It’s safe to say most people selling their homes want to maximize their return on investment. For some determined sellers, this path is paved by listing homes for sale by owner (FSBO). By selling without a real estate agent, you can receive some great benefits – including saving on agent commissions.
Navigating the home sale process can be a challenge – confusing real estate terms and legal paperwork may be intimidating. But as with anything, a little studying can help you feel confident. If you’re wondering how to sell your house yourself, this guide demystifies the FSBO process. You’ll learn everything you need to know, including:
Let’s get started.
If you’d like to sell your home yourself without a real estate agent, you can. There are no laws requiring home buyers or sellers to use agents. Since there are technical steps involved in real estate transactions – like legal paperwork – many sellers choose to use an agent to make things easier. Not all sellers use an agent, though, and for some, selling a house “For Sale By Owner” (FSBO) pays off.
Pros
Cons
If you’ve weighed the pros and cons and want to sell your home yourself, it’s time to think about what steps the process involves. With this road map in mind, you’ll be prepared to navigate the home sale process from start to finish – no agent necessary!
Before you can get the right price for your house, you need to know what the market price is. Incorrectly pricing your home can negatively impact its ability to sell. Your house may be worth more or less than you think, so it’s best to consult the data to find out your home’s true market value. You can do this in a few ways:
Once you know the basic market value of your home, you can start preparing your home to sell. In this part of the process, you’ll decide what changes, updates or cosmetic fixes you’ll perform to make your home market ready.
Preparing your home for the market can be as big or small of an undertaking as you’d like. Just make sure whatever changes you make increase your home’s value. Remodeling the basement may sound like a good investment, for example, but it’s important to make sure you’re able to recoup the costs.
On the other hand, something as small as mowing the lawn or pruning bushes can increase curb appeal. Having curb appeal can increase your home’s value up to 7%, so be sure your home’s exterior makes a good first impression on potential buyers.
Now that your home is ready for the market, it’s time to get the word out. Marketing your home is one of the most important steps in the home sale process. After all, the more potential buyers who know about your home, the more likely you are to get the offer you’re looking for.
Over half of buyers find their homes through the internet, so creating online listings is a great first step. Create listings for your home in as many online spaces as possible, such as:
While only real estate professionals can create MLS listings, there is a workaround. You can pay participating brokerages a flat-rate fee to create an MLS listing for you. It’s likely worth it – many agents find homes to show buyers through the MLS service, and about one-third of buyers find homes through an agent. Not creating an MLS listing for your home means you’ll likely miss out on a huge part of the market.
While listing your home online, be sure to get great photos of your home. It may take some additional time or money, but staging your home can lead to major benefits:
Marketing Your FSBO Listing
If you’re marketing your own FSBO listing, be sure to keep in mind the ways that buyers typically find homes, so you don’t miss out on potential leads.
Top Ways To Find Homes
Top Ways Sellers Can Market FSBO Listings
2. Real estate agents
2. Yard signs outside the property
3. Word of mouth (friends, relatives or neighbors)
3. Word of mouth (friends, relatives or neighbors)
4. A home builder or their agent
4. Local advertising (newspapers, flyers, etc.)
With your home officially on the market, the next step is making any necessary adjustments. This step requires you to think like a real estate agent. Ask yourself the following questions to see where your strategy may need to shift:
Homes that sit longer on the market tend to sell for less, so it’s important to watch your listing’s performance in the first month or so. Be quick to make necessary adjustments to avoid your listing going stale.
Receiving your first offer can be exciting! If you’d like to change the terms of sale put forth in the offer, you can negotiate and respond with a counteroffer. While negotiating your offer, confirm a few key matters first:
With these basics out of the way, you can consider negotiation tactics. One of the best things you can do is find out what the other party wants. Whether it’s a faster closing, kitchen appliances or something else – knowing what the buyer wants puts you in a powerful position. Offer them something they want and include something you want in the contract. This could be giving them a faster close in exchange for a temporary rent back while you find new housing.
Try not to get too emotionally involved in any one offer. This can cloud your judgment and lead you to sell yourself short. The right offer will come to you, even if it takes some time.
Closing can feel stressful if you don’t know what to expect. But with the right steps, you can have your home sold in no time.
When selling your home, most of what you’ll need to do legally involves paperwork. It may seem like a hassle, but having the proper paperwork protects both you and the buyer throughout the sale process. Incorrect paperwork can lead to problematic loopholes.
Real estate attorneys aren’t required in every state, but you may decide you want one anyway to make sure everything’s squared away. With or without an attorney, here’s the legal paperwork you’ll need to sell your house:
With all the appropriate paperwork, your home sale should go off without a hitch.
The most prevalent way buyers find homes is through the internet, so having a strong online presence for your home sale is key. Where should you be posting your home, though? The easiest way to show up in as many places as possible with the least time commitment is to create an MLS listing.
Technically, only real estate professionals can create MLS listings, but FSBO sellers can pay brokerages a flat listing fee or use an FSBO site that offers an MLS listing option. Many sites like Redfin syndicate their data from the MLS database, which means one MLS listing can turn into several listings across the internet.
Most real estate agents use the MLS database to find homes to show buyers. So not only does an MLS listing get your home advertising on multiple syndication sites, but it also gets advertising from agents.
The below chart compares several of the most popular FSBO websites, their prices and whether they offer MLS listings.
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Which FSBO Site Should I Use? |
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The best FSBO site for you depends on your preferences. Consider the price as well as whether you can list on the MLS, which automatically syndicates your listing on other platforms. |
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|
Site |
Price |
MLS Listing Option? |
|
Zillow |
Free |
No |
|
ForSaleByOwner.com |
Free |
No |
|
Facebook Marketplace |
Free |
No |
|
Craigslist |
Free |
No |
|
Fizber |
Free – $395 |
Yes |
|
HomeFinder |
$39/month |
No |
|
Homecoin |
$95 |
Yes |
|
Beycome |
$99 – $499 (+1% of sale price) |
Yes |
|
FSBO.com |
$99.95 – $399.95 |
Yes |
|
Houzeo |
$199 – $999 |
Yes |
|
ISoldMyHouse.com |
$299 – $399 |
Yes |
Which FSBO Site Should I Use?
The best FSBO site for you depends on your preferences. Consider the price as well as whether you can list on the MLS, which automatically syndicates your listing on other platforms.
Site
Price
MLS Listing Option?
Zillow
Free
No
ForSaleByOwner.com
Free
No
Facebook Marketplace
Free
No
Craigslist
Free
No
Fizber
Free – $395
Yes
HomeFinder
$39/month
No
Homecoin
$95
Yes
Beycome
$99 – $499 (+1% of sale price)
Yes
FSBO.com
$99.95 – $399.95
Yes
Houzeo
$199 – $999
Yes
ISoldMyHouse.com
$299 – $399
Yes
Many of these sites come with apps you can download to make managing your listing on mobile easier. There are also additional apps you may find useful that can help you through different parts of the selling process:
Selling your home yourself may feel challenging and overwhelming at first, but with this road map, you’ll be celebrating closing in no time. Keep in mind that any equity you receive from the home sale can go straight toward securing your new home.
Check out our guide to selling and buying a house at the same time.
1. National Association of REALTORSⓇ
2. HomeAdvisor
Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.
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