Are you ready to move out of your current home? Are the prices of houses in your neighborhood skyrocketing, and you want to make money on your real estate investment? You may be tempted to quickly stick a “For Sale By Owner” sign in your front yard to see what kind of offers you may receive.
You may think that by selling your home on your own, you are beating the system. Perhaps you believe that by managing the entire selling process, you can improve the odds of getting a great offer quickly because unlike a realtor, you only have your sale to manage.
You may also feel that you are the best salesperson for your home. You know its features and positive attributes. You probably remember what drew you to the house when you bought it years ago.
The most obvious reason to sell your own home is so that you cut out the middleman and maximize your profit margin. You may think that paying a 6% commission fee to real estate agents for a “property that sells itself” is a waste of money.
In reality, it if were that simple, real estate agents wouldn’t exist.
Real estate agents go through extensive training to learn about the time-consuming and complicated process of selling a home. Much of the training is spent on the legalities of the process.
The home selling process is so complicated that only a small percentage of people who attempt to sell their homes on their own actually end up closing on their FSBO listings.
It’s understandable that you want to keep as much money as possible when selling your home. After all, you were the person who paid or the house. But instead of learning the complicated process on your own, why not reach out to a top-rated, full-service local listing agent in your area that will sell your house for a fraction of the standard commission fee?
You will win because the sale of your house will go through without any hiccups.
You will win because you won’t spend countless hours poring over legal documents and consulting expensive lawyers.
You will win because you’ll receive the benefit of having a full-service agent work for you at a fraction of the cost you would typically pay a regular agent.
Find one of these Clever Partner Agents in your area who will sell your home at a discount.
How Real Estate Agent Commissions work in Wisconsin
In most states, including Wisconsin, the listing agent and the buyer’s agent usually split a 6% commission. Understandably FSBO sellers hope to sell the home without paying this money to anyone.
In reality, most Wisconsin buyers work with a buyer’s agent, and this buyer’s agent will earn the 3% commission whether you like it or not.
To be fair, the buyer’s agent deserves compensation. A buyer’s agent may contact you on behalf of their clients to look at your property. This buyer’s agent will help the client write an offer letter to you. This buyer’s agent will help set up inspections and will work through the negotiation process. This buyer’s agent not only helps the buyers, but the agent will help the homeowner by bringing you a pre-qualified buyer with serious offers.
Since you more than likely will be paying at least 3% of the final sale price to a buyer’s agent, isn’t it worth to pay a percentage more to have someone take care of all the work associated with selling a home? Especially if that listing agent will negotiate on your behalf?
While most agents will ask for the full 3% of the expected commission, a Clever Partner Agent will offer full-service support while working at a discounted rate.
4 Tips for Selling Your Home Without a Real Estate Agent in Wisconsin
Price Your Wisconsin Home Competitively
Part of the art of selling real estate is setting a price on the home that isn’t too high or too low for the local market.
Homes that are priced too high won’t get a second look because agents will look at the comparable homes in your area and realize your asking price is out of range.
Homes that are priced too low will not get the best buyers’ attention because they will assume that something is seriously wrong with the house if you list it for such a small amount.
It’s a seller’s market in Wisconsin right now. You might want to take advantage of this trend to sell your home. But just because homes are going for around $230,000 in Madison doesn’t mean that you can sell your Milwaukee home for the same amount. The average home in Milwaukee costs $122,000 less than an average home in Madison.
Current data shows that sellers who work with agents get 33% more for their homes than those who try to sell their properties themselves. Professionals know how to price a home for the local market appropriately.
What does that mean for you? Let’s say you are trying to sell your Green Bay home for $130,000. If you sell the house without a listing agent, your profit could be $126,100 after paying the buyer’s agent’s 3%.
If you work with a listing agent, you could potentially sell your home for $172,900. Even though your real estate commission bill would be $6,916 if you work with a discounted Clever Partner Agent, your profit would be $165,984. This is $39,884 than if you try to sell your home on your own. Plus, you will have gone through the stress of trying to understand the process on your own.
It is clear that working with an agent who knows the local real estate market and can price a home competitively will help you in the long run.
Stage, Market, and List Your Home to Attract Qualified Buyers
There’s an art to selling a home. Yes, you can just stick a sign in the yard, but to make the most money on a property, you need professional staging, professional photography, well-written listing descriptions, local online advertising, and showings. Perhaps you are good at one of these things, but do you have the knowledge and expertise to market your house to make the most money?
You can take a pic of your kitchen using your, but do you know how to take a photo that makes the space seem larger than it really is?
You can write a description of how many bedrooms your home has, but do you know what features are currently popular that will make potential buyers flock to your house for showings?
You will get the expertise of a professional real estate agent for only 1% of the sales price if you use a Clever Partner Agent.
Negotiate With Buyers to Get the Best Possible Price
There’s an art to negotiation strategies as well. You may lose a good buyer by stubbornly refusing to make any concessions during negotiations. A real estate agent would be able to tell you this.
A professional in the industry will be able to tell you when is a good time to make a counteroffer, or whether or not you should agree to pay the closing costs.
Since your agent will be making a commission on the sale, they will want the selling price to be as high as possible. You’re both working together to get the most for your home.
Understand Wisconsin’s Legal Requirements & Paperwork Involved
Each state has unique requirements on the paperwork that you must complete when selling a home.
In Wisconsin, you must prove that you are the legal owner of the home you are trying to sell. Sometimes divorce and death complicate these ownership situations.
As a Wisconsin resident, you are also required to fill out a Wisconsin Seller Disclosure Statement. The buyer and the seller must sign this legally-binding document.
If your home was built before 1978, Wisconsin law requires you to provide an EPA-mandated lead paint disclosure form.
You also need to have a properly written purchase and sale agreement. Every detail needs to be spelled out correctly on this document. Not only is the purchase price listed, but you also need to write what fixtures you are including in the purchase, and the type of financing that the buyer will be utilizing.
Of course, in the final stages of the process, you will need to have a notary public witness as you sign your property’s deed.
If you have bought or sold a property before, you know how much paperwork is involved. Are you ready to gather this paperwork and fill it out on your own?
Are you a lawyer? Have you ever had to write legally-binding documents for real estate transactions?
Yeah, I didn’t think so. Have someone who has completed the process hundreds of times before help you with the sale of your home.
The Pros and Cons of Selling Your Wisconsin Home Without a Realtor
What are the benefits of selling your home by yourself?
There really aren’t any.
Not only is selling a house a long, complicated process, but studies show that you will make more money overall if you have a professional selling agent help you with the listing.
Cost-Saving Alternatives for Wisconsin Sellers
We know that you want to keep as much of the profit as you can when you sell your home. That’s completely understandable. It’s your house. Not only will our agents work hard to make sure you get the most profit from your investment, but they will work for a flat listing fee (or just 1% if your home sells for more than $350,000.)
Since you are going to have to pay the 3% to the buyer’s agent anyway, doesn’t it make sense to receive the benefit of working with a full-service realtor for approximately 1% more?
Let’s say that you sell your Madison home for $230,000. When you work with a traditional agent, you pay $13,800 in commission. With Clever, it’s just $9,200. That’s a savings of nearly $4,600.
Find out how you can save money by selling your home quickly. Fill out the form on our website, and a representative will be in contact with you to answer any questions you may have. Our reps will also provide you with the name of a professional living in your area who will work hard to sell your home quickly.