How To Sell A Home Without a Realtor: 7 Tricks and Traps to Avoid
If your property is in foreclosure, has delinquent taxes, and you need to sell your home fast, make sure you avoid these 7 tricks and traps that real estate agents use on distressed homeowners.
- The Short Sale Specialist
You’ll find many people claiming to specialize in short sales. Most of the unlicensed “specialists” are actually looking to buy cheap properties. While many Realtors have had some additional training in foreclosures and short sale topics, many are simply listing agents. Both will tell you that they know the secrets to negotiating with your bank and how to find the right buyer to expedite a sale. But with a little confidence, patience, and a phone call to your bank you can easily become your own short sale specialist.
- Exclusive Listing Agreement
Realtors and listing brokers will present sellers with a standard listing agreement which most likely will include an exclusive right to sell clause. That means that for the duration of the contract, whether 3 to 6 months or longer, you won’t be able to work with other agents to sell your home.
With some listing agreements, even if you find a buyer you’ll have to pay you’re listing agent the full commission. Sellers fall into the exclusive listing trap because they are sold on the idea of a listing superstar.
Don’t get sucked in by an agent who has too many active listings. And keep in mind that a listing agent is a tool in your arsenal of home selling techniques. Don’t sign a contract that prohibits you from marketing your property and finding a buyer yourself.
- Bait-and-Switch Listing Price
The listing agent’s number one goal is to get you to sign the exclusive listing contract. The easiest way to do that is to offer you a top-dollar listing price on the MLS. After an open house, a few private showings, and a couple of months on the MLS, the listing agent will tell you that the active buyers are looking in a price range lower than your asking price. You’ll be asked to drop your listing price and/or extend your contract with the promise that selling will be quick an easy once you get “in line with the market.”
- Agent Network Discounts
The agent network trap includes title companies, decorators, and handymen providing discounted services to help market your home. Sometimes agents get referral kickbacks for services that are paid from your proceeds at closing.
- Home Inspection Trap
Remember that the buyer pays for appraisals and home inspections, so if the report says that you need to replace a roof the buyer can cancel the contract if you say no to any repairs. If a selling agent is pressuring you to drop your price by the cost of the repairs, it’s only because their commission is on the line. You can always find another buyer and their inspections may say something different.
- Seller Concessions
Buying and selling agents will work together to get you to pay the buyer’s closing costs or hold a seller carryback mortgage to make the buyer’s financing work. Some agents actually present seller concessions as loan conditions. Lender’s allow but never require seller concessions. Make sure you don’t reduce your bottom line just to guarantee the agents’ commission split.
- Negotiation Trap
If a listing agent is going out of their way to convince you to accept a buyer terms, then they are not negotiating on your behalf. The best way to avoid the negotiation trap is to ask the agent the difference between their average listing and final selling price. If the difference is too great or varies from your price range, don’t sign that listing agreement.
Avoid Real Estate Traps and save time and money by selling your home to a real estate firm like Northwest Home Buyers. We can guarantee closing within 7-10 days, rather than have your home stuck on the MLS for 90-120 days. And since we buy homes with cash in as-is condition, it won’t cost you anything to sell your property. Call us today for a no-obligation estimate and find out how you can sell your house fast.
If you find yourself facing foreclosure and unable to find tenants or maybe just inherited a home, in any case, we can help you sell your home in Boise in 7-10 days. If you’re thinking of selling and are exploring your options, consider selling directly to us.
Call our team at (208) 214-3365
If you don’t want to go through the hassle and headache of selling to the market, then we might be able to help. We’ll give you a quick call once we find out a bit more about your property in Idaho, and make you an offer on your home the same day.