Would like tips from those of you who "sold your own home" (without realtor support)

[sheryl]

We will be selling our house and relocating locally.  I am interested in selling our house ourselves and have a larger downpayment on our next house.

We are upgrading and making some repairs.  There is quite a bit needed so better for us to save the commission of an agent on this one and bought that money in to our upgrade/repairs.  

Aside from that, I know we'll need an inspection, real estate attorney and surveyor.  

Any other tips?  If you've gone this route, please enlighten.

Thanks!

[prairiewindmomma]

My tip is that you might be leaving money on the table this year by trying to DIY because the real estate market is appreciating so quickly.

We could sell our house now for $40k more than we could 3 months ago. Our house has appreciated $100k in the past year, and $140k over the past three years.  The market is absolutely bonkers.

If you peg the market wrong on trying to sell, you could be underselling by quite a bit and leaving money on the table.  It is definitely worth it to do some market research.  Realtors have pricing software algorithms that they can access.  If you are just trying to not pay a regular commission you might look at Redfin and other flatfee realty setups instead.  I'd hate to see you be pennywise and poundfoolish, iykwim.

[JustEm]

research the market well. @prairiewindmomma is very right about leaving money on the table.  My brother just bought a house FSBO for 330k in my neighborhood.  The house 2 houses down from that house went under contract with a realtor for 410k.  So, if my brothers' seller had used a realtor they would have advised him that he could get much more for the house than he did.

So, if you don't want to do that research, research, research. Research every aspect of selling a house FSBO because the things you mention above like needing to get an inspection are not on the seller to deal with.  That is the buyers issue. Surveyor too I think.  What my brother did was hire a real estate lawyer to draw up the contract and the lawyer did the title search.  My brother as the buyer needed to find someone to do the inspection and his lender guided him through all the things the lender required. 

The seller had his own lawyer review the contract and make a few changes.  As a seller you'd have to figure out how to market the house, this seller didn't need to because I walked across the street and asked him if he was selling and gave my brother his info.  But posting it on places like Nextdoor, Zillow, Redfin, etc will probably be enough in this market.

[Sneezyone]

In addition to making sure you check your comps, put your house on the MLS with a flat fee service to maximize the eyeballs. Offering 2-3% to a buyer agent may seem like a lot but it may also yield multiple offers and a higher sale price. When you list this way, you don’t show up to buyers as FSBO. We paid, oh, $499 to list this way in 2003 and our package came with a lockbox and access to standard disclosure forms. It was totally painless.

Edited June 2, 2021 by Sneezyone

[elegantlion]

We did ours years ago, like in 2001. We used a FSBO company, paid like $100 for their materials and a referral to their lawyer. We offered realtors 3%, the sellers paid for an inspection, we didn't do a survey. It was the most painless process ever. I'm not sure I'd do it again. 

Exdh was a contractor with previous sales experience, so he was good with negotiating. We had a system for showing the house, offered an open house. I think we sold it in 3 weeks. 

One thing I'm noticing on Trulia now is that FSBO don't show automatically, you have to have it set to show FSBO. Another consideration is that some realtors may not show or promote FSBO, so it may take longer to sell. 

[Scarlett]

We have sold ourselves.  Do your market research, so you price it right.  
 

We have never hired an attorney....we just use a reputable abstract company and they do it all for you. 

[Annie G]

Inspection, surveyor, and closing attorney are usually things the buyer is responsible for, at least with the houses we’ve bought and sold. When we sold our last house a couple years ago we asked about getting an inspection but the agent said absolutely not, because whatever was found would have to be disclosed. It sounds wrong morally, but it’s really on the buyers to do their own due diligence. If we had an inspection but something was missed, they might try to come back after us. So....unless an inspection is usually provided in your area, I’d probably skip that. We did, of course, disclose things we already did know such as leaky basement during torrential rains. 
‘As an example, one inspection report on the house we bought said the water heater was on its  last legs, but other systems were fine. And appliances were all functional and were listed as ‘several years of useful life remain’.  Nearly three years later we’ve had no problem with the water heater, but within 4 months of closing our heat pump, fridge, and dishwasher died. And they totally missed the dryer wasn’t vented to the outside.  And here’s the crazy thing-we actually had TWO inspections because the first guy came promptly but then stopped communicating and we were near the end of due diligence so we hired a second inspector. Then the first guy sent his report. Side by side the reports are very different, with different opinions on many things. 

[Ali in OR]

It went very smoothly for us 19 years ago. It wasn't that hard to figure out a fair asking price by checking recently sold comparable homes in our same neighborhood. We did get an inspection as our house was only 8 years old and we used it as a marketing tool to show our house was in good shape and that our asking price reflected the fact that we had LP siding (known to be a problem at that time). We sold it in about 2 weeks. We did use a local company to help with the paperwork stuff for a flat fee.

[Scarlett]

1 hour ago, Annie G said:

Inspection, surveyor, and closing attorney are usually things the buyer is responsible for, at least with the houses we’ve bought and sold. When we sold our last house a couple years ago we asked about getting an inspection but the agent said absolutely not, because whatever was found would have to be disclosed. It sounds wrong morally, but it’s really on the buyers to do their own due diligence. If we had an inspection but something was missed, they might try to come back after us. So....unless an inspection is usually provided in your area, I’d probably skip that. We did, of course, disclose things we already did know such as leaky basement during torrential rains. 
‘As an example, one inspection report on the house we bought said the water heater was on its  last legs, but other systems were fine. And appliances were all functional and were listed as ‘several years of useful life remain’.  Nearly three years later we’ve had no problem with the water heater, but within 4 months of closing our heat pump, fridge, and dishwasher died. And they totally missed the dryer wasn’t vented to the outside.  And here’s the crazy thing-we actually had TWO inspections because the first guy came promptly but then stopped communicating and we were near the end of due diligence so we hired a second inspector. Then the first guy sent his report. Side by side the reports are very different, with different opinions on many things. 

Inspections are a joke IMO.  

[sheryl]

3 hours ago, prairiewindmomma said:

My tip is that you might be leaving money on the table this year by trying to DIY because the real estate market is appreciating so quickly.

We could sell our house now for $40k more than we could 3 months ago. Our house has appreciated $100k in the past year, and $140k over the past three years.  The market is absolutely bonkers.

If you peg the market wrong on trying to sell, you could be underselling by quite a bit and leaving money on the table.  It is definitely worth it to do some market research.  Realtors have pricing software algorithms that they can access.  If you are just trying to not pay a regular commission you might look at Redfin and other flatfee realty setups instead.  I'd hate to see you be pennywise and poundfoolish, iykwim.

Right! We will do the research.  We actually do keep up a bit on that already.  But, it will all change when we actually list fsbo.  Do you know how many months back a comp can go?  Or, does it need to be current - like no more than 30 days old?

3 hours ago, hjffkj said:

research the market well. @prairiewindmomma is very right about leaving money on the table.  My brother just bought a house FSBO for 330k in my neighborhood.  The house 2 houses down from that house went under contract with a realtor for 410k.  So, if my brothers' seller had used a realtor they would have advised him that he could get much more for the house than he did.

So, if you don't want to do that research, research, research. Research every aspect of selling a house FSBO because the things you mention above like needing to get an inspection are not on the seller to deal with.  That is the buyers issue. Surveyor too I think.  What my brother did was hire a real estate lawyer to draw up the contract and the lawyer did the title search.  My brother as the buyer needed to find someone to do the inspection and his lender guided him through all the things the lender required. 

The seller had his own lawyer review the contract and make a few changes.  As a seller you'd have to figure out how to market the house, this seller didn't need to because I walked across the street and asked him if he was selling and gave my brother his info.  But posting it on places like Nextdoor, Zillow, Redfin, etc will probably be enough in this market.

As mentioned above, we will have to research.  This is not all too hard.  We sold my Dad's place on Zillow after he passed away in 2015.  We got a very fair price.

[sheryl]

2 hours ago, Sneezyone said:

In addition to making sure you check your comps, put your house on the MLS with a flat fee service to maximize the eyeballs. Offering 2-3% to a buyer agent may seem like a lot but it may also yield multiple offers and a higher sale price. When you lost this way, you don’t show up to buyers as FSBO. We paid, oh, $499 to list this way in 2003 and our package came with a lockbox and access to standard disclosure forms. It was totally painless.

DH mentioned at dinner tonight that this is what we'll do.  He referred to a program that is $100.   Blue - not sure what you're saying here.  We're just looking to "list" or sell our house and NOT use a realtor/listing agent.   We'll of course buy the commission when "buying" a house.

[Sneezyone]

2 minutes ago, sheryl said:

DH mentioned at dinner tonight that this is what we'll do.  He referred to a program that is $100.   Blue - not sure what you're saying here.  We're just looking to "list" or sell our house and NOT use a realtor/listing agent.   We'll of course buy the commission when "buying" a house.

There are two parts to the typical listing agent fee of 6-7 percent. It’s split between the agent representing the buyer and the one representing you. In all honesty, the listing/selling agent usually doesn’t do much. The bulk of the leg work goes to the buyers agent who takes people around to see homes. Offering a buyer’s agent commission gives them an incentive to show your home to their buyers. While I believe it to be unethical, some buyer’s agents will not show a home without a buyer’s agent commission on offer.

Edited June 2, 2021 by Sneezyone

[sheryl]

2 hours ago, elegantlion said:

We did ours years ago, like in 2001. We used a FSBO company, paid like $100 for their materials and a referral to their lawyer. We offered realtors 3%, the sellers paid for an inspection, we didn't do a survey. It was the most painless process ever. I'm not sure I'd do it again. 

Exdh was a contractor with previous sales experience, so he was good with negotiating. We had a system for showing the house, offered an open house. I think we sold it in 3 weeks. 

One thing I'm noticing on Trulia now is that FSBO don't show automatically, you have to have it set to show FSBO. Another consideration is that some realtors may not show or promote FSBO, so it may take longer to sell. 

That's what dh said at dinner tonight.  The program to market on mls is $100.  I think that's what he said.  That is one draw back - these programs don't seem to automatically show fsbo.  While not every person will know to use filters, I'm hoping many will and we'll get exposure resulting in sale.

[sheryl]

2 hours ago, Scarlett said:

We have sold ourselves.  Do your market research, so you price it right.  
 

We have never hired an attorney....we just use a reputable abstract company and they do it all for you. 

Thanks! When did you sell?  Year?

[sheryl]

2 hours ago, Annie G said:

Inspection, surveyor, and closing attorney are usually things the buyer is responsible for, at least with the houses we’ve bought and sold. When we sold our last house a couple years ago we asked about getting an inspection but the agent said absolutely not, because whatever was found would have to be disclosed. It sounds wrong morally, but it’s really on the buyers to do their own due diligence. If we had an inspection but something was missed, they might try to come back after us. So....unless an inspection is usually provided in your area, I’d probably skip that. We did, of course, disclose things we already did know such as leaky basement during torrential rains. 
‘As an example, one inspection report on the house we bought said the water heater was on its  last legs, but other systems were fine. And appliances were all functional and were listed as ‘several years of useful life remain’.  Nearly three years later we’ve had no problem with the water heater, but within 4 months of closing our heat pump, fridge, and dishwasher died. And they totally missed the dryer wasn’t vented to the outside.  And here’s the crazy thing-we actually had TWO inspections because the first guy came promptly but then stopped communicating and we were near the end of due diligence so we hired a second inspector. Then the first guy sent his report. Side by side the reports are very different, with different opinions on many things. 

I wonder if this varies state to state?  Did you use the same attorney for fsbo selling and buying another?

[sheryl]

1 hour ago, Ali in OR said:

It went very smoothly for us 19 years ago. It wasn't that hard to figure out a fair asking price by checking recently sold comparable homes in our same neighborhood. We did get an inspection as our house was only 8 years old and we used it as a marketing tool to show our house was in good shape and that our asking price reflected the fact that we had LP siding (known to be a problem at that time). We sold it in about 2 weeks. We did use a local company to help with the paperwork stuff for a flat fee.

Yours sounds like a success story.  Our house was built in 1967 so I'm sure "issues" will creep up.

[sheryl]

14 minutes ago, Sneezyone said:

There are two parts to the typical listing agent fee of 6-7 percent. It’s split between the agent representing the buyer and the one representing you. In all honesty, the listing/selling agent usually doesn’t do much. The bulk of the leg work goes to the buyers agent who takes people around to see homes. Offering a buyer’s agent commission gives them an incentive to show your home to their buyers.

Right!  DH and I as "sellers" will "list" fsbo our own house.  We would make back that split b/c it's like paying ourselves.  The other half goes the the "buying" agent.   Yes, dh and I were saying that tonight.  There's not as much happening with the listing agent.  Still, to try and sell our house to save $k's would go towards another house.  We might not be able to; it might not work but it is a seller's market right now and our local real estate is hot.

[Sneezyone]

4 minutes ago, sheryl said:

Right!  DH and I as "sellers" will "list" fsbo our own house.  We would make back that split b/c it's like paying ourselves.  The other half goes the the "buying" agent.   Yes, dh and I were saying that tonight.  There's not as much happening with the listing agent.  Still, to try and sell our house to save $k's would go towards another house.  We might not be able to; it might not work but it is a seller's market right now and our local real estate is hot.

Yep. This is what we did. The buyer’s agent and buyers chose their closing agent and title company. All we (and by we I mean me; DH did nothing) had to do was provide the disclosure (and the forms came from our flat fee listing company). We paid a 2.5% buyers agent commission and closed w/in a month of listing. As a seller, it’s a pretty simple process. DIY saved us a tidy sum.

Edited June 2, 2021 by Sneezyone

[Annie G]

16 minutes ago, sheryl said:

I wonder if this varies state to state?  Did you use the same attorney for fsbo selling and buying another?

Where we sold used a title company instead of an attorney. Buyer’s obligation to choose one since they paid for it. Where we moved to, it’s done through an attorney, again buyer’s choice. Which was weird because our credit Union asked which attorney we wanted to use, and we had no idea since we moved a thousand miles away. We paid for it since it was part of our closing costs. I’m sure it varies state to state though, as to whether the buyer or seller pays. 
 

[Scarlett]

32 minutes ago, sheryl said:

Thanks! When did you sell?  Year?

2002, 2012 and 2019

[sheryl]

9 hours ago, Sneezyone said:

Yep. This is what we did. The buyer’s agent and buyers chose their closing agent and title company. All we (and by we I mean me; DH did nothing) had to do was provide the disclosure (and the forms came from our flat fee listing company). We paid a 2.5% buyers agent commission and closed w/in a month of listing. As a seller, it’s a pretty simple process. DIY saved us a tidy sum.

I just started researching this morning.  Surely there is a "list" of "ordered events" and we'll need to understand this and feel comfortable with it now.  

1.  We wouldn't sign a listing agreement with an agent because "WE" are the listing agents.  
 

And, the disclosures -

Making Real Estate Disclosures in North Carolina

State law in North Carolina (North Carolina Gen. Stat. § 47E-4) requires that sellers provide buyers a filled-out disclosure form, which sets forth the following details about the property:

• issues with the plumbing, electrical, heating, cooling, and other mechanical systems
• water source and sewage system
• issues regarding the roof, chimney, floor, foundation, and other structural components
• environmental conditions such as pest infestation, or the presence of asbestos, radon, methane, or other hazardous materials
• legal issues, such as zoning violations, homeowner's association involvement, building codes, and
• other specified details of the property.

In addition to the above disclosures, sellers must also disclose whether the property comes with mineral, oil, or gas rights (see North Carolina Gen. Stat. § 47E-4.1).

In addition, if your house was built before 1978, you must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.

Disclosures must be made on a Residential Property and Owners' Association Disclosure Statement form created by the North Carolina Real Estate Commission.

Sellers in North Carolina can hire an inspector to inspect the house and provide a written report, in lieu of filling out the required disclosure statement (though the mineral rights disclosure and homeowners' association disclosures are still required). If you choose to have an inspector provide a written report, then you are not liable for any mistakes in the inspector's report (see North Carolina Gen. Stat. § 47E-6). Certain types of sales (such as lease to own) are exempt from state disclosure rules.

 

[sheryl]

9 hours ago, Annie G said:

Where we sold used a title company instead of an attorney. Buyer’s obligation to choose one since they paid for it. Where we moved to, it’s done through an attorney, again buyer’s choice. Which was weird because our credit Union asked which attorney we wanted to use, and we had no idea since we moved a thousand miles away. We paid for it since it was part of our closing costs. I’m sure it varies state to state though, as to whether the buyer or seller pays. 
 

Right, I'm researching now. I'm clueless.  We (really my sister) sold my Dad's house in Ohio in 2015 but this is new, unchartered territory for dh and I. 

[sheryl]

9 hours ago, Scarlett said:

2002, 2012 and 2019

Thanks, Scarlett!  That's impressive!  Much legwork to do!  Trying to discern where to start.  I want the legal component to be solid obviously!  Comps and attending open houses, etc. will be easier.

[Jaybee]

10 hours ago, Scarlett said:

Inspections are a joke IMO.  

I haven't read past this, so don't know what else might have been posted. Thankfully, our inspection was very helpful (as the buyer). The seller agreed to do some things, but not others. However, over time, we have gradually worked on things the inspector pointed out. Other than the roof, which the seller did replace, most things pointed out were not of great consequence. But it has given us a list of small improvements to work on to improve the house.

[sheryl]

1 hour ago, Jaybee said:

I haven't read past this, so don't know what else might have been posted. Thankfully, our inspection was very helpful (as the buyer). The seller agreed to do some things, but not others. However, over time, we have gradually worked on things the inspector pointed out. Other than the roof, which the seller did replace, most things pointed out were not of great consequence. But it has given us a list of small improvements to work on to improve the house.

Oh, no, I'm certain what was meant was that there may be a bit of subjectivity to their opinions.  What one inspector may deem as needing repair another may not put emphasis on that particular issue.

I am concerned as we have a 1967 house and that may be an issue. I hope not.

[prairiewindmomma]

Realty law is really state specific. Hearing advice from people outside your state may not be helpful to you. We have bought and sold houses in several states and each had their own quirks.

[Scarlett]

12 minutes ago, prairiewindmomma said:

Realty law is really state specific. Hearing advice from people outside your state may not be helpful to you. We have bought and sold houses in several states and each had their own quirks.

Good point.

[Scarlett]

1 hour ago, Jaybee said:

I haven't read past this, so don't know what else might have been posted. Thankfully, our inspection was very helpful (as the buyer). The seller agreed to do some things, but not others. However, over time, we have gradually worked on things the inspector pointed out. Other than the roof, which the seller did replace, most things pointed out were not of great consequence. But it has given us a list of small improvements to work on to improve the house.

My view is colored by having a husband who knows more about all things house than 99% of house inspectors.  But also, they don't catch some important things, they have zero liability for what they fail to catch and then they hyper focus on small things.  I remember one inspector on a house we sold wanted the 'electric' fence removed.  It was an underground dog fence.  So unless they buyers were going to put the corresponding collar on their children there was zero reason to worry about it.  As a seller though you just have to be willing to say 'no', to some of the ridiculous stuff.  And even no to legit stuff if you have priced your home accordingly. 

[Scarlett]

IMO many sellers use a realtor for the massive amounts of correspondence required with potential buyers.  And if that kind of stuff gets on your nerves then a realtor may be a good choice for you.  In that way, I do think realtors earn their commission.  I don't mind repeatedly answering questions and sending photos.  I actually enjoy it.  

Of course in this market I don't think it will last long!  And if you don't overprice it you will probably have a full price offer or even a bidding war within days.

[sheryl]

28 minutes ago, prairiewindmomma said:

Realty law is really state specific. Hearing advice from people outside your state may not be helpful to you. We have bought and sold houses in several states and each had their own quirks.

There are shared commonalities and other state-specific requirements.  That is a good point but I'm looking for general info and realize to hire a NC attorney that will guide us regarding specifics.  We have much to learn! 🙂

[sheryl]

13 minutes ago, Scarlett said:

IMO many sellers use a realtor for the massive amounts of correspondence required with potential buyers.  And if that kind of stuff gets on your nerves then a realtor may be a good choice for you.  In that way, I do think realtors earn their commission.  I don't mind repeatedly answering questions and sending photos.  I actually enjoy it.  

Of course in this market I don't think it will last long!  And if you don't overprice it you will probably have a full price offer or even a bidding war within days.

Right!  Well, "serious inquiries" will hopefully work here.  I believe an agent earns their income as well but we want to at least try to save $K's by selling ourselves.  The market is just so hot right now that there are bidding wars here.  We have much to learn but my sister who sold our Dad's house on Zillow is planning to fsbo when they (sister and bil) relocate from MI to here, NC.  DH and I thought about years ago and was put on the back burner until my sister mentioned it to me again this week.  It may not work for us but dh and I are willing to try.  Hopefully it will work out!