Wondering whether you will be able to close a home sale without a realtor? Well, you definitely can. If you have a home to sell in Ohio, then you can save one of the biggest expenses which is the realtor commission. To save an enormous amount, you may go ahead with For Sale By Owner or FSBO approach.
Selling a house by owner in Ohio means handling the entire process on your own. You need to research a lot and be informed of all the components of a home sale. Since there are several stages involved in a home sale, you must know about all of them in detail to ensure an efficient sale.
How does it work?
While realtors charge a commission fee for managing the home sale, when you follow FSBO, you are your realtor. You will be able to save a big percentage of the sale price of your house. Though you do not need to pay the realtor’s fees, you will have to pay for the buyer’s agent’s commission. As per the entire commission structure which ranges from 5% to 6% of the sale proceeds, you can save 2% to 3% seller’s commission if you do it on your own.
So, as per the commission split model, the listing agent divides the pay with the buyer’s agents usually in the 50:50 ratio. Every agent splits the fees with the other broker. Other than the standard 50:50 split, these days, several brokerages also work with 70:30, 80:20, and 90:10 splits too.
If you want, you can avoid the buyer’s agent commission. But it is imperative to note that it is the agents who bring potential buyers. So, when you have a home in the market that is up for sale, the buyer’s agent helps show the buyer your home and expects a commission in return.
Why should you sell your house ‘on your own’?
The biggest advantage of selling FSBO is to save the commission. As per the value of your home, you can save a considerable amount of more than a thousand dollars.
One of the other benefits, when you sell your Ohio home on your own, is that you can exercise more control over the home sale. Since there is no listing agent, you are free to set your own price and devise the market strategy as per your wishes. However, you need to be careful at the time of setting the listing price. The price shouldn’t be too low that you lose several thousand dollars and high so that your home keeps sitting in the market, unsold.
Lastly, when you sell your house through FSBO, you need to dedicate a lot of time to get the home sale done. You need to juggle a lot of things, and not just manage your listing. So, be informed that you will need time and energy to get the property sold. Ensure that you are prepared and willing to spend mammoth time handling all the responsibilities of a real estate agent.
Drawbacks of selling your house ‘on your own’
Unfortunately, there are some issues with selling a house by owner in Ohio. Though you don’t have to pay the enormous amount of realtor commission, you also lose much-needed realtor services. When you sell FSBO, you don’t have experienced support by your side. You need to handle everything about the sale yourself such as handling negotiations, making a contract, arranging closing documents, and more. If you are a first-time seller, then this can be very stressful.
Also, in FSBO you cannot list your home in the Multiple Listing Service or MLS. It is vital to list on the local MLS so that the buyer’s agents can view your listing in their home searches. MLS access can be done only by licensed realtors and brokers. However, signing up for the flat fee MLS packages from Houzeo will let you list on the MLS as well as other real estate websites.
Another biggest challenge with FSBO is to determine the right price for your home. Several realtors use CMA to decide the sale price of their homes. This is helpful when you set your own price in identifying the value of your home. In case you do not use CMA and price your house too high, then you will have trouble selling the home as none of the buyers would be willing to pay a huge amount. Also, if you price the house low, then you will lose money and the home sale will no longer remain lucrative for you.
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How to Sell your home in Ohio ‘on your own’
If you decide to go on your own in Ohio, here is what needs to be done to become successful.
Set a reasonable home listing price
This is the first step to start selling your home. Though one of the most difficult tasks, when this one is handled well, a significant part of the battle is won. Find out the asking price of similar houses sold in your neighborhood. You can also use the data from the big real estate industry websites.
Find homes in your area with similar size, number of bedrooms and bathrooms, and same age. This will help you decide on a competitive price for your home. You can later alter the amount depending on the unique features, recent upgrades done, or improvements needed.
Prepare your home
Take out some time to make the home in its best condition. Do the imperative repairs. Take time to declutter your home, remove personal belongings, improve the outdoor area, do a paint job, invest in a little cosmetic improvement, etc.
Ensure not to invest a great amount of money as it may not provide you with a return.
Take professional pictures
One of the crucial parts of FSBO, hire a professional real estate photographer to capture drooling photos and attract several potential buyers.
Market your home
This is the time to test your marketing skills. Promote your home using yard signage, printing flyers, posting the listing on social media, scheduling open houses, etc.
Negotiate and close
Evaluate the offers you get and consider negotiating to crack the best deal. Choosing a convenient closing date is also critical.
To handle things effortlessly, you can go for a flat-fee MLS agent such as Houzeo. At a flat fee, they will list your home on the MLS and provide many support services too. Fizber can also be a helpful service to list your property on the MLS. The Fizber reviews show that they have delivered quality services and have a long list of satisfied customers.