Listing Your Property For Sale By Owner on Zillow – Pros and Cons

By: ROS Team

Applying for a mortgage involves multiple stages and most importantly, the process of approval is not simple. The approval process is more complicated than just checking credit history, employment, and income with a background check and verifying tax information. From calculating the debt-to-income ratio to appraising your property value. There are many things that go into considering your loan application.

For sale by owner multiple listing service is an alternative to traditional real estate brokerage. Various for sale by owner websites like Zillow have their benefits and drawbacks. This holistic guide will delve into some of them, and explain the costs and the process involved with using the MLS to list your property without the help of a real estate agent and sell the house by owner on Zillow without any charges.

What is Zillow?

Zillow is a platform that helps property owners sell their property (typically called a “for sale by owner” listing) without the help of a real estate agent.

More than 70% of all online real estate searches are conducted on the site; as a result, it’s a hot spot for people who are looking to buy or sell a home.

Zillow’s listing method puts the owner/seller in the driver’s seat–this means that they are solely responsible for everything related to marketing and selling the home, including listing, pricing, negotiating, staging, and closing.

Are “For Sale By Owner” Listings on Zillow Included in the Local MLS?

The vast majority of for sale by owner websites receive little website traffic and rely on for sale by owner multiple listing services (or the MLS) to help advertise their home. This is one of the primary reasons why many people elect to pay to have their home listed on a website because.

In addition to listing on the local MLS, these websites will get your home into the MLS. Brokers and other local buyers’ agents can see that the property is listed for sale if it’s listed on the MLS. You must have a brokerage license to utilize the MLS. So we recommend that sellers partner with a local brokerage firm to get their property included in the MLS database.

Zillow doesn’t use the local MLS for advertising property. When you create a for sale by owner listing on Zillow, it will be available for buyers and real estate agents to view. Additionally, realtors purchase weekly lists containing properties that are for sale by the owner; they then use Zillow as a prospecting tool to find properties that are listed to sell the house by owner.

1. Cost Efficient

If you’re leery about what your research into the home’s market value is telling you, you may want to set the price yourself.

Be aware that if you’re willing to accept a higher price than your home’s market value. Your real estate agent may try to pressure you into buying. You’ll be glad to know that there are no Zillow for sale by owner fees. It will save you money if you are willing to wait for a better offer. A homeowner can list their home for free on Zillow, unlike other realtors who typically charge 5%-6% of the sale price.

2. Ability to Control the Property Listing

One of the main benefits of selling your property without the help of a broker or agent is you retain the ability to control your property listing. You can still get an expert’s opinion on the market value, or do some research for pricing purposes.

But ultimately, you–the owner–manage every aspect of how your home is marketed to the masses. This arrangement benefits the seller who lacks confidence in real estate agents’ willingness to fight for the best price for their home or those who are emotionally attached to the property.

3. Own Expertise

Even if your real estate expert is incredibly well-researched, they will still be less knowledgeable about your neighborhood than you are. Talking about neighborhood benefits and their own experience living in their home is a significant advantage for homeowners who are selling homes on their own.

Bear in mind that:

Offering your home for sale on Zillow brings with it several risks. The most obvious of which is that you won’t have a real estate agent’s help when it comes to pricing and negotiating your listing.
Homeowners who sell their homes on their own have a higher risk of making a wrong decision or leaving additional money on the table due to their inexperience with negotiation.
Failure to correctly price the home could lead to many problems and complex sales. If you’d like to investigate this, we recommend using a Zillow “Make Me Move” listing instead of conducting a direct sale by owner transaction.

While a primary concern may be that Zillow is in the business of collecting personal information and reselling it to real estate brokers, you may also find that there are other issues that you’ll need to deal with. Zillow will redirect buyers to a buyer’s broker, which, in turn, means that you’ll be expected to pay fees in the form of a broker’s commission.

What is Zillow’s For Sale By Owner Fees?

You can list your home for sale on Zillow for free, and the company strives to make the process as simple as possible. In some cases, however, you may be asked to pay a fee to a buyer’s broker. Which may result in you having to pay a commission.

Why You Must Pursue Sale by Owner?

FSBO is Employed for Three(3) Reasons:

Hiring a real estate agent brings time and stress benefits and the risk of messing up an important contract or legal procedure. Thus, FSBO may not be the best approach for everyone.
The selling point is money. You have to pay the customary real estate agent commission (usually 6-7 percent of the sale). FSBO is beneficial in some ways, but the question is: Are you going to pocket the 6% commission, or will you benefit from using the real estate agent’s expertise to get you a better house price?
Even though saving the commission is one of the reasons some sellers use Zillow to sell the house by owner, there are a few other reasons.

FAQs

Where can I list my house for sale by owner for free?

There are several websites where you can list your house for sale by owner for free, including popular online classifieds platforms such as Craigslist, Zillow FSBO, and ForSaleByOwner.com.

Should I sell my house on Zillow?

It’s recommended to carefully research and evaluate your options, including Zillow and other platforms, and consider consulting with a real estate professional for personalized guidance.

Can I list my home on Zillow without a realtor?

Yes, you can list your home on Zillow without a realtor.

What are Zillow’s for sale by owner fees?

Zillow does not charge any fees for basic For Sale By Owner (FSBO) listings. However, Zillow does offer optional paid services, such as listing upgrades or advertising packages, which may have associated fees.

Where can I find “for sale by owner” listings?

You can find for sale by owner (FSBO) listings on online real estates marketplaces such as Zillow FSBO, ForSaleByOwner.com, or FSBO.com, as well as on online classifieds platforms like Craigslist and Facebook Marketplace.

Conclusion

Ultimately, the decision to sell your property through Zillow vs. a conventional real estate agent boils down to your personal preference and goals for selling a home. If you’re after a quick, efficient sale, and can handle negotiations and showings without professional support, selling directly through Zillow is often times the right choice.