Selling Your House Without A Realtor: Pros, Cons, and Steps to Follow

Option 1: Sell your house to a cash buyer

If you need a fast sale, consider selling your house for cash. Cash buyers — including iBuyers and house-buying companies — are individuals or entities that purchase your home outright, without the need for lender financing. Cash buyers offer sellers convenience and a quick sale, but often at the cost of a higher transaction fee and lower net profit.

Pros

You can sometimes avoid home inspection delays

Inspection issues are a common reason for closing delays. According to a survey by Porch, 86% of home inspections identify at least one problem.  If you sell your home as-is to a cash buyer, they may not require you to complete any needed repairs uncovered during the home inspection. Some cash buyers could waive a home inspection entirely.

You don’t need to deal with the stress of an open house and home showings

Put away the cleaning supplies and don’t worry about tidying up. With a cash sale, nobody is coming for a showing at a moment’s notice. Imagine how much time you’ll save out of your already busy week if you don’t have to make your kids and pets disappear for an hour.

You can skip the home makeover

Again, because this is an as-is situation, you won’t need to climb up on the roof, repaint rooms, or obtain estimates from contractors. You can also skip cosmetic upgrades typically needed to increase your home’s marketability and attract buyers. Forget about decluttering, staging, painting, and updating hardware and fixtures.

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 that they do it is they have to cut a deal.

• 

  Joel Carson Real Estate Agent

  Close

  

  Joel Carson Real Estate Agent at Utah Real Estate

  Currently accepting new clients

  • Years of Experience 33
  • Transactions 394
  • Average Price Point $471k
  • Single Family Homes 272

Cons

The sale price is often lower than you want

As noted earlier, convenience comes with a cost. Many cash buyers use a seller’s desire for convenience to leverage a lower price. Because many cash buyers are flippers or investors, they don’t want to pay market prices.

They prefer to take a “how low will you go” mentality when making an offer on your home. They plan on spending money on the house after they purchase it — fixing it up for a quick flip and as large a profit as possible. Plus, they know that some sellers are willing to sacrifice money in exchange for speed and convenience.

Carson tells sellers, “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 that they do it is they have to cut a deal.” In most markets, an experienced agent can get you more.

If you want the highest sale price possible, you’re better off selling to a family who plans to live in and love your home — not a flipper or investor viewing it with dollar signs.

There’s no chance of sparking a bidding war

In a hot seller’s market, buyers often compete to purchase a home, driving up its sale price in a bidding war. When this happens, a seller can realize a final sale price well above the initial listing price. If you’re selling your home to a cash buyer, however, you miss out on the opportunity to spark a bidding war. Even in a balanced or cool housing market, an experienced agent will know how to make your home attractive to multiple buyers, and how to negotiate the highest price.

Since cash buyers purchase homes by the dozens, they’re only interested in buying your home if it’s a deal. If a competing buyer offers you more, they’ll typically let your home go rather than raise their price and consequently lower their future profit. They are solely motivated by dollars and figures in spreadsheets, unlike a family who fell in love with your big backyard and dreams of raising their children in your home.

If you need a fast sale and want to sell your house for cash, ensure you’re selling your home for the most money possible with HomeLight’s Simple Sale platform. The platform connects home sellers to the largest network of cash buyers in the U.S. Fill out basic information about your home and its location, and you’ll receive a no-obligation cash offer to buy your home in 24 hours. If you accept the offer, you can close in as few as 10 days.

In addition, Simple Sale provides you with a side-by-side comparison of what you might typically make selling your house on the open market with the help of a top agent versus offers from our platform so you can make an informed decision.

Option 2: Sell with a real estate attorney

If you’re lucky enough to have a buyer waiting in the wings, consider selling your home without a real estate agent. Instead, hire a real estate attorney to help you close the sale.

As much as you may love your best friend or believe your brother-in-law is a good guy, it’s best to involve an attorney. “Money and blood don’t mix,” says Rajeh A. Saadeh, a real estate attorney in New Jersey. In private home sales, “The relationship gets killed because they didn’t have something in writing.”

Attorneys who specialize in real estate transactions can help draft and interpret the endless stack of closing paperwork, including contracts and legal documents. Depending on your state, you may even be required to have a real estate attorney present at closing, regardless of whether you’re selling your home with a real estate agent or not.

Pros

A real estate attorney can craft an air-tight contract

Your attorney will draw up contracts that include deadlines for inspections and appraisals, any conditions, caveats, and contingencies, and the details of the sale price and closing dates.

You have a legal advisor to resolve disputes

“Having an attorney help you with the process can be valuable, especially if problems develop,” shares Safa Ashrafi, a licensed attorney with Gross McGinley in Allentown, Pennsylvania. “They can step in to help resolve disputes or prevent them from even occurring.”

Common disputes include failure to disclose property defects and the inability to agree on a moving date.

You still save money compared to working with a real estate agent

It’s not cheap to hire an attorney, but it’s less than what you’d pay in commission working with a real estate agent — 5.8% of the sale price on average. Average hourly fees for real estate attorneys range between $100 and $400 per hour. For comparison, if you’re selling a $250,000 home, $14,500 (or 5.8%) goes to agent fees.

Cons

An attorney won’t get you the best deal possible on your home sale

An attorney will help you close your home sale without running into legal issues, but they won’t help you sell your home for the best price possible. If you’re determined to work with one buyer, the attorney can’t really negotiate on price. For that, you need a top real estate agent.

“Attorneys, unlike agents, will not showcase or advertise a seller’s house, which draws a large pool of potential buyers,” says Ashrafi. “Agents also may know the market and help sellers with determining a sales price.”

Agents are experts in crafting effective pricing strategies and negotiating the best price possible for your home. If you go without an agent, you could undersell your home, especially if it’s to someone you know, where personal feelings are in the mix.

You might lose a friend

There are definite do’s and don’ts when selling a house to a friend. Remain professional through the process and stay level-headed during price negotiations to close a sale that satisfies both parties and keeps the relationship intact.

Carson has met with sellers who thought they had a friend or family member interested in buying the house, but he says, “What ends up happening is that the buyer thinks they’re going to get the home for a good price. When we tell them what the price is, 99% of the time those family and friend buyers are gone.”

Option 3: Sell your home on the open market without a real estate agent (FSBO)

Sellers are often drawn to FSBO because they want to save on agent commission costs and control the entire process. However, with added control comes added responsibility. You’ll need to advertise and market the listing, price it accordingly, and host walk-throughs and open houses.

Few homeowners are willing to take on these tasks and risk selling their homes for less. According to a 2023 report by the National Association of Realtors (NAR), FSBO sales accounted for only 7% of home sales. But if you’re savvy at marketing, home staging, networking, and negotiating, you may just pull it off.

Pros

You save on real estate agent commission fees

If you sell your home yourself, you keep the 3% commission fee that normally goes to the listing agent.

While Carson will show his clients FSBO homes, because they’ve signed a contract with him as a buyer’s agent, the buyer is already obligated to pay the commission. Even if the seller isn’t offering a commission.

When taking someone to look at a FSBO, he’s very transparent and says, “Look, if I can get them to cover the commission, great, but if not, you’re going to be covering that.” Be aware that some people might not want to cover this 3%, and it narrows your potential pool of buyers.

You can still list your home on the MLS

You can advertise your home listing on sites like Facebook, Nextdoor, and other online neighborhood pages. But to reach the widest homebuying audience possible, you’ll want to list your home on the real estate industry’s multiple listing service (MLS), where 88% of sellers list their homes. Go through a flat fee MLS listing service to have visibility on the MLS.

FSBO homes can sell faster

Because it’s not an “arm’s-length” transaction — a transaction in which independent, unrelated parties agree to do business — sometimes FSBO homes can sell and close faster than a sale in the open market. NAR found that 57% of FSBO sellers already knew the buyer of the home, which can help a sale close more quickly.

Cons

Statistically, you’re likely to sell your house for less money than if you hired a Realtor

According to a 2023 survey by NAR, the typical FSBO home sold for $310,000 — much lower than $405,000 for homes that were sold with the help of an agent.

FSBO is time-consuming: You’re in charge of marketing and communications

If you’re planning to act as your own agent, it will feel like a full-time job. The seller must market their home with social media, flyers, and open houses. Top agent Joanne Owens of Sarasota, Florida, advises sellers to use a service like Vistaprint to help advertise their home, where 500 4×6-inch postcards cost about $50. Ordering is the easiest part; you’ll also have to design the postcard and hire a professional photographer. And don’t forget to tack on a $0.53 stamp to mail each postcard.

As a seller without an agent, you also must be available days, nights, and weekends to promptly respond to inquiries. If you fail to return an email or phone call quickly, you could lose the buyer who finds another home in the meantime.

Photos and staging are your responsibility

You’ll need to hire a professional photographer to take shots of your home’s interior and exterior. The average cost ranges between $110 and $300 for photos only (and plan on spending several hours ahead of time cleaning and prepping). Professional photos won’t compensate for a home that’s cluttered or poorly staged.

Your personal safety may be at risk

Owens recently met with an older woman selling FSBO. She felt concerned for her safety when she heard about some recent home showings. “Are they just casing the joint, or do they plan to purchase it?” she wondered.

An agent will not only host walk-throughs but also vet potential buyers to keep you and your home safe, verifying that they’re legitimate, pre-approved buyers.

“With a Realtor, we’re licensed, we have a code of ethics,” Carson points out. “We use a lockbox, the showing is pre-scheduled, and we stay with our clients during the showing.” If you decide to sell FSBO, you’re opening the door of your house to strangers.

You could be scammed

FSBO sellers also need to watch out for wire fraud and online phishing scams.

Wire fraud is when sellers receive an email from a title company that looks legitimate but contains fake wiring instructions that send the money to a scammer’s account. Once it’s gone, you typically can’t get it back.

Some scammers will claim they want to buy your house but can’t come to see it in person. They’ll offer to send a money order as a deposit. A few days later, they’ll ask for their money back. After you send the refund, your bank discovers the money order was fraudulent, and again, you typically can’t get your money back.

You have to handle negotiations yourself

Agents are skilled negotiators focused on getting the best deal for their clients. The buyer’s agent isn’t looking out for your interests — and could try to take advantage of your inexperience during negotiations. They could ask for non-standard contingencies or timelines.

Are you comfortable pushing back on requests, and do you know what’s normal in the market? Can you handle the back and forth of negotiations and remain calm, keeping the deal intact but still getting what you need? Before you decide to sell by owner, be honest with yourself about your strengths as a negotiator because it’s a key part of the deal.

14 steps to selling a house without a Realtor

If you decide the pros outweigh the cons of a FSBO sale, follow this list to successfully list and sell your home by owner.

1. Research your home’s market value

An agent prepares a comparative market analysis (CMA) to help potential sellers set the list price; you’ll need to do something similar.

This analysis includes whether nearby comparable homes (called comps) sold at, below, or above list price, how quickly they sold, and adjusts for differences between your house and the sold house (such as if the closed sale had a garage and your home doesn’t). When researching your home’s market value, look at real estate websites for closing information and follow the same steps.

For list price compared to sales price, online data isn’t always available. You may have to search records at your county recorder’s office.

You could also use the HomeLight Home Value Estimator tool for more insights into pricing your home. In addition to inputting your address, you answer a few simple questions to receive a ballpark estimate of your home’s worth in just two minutes.

2. Set a competitive listing price

If a home sits on the market too long, buyers might wonder if something is wrong with it. Price your home to sell with a listing price that entices buyers and isn’t too high above what your market research found to be average in your area.

3. Prepare your home for sale

Preparing for a home sale goes beyond making sure there aren’t any kid’s toys on the floor. Some experts advise packing up at least half of your stuff before listing your house. Look around and see what easy and quick fixes would spruce up the place — from replacing burned-out lightbulbs to repainting your teenager’s black bedroom.

4. Hire a professional photographer

If you’re trying to maximize your return on investment when you sell, invest in a professional photographer for listing pictures. Professional photography stands out on the MLS and elevates your listing.

5. List your home with a flat fee MLS service

A flat fee MLS service will list your home for you, allowing potential buyers and their agents to find it. Your home will show up in buyer searches when they look in your area and select details that fit your home.

6. Market your property

When you work with an agent, they can showcase your house to their network and pool of potential buyers. Without an agent, you need to find ways to reach your buyers. Take a page from successful agents in your area — are they sending postcards, putting out yard signs, and posting “for sale” notices in local groups? Copy them.

7. Field phone calls and schedule tour requests

Once your home is “live” on the MLS, you’ll hopefully start receiving phone calls to request showings. Agents use tracking software and online calendars to avoid double booking and to let sellers know when they need to be out of the house. Consider setting up a special Google calendar or spreadsheet for this purpose.

8. Follow up with potential buyers

After people have come through your house, make sure to follow up. An agent might reach out to the buyer’s agent for feedback or send a form requesting comments. Call or email to ask if they have any questions.

While you can ask what they thought of the house, they might be sensitive to the fact that you’re the owner and could be reluctant to say anything negative. Strive for professionalism and detachment.

9. Review offers and negotiate with the buyer

Once offers come in, review and compare them. There’s more to an offer than the sale price. Look at closing timelines, if the buyer is offering you a rent-back period, and other contingencies to find the best overall offer.

Don’t forget that you can negotiate. Perhaps one buyer offered a higher price, but you need a longer closing timeline. Call and ask if they’d be willing to bump it out a week. Be careful with negotiations, however, as you don’t want to anger buyers and cause them to walk away.

10. Manage contract timelines and due dates

After accepting an offer, there’s a lot of paperwork to handle. From the purchase agreement to the closing statement, these are legally binding documents. You’ll need to monitor contract timelines, such as how long the buyer has to get a home inspection done, negotiate for repairs, or walk away from the sale.

11. Prepare the required legal disclosures

States have different legal requirements for home sales. It’s a good idea to involve a lawyer in either reviewing or preparing these documents. At a minimum, you’ll need a purchase agreement and settlement statement.

12. Schedule inspection appointments with the buyer

The buyer selects and pays for the home inspection. While you may want to prepare for the home inspection, your primary responsibility is to make sure that the home is empty and that the buyer and inspector can access the property.

13. Renegotiate with the buyer’s agent based on inspection findings

After a home inspection, buyers can and often do negotiate home repairs. They could ask you to fix items before the closing or request a credit back at closing to cover the repair’s costs. If the home inspector found serious issues, they could negotiate the sale price down.

Be prepared to handle these negotiations tactfully, and be realistic when deciding if you’ll make concessions. If the sale falls through, another buyer’s home inspector will find the same issues. It could be worth offering to knock a few thousand dollars off the sale price to close the deal.

14. Navigate the settlement process and close your home sale

The settlement process involves working with a title company to make sure the home has a clear title. You’ll have to collect all documents — title, deed, and any homeowners association covenants — as well as the mortgage payoff amounts. Some states require that lawyers be present at closing, so even if you choose not to involve one earlier in the process, you’ll have to hire someone now.

FSBO Q&A: Additional expert tips and insights

Have more questions? Here are answers to some of the most common FSBO questions.

Is it safe to sell your house without a Realtor?

Everyone has their own risk preferences, and you may feel comfortable hosting strangers in your home. Many people can immediately see the dangers. As Carson puts it, “Would I want my wife opening the door to a complete stranger when I’m at work? It’s terrifying.” If you sell your home without a Realtor, there’s no one screening potential buyers or protecting you from fraud. Use caution, common sense, and research to stay protected.

What paperwork do I need to sell my house by owner?

You’ll need the following documents to sell your house by owner:

Residential property disclosure form
State laws vary, but most require you to complete a seller’s disclosure outlining any known problems with the home. In states with older housing stock, it’s common to require disclosures about lead paint and asbestos.

Sales contract
This is the legal contract to sell the house, called a sales contract or purchase agreement.

It will identify the buyer and seller, and contain the following initial items: a list of appliances and fixtures included, the purchase price, earnest money deposit and information on the buyer’s financing, and details about the property itself (such as the address, type, and lot size).

Carson says that when buyers and sellers start working together with each other, problems often arise. A common issue he’s seen? “Something was promised, but it wasn’t put in writing, and after closing the refrigerator was taken from the property.”

Then, the contract delves into specifics about the closing: the closing date, contingencies such as inspection, appraisal, or the buyer selling their home, and the type of title. It should clearly spell out any taxes, assessments, and utilities owed by either party, and who pays the closing costs.

Be sure to include specifics about what happens if the contract is breached. Should the buyer walk away from the sale, or fail to comply with its terms, you’re in a better position if you can keep their earnest money.

Title reports
A title company researches your title’s history and puts together a report for the buyer. This research includes verifying that you have the legal right to sell the home and identifying any easements or assessments.

Deed
The physical deed document describes the property and its boundaries in detail. It’s used to sign off ownership to the buyer.

Loan documents
You, or the title company, will call your lender to obtain a payoff amount. You’ll need to bring documents related to your current mortgage and outstanding lines of credit to closing.

Recent utility and property tax bills
This isn’t a requirement, but buyers may request that you bring recent utility bills and property tax statements to the closing. That way, they know who to call to have everything switched into their name.

Homeowners association agreements (if applicable)
If you’re selling a condo, townhome, or single-family home in a homeowners association, the buyer will need copies of the rules, covenants, and agreements.

Plans, permits, and other paperwork relating to work done on the house
Did you add a deck? Build a garage? Pull together the associated plans and permits to prove to the buyer that the work was done legally.

Receipts and warranties
Again, not required, but if you’re leaving major appliances, the buyer’s agent could ask you to provide copies of receipts and any applicable warranties.

What is the top mistake FSBO sellers make?

Not putting the price on the listing. Believe it or not, some FSBO sellers think that failing to disclose the list price in private advertisements will increase interest, but the opposite is true. Most buyers feel uncomfortable calling and asking directly and may worry that you’ll overprice the home. Being upfront increases their confidence in you and the transaction.

Weigh the benefits and understand the trade-offs

If you decide to sell without a Realtor, you’ll be wearing many hats — scheduler, marketer, legal expert, and more. It is a full-time job, which is why most real estate agents do it full-time.

If you decide to sell with a Realtor, HomeLight can connect you with the best agent to sell your home. HomeLight’s free Agent Match tool analyzes millions of transactions to find top agents who sell homes faster, and for more money, than others in your area. It takes just two minutes to find someone to take all that work off your plate — and guide you through the complicated process of selling a home.

Header Image Source: (herreid / Depositphotos)