandates a sewer line disclosure, whereas Kent requires a zoning disclosure. These requirements vary, underscoring the importance of thorough research.

One essential disclosure for all homes is the Residential Property Disclosure, required for title transfer if you've lived in the home. If you haven't, you'll need to complete an exemption form, which the buyer must sign. Additionally, if your home was built before 1978, you'll need to fill out a Lead Paint Disclosure.

Having these disclosures ready before marketing your property ensures you can provide them to potential buyers, preventing any issues in the future.

You may also want to consider getting a pre-listing home inspection. By doing this ahead of time, you can identify any major issues with the property and make necessary repairs before listing it on the market. This will not only save you from potential legal troubles down the line but can also help a buyer eliminate a home inspection contingency in their offer.

Advertising The Property

When it comes to listing your property, the level of effort you're willing to invest can make all the difference. There are different approaches to consider that can take your listing from ordinary to extraordinary.

To begin with, prioritize getting high-quality, professional photographs of your property. In this digital age, the initial encounter anyone has with a home is online. Failing to make a strong impression there will significantly limit the number of potential buyers who proceed to visit the property.

You have the option of a simple listing on Zillow with a yard sign, which can be effective. However, if you're looking to maximize exposure and reach a wider audience, it's worth exploring other avenues. Imagine having your property featured on numerous IDX websites, where thousands of home buyers frequent to discover their dream homes. By listing on the MLS, you gain access to these IDX sites, ensuring that your property doesn't go unnoticed.

While Zillow is a popular platform, relying solely on it may cause you to miss out on potential buyers who discover properties through other channels. If you decide not to engage an agent, you can manually list your property on various IDXs. However, this can quickly become repetitive and time-consuming.

It's important to consider that selling exclusively on Zillow is still a viable option. However, it may limit your ability to generate high demand through alternative platforms, potentially impacting the optimal price you can achieve for your home.

At Kaizenohio.com, we consistently send out homes to hundreds of potential buyers. If you list FSBO, your home won't end up on a website like this. It is important to note that you can also get your home listed on the MLS through a limited listing agreement with an agent. This means you still handle the listing as a FSBO, but pay the agent a fee to put it on the MLS. If you go this route, you'll also want to decide what you would offer a buyer's agent so that it can be listed without one trying to negotiate something higher when approaching you. If you're interested in this method, contact us here.

There are various methods to advertise your property effectively. While some are simpler than others, let's begin by acknowledging the significant decline in the number of FSBOs over the past four decades (nearly 33%). Previously, listing your home was as straightforward as placing an ad in the newspaper. However, with the advent of technology, countless avenues have emerged to connect your home with potential buyers, many of which require research for successful implementation.

A fantastic and easy starting point is promoting your home on social media platforms. Share a couple of photos on your Facebook page and kindly request friends and family to spread the word. Additionally, explore off-market home sale groups to expand your reach. You can also create a listing on Facebook Marketplace, although it's important to be prepared for time-wasters.

Another impactful approach is to send out mailers or personally engage with your neighbors to discuss the availability of your home. If your neighborhood has a dedicated Facebook group, consider posting your listing there as well.

While placing an ad in the newspaper remains a viable option, it's worth noting that less than 1% of people find their homes through print media. Consequently, it may not be the most efficient use of your time to pursue this avenue.

Numerous other methods exist to broadcast your home, but if you're only selling one property, it may not be worth investing the time to learn and utilize them effectively.

Showing Your Home

When showcasing your home to strangers, it's crucial to pay attention to some important details. Firstly, consider requesting a pre-approval letter from any buyer without an agent, which should be emailed to you before the showing. This helps filter out potential tire kickers who aren't genuinely interested in buying a home. By knowing who's coming in advance, you can avoid wasting time.

Before any showings, set the stage by opening the curtains, turning on all the lights, lighting a candle, and doing a spot check for cleanliness. If you have pets, it's advisable to keep them in a crate to prevent any mishaps.

If the buyer is accompanied by an agent, you might want to consider allowing them to explore the house on their own. Speaking from personal experience, it can be frustrating not being able to speak your mind when the opposing party is always present. Moreover, this approach can make buyers who are used to private showings feel more comfortable. The goal is to create a positive experience for potential buyers without causing any unnecessary discomfort. This is not to imply that you're not a pleasant person; it simply acknowledges the emotional and financial investment you have in the home.

Consider hosting an open house event. However, keep in mind that this may conflict with the practice of having a pre-approval and allowing strangers to freely roam your home without your presence. Ideally, an open house serves as an opportunity to showcase your home to neighbors, as they may have acquaintances who they would like to see become their future neighbors.

Finally, make an effort to avoid refusing any showings. Your availability may not align with others'. If their schedule doesn't work for you, you might miss the opportunity to showcase the home again.

Contracts/Negotiations

Handling contracts and paperwork without a Realtor® is possible, but it's crucial to thoroughly read any purchase agreement to fully comprehend the terms. Keep in mind that different brokerages have different purchase agreements, so ensure that everything agreed upon is documented. Both parties should sign the purchase agreement and all other relevant documents and disclosures. If the buyer doesn't have a real estate agent, ensure that the documents are sent to their lender. Additionally, initiating title work is essential in Ohio, as the state utilizes a title company for handling changes in ownership. This process involves conducting a survey and obtaining a payoff from your mortgage company if you have a loan.

If the buyer requests an inspection, the next step would be to schedule one. In such cases, it is important to have a release of inspection contingency document ready, especially if repairs are being requested. Ensuring that this contingency is waived will help prevent any delays with their loan.

In case any changes need to be made to the contract, either fill out an addendum or clearly note the changes on the contract with initials from both parties at every modification.

Negotiating the sale of your home can involve various factors, such as price adjustments, credits towards closing costs, and repair requests. Having an agent can greatly assist in understanding what negotiation requests are reasonable and what are not. It's worth noting that many buyers and agents may assume that a For Sale By Owner (FSBO) transaction would be easier to negotiate. However, statistics show that FSBO homes tend to pay higher amounts in both seller concessions and repairs. It's important to keep in mind that every home sale is unique, and providing more specific information on negotiations without being directly involved or writing a book solely on negotiations is challenging.

Closing on the House

Once all negotiations are done and the contract is accepted, it's time for the grand finale - closing! But before that, the buyer gets a chance to do a final walk-through a couple of days prior to ensure everything's in order - just a little extra peace of mind. In Ohio, a title company handles the closing process. You have the choice to sign there or have a notary come to you. Just remember to bring your identification forms and any necessary paperwork requested by the title company. Let's wrap this up smoothly!

Final Comments Regarding FSBO

When selling a house without an agent, it's important to be aware of the pros and cons. On one hand, you don't have to worry about paying an agent's commission or having to answer their calls all the time. You're also able to control the sale of your home from start to finish. On the other hand, you may lack in resources, market knowledge, and even negotiation skills (no offense)

At the end of the day, it's important to consider your own personal circumstances as well as the local real estate market when deciding if selling a house without a realtor is right for you. Selling without an agent is not for everyone. You should be prepared to take on certain tasks and responsibilities that would typically fall on the shoulders of an agent. For instance, you'll need to handle all the paperwork that's required when selling a house, such as filling out forms correctly and filing

Helpful Statistics

Having the right motivation for handling an entire deal without an agent is important. Here are a couple of quick statistics to consider before handling the process on your own:

FSBOs accounted for 10% of home sales in 2021. The typical FSBO home sold for $225,000 compared to $330,000 for agent-assisted home sales.
Where buyers found the home they purchased:
- Internet: 51%
- Real estate agent: 29%
- Yard sign/open house sign: 4%
- Friend, relative, or neighbor: 10%
- Home builder or their agent: 1%
- Directly from sellers/Knew the sellers: 5%
- Print newspaper advertisement: less than 1%
FSBO methods used to market home:
- Friends, relatives, or neighbors: 28%
- Yard sign: 20%
- Third party aggregator: 19%
- Social networking websites: 17%
- For-sale-by-owner website: 3%
- Open house: 3%
- Online classified ads: 3%
- Multiple Listing Service (MLS) Website: 3%
- Other website with real estate listings: 1%
- Video hosting websites: 1%
Most difficult tasks for FSBO sellers:
- Preparing/fixing up home for sale: 6%
- Getting the right price: 16%
- Understanding and performing paperwork: 13%
- Selling within the planned length of time: 10%
- Having enough time to devote to all aspects of the sale: 1%
- Attracting potential buyers: 1%
- Helping buyers obtain financing: 1%