Have you thought about how much cost you can save if you sell a home without an agent? A talented real estate agent can help you sell your home faster and for a higher price than if you were to handle it yourself. However, most agents charge a commission based on the sale price, which reduces your overall proceeds. Let’s explore the advantages and disadvantages of enlisting a real estate professional for your home sale.

Do I need a Realtor to sell my house?

No, home sellers are not legally required to use a real estate agent, broker, or Realtor (a Realtor is an agent who is also a member of the National Association of Realtors, or NAR). In some cases, a knowledgeable and resourceful seller can manage the sale independently.

However, a “for sale by owner” (FSBO) transaction demands a significant amount of time, expertise, and confidence. If you’re uncertain about your skills, hiring a professional with experience in listing and selling homes can be highly beneficial. According to the latest NAR Profile of Home Buyers and Sellers, 89 percent of home sellers choose to work with an agent.

Your three main options to sell a house without a Realtor include

Sell your house to a cash buyer

If you need to sell your home quickly, consider opting for a cash sale. Cash buyers, such as iBuyers and house-buying companies, purchase homes outright without the need for lender financing. While this can provide convenience and expedite the sale, it often comes with higher transaction fees and a lower overall profit.

Pros:

Avoid Home Inspection Delays: Home inspections frequently reveal issues that can delay closing. According to a Porch survey, 86% of inspections find at least one problem. Selling to a cash buyer often means you can bypass the need for repairs and sometimes even skip the inspection process altogether.

Skip the Stress of Showings: With a cash sale, you won’t have to worry about preparing for open houses or showings. You can save time and avoid the hassle of cleaning and vacating your home for prospective buyers.

No Need for Home Makeovers: In an as-is sale, you can forgo expensive renovations, repairs, and cosmetic updates that are typically required to make your home market-ready. There’s no need to worry about decluttering, staging, painting, or updating fixtures.

Cons

Lower Sale Price: As previously mentioned, convenience often comes at a cost. Cash buyers, particularly flippers or investors, typically leverage the ease of a quick sale to negotiate a lower price. They are looking to purchase below market value to maximize their profit after making improvements and reselling the home. Sellers seeking a higher sale price might find that cash buyers offer less because they are primarily motivated by potential profit rather than the home’s market value. As Carson advises, “Don’t give your home away to one of these house-flipping companies that’s offering you cash. They’re trying to make a profit, and the way they do it is by cutting a deal.” In many cases, a skilled real estate agent can secure a better price.

No Opportunity for Bidding Wars: In a competitive market, multiple buyers can drive up the sale price through bidding wars, often resulting in a final price significantly higher than the initial listing. When selling to a cash buyer, this opportunity is lost. Cash buyers typically aim to acquire homes at a lower price and are less inclined to compete with other offers. Even in a balanced or slower market, an experienced agent can attract multiple buyers and negotiate a higher sale price. Cash buyers generally prioritize deals and profit margins over emotional attachments, unlike potential buyers who might fall in love with your home.

Sell Your Home on the Open Market Without a Real Estate Agent (FSBO)

Homeowners are often attracted to the For Sale By Owner (FSBO) route to save on agent commissions and maintain full control over the selling process. However, this control also comes with additional responsibilities. You’ll need to manage advertising and marketing, set the right price, and handle walk-throughs and open houses yourself.

Many homeowners are hesitant to take on these tasks and risk potentially selling their homes for less. According to a 2023 National Association of Realtors (NAR) report, FSBO sales make up just 7% of the market. However, if you’re adept at marketing, staging, networking, and negotiating, FSBO might work for you.

Pros:

Save on Agent Commission Fees: By selling your home yourself, you avoid the 3% commission fee typically paid to the listing agent.Even if a buyer’s agent brings a buyer to your FSBO listing, the buyer may still need to cover the commission. Carson, for instance, will inform his clients that if the seller isn’t offering a commission, the buyer will need to pay it. This could limit your pool of potential buyers if some are unwilling to cover the commission.

List Your Home on the MLS: To maximize your home’s exposure, you can list it on the Multiple Listing Service (MLS), which reaches a broad audience. While you can advertise on platforms like Facebook and Nextdoor, using a flat-fee MLS service ensures your home is visible to the majority of potential buyers.

Potentially Faster Sale: FSBO transactions might close more quickly because they are often not “arm’s-length” transactions. NAR reports that 57% of FSBO sellers already know the buyer, which can expedite the process.

Cons

Potentially Lower Sale Price: Statistically, FSBO homes tend to sell for less than those listed with a Realtor. A 2023 NAR survey found that FSBO homes sold for an average of $310,000, compared to $405,000 for homes sold with an agent.

Time-Consuming Effort: Managing an FSBO sale can be as demanding as a full-time job. You’ll need to handle marketing through social media, flyers, and open houses. Top agent Joanne Owens suggests using services like Vistaprint for postcards, but remember to factor in design costs, professional photography, and postage.

Responsibility for Photos and Staging: You’ll need to arrange for professional photography, which typically costs between $110 and $300. Preparing your home for photos—by cleaning and staging—can be time-consuming. High-quality photos won’t make up for a home that’s cluttered or poorly presented.

Personal Safety Concerns: Selling FSBO means you’ll need to be available to show your home to potential buyers, which can raise safety concerns. Unlike agents, who vet buyers and manage showings with proper security measures, you’ll be opening your home to strangers without these safeguards.

Risk of Scams: FSBO sellers are at risk for scams like wire fraud and phishing. Fraudsters may send fake wiring instructions or offer fraudulent money orders, putting your sale and finances at risk.

Handling Negotiations Yourself: Negotiating can be challenging without professional experience. Buyers’ agents are skilled negotiators working in their clients’ best interests, and they might take advantage of your inexperience. If you’re not comfortable with negotiation or unsure of market norms, selling FSBO could be more difficult.

Bottomline

If you choose to sell your home without a Realtor, you’ll need to take on multiple roles—scheduler, marketer, legal advisor, and more. It’s a demanding, full-time job, which is why many real estate agents dedicate themselves to it professionally.

If you decide you don’t want to work with a Realtor, reach out to Illinois Real Estate Buyers to get your no obligation cash offer today.