Approximately 6-7 million houses are sold in the United States annually. But many homes often go unsold for various reasons, including market conditions and the inability to find a willing buyer.
Selling your house can be a delicate process, so knowing where to start and how to find the right buyer for your property is important. You also stand a chance of gaining a profit if you sell the house at the right price guided by a comparative market analysis. But to do that, you will need to understand the steps involved in home selling.
Working with a real estate agent is often the most popular choice for selling a house. But it is also important for you to consider selling your house privately even after listing with a real estate brokerage. Luckily, we have curated the content below to help you get the information and tips you need to get the most home value and the best cash offer. Learn how to sell a house fast in Wisconsin.
Can I Sell My House Privately After Listing With a Realtor?
Yes, a homeowner can sell their house privately after listing with a realtor. But this usually depends on the homeowner’s agreement with the real estate agent. A listing agreement between you and the realtor usually specifies an amount you must pay the real estate agent if they find a buyer for your property.
Selling your house privately may free you from the obligation of paying the realtor. But this is usually possible if a certain period has lapsed or the real estate broker has failed to present you with any prospective buyers for the house. Go through your listing agreement with your realtor to understand how to sell your house privately.
Agreement Types for Selling a House
A homeowner can get into numerous types of agreements when selling a house. Here are some common agreement types for the selling process:
- Sole selling rights
- Ready, willing, and able purchaser
- Multi-agency agreement
- Sole agency agreement
Sole Selling Rights
Sole selling rights give the real estate agent exclusive powers to market the house and find a buyer. In this type of agreement, the realtor will still earn commission rates and charge a commission fee if you sell the house privately. So, there is little incentive to sell your house privately when you have granted a realtor sole selling rights.
Granting sole selling rights to a realtor motivates them to market the house and find the right buyer within a specified timeline.
Ready, Willing, and Able Purchaser
A ready, willing, and able purchase agreement describes a situation where a buyer can purchase the property based on the homeowner’s terms and conditions. A buyer has to be knowledgeable about the property and willing to continue with the transaction.
A willing buyer is an individual who has expressed an interest in purchasing the house either at the market price or the agreed-upon price. A buyer’s ability to buy the house is usually expressed through their financial strength or resources. A buyer is ready, willing, and able to make the purchase when they provide an offer to the homeowner.
A ready, willing, and able purchase agreement often does not involve a realtor. The buyer’s agent or another representative may facilitate such an agreement. A house For Sale By Owner (FSBO) may get deemed more reasonably priced as potential buyers often suspect that realtors inflate the property cost.
Multi-Agency Agreement
Under a multi-agency agreement, the homeowner enters into numerous contracts with multiple agents. A multi-agency agreement does not grant exclusive rights to any agency. Thus, the agencies must compete and outdo each other when looking for potential buyers.
The homeowner can also find buyers independently and sell the house privately when they have entered into a multi-agency agreement. In such a scenario, the homeowner does not owe a commission fee to the agents. A multi-agency agreement is often ideal if you want to make a quick sale.
Sole Agency Agreement
A sole agency agreement gives exclusive rights to an exclusive agency to market the house and find buyers. A sole agency agreement differs from a sole-selling rights agreement in that it frees the homeowner from paying any agent commission if they find a buyer independently.
A sole agency agreement is thus much more flexible than granting a realtor sole-selling rights. Under a sole agency agreement, the real estate agent is responsible for marketing the house and coming up with a sale price that would work for potential buyers.
The above agreements are all designed to help you sell your house. Some agreements are more flexible than others are, so try to learn more about any agreement your realtor presents you and ask them the all-important question, “Can I sell my house privately after listing with a realtor?”
Avoiding Agent Fees
You can sell your house privately and avoid agent fees altogether. But to do so, you need to know the terms and conditions of your agreement with your realtor if you have already hired a real estate agency.
The easiest way to avoid agent fees is by selling your house by yourself. To do so effectively, you may need to engage in the following:
- Properly market your own house by publishing your home’s listing on platforms where you will likely find buyers. You can look at Zillow for additional information on how to price your own home.
- Conduct repairs on the property, take care of landscaping, consider using a stager, and hire a professional photographer to prepare it for showings
- Learn from different home sellers, set a reasonable listing price
- Conduct open houses and meet interested buyers
- Hire a real estate attorney
Hiring a real estate attorney may seem like another expenditure you don’t need. But real estate attorneys can help you understand the legal aspects of selling your house to ensure a smooth transaction occurs. A real estate attorney may also provide invaluable advice if you encounter any problems.
Alternatives to Listing with an Agent
The best alternative to using a listing agent is to look for home buyers individually. The main benefit of not listing with an agent is avoiding paying any agent commission. There are numerous alternatives to selling your house with a realtor, and some of them include:
- FSBO
- Selling your house online
- Online estate agents
FSBO
An FSBO or a For Sale By Owner option occurs when you, as the homeowner, are responsible for selling your house alone. An FSBO allows you to market and negotiate your home sale directly with potential buyers.
Thus, when conducting an FSBO transaction, you must handle all the responsibilities a real estate agent would have managed. For instance, you must learn about the legal requirements of selling a house and setting the price (use Zillow for research). The main advantage of selling your home as an FSBO is that it gives you more earnings.
You will also become more knowledgeable about the selling market and the state of the real estate market. Before conducting an FSBO, learn about the local market and come up with a price suitable for potential buyers.
Selling Your House Online
Selling your house online is another great option if you don’t want to list with an agent. Online social media platforms such as Facebook, Twitter, and Instagram have a wide reach. You can find numerous potential buyers by selling your house online.
The advantage of selling your house online is that it is not time-consuming. You can continue your day-to-day tasks without having to handle the sale physically. For instance, instead of hosting an open house, you can upload pictures of your home online and negotiate with willing buyers. Learn the cheapest ways to sell a house.
Online Estate Agents
Working with online estate agents means finding partners who can market and find buyers for your house while using digital platforms. Online estate agents usually charge a fee often lower than the agent fees charged by other realtors.
Some online estate agents are home sellers, while others are home buyers who can act as buyer’s agents. Online estate agents have an established network they can use to find buyers much more quickly. An online estate agent can help create a property listing for your house and even get it to a multiple listing service online.
Online estate agents handle the marketing and negotiation process of the sale. They will notify you of any serious offers your property has received. After receiving a serious offer, online estate agents can ensure the house sale progresses smoothly and all the necessary paperwork is ready.
Selling your house through online estate agents can fast-track the sale of your home. It is also more cost-effective and helps you avoid any mistakes you would make if you sell your house independently, such as underpricing.
Sell Your House Privately Today
The sale of a house is one of the core activities in a real estate market. Realtors are the professionals often entrusted with the responsibility of selling a house. But you, as a homeowner, can sell your house privately even after hiring a realtor.
Most listing agreements give you the right to sell your house privately without the need to pay the realtor. The sole selling rights are the only deal that doesn’t allow you to avoid paying a realtor’s commission. You can sell your house through an FSBO or trusted home buyers to avoid any realtor fees.
At Cream City Homebuyers, we buy houses in New Berlin, Wisconsin and we also look for cash home buyers in Milwaukee. If you’re interested in any of it, don’t hesitate to contact us.
