How do you sale your home without an agent?

Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes

Hello B/P family,

I am just about done with my first flip! I have asked a few people if they'd be interested in purchasing & may have a buyer soon. My question is what are the steps when completing this transaction without an agent. Im most certain that ill need a lawyer, but will the lawyer handle this from A-Z? If they are paying with cash will we need inspections, appraisals etc..? Please help me to understand

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Finding a buyer is the easiest part of the transaction. It's all the other stuff where an agent earns their commission. There is a high probability that without an agent involved, the house will not appraise for what you need it to.

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Mark Gallagher
Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
9y
@Candace Postell
Consider paying an agent a small fee to help you get the deal done. Otherwise, call an attorney. You'll want someone who knows what they're doing on your side.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
You are going to need to understand about 100 different things in the sales process. Contracts, inspections, how to get the property to appraise, how to qualify and interpret how good of a borrower the buyer is, how good their lender is etc.
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Candace Postell
OP
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
@Mark Gallagher
Typically what is "a small fee"? Will it be anything close to the 6% commission? I dont mind paying an agent their commission, as this is what they've earned for contributing to the sale of the home, but if I can find a buyer on my own then i most certainly would like to bypass the huge fees if at all possible
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Candace Postell
OP
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
Thank you @ Russell Brazil. I know it is a very complicated process & this is why I am trying to find the best route once the buyer is in place.
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Christopher Phillips
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
@Candace Postell
On average, you make more money if you list it to with an agent versus trying to do a private sale without marketing it to the general public. Also, assuming you are properly pricing it, anyone trying to do a private sale without an agent is most likely going to try to get you at a discount knowing you don't have it listed with an agent.
It's free to interview agents, so you should speak with 2 or 3 and make sure you're maximizing your return.
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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
Finding a buyer is the easiest part of the transaction. It's all the other stuff where an agent earns their commission. There is a high probability that without an agent involved, the house will not appraise for what you need it to.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
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Anton Watt
Realtor · Florida / Atlanta · Member since 2015 · 210 posts · 53 votes
9y
@Candace Postell Find a good closing attorney and give them a call. Often times they need your contract and some more information. They will run title to make sure there are no liens attached to the home and then draw up settlement statements for you. They will share these with your buyers. First step is to reach out to one and get them to work.
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Christine Mwai
Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes
9y
You do not need an agent if you can market your property and find a buyer!!... If that is the case, what you need is a good closing attorney or a great title company that will help you with the process.. either one of the 2 should be able to offer you guidance and referrals to close the deal.
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Christine Mwai
Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes
9y
Best wishes!
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Jennifer Z.Pro Member
Rental Property Investor · Brookings, OR · Member since 2015 · 68 posts · 28 votes
9y
@Christine Mwai totally agree! In Texas, I sold a home without an agent using forms from the title company (may not be available in all states). Also, if the buyer is financing, then their agent/loan officer will go through all the processes for the inspection, appraisal etc. Lean on a good title company for your side of the sale.
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James MaraditsPro Member
Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
9y
**By no means do I want to discredit the work agents put in to sell a house and I understand every situation varies greatly**
With that being said, I just sold a property without the help of a selling or buying agent. For sale by owner and I found the buyer myself. I found a good title company and real estate attorney who frequently worked together and they walked me through the process. It was quite easy, actually. I covered closing costs and I only paid roughly 1.5% in fees selling opposed to 6-7% selling with realtors.
If you have a buyer lined up, I'd say go for it. If it falls through, you may find it helpful to sell with an agent.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
9y
The purchase and sale aggreement is written by a lawyer or if you use a standard agreement reviewed by your lawyer and theirs. The buyers manage their inspections coordinating them with you. Anything to be coordinated you manage. lawyer does legal negotiation and will only advice on legal aspects. how you close depends on the state. bank,title company it differs based on your state. before you sell privately get a lawyer on board. I' ve both bought and sold this way and it can go well but you are more involved.
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Brent Coombs
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y
@Candace Postell, you can look up "Tools" > "Fileplace" (top of the screen) regarding the Contract/s you would need.
I reckon a better question is: why would you EVER want to find your own Buyer/s, if you're not a Real Estate professional?
ie. You'll INVARIABLY get less for it than if you sell through a good Agent!
Why would you want that?
On the plus side, if you already DO have a Buyer who can't wait to pay retail value, you can probably negotiate with an Agent to get all the legwork out of the way for 3%, if not less. That'll also give you the chance to confirm with them that you're getting a good price.
That is - so long as you've found a GOOD Agent. (Ask about STAGING too).
Hint: if it's your BUYER suggesting you save money by not using an Agent - BEWARE! My 2c...
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Candace Postell
OP
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
@Brent Coombs I dont find any issues in finding your own buyers. It doesnt matter WHO finds them as long as the bottom line is correct. If my buyer is willing to pay 100k just as well as any buyer that the agent brings then its all the same 2 me! I think it all boils down to legalities and making sure that you have someone on your team who knows their stuff. Also time is $$$$$ so id much rather have a buyer lined up vs. Putting home on the market & having to wait for it to sale.
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Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
9y
Hi @Candace Postell,
Since it is your first flip, use an agent the first few times. Have them explain what they are doing so you understand. Finding the buyer isn't that big a deal it is setting things up in such a way as to protect your interests. Creative use of timelines, having adequate EMD in case something goes wrong, ensuring you get it locked in quick enough that if it falls you are paid for your time. That being said watch and learn the contracts in your area with them. After you have done one or two you will feel more confident. As a side note, once I sell one or two with someone the price isn't 6% anymore. They know what they are doing and we can start to solve things in a text, less time for me and we can make it work.
I don't put out on the first date because some of my most difficult clients ever were ones I gave a discount to up front. So in my opinion use one for the next one or two and learn. There is no way any of us online can walk you through the process in your area. I will pretty much guarantee there are some clauses in your local contract or laws on the books in your area that when used right can either cover you or put a hurting on you.
Good luck in whatever you decide!
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Lynn McGeein
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
9y
It might be worth using an agent this time if you can find one that will agree to a reduced rate for handling the sale if you already have found a buyer, like 2%, then follow along carefully through all steps from proper disclosures, contracts, inspections, contingency removals, appraisal, walk-thru, etc., so you'll be better prepared in the future to handle a sale on your own or, if not, at least understand the process and how an agent earns their fee. If not, contact a good attorney who can help you through the process before you deal with the buyer as there are usually required disclosures, whether you're working with an agent or not, that can get you in some hot water if you don't provide them before making an agreement with a buyer, and you'll need to have an accurate idea of fees involved to come up with a final price.
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Candace Postell
OP
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
Thanks @ everyone. This has helped a great deal
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Elizabeth Wilson
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Candace Postell - As a fellow flipper, I agree with everyone on this thread: get a good agent! We made a heck of a lot more on our first flip by following the agent's advice on pricing. Eventually my husband became an agent and now either lists his own houses or gets a referral fee from the listing agent (if it is not in our hometown). Something you might want to think about in the future. Good luck!
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Candace Postell
OP
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
Ok great thanks @Elizabeth Wilson
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David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
9y
@Candace Postell,
The attorney should be able to handle everything since you don't need marketing or any of the stuff an agent normally does.
There's a lot of misconception about what agents do. Between the attorney and the title company, you should have everything you need.
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Alice K.
Investor · San Francisco, CA · Member since 2015 · 306 posts · 211 votes
9y
I LOVE how all the agents in here are like, "USE AN AGENT!" Haha I mean, you don't need one but as they said, you can make the agent literally run around town and do the work for you. Good agents blow WEEKS trying to sell your property and often times they can get your home to sell for more than you can alone. You can have a whole bunch interview with you and then pick the best bang for your buck (don't stiff them too hard, they waste tons of time since it's their job) If you go do it yourself like a few mentioned, get a purchase agreement and expect a rush of calls/showings if you priced it right. You could hire a lawyer but they might just review the contract and you'll find yourself running around like a headless chicken. Make sure you disclose EVERYTHING, as a buyer can turn around and sue you if you lie / keep quiet when they ask you a material question (Eg: "is the roof broken" (it is) you: "I don't know." <-- can get you sued) People already covered other parts above but definitely educate yourself so you don't get swindled! Cheers!
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Candace Postell
OP
Real Estate Investor · Dayton, OH · Member since 2017 · 107 posts · 51 votes
9y
Thanks David & Alice
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Shelley Alterman
Jacksonville, FL · Member since 2014 · 58 posts · 3 votes
9y
Check out flat fee agents. Some of them have "extras' where they will handle the paperwork and bring it to closing for a smaller fee
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Trever Ford
Riverton, UT · Member since 2017 · 8 posts · 1 vote
9y
lol I like how the majority of these responses are form agents and 99% of them say use a agent lol of course they are going to tell us to use them they are agents. lol but I look at it this way if you found a byer and have agreed with a price your wanting then go for it and find a good title company and lawyer and save your self some money.. congrats on the flip and your future sale
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David Faulkner
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
9y
If you have to ask how to do it, then you probably need an agent. LOL. And, no, I'm not an agent; and yes, I've sold a property without and agent; and no, I did not need to ask anyone how to do it ...
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