✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Selling a house is expensive, with agent fees ranging between 5% and 6% of the home sale value. Additionally, expenses like repairs, maintenance, and home staging can add up to nearly 6% more! That’s thousands of dollars taken away from your home sale.
You can opt for other, more affordable alternatives to real estate agents to avoid these costs. For Sale by Owner (FSBO) tops this list as the cheapest way to sell your house, saving you almost $10,000!
What’s more, you get access to all real estate agent tools with FSBO websites like Houzeo. Houzeo’s convenient plans offer features like an MLS listing in 24 to 48 hours, 100% online paperwork, a personal concierge, etc.
What Are the Cheapest Ways to Sell a House?
Usually, home-selling can be an expensive affair. But here are five cheap ways to sell your house and drive your profit:
1. Discount Brokers
Your home’s value essentially determines the real estate agent’s fee. The higher the sale price, the higher the commission.
Instead, consider discount brokers. These are of two types:
- Flat Rate Realtors: They charge a fixed amount for all services.
- Flat Percentage Realtors: They charge a percentage of the sale value (usually 1% to 2.5%) for all services.
Irrespective of your home’s size, these agents charge a fixed fee. So, a discount broker is a lucrative option if you want to lower the cost of selling your house.
2. iBuyers
These companies leverage software algorithms to ascertain home values and buy properties. They make a cash offer based on the price of similar real estate in your locality, market data, the condition of the house, etc.
With iBuyers, the sale is quick and easy, and you can expect to get 70% to 80% of your property’s value. They usually have all the paperwork ready and don’t require you to make any repairs or undertake renovation before the sale.
iBuyers have strict eligibility criteria. If you fail to meet their requirements during the transaction, they can back out of the sale at any time.
3. “We Buy Houses for Cash” Companies
Cash home buyers are similar to iBuyers in so far as they don’t need you to repair or renovate your house before the sale. With these companies, you can get a quick sale. However, the price they offer might be 30% to 70% of your market value.
Further, it’s best to conduct your research before signing off on the sale. This will ensure you don’t fall prey to any scams and get a good price for your house.
4. Owner Financing
In this case, you offer your buyer a loan instead of direct payment. The buyer then pays you back in installments, and you get a steady monthly income.
This is ideal for sellers with low-priced properties, as banks usually don’t offer a loan below a certain amount. If your house falls below that mark, it can limit buyer interest due to a lack of credit avenues.
5. For Sale by Owner (FSBO)
FSBO helps the home seller save on real estate agent commissions as they manage the sale themselves. They advertise their listing, host open houses, review offers, and negotiate the sale price themselves.
How Much Does It Cost to Sell a House?
Listed below are some expenses you should look out for when selling your residential property.
1. Closing Costs
This includes the payments made towards administrative and legal documents and can range from 8% to 10% of the sale value. Here are some of the costs you have to bear when selling your home:
- Property tax
- Transfer tax
- Escrow costs
- Attorney fees
- Title policy
Closing costs vary based on the state you live in. It’s best to consult with local authorities to calculate the exact amount you would have to pay as closing costs.
2. Real Estate Agent Commission
Real estate agents charge a commission based on the value of your sale. If you sell your property for $400,000, you’ll likely pay your real estate agent between $20,000 and $24,000. The average real estate agent commission was 5.46% in 2023.
Given this steep commission rate, it is best to turn to FSBO websites to maximize profits.
3. Repairs and Renovations
If your home looks like it’s weathered a storm, chances are you won’t be able to demand a good price. Undertake door frame repairs and space renovations to make the house look more attractive. This can help you earn a good profit on its sale.
4. Staging
75% of sellers report a 5% to 15% ROI when they stage their properties. Staging your home helps increase your chances of getting an offer during an open house. The average home seller spends between $755 and $2,844 on home staging.
How Can You Reduce the Cost of Selling Your House?
You can reduce the cost of selling your house in the following ways:
- Only make necessary and affordable repairs.
- Examine closing charges to identify areas where the amount can be negotiated and reduced.
- Skip the home appraisal if it has been recently appraised.
- Negotiate with the buyer to ascertain what closing costs they’re ready to bear and if they can reduce the buyer agent’s commission.
Final Thoughts
While discount brokers, iBuyers, and cash home buyers are some of the cheapest ways to sell a house, FSBO offers you the most lucrative deal.
FSBO websites help you list your house for sale without the cost of Realtor commissions. If you’re looking for a reliable platform, explore Houzeo. Houzeo gives you access to all real estate agent tools at an affordable flat fee through its plans.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.
» Need More Clarity? Read this exclusive Houzeo review and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
What is the least expensive way to sell a home?
For Sale by Owner (FSBO) is the least expensive way to sell a home. FSBO platforms empower you to sell your home yourself. This eliminates the need for a real estate agent, thereby saving you the additional expense of their fees.
What not to fix when selling a house?
You can avoid repairing cosmetic flaws, minor electric issues, cracks in your driveway, etc. This will likely not have a significant bearing on your property’s sale.
What is the most profitable way to sell my house?
The most profitable way to sell your house requires you to:
- Know your local market
- Choose the best time to sell
- Set the correct price
- Make minor improvements
- Negotiate for the best deal
