Preparing Seller’s Paperwork Without a Realtor

For many homeowners, the thought of selling a house is wrought with fear and trepidation that includes how they will find the right real estate agent for the job. These days, more and more people are entertaining the idea of selling their homes without the help of a realtor. The seller’s paperwork alone is challenging enough, but it is certainly not unmanageable.

We’ve compiled a list of tips to help anyone who’s contemplating selling their house without a realtor’s help.

Why Selling Without a Realtor is a Great Idea

One of the main benefits of selling your house yourself is that you don’t have to pay the agent’s commission when the house sells. On average, a realtor earns 6% off the final purchase price of your home as commission, which is then split with the buyer’s agent. But, if you forego using an agent to sell your house, you can save 3%. For example, if you sell a property for $400,000, you can save $12,000 just by doing the heavy lifting on your own.

Another advantage of selling your home without a realtor is that you have complete control over the sales process. You decide how you will advertise when the showings will take place, and the lowest offer you’d be willing to accept.

All you need is basic information about how the sales process works and an understanding of the required paperwork. Fortunately, there are lots of resources available to help you.

The Downside of Selling Without a Realtor

Real estate agents put in a lot of time and hard work to sell homes, which most homeowners do not have. Agents also have access to the multiple listing service, or MLS, where they can list the home and view the sales prices of comparable homes in the area.  The MLS is exclusive to realtors–homeowners must use other means for pricing and listing their houses for sale.

Another potential disadvantage is that buyers may exploit the homeowner’s ignorance about real estate to garner a better deal. Trends indicate homeowners who opt to sell their home without a realtor often lose out on sales more often than those who use a realtor to negotiate the terms of the sale. The reasons are simple: homeowners don’t know the best ways to advertise their home, nor do they know how to competitively negotiate a sales price.

In addition, the average homeowner isn’t familiar with local property laws or knows tips for setting up an open house, all of which can result in missed opportunities for selling their home quickly.

Having the Necessary Paperwork

There’s a lot of paperwork involved when selling property, much of which is handled when a realtor is helping.  If you choose to handle the sale yourself, you’ll need to educate yourself on all the legal documents that must be completed to finalize the transaction.

Experts recommend making a checklist of required documents that includes the sale paperwork and any possible document that a prospective buyer may request during the process of looking at the home. Having a checklist and all documents available will save you from embarrassment or delay during the sale process. It also shows how professional and serious you are about selling, which will leave a good impression on buyers.

Here is a checklist of the paperwork required to sell a house:

• A Residential Property Disclosure form
• Payoff amount for your mortgage (mortgage statement)
• Residential sales contract
• Professional appraisal
• Third-party financing addendum
• Home inspection certificate
• Copies of utility bills
• Invoices for past renovations or repairs
• Insurance records
• Preliminary title report
• Rental agreements (if anything is rented in the home)
• Property tax information
• Lender Information
• Comparative market analysis
• Closing statement
• Deed
• Final purchase and sales agreement

Conclusion

Selling your home without a realtor isn’t easy, but we assure you that it is doable. You save money and familiarize yourself with how the real estate market works in the process.