Can you sell your house privately? When selling your home you want to get as much bang for your buck as possible. It’s only natural. For most people, it is not only their family home, but often times, an investment too.

You might be considering skipping real estate agent fees as a way to increase your profit. After all, you’ll save money and potentially earn more, especially if you feel confident in your negotiating skills. In essence, you may be thinking about selling your home yourself, also known as FSBO (for sale by owner).

While this approach can work for some people, it often doesn’t for most. The main issue is that many people are unfamiliar with the intricacies of deciding to sell your house privately and the level of expertise required. Even if you’re willing to invest the time, you might not have the necessary skills to execute a successful private sale.

To sell your house privately doesn’t have to mean going it alone, however. For a flat fee, there are companies who can help by providing marketing tools, property reports and website listings, but most of the leg work will be down to you.    

What does selling my home privately entail

Although selling your home without an agent may save you money, it will require a significant investment of time. Estate agents typically handle most aspects of a property sale, including advertising, consulting with buyers, and organizing viewings. Taking on these responsibilities yourself can be challenging.

How Does Selling Your House Privately Work?

Selling your home privately in Ontario is a complex task that requires a significant time commitment, regardless of your property’s value. You’ll need to research comparable home listings to set a competitive price, handle negotiations with potential buyers and their agents, and manage various other aspects of the sale.

Whether you opt to work with a realtor or handle the sale privately, you’ll still need a real estate lawyer to finalize the transaction. A legal professional will assist with calculating closing costs, ensuring the legality of the sale terms, coordinating with the buyer’s lawyer, and preparing deeds and other necessary documents.

Ultimately, while selling privately might save you money on real estate agent commissions, you could end up spending more in terms of money, time, and effort. This includes costs associated with staging your home, holding open houses, negotiating prices, and managing many other details of the sale process.

Step 1: Determine Your Asking Price

While estate agents typically set asking prices, you can certainly establish your own. The key is thorough research: browse websites like Rightmove and Zoopla to see what similar properties in your area are selling for. Check recent sale prices as well, since there can be a significant difference between asking prices and final sale prices.

Step 2: Prepare Your Home

If you’re selling privately, your time is valuable. Enhance your property’s appeal by tidying up and possibly adding a fresh coat of paint. A well-presented home can attract buyers more quickly, which means you’ll spend less time showing it around.

Step 3: Advertise Your Property

Research from Newcastle University indicates that most homebuyers in England prefer to move within a 3-6 mile radius of their current location. Therefore, your likely buyers will be in your local area.

Consider distributing leaflets in nearby streets, posting on local noticeboards, advertising in community newspapers, using online neighborhood forums, and leveraging word-of-mouth. Although these methods may seem basic, they are effective and low-cost.

Remember, many buyers search for properties online. While major portals like Rightmove and Zoopla don’t allow direct listings from private sellers, you can explore online or hybrid estate agents that offer listings on these platforms for a fixed fee.

Step 4: Arrange Viewings

Typically, estate agents handle viewings, but as a private seller, this responsibility falls to you. If you’re unavailable, ask friends or family to assist with showing the property to potential buyers.

Step 5: Negotiate the Price

Before negotiations begin, decide on the minimum price you’re willing to accept. During negotiations, aim to stick to this figure. It’s common to reject initial offers, so handle rejections diplomatically to keep the possibility of a revised offer open.

Step 6: Accept an Offer

Initially, accept offers verbally but request written confirmation via email or post. While this confirmation isn’t legally binding (nothing is until contracts are exchanged), having a written record helps maintain a clear paper trail.

The Dangers of selling your house privately

When selling your home privately, it’s crucial to exercise caution throughout each stage of the process to avoid potential issues.

The Advertising Stage

Avoid including your full address in advertisements. Instead, provide detailed information only after interested parties contact you, allowing you to assess their genuine interest in the property.

You don’t need to include your phone number in your ads; an email address can be just as effective for initial inquiries.

The Enquiry Stage

At this stage, gather as much information as possible about potential buyers. Ensure you have their mobile phone number and verify that their call isn’t from a withheld number. Record their name, address, and car registration for your records.

Be cautious of anyone wanting to make an offer without first viewing the property.

The Viewings Stage

It’s wise to have a friend or family member accompany you during viewings. Although it might seem overly cautious, having an extra person can enhance your safety and provide support.

Consider establishing a ‘code word’ with your companion to quickly end the viewing if either of you feels uncomfortable.

Be discreet when discussing sensitive details like security systems or how often the home is vacant. Save such information until after contracts are signed.

Also, ensure you never leave guests alone and hide any valuables during viewings.

The Conveyancing Stage

By this stage, you should have engaged a solicitor or conveyancer to manage the legal aspects of the sale. It’s essential to choose a reputable and reliable professional to handle the process effectively.

Bottomline

Selling your house without an agent can be challenging, but it may save you thousands in commission fees. If you have the time and determination, and are prepared for the effort involved, selling your home privately could be an ideal choice.

If you’re looking to sell your property privately and looking for cash, reach out to Illinois Real Estate Buyers for a no obligation cash offer on your property today.