Selling your house by owner can save you a bundle of cash. Many people want to take the private sale route but are not sure about how to move forward with their desire.
Homeowners that want to keep the most cash from the sale of their home in their pockets often wonder how to sell a house by owner in Texas. They are often concerned with how to advertise or get buyers to their property.
There is also the concern about having the right documents for the sales transaction. Is all of the financial savings really worth the time, effort, and paperwork? We'll explore the answer to that question and where to find buyers and the correct documents. Before we do that, let us look at how many dollars are being saved by not hiring a real estate agent.
How Real Estate Agent Commissions Work in Texas?
According to Trulia, "sellers are normally hit up for 6% by Realtors as the going rate." To figure out how much that is going to take from your proceeds, follow this simple formula.
Listing Price x .06 = Approximate Real Estate Commission
That is the rate for a "full service" real estate agent based on if you get the full listing price of your home. Many homeowners choose to hire an agent because they do not know how to sell a house by owner in Texas. Let us discuss other options for selling your home that are much more homeowner and bank account friendly than taking 6% off the top of your sale price.
Real Estate Commission Alternatives
Some companies in Texas will list your home on the multiple listing service listings (MLS) and provide you with the paperwork needed to sell a house without a realtor in Texas. The documents and services that some of the companies in Texas provide are as follows.
- Texas Real Estate Contract that has been written for a private sale.
- Seller's Disclosures to protect your interests after the house is sold.
- Third-Party Financing Addendum
- Home Owners Association Addendum
- Warranty Deed
- Deed of Trust
- Title Policy for the going rate.
- Mobile Closing service.
- Access to a licensed attorney.
There is a fee involved for the Texas For Sale by Owner Contract, Closing Documentation package and for the services that are provided. The fees are much less than 6% of the sale price. Choosing a company to list your home in the MLS and give you the documentation needed to close the deal is a viable option for selling a house in Texas without a realtor.
Why You May Not Want to Use a Real Estate Agent to Sell Your Home
Sometimes using a realtor can take all the profit from the sale of your home, or you could even end up writing the bank a check in the end. So depending on the amount of equity in your home, you may not want to use a realtor.
Benefits of Selling a House on Your Own
We have already discussed there could be a definite financial gain by selling a house in Texas by owner. Let us look into some other reasons that selling your home yourself is advantageous.
- You have complete control over the sale.
- You can control when the house is shown better than with an agent.
- You are kept in the know all the time about offers to purchase.
- You can devote your full attention to the sale and not share your attention with other houses selling and being shown.
- If your house is located in a busy area or a coveted subdivision, you can draw traffic to your home quickly.
Putting your house on the market and selling it yourself does have many advantages. Spending the time needed to successfully list your home as for sale by owner Texas and then closing the deal can be very profitable.
Selling Your Home to an Investor
Selling your house to an investor has several advantages and some disadvantages. Here are some of the advantages:
- Many times you can sell the house as-is.
- Investors can often offer faster closings.
- Cash sales are often possible with an investor.
- Investors can often be more flexible with the terms of the sale.
- No moving out and home staging required.
- No realtor commissions.
- Fast relief from the burden of a mortgage or a house in need of repair.
- Avoid Foreclosure proceedings if you are in default.
- An excellent way to sell an inherited property.
Selling a house as is in Texas can be a little more challenging on the open market. Choosing to sell your home to an investor reduces the time frame of the sale and the challenges of finding a home buyer willing to make the needed repairs.
Some of the disadvantages of selling our home to an investor worthy of considering are.
- Your house will probably sell below market value with a cash offer
- Some investors are less reputable than others
According to Forbes, "it is unlikely that an investor will pay market value for a home in its peak condition."
If your selling a house as is in Texas, receiving a below market value price is expected. However if your home is in good condition, in a good location, and you don't need a quick sale then listing the property may be an ideal option.
Often homeowners that are in a challenging financial situations are willing to forego some or even all of the profit just to remove that burden and stress.
If you are in a situation that you need to "unload" the heavy burden of your house payment, you may want to choose an investor to purchase your home quickly.
Many investors look to purchase homes that have a lot of equity in them and give cash offers.
Others have more creative ways to purchase the home by financing it or taking over the loan payments. This can be very advantageous to those without a lot of equity and otherwise would have to start going down the bankruptcy process.
10 Steps on How to Sell a House by Owner in Texas
Now that we have discussed that listing your home for sale by owner texas is not only possible but profitable let us list the ten steps for you to list your home by owner.
1. Determine the Market Value of Your Home
Before you sell anything, it is best to know what the value of it is. Your house is no exception. There are several ways to determine the value of your home.
The easiest way is to have a real estate agent come out and give you an idea of how much your house should be listed for sale. A benefit to asking an agent is if your house does not sell, you are ready to list with an agent that is familiar with your property.
Another way to determine the value is to go to a trusted real estate site that shows what homes are selling for in your area and how much they have sold for in the last six months.
It is essential to use the most recent sold properties that are in the same area and condition as your home. A licensed appraiser will officially appraise your house; they use recent home sales to determine the appraised value of your home.
2. Clean, Paint and Declutter
Homes that have less clutter and more open space appeal to more home buyers.
Start selling or boxing up the things you do not use and put it in storage. Clutter anywhere on the property devalues the home.
Fresh paint that is a neutral color can help move the sale forward. Neutral colors are not necessarily white. However giving a fresh coat of paint in a neutral make the house clean and fresh and will help sell your house.
You can use earthy tones or beige/tan colors for paint, and safe grays for counters.
Make a list of minor repairs that need to be done. This can include things like holes in walls, leaky faucets, paint touch-ups, or anything that would be a simple fix but can really help make your home feel like it's complete.
The less the buyer feels that they have to do to make the home "liveable" the quicker the sale and the better the price you can sell your home for.
3. Locate All the Documents You Will Need For the Sale
Preparing in advance takes away some of the stress when you do have a buyer. When a buyer is interested in your home, you want them to make an offer immediately. If they have to wait a few days for the paperwork, they may just move on to another property.
If a buyer offers cash on the home and it's near the price you're looking for, we advise that you move on that quickly because cash buyers will result in a much smoother transaction and they're more likely to pull the offer after a few days.
4. Make a File of Your Home's Documents.
Collect documents that are related to your home so that if you need them, they are readily available. Some documents to have on hand are paid tax receipts, warranty deed, current mortgage, any receipts for improvements to the home, and any warranties for appliances or work that was done to the property.
5. List Your House on the MLS.
There are companies in Texas that will list your home in the MLS for a fee. Many of these companies are listed on the internet. Find one and put your house in the MLS.
6. Post a Sign in the Yard.
Some homeowners' associations and city governments allow you to post a sign out front of your house. If you are allowed to post a sign, then once your house is ready to be shown to potential buyers, post a sign.
8. Be Available to Take Calls
Make sure that the phone number used to list the house is always answered. If a phone number is unanswered make sure to call the number back. That could be your homebuyer calling you.
9. List Your House on Social Media
Take advantage of social media to write about your house and give details so potential buyers can give you a call.
You can post homes on the Facebook marketplace and get hundreds of interested buyers.
But you need to be aware that while you have higher exposure, you also have a larger number of window shoppers.
10. Be available to Show Your Home
To sell your home, you must show it to potential buyers. It is important to try to be available whenever they can see the house. Be sure to have the paperwork ready for an offer to purchase.
Selling your home yourself in the state of Texas is possible and often financially beneficial. Making sure you are prepared for the sale by sprucing up your house and gathering the needed documents is imperative for a quicker sale.
Following the ten steps to selling your house will also contribute to the success of your for sale by owner listing. Put more dollars in your bank account and sell your home by owner anywhere in Texas. Putting your house on the market can be very beneficial. Go ahead and sell your house by owner.
If you need to sell the home quickly and you don't want to deal with holding costs of listing on the market, making repairs, or dealing with agents and closing costs, then fill out our form or give us a call.
We buy houses in Houston in any condition, regardless of its location. We will cover the costs associated with it and you don't need to spend any money out of pocket making repairs!