Selling a home with Help-U-Sell may be cheaper than selling with a traditional realtor for a 3% commission. But your potential savings could come with frustrating service trade-offs.

Customer reviews indicate that savings and service quality vary widely across locations. The company has shrunk from more than 1,000 franchise locations to just 56 over a few years — indicating that the it's on the decline.

If you're mainly drawn to Help-U-Sell for its lower fees, know that other options may offer better service at a similar rate.

To get savings without sacrificing quality, Clever's free agent matching tool is a good place to start. With Clever, you can compare agents from the best discount brokerages and from major brands like Keller Williams and RE/MAX. Agents from these brands offer lower rates through our network.

We send you multiple agent matches, and you decide who to work with — or you can walk away with no strings attached. When you work with a Clever agent, you get a listing fee of 1.5% — half the rate typical brokerages charge.

» SAVE: Find a top local agent for half the typical rate

What is Help-U-Sell?

Help-U-Sell at a glance
💲 Help-U-Sell fee	$2,950–9,950*
💰 Avg seller savings	Varies by location
⭐ Customer rating	Varies by location
📍 Locations	56 locations in 17 states
*Actual fees depend on the home's value, and cost structure may vary by location

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Help-U-Sell is a discount real estate brokerage with dozens of offices across the U.S. Like many other brokerages, Help-U-Sell is a franchise, which means each local office is independently owned and operated.

The company advertises low listing fees for home sellers, usually $3,000–10,000. However, actual fees vary by location, and so do customer ratings.

Is Help-U-Sell legitimate?

Yes, Help-U-Sell is a legitimate business. Each Help-U-Sell franchise is a fully licensed brokerage in the state it operates in. And every Help-U-Sell agent must maintain an active real estate license, as well as membership in the National Association of Realtors (NAR).

But you should know two things:

• Help-U-Sell's corporate advertising presents a misleading picture of the fees that local offices charge.
• The company's geographic footprint is shrinking, which suggests its business model isn't working.

Biggest risks of selling with Help-U-Sell

Help-U-Sell is struggling (and shrinking fast)

Help-U-Sell has experienced a steep decline over the past decade.

At its peak in 2006, the company had around 1,000 franchise locations, making it the largest discount broker in the US. However, Help-U-Sell filed for bankruptcy in 2008. It's been hemorrhaging local offices ever since.[1][2]

As of this writing, Help-U-Sell has fewer than 80 offices in 19 states, an approximate 92% decline over the past 15 years.

Additionally, most of the remaining offices only have a few properties listed for sale — at least according to Help-U-Sell's corporate website. And more than a dozen have zero active listings.

The rapid decline in Help-U-Sell locations — and the lack of listings at many offices — suggests the company's business model isn't working.

If you're considering listing with Help-U-Sell, this is a potential red flag. Struggling businesses rarely provide best-in-class service. And they aren't well-positioned to help you achieve an ideal outcome with your home sale.

Help-U-Sell fees and service quality vary by location

Help-U-Sell's primary offering is discounted commission fees for home sellers. But exactly how much you could save depends on where you're selling.

That's also true of the customer experience.

While Help-U-Sell advertises "full-service" support — meaning their agents should offer the same basic range of services as a traditional realtor — each local owner-operator ultimately decides what specific assistance they'll provide to clients.

How Help-U-Sell works

According to Help-U-Sell, it can offer discounted rates because its offices are "small and efficient," staffed by a "team of specialists that function as a unit in the marketing and selling of your home."

Translation?

It's likely that Help-U-Sell agents must juggle a higher volume of customers than traditional realtors.

How much do Help-U-Sell fees actually cost?

Help-U-Sell allows each office to set its own pricing. And this is where Help-U-Sell's marketing information gets confusing.

It's tricky to learn what Help-U-Sell will charge to list your home

The best way to find out exactly how much Help-U-Sell will charge for selling your home is by calling an office directly.

Your actual listing fee will depend on your location. Offices DON'T adhere to the same pricing model. We've seen a wide range of $2,950–9,950 for the flat fee model. We also spoke with offices that charged percentage-based commissions varying from 1–2.25%.

And many don't explain their fee structures clearly on their websites. Help-U-Sell agents may require you to provide extra information on your home before they'll give you a straight answer about pricing.

For example, one agent told me she would have to perform a market analysis of my home before telling me the exact fee.

Don't forget about buyer's agent commission

Keep in mind that, as with most home sales, you will likely still need to pay your buyer's agent's commission. While average commission rates vary by location, sellers typically offer 2.5-3% to the buyer's agent to incentivize them to show it to buyers.

That said, there are two scenarios in which you could pay less — or potentially avoid the buyer's agent fee altogether.

However, both of these scenarios are uncommon. Approximately 90% of buyers work with a realtor.[3] And unless they're also listing their home with a Help-U-Sell agent, it's unlikely that an average buyer is going to hire an agent with a company called Help-U-Sell.

» MORE: How does realtor commission work?

How good are Help-U-Sell agents?

All Help-U-Sell agents are fully licensed realtors. They provide the same general range of services as agents at a traditional real estate brokerage — but charge lower rates.

However, there are a few crucial factors that could affect your experience.

You may get less hands-on service and support

Help-U-Sell's business model requires its agents to handle a higher volume of customers to compensate for its discounted rates.

This means your agent may not be able to offer you as much hands-on service and support as a realtor from a traditional brokerage.

This increases the risk that you'll have a less-than-stellar experience, especially if your selling situation is complicated.

Services and support will differ between locations

Although Help-U-Sell is a national brand, each office is independently owned and operated. This means your experience with Help-U-Sell could be vastly different depending on where you're selling.

Remember: You’re hiring an individual agent, not a brand!

Make sure to interview multiple realtors from different companies to find the best fit for your situation.

Compare key factors like price, relevant experience, approach, and personality. Selling a house is a high-stakes endeavor. It pays to shop around!

» MORE: How to find the right realtor

How does Help-U-Sell compare to top alternatives?

Help-U-Sell offers savings — but they may not be the best

While Help-U-Sell's discounted rates are generally much cheaper than a traditional realtor, savings vary quite a bit between locations.

Some offices charge a flat fee, while others charge a commission based on a percentage of the home's sale price.

In many places, sellers may be able to find lower prices with another discount service.

» MORE: Compare top discount real estate companies

Other discount brokers offer genuine flat fee pricing

Although the Help-U-Sell corporate website says home sellers will pay a "low set fee" based on local market factors, each local owner-operator sets their own rates.

Many locations have tiered pricing models; they charge a variable fee based on your listing price. Others don't offer a flat fee model at all — they charge a percentage of your home's sale price.

However, some of Help-U-Sell's competitors offer actual flat fee pricing.

» MORE: The best (and worst) flat fee real estate brokerages

Help-U-Sell's dated tech could put you at a disadvantage

Help-U-Sell tells prospective franchise operators that they will have access to in-house technology that will give them a leg up on the competition.

However, spend a few minutes browsing its website — or watch a few of Help-U-Sell's YouTube videos — and it's clear that this is NOT a tech-forward company.

This dated tech could put you at a competitive disadvantage — and it may explain why Help-U-Sell is struggling to maintain its geographic footprint as more tech-savvy competitors enter the real estate industry.

Selling with Help-U-Sell

As a seller, you can expect Help-U-Sell to provide most of the same services provided by any other brokerage, including:

• Lockbox
• Yard sign
• Professional photos and/or video
• Open house support from a Help-U-Sell agent (who might not be your own)
• Listing on MLS
• Paperwork assistance
• Negotiation assistance
• Closing assistance

Don't sign a listing agreement without reading the fine print

Help-U-Sell doesn't make clear the typical length of its contracts and whether there are penalties for early cancellation.

The most explicit information we received came from an agent we reached who suggested that we ask for a 90-day contract, but that we could also ask for a 60-day agreement as well.

This agent informed me that if we were not happy with Help-U-Sell's services with "good reason," the office would be "flexible" to try to work with us "without any cancellation fee."

Always read the fine print before signing any agreement with any agent. Make sure you won't be penalized if you change your mind before the contract expires.

» LEARN: Read this BEFORE you sign a listing agreement

Buying with Help-U-Sell

You wouldn't know based on the name, but Help-U-Sell works with home buyers, too.

Help-U-Sell agents provide the same general range of services for buyers as traditional agents. They'll take you to tour properties and help with negotiations and paperwork. Note: Agents will show you any home, not just Help-U-Sell homes.

However, most Help-U-Sell agents handle a higher volume of customers than traditional agents, which may limit their ability to provide personalized service and support throughout the process.

Some Help-U-Sell offices offer rebates to *qualifying* buyers

To attract buyers, some Help-U-Sell offices offer commission rebates — also known as home buyer rebates — to qualifying buyers. If you qualify for a commission rebate, your Help-U-Sell agent will kick you back a portion of their fee when you close on your home.

However, each Help-U-Sell franchisee sets their rates and service offerings, so make sure your local office offers home buyer rebates — and that you'll qualify — before you start the purchase process.

Be prepared for potential service trade-offs

Whether your local Help-U-Sell office offers a rebate or not — and some don't — you'll face the same potential service-quality trade-offs as sellers.

Help-U-Sell agents juggle more clients than traditional realtors, and they'll likely offload some aspects of your purchase to a back-office team.

Remember: Buyers don't have to cover their agent's fee out of pocket — it comes out of the seller's proceeds from the sale. So, aside from the possibility of a commission rebate, there isn't a ton of upside to buying with Help-U-Sell, unless you really hit it off with an individual Help-U-Sell agent.

If getting a rebate is a top priority, we recommend that you shop around. Many discount brokers and agent-matching services offer them too — often with fewer service-level trade-offs.

» MORE: Which company offers the best home buyer rebate?

Help-U-Sell reviews and complaints

Because each office is independently owned and operated, Help-U-Sell reviews and complaints vary considerably by location.

We recommend researching reviews for your local office using tools like Google, Facebook, and Yelp. These resources will give you the most accurate picture of customer experiences and outcomes.

So what are people saying about working with their local Help-U-Sell offices?

What positive Help-U-Sell reviews say

I 'would not hesitate' to use my Help-U-Sell agent again

Here's an example of a positive review on Yelp from a repeat seller who had a near-perfect experience with a Help-U-Sell office in Folsom, CA.

She commended her agent for providing "good, knowledgeable service" throughout both of her sales. She also said the back-office team helped the logistical aspects of her sale move smoothly.

Sterling is the best. Not only are his discounted fees reasonable, but he provides really good, knowledgeable service. Claire was also very helpful with paperwork and coordination and quick to respond to any questions. They have helped me sell two homes, one on acreage in 2014 and a suburban home in 2018 and I was very happy with how both transactions went. I no longer live in California but, if I needed a realtor in his service area again in the future, I would not hesitate to call Sterling for help."]

'One of the best realtors' I've ever met

This seller praised the quality of the Help-U-Sell office in Waynesboro, VA. They said their agent was "one of the best realtors" they've ever dealt with.

A 'no-stress experience'

This review comes from a customer who has worked with Help-U-Sell Hawaii twice. She praised her agent's negotiating skills in securing a great deal for her daughter, and said that her agent was both knowledgeable and helpful.

Top Help-U-Sell complaints

My Help-U-Sell agent wasn't fully in my corner

This Zillow user had a poor experience with their Help-U-Sell agent in Owatonna, MN.

They specifically called out that they felt like the agent was withholding information about their sale and wasn't fully in their corner.

'I was rushed into accepting the first offer'

Katrina M. felt pressured by their Help-U-Sell agent into accepting the first offer on their home — then later found out they might have been able to get a much better offer.

Katrina felt that Help-U-Sell's flat fees meant their agent didn't have an incentive to get top-dollar for their home.

Our closing 'could have been smoother'

This customer had a decent experience with their agent from Help-U-Sell Greensboro and was happy with the money they saved. But they felt that the communication could have been better throughout the closing process.

The common theme among ALL these reviews is that the customer's experience depended primarily on the quality of the agents at their local office.

Corporate office contact information

Help-U-Sell franchise locations

As of June 7, 2023, Help-U-Sell Real Estate's office finder tool says the company has 56 offices in select markets across 17 states: AL, AZ, CA, CO, FL, ID, MI, MN, MO, NC, NV, OK, OR, PA, TX, UT, and VA. You can use the company's office locator to find the location nearest you.

» MORE: Somewhere else? Find discount brokers near you.

Conclusion: Is Help-U-Sell right for you?

Help-U-Sell has been in business since 1976, and in that time they've helped many people buy and sell homes successfully. Whether it's the right choice for you really comes down to:

• Your personal preferences (and tolerance for risk)
• The quality and pricing of your local Help-U-Sell office
• How it compares to other discount services available in your area

We recommend interviewing multiple agents from different companies before you make a decision. Remember that you have no obligation to move forward or sign a contract with any realtor when you interview them.

You have absolutely nothing to lose and everything to gain by shopping around and comparing rates, experience, and personalities to find the best fit!

Clever makes it easier than ever to find the perfect agent AND avoid overpaying on real estate commission. With Clever, you'll get hand-picked agent matches from top local brokerages. You can interview as many agents as you like until you find the right one.

And, when you find your agent through Clever, you also get a pre-negotiated listing fee of just 1.5%, helping you keep more money in your pocket when you sell your home!

FAQ about Help-U-Sell

Related links

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

Like most things in real estate, your listing agent's commission is negotiable. This is our expert guide to negotiating realtor fees.

The post Help-U-Sell Reviews: Are the Savings Worth It? appeared first on Semya-Moya.

Home Bay is a discount real estate broker that offers reduced listing fees to home sellers in California.

But there are some pretty big tradeoffs:

Unlike other discount brokers, Home Bay makes you do most of the heavy lifting yourself. Customers typically get less than 90 minutes of contact with an agent.

Since Home Buy offers a process that's largely DIY, most home sellers will be able to find better service for the same price — or the same service for a LOT less.

» MORE: Save on commission without sacrificing service

Home Bay, at a glance
Price	$4,000*
Avg seller savings	$8,400**
Customer rating	4.5 (519 reviews)
Locations	California
*Based on median CA home value of $610,000 **Compared to a 3% listing fee at four different price points.

Show more

What is Home Bay?

Home Bay is a discount real estate brokerage with licensed agents who can help you buy or sell a home in California. Somewhere else? Find discount brokers near you.

There are many differences between selling with Home Bay and a traditional realtor. The two biggest you should be aware of are:

• Price: Home Bay advertises huge savings compared to selling a house the old-fashioned way
• Service: Home Bay provides significantly less hands-on service and support compared to a traditional real estate agent

Home Bay also offers mortgages to all homebuyers in California; you don't need to purchase a property through the company to obtain a Home Bay mortgage.

Is Home Bay legitimate?

Yes, Home Bay is a legitimate, registered real estate brokerage brokerage. However, the company has gone through significant leadership turnover and appears to have shaky business prospects.

Leadership turnover and legal issues

For one thing, the company is on its second CEO in five years. And recent Glassdoor reviews of Home Bay complain of weak leadership.

In 2017, the State of California's Bureau of Real Estate filed an accusation against the company for not collecting commissions under its proper licensed name. The case resulted in only minor disciplinary action, but sheds negative light on Home Bay's management.[4]

What happened to Home Bay's aggressive expansion plans?

We're also concerned by the fact that Home Bay hasn't become the tech disruptor that its investors had hoped for. The company has received more than $19 million in funding rounds earmarked for expansion but has instead shrunk in geographic scope.[5]

Home Bay is shrinking rapidly — not growing

Home Bay Agents used to serve Colorado, Florida, Georgia, Illinois, and Texas. And in January 2019, CEO Ken Potashner reported planned expansion into as many as 20 additional states by the end of the year.[2]

Not only did that growth not happen, but now the company has dwindled down to a focus on just California.

Home Bay is looking to sell its proprietary listing platform to other brokerage firms, perhaps in a way to make up for lost ground. The company paints a picture of a worrisome dependence on technology over customer experience and getting sellers the most money for their homes.

When you list your home, you want to have confidence that an agent is looking out for your best interests. We recommend exploring different options in the discount brokerage space.

» SAVE: Match with top agents nationwide — get full service for $3.5k or 1.5%

How does Home Bay work?

Home Bay's business model is 100% technology based.

Sellers list on the Home Bay listing platform (plus the MLS, as with most other discount brokers). The platform then "walks" them through the listing process.

You won't meet your agent in person

Although you can call a dedicated agent, you'll NEVER meet in person, and they won't come to your home.

Offers are made and negotiated directly through the Home Bay platform.

AI will help you evaluate offers

The company's marketing states that its system "automatically red flags" potential "issues" in an offer. We're unsure if AI can be as attentive as an agent who knows your home and area well.

Sometimes there's just no substitute for expert professional representation in a huge transaction such as a home sale.

Don't rely just on AI to review offers on your home. At the very least, make sure to always carefully read the fine print — even if you're working with an agent.

How much does Home Bay cost?

Home Bay charges a flat fee to the seller that varies based on your listing price. Here's what you can expect to pay at different price points:

By using Home Bay, you can see significant savings compared to the 3% listing commission usually paid to an agent — though of course, keep in mind the significant difference in service.

If you cancel your contract before 90 days, you'll forfeit your 10% deposit. If your home fails to sell within 90 days, Home Bay will refund the deposit back to you.

Don't forget about buyer's agent commission

Keep in mind that, as with all home transactions, in addition to the listing fee, you should expect to cover the buyer's agent commission. This typically costs 2.5-3%. But Home Bay allows you to decide yourself how much to offer.

Make sure to research average buyer's agent commissions in your area. If you offer a percentage that’s too low, agents might not feel compelled to bring their clients to your listing.

» MORE: Average real estate commission rates in California

Home Bay vs. for sale by owner

Many sellers discover Home Bay while researching options for marketing their home "for sale by owner," or FSBO.

FSBO is risky — but may be a better option than Home Bay

FSBO comes with its own risks:

• You need to be comfortable with a DIY approach
• It takes a lot of experience to manage a home sale successfully

Many FSBO properties fail to sell for many months before the sellers ultimately decide to list with a traditional real estate agent.

However, when FSBO works, it can save you a ton of money — significantly more than with Home Bay’s hefty listing fees.

» LEARN: How to sell your house for sale by owner

Consider a flat-fee MLS service before you list with Home Bay

When listing a home for sale by owner, you don't need to handle the transaction entirely by yourself, either. There are a number of services that can help you market your home and even review the paperwork for just a fraction of Home Bay's price.

You could also hire a real estate attorney to handle the paperwork if that's the aspect of the sale you feel most uncomfortable with. (And in fact, some states other than California require a lawyer to be present at closing.) You can expect to pay as little as $150 per hour for such a service.

» LEARN: What you need to know about flat-fee MLS listings

What if you want to save — but aren't comfortable with a DIY sale?

If you feel less confident handling a home sale yourself, there are options that offer the support of a full-service agent who will work with you in person for roughly the same price that Home Bay charges.

How does Home Bay compare to top alternatives?

Compared to other discount brokers, Home Bay looks like it could save you a ton of money.

However, when you compare its offerings with what you get from services such as Clever or Redfin, its price tag looks unappealing.

Home Bay offers MUCH less support than other discount brokers

Home Bay offers no in-person support — unlike the other brokers on this short list.

Sellers are expected to do the work themselves when they pay for Home Bay. The platform "guides" you along through the steps of a home sale. There's no experienced agent looking to get you the highest price for your home.

Our No. 1 piece of advice for anyone looking for an agent to list their home is to shop around and interview several realtors in your area.

» MORE: Compare top local agents, save thousands on commission

Home Bay is comparable to MLS listing services — just a lot more expensive

On the other hand, if you're comfortable managing your home sale yourself — and don't want to pay a full-service realtor — you're probably better off using a flat-fee MLS listing service.

For a few hundred bucks, one of these services will:

• List your home on the MLS
• Give limited pricing support
• Provide downloadable contracts, disclosures, and other documents

Home Bay does offer a few services that flat-fee MLS listing companies don't offer, including: professional photos, yard sign, limited agent support, and an online platform to help you manage your sale.

However, considering that going the flat-fee MLS route will likely cost thousands of dollars less than Home Bay, you'll still come out ahead if you purchase any extra services you need a la carte.

» COMPARE: Flat-fee MLS listing services vs. full-service realtors

Selling a house with Home Bay

On paper, Home Bay offers many of the same the services traditional agents provide:

Listing with Home Bay might not actually save you money

However, although you'll save money on the listing fee, you might lose serious cash in the long run.

Remember: you'll never meet your Home Bay Agent in person. This means your agent can't give you the most accurate advice about important considerations like:

• Pricing your home
• Repairs and you should make
• Cosmetic improvements and staging

That could lead to getting a lower price than you deserve for your home or having your listing sit on the MLS for months because it's overpriced.

That could be a costly problem. Not only would you be paying carrying costs such as taxes, utility bills, and HOA fees, but buyers might become skeptical of a home that's been on the market for a long time. They might assume something is wrong with your property and even avoid making an offer if you lower the price later.

Be prepared to sign a 90-day contract — and pay up-front fees

When you agree to use Home Bay to list your home, you'll sign a 90-day contract and put down 10% of the flat-fee listing commission.

If you break your contract before 90 days, you'll forfeit your deposit money. However, if you don't sell your home with Home Bay and cancel after 90 days, you'll get your money back.

However you slice it, the 10% deposit is an unusual practice. Most brokers do NOT make you pay one cent in advance.

That said, fees for breaking contracts are common. The amount you could lose for breaking a Home Bay agreement could work out to about the same or even less than what other brokers would charge.

Always make sure that you do your due diligence and read the fine print before signing any kind of contract.

» LEARN: Read this BEFORE you sign a listing agreement

How good are Home Bay Agents?

Home Bay Agents are fully licensed realtors. They provide the same basic range of services as traditional real estate agents, although there are some BIG differences to watch out for.

Home Bay Agents have less direct incentive

One of the biggest differences between Home Bay Agents and traditional realtors is the compensation and incentive structure.

Home Bay Agents receive a salary. That's unlike traditional real estate agents who are paid commission and make money only when they have helped their clients sell their homes.

One agent told us that they also receive a bonus if you leave them a positive review. However, it's unlikely this bonus is as large as the commission traditional real estate agents earn.

Home Bay Agents handle the ENTIRE sales process remotely

Home Bay can pay its agents less because sales are completely remote. All of your communication with your agent will occur via the listing platform or phone. And don't expect to receive white-glove, personalized care.

We recommend shopping around for an agent who will provide hands-on service and fight to get you the best price for your home.

If personalized service and support is a top priority, Clever can help. Clever’s agent-matching service not only connects you with local agents from major brands like Keller Williams, RE/MAX, and Century 21, but also negotiates low rates on your behalf.

» LEARN: How Clever’s free Concierge service helps you compare top agents

Buying a house with Home Bay

The biggest advantage of using Home Bay to buy a property is the potential to earn a commission rebate.

How does Home Bay's buyer rebate work?

Home Bay advertises that you'll receive 10% of the buyer's agent commission back at closing.

That sounds like a huge percentage at first glance. But framing it this way is a bit misleading.

Home Bay's rebate advertising is misleading

Most other discount brokerages that offer rebates advertise them as a percentage of the sale price.

Measured this way, Home Bay's rebate is really 0.25-0.3%, depending on the size of the buyer's agent commission. And it's quite a bit smaller than the commission rebates offered by other companies:

Home buyer rebate on a typical California home

Use caution when buying with a Home Bay Agent

When you buy a home with Home Bay, you'll be connected with what the company calls a "showing coordinator." The company isn't very forthcoming as to whether these people are licensed real estate agents or not.

The basic function of a showing coordinator is exactly what you'd expect: to show houses to prospective buyers.

Once you've found a home you wish to buy, someone else on the Home Bay team will help with negotiations, paperwork, etc.

Can you use a Home Bay showing coordinator to view a non-Home Bay listed house? And can you buy an "outside" house using the platform? The company doesn't make this very clear. In fact, its marketing message suggests the opposite.

However, we phoned a Home Bay Agent who informed us that you can use the company to view and purchase a non-Home Bay listed home. We take this as more evidence of Home Bay's confusing and disorganized business model.

Watch out for the 'Home Bay upsell'

Another risk of using Home Bay is the potential for an upsell.

We're concerned that Home Bay employees might pressure you to use Home Bay Financial's mortgage services.

Using a one-stop-shop for your home-buying and financing needs might seem convenient, but that's what discount brokers like Home Bay count on.

The products Home Bay offers might not be the best fit for you.

Remember: it pays to shop around when considering agents, mortgage providers, title companies, and so on, to find the best fit.

Home Bay reviews

Note: The following review information is up-to-date as of 10/21/2022. We will update this section as new information becomes available.

Customer reviews of Home Bay are a mixed bag. The company has an average rating of 4.5 across 519 reviews.

My Home Bay Agent made my sale 'easy' and virtually stress-free

This Home Bay reviewer reported a positive experience on Zillow. At the time, the reviewer was living on the East Coast and appreciated Home Bay's remote platform for selling a home in California:

'Stay away' from Home Bay

On the other hand, Zillow user FreyaMcKenna4 was less enthusiastic. She complained about terrible communication and warns others to avoid Home Bay "like the plague":

Home Bay is the 'absolute worst choice you can make'

Likewise, markcole5460 complained on Zillow about unresponsive agents and poor help when pricing their home:

Conclusion: Is Home Bay right for you?

Most of the discount brokers we've reviewed can be a better or worse choice depending on your situation. That's NOT the case with Home Bay.

Unfortunately, we can't recommend that anyone use Home Bay.

Home Bay costs as much as a discount broker. But most discount brokers provide full-service agent representation. Home Bay's limited level of support is a lot more comparable to a flat-fee MLS listing company — except Home Bay costs thousands of dollars more.

Home Bay's geographically shrinking business gives us pause too. The company had hoped to expand into nearly half of the U.S. by the end of 2019. One year later, its focus has narrowed to one — yes, one — state: California. This is compounded by evidence of mismanagement and poor leadership.

Selling a home is a high-stakes process. And most California home sellers have lots of options when it comes to saving on real estate commission. We recommend that you shop around. Look for the service or agent who is going to:

• Get you the best price for your home
• Make the experience as smooth and painless as possible

Interview agents who have experience and knowledge in your area and at your price point. You have absolutely nothing to lose (and everything to gain!) by shopping around and comparing rates, experience, and personalities to find the perfect fit.

Home Bay contact info and business hours

Home Bay's business hours

Home Bay's contact information

The post Home Bay Review 2022 appeared first on Semya-Moya.

Faira is a discount real estate brokerage and technology company that operates in Washington State.

Faira offers several low-cost listing options for home sellers, including a "free" basic listing package.

If this deal sounds too good to be true, that's because it is...

"Faira Free" isn't really free. In fact, hidden fees, limited agent selection and service, and a shaky business model make any Faira listing package a risky choice compared with other options.

» LEARN: Save on commission fees without sacrificing service

Faira, at a glance
Price	0.5%-3.5%
Avg seller savings	N/A*
Customer rating	4.3 (139 reviews)
Locations	Washington State
*Faira offers several different selling packages, which provide varying levels of savings.

Show more

What is Faira?

Faira is discount real estate broker with licensed agents who can help you buy or sell a home in Washington State. Somewhere else? Find discount brokers near you.

It's part of a new breed of real estate brokerages that depend heavily on technology to create savings for consumers.

The company’s goal is to leverage its online platform to make the process of buying and selling homes transparent and "fair" (hence the name).

However, in practice, these potential savings come with some pretty huge trade-offs.

Hidden fees and misleading advertising

First, in examining the company's pricing model, we discovered hidden and/or misrepresented fees, including a 0.5% "platform fee."

Faira advertises that the platform fee is paid by the buyer, but it's taken from the sale proceeds, which of course impacts the seller's bottom line.

Faira's premium service may cost MORE than a traditional realtor

Second, Faira's highest level of service is just as — or even more expensive than — using a traditional real estate agent.

The company's footprint is shrinking rapidly

Third, to be frank, the company isn't in great shape. Faira has recently closed offices and laid off staff, and its platform is now limited to a handful of listings in Washington State.

» SAVE: Match with top agents nationwide — get full service for 1.5%

Is Faira legitimate?

Faira is a legitimate licensed brokerage, but the business appears to be facing headwinds and shrinking its operations, which might negatively impact your experience.

Until recently, Faira operated in Washington State, California, and Arizona. However, the coronavirus pandemic has had an impact on the company. Currently, Faira agents are focused on Washington listings.

For sellers, that means it's unlikely Faira's listing site will draw much traffic to your listing. And as with the company's seemingly misleading platform fee, it's another example of Faira presenting itself as a better deal than it really is.

» COMPARE: Faira vs. top alternatives

How does Faira work?

The Faira platform lets anyone with a free account view information about each listing — including third-party inspection reports and property disclosure statements. Users can also see all current bids on properties listed on the site.

How the Faira platform works

When you use Faira for a real estate transaction, you can choose to make or receive bids via the web.

Faira sellers control their listings via a property dashboard, where they set their desired list price. Buyers can input their maximum offers and outbid each other with the click of a button.

Faira's tech-forward approach may be changing...

To use Faira's platform, you need to sign in with a Google, Microsoft, Yahoo, or Facebook account. If you don't have one of those accounts, you'll need to set one up first — a bit of an unexpected term for those of us who are more "old fashioned"!

However, from our research and conversations with the Faira team, we get the feeling that Faira is leaning away from depending on its online platform and offering more in-person services that you would find at a traditional real estate brokerage.

How much does Faira cost?

Faira offers three different tiers of service, each with its own price point:

Note that Faira also requires you to offer a 3% buyer's agent commission to help market your home. This is higher than the average buyer's agent commission rate in Washington, so you may be overpaying on this fee.

Additionally, when it comes to Faira's advertised fees, what you see isn't always what you get:

• Many of Faira's advertised prices are misleading
• You may encounter hidden fees, especially if you opt for Faira Free

Read the fine print carefully to understand what services you'll get, what fees you'll be on the hook for, and what recourse you'll have if your sale goes sideways.

Watch out for Faira's misleading "platform fee"

ALL Faira sellers — even those who use "Faira Free" — pay a 0.5% platform fee. This is how Faira makes its money. But frankly, the way the company presents the platform fee is a little sketchy.

Here's Faira's pitch:

When you make an offer on a home listed on the Faira platform, you'll pay the fee in two chunks: $500 on making an offer, and the rest of 0.5% of the sale price after the offer is accepted.

However, this money is baked into the home price, so it's actually the sellers who are ultimately "paying" this fee — that's money they're not receiving from their home purchase, just like traditional commission to a listing agent or buyer’s agent.

Read on to learn about Faira's pricing tiers in detail.

Faira Free

The first tier is called Faira Free. This package offers limited service for a reduced price, but — contrary to what the name suggests — it's NOT actually free.

Faira Free is NOT actually free

Faira Free users won't pay any listing agent commission. But no matter what, You'll still be on the hook for at least two fees:

• Buyer's agent commission
• Faira's platform fee

In other words, you should expect to pay a minimum of 3.5% of your home's sale price when you sell using Faira Free. But you could end up paying a lot more...

Faira will charge you an EXTRA 1% if you accept an "offline offer" — meaning the buyer or the buyer's agent submits the offer outside of the Faira platform. Based on the current state of the company, this is likely what's going to happen. The platform has very limited adoption, so it's improbable that buyers will find your listing and submit an offer through Faira's website.

Faira Free is an overpriced MLS listing service

At its core, Faira Free is just an MLS listing service. When you sign up for Faira Free, you'll receive no assistance from a dedicated agent. It's strictly DIY.

You will receive a few services that flat fee MLS listing companies don't offer — namely, professional photography, signs, flyers, and a lockbox.

But considering that most flat fee MLS services charge just a few hundred dollars, you're likely better off using one of those services and then hiring a professional photographer yourself.

» MORE: What is a flat fee MLS listing service?

Faira One

The next level, Faira One, charges a 1% listing agent's commission in addition to the 0.5% platform fee (and the fee you'd pay the buyer's agent). This package offers the services of the "Free" tier, plus a complimentary home inspection and a dedicated real estate agent.

Faira One offers savings of up to 20-30% compared with selling with a traditional real estate agent, but the fees are fairly middle-of-the-pack compared with other discount brokers. You can likely find comparable savings — and fewer trade-offs — elsewhere.

» MORE: Which real estate company has the lowest commission?

Faira Premium

Faira Premium combines all of the services of Free and One with upgraded photo options, a home warranty (which transfers to the buyer), and an in-home agent consultation.

Altogether, Faira Premium costs 6.5% of your home's sale price, which is 0.5-1% MORE than you'd expect to pay to sell your home with a traditional real estate agent. For a $500,000 home, Faira Premium would cost roughly $5,000 more than selling the conventional way.

It's important to note that Faira Premium is available only in markets where there are Faira agents — in particular, around Seattle and Tacoma, WA, as well as the Bellevue/Eastside area.

How does Faira compare to top alternatives?

It's hard to compare Faira to other discount brokers, thanks to its varied levels of service.

Faira Free is like a flat fee MLS service — but a LOT more expensive

The Free version compares closest to a flat fee MLS listing service. These companies give you access to a self-service portal that helps you list your home for sale by owner on the MLS — a service traditionally reserved for licensed real estate agents.

But there is a MAJOR difference: price.

Flat fee MLS services typically cost less than $500. Faira Free doesn't charge any upfront fees. But you will pay a 0.5% platform fee if your home sells. And if the transaction occurs off Faira's platform, you'll incur an additional 1% fee on top of that.

The bottom line is that Faira Free is more expensive than a flat fee MLS listing service at almost EVERY price point. These services have their drawbacks, but if you're genuinely considering selling with Faira Free, a flat fee MLS package will provide you with a similar range of services — most likely for a MUCH lower price.

» LEARN: Everything you need to know about flat fee MLS listings

Faira One offers savings — but limited support

Of the three tiers, Faira One is the most similar to other discount brokerage services that we've reviewed. Discount brokers provide customers with some or all of the services offered by a traditional real estate agent but usually offer a lower rate.

With Faira One, you'll pay a 1% listing fee and a 0.5% platform fee — still lower than the typical 2.5-3% listing fee charged by traditional agents. However, at this level of service, your Faira agent will be 100% remote; they’ll handle paperwork and negotiations on your behalf but won’t visit your home.

Faira Premium may cost MORE than a traditional realtor

If you want in-person service, you'll have to pony up for Faira Premium. This package includes all of the services you'd typically find with a traditional real estate agent — plus access to the listing platform — and with a price point to match: 3%. Keep in mind that currently, Premium agents are serving only homes in the greater Seattle metro area.

However, if dedicated, hands-on service and support is a top priority, it’s worth shopping around and comparing rates for a few traditional agents in your area.

Selling with Faira

The services sellers receive when they list with Faira depend on which tier they choose. Here's a table comparing the offerings from the three levels:

What you should know about Faira's listing agreement

Before listing your home, you must e-sign a contract with Faira. This agreement holds you to a 90-day listing commitment with the company.

Once you've electronically signed your agreement, you'll be taken to a dashboard with a checklist of tasks you must do to complete your listing.

Here's a rundown of the major tasks you'll need to complete to get your home on the market.

Schedule vendors

Faira provides all home sellers who list with the company with professional photography. Faira Premium members also receive "upgraded photo options," which a Faira representative defined for me as the potential for drone footage and/or a video tour.

Faira One and Premium listings also include a third-party inspection completed by one of the company's partner vendors. This inspection has two aims:

1. To provide guidance for the home's pricing
2. To aid in the completion of the state-required seller disclosure statement

The inspection report is also part of Faira's transparency campaign and is made available to all buyers.

Faira's vendors also install yard signs on listed properties, but this doesn't need to be scheduled by the seller.

Set the price

The pricing process is where Faira starts to get complicated. On a Faira Free dashboard, you'll see three prices listed, which you can increase or decrease in tandem with a slider:

MLS Listing Price

The MLS Listing Price is what's advertised to buyers and agents. It includes a 3% buyer’s agent commission and a 0.5% platform fee. The platform fee is how Faira makes money and is always baked into the sale price.

Buyer Without Agent Price

The Buyer Without Agent Price price is offered to buyers who aren't represented by an agent. It includes the 0.5% platform fee but excludes the 3% buyer's agent commission. Faira advertises this price to unrepresented buyers as a 3% discount from the MLS Listing Price.

Base Asking Price

The Base Asking Price is the list price, minus the 3% buyer's agent commission and the 0.5% platform fee.

Here's what that the seller dashboard would look like with an MLS Listing Price of $500,000:

Faira One and Faira Premium sellers will also see their Estimate of Net Sale Proceeds, which further removes the 1% or 3% commission, respectively, from the Base Asking Price.

Don't forget about buyer's agent commission!

Faira automatically sets the buyer's agent commission at 3%. As a seller, you're NOT able to change that percentage.

For Washington State, 3% is a bit higher than the average buyer's commission, which our research shows to be 2.52-2.92%.

When planning to sell your home, you should always do your due diligence and shop around. Ask agents what the most effective buyer's agent commission is in your neighborhood.

» LEARN: Average realtor commission rates in Washington

Schedule an open house

If you use Faira One or Faira Premium, you can also set up an open house for buyers to view your property. If you use Faira Premium, your open house will be staffed by a member of the Faira office team. If you use Faira One, the open house will be handled by an outside vendor whom Faira contracts.

There's also the potential to host an open house yourself if you're a Faira Free seller.

Write your listing description

Ultimately, what goes into your listing description is 100% up to you. Although Faira One and Premium users can receive input from their dedicated agent, sellers can go onto the dashboard and write whatever description they like. They can also upload additional photos and documentation that they feel would help sell the property.

This sounds great, but good real estate agents have marketing expertise and know how to present your home to prospective buyers. Sometimes allowing a local agent to control the listing can be a good thing.

Review offers

Once you've listed your property on Faira, you can start receiving offers. You can review these as they're made through text or email notifications. Once an offer has arrived, you have 24 hours to consider it before it expires.

Or you can set an offer review date ahead of time. When you take this option, you'll review all offers on the same date, regardless of when they came in. Offers will be valid for 24 hours following the start of the offer review date.

You can also receive an offer outside the Faira platform, but note that if you're a Faira Free member and accept an offer made in the traditional way, you'll incur an extra 1% fee.

Once you've accepted an offer, the buyer has five days to complete any additional due diligence and to pay the 0.5% platform fee. Once that's been done, you'll receive a purchase and sale agreement to sign.

Of course, Faira One and Premium sellers have the added advantage of a dedicated agent who can handle off-platform price negotiations for you. In fact, paying sellers can have the entire transaction handled without juggling online bids.

Buying with Faira

Faira also offers two tiers of service for home buyers.

Faira Essentials

Faira Essentials is geared toward buyers who already have a property picked out. Essentials buyers receive help writing and negotiating offers on homes through closing from the Faira team.

Here's the downside: if you sign up for Essentials and want to schedule a showing of the home via Faira, you have to pay $99 per showing, or $399 for up to five showings. (Traditional real estate agents don't charge their clients for property showings.)

So why sign up for Faira Essentials? It does offer a rebate of up to 2% in return for you doing a lot of the legwork. This percentage is larger than you'll find with most discount brokers. However, keep in mind the actual rebate amount you'll receive depends on the listing's location and price. You'll receive the rebate check at closing.

Faira Plus

Faira Plus buyers receive service from a dedicated agent who will help them pick out and view homes. As with Essentials, Plus clients will also have assistance in writing and negotiating offers.

Faira Plus comes with unlimited free showings, and users receive a rebate of up to 1% (again, depending on location and price).

Always do your due diligence when making such a momentous purchase. Find the agent you're comfortable with, preferably one without a confusing business model.

Faira customer reviews

Note: The following review information is up-to-date as of 8/17/2022. We will update this section as new information becomes available.

Faira has received mixed reviews from previous clients, with an average customer rating of 4.3 out of 139 total reviews.

Some users praise the company for low commissions, while others wished they had received better service.

Selling with Faira was a 'wonderful experience'

Zillow reviewer Mike L. of Bonney Lake, WA was pleased with his Faira One experience:

We were 'NOT happy' with Faira's service quality

However, there are quite a few negative reviews for Faira too — especially on Yelp. Most complaints are about Faira One's level of service. Sellers don't feel as if they received good-enough service, and agents weren't focused on helping them earn more.

Yelp user Shawn K. of Graham, WA complained about agents who didn't feel particularly compelled to help them sell his home:

Also...she failed to share it was the Faira agent "Sheryl", who encouraged the original price we listed at. She also failed to share WE reduced the price to $459,000 while still under contract with Faira.

Additionally, Sheryl stated to us because the way Faira is structured, they "limit" the amount of contact they have with their "Faira One" (1% commission) clients vs "Premium clients" (3 % commission). So basically if you want more service, you need to opt to provide your agent 3%, not the 1% they "recommend" on their website. Interesting...

I am only sharing our experience with Faira, which was clearly BAD!! But that is just our experience. As posted on their website, they have many happy clients. WE WERE NOT HAPPY AND ENTITLED TO SHARE OUR EXPERIENCE.

By the way...our house sold at $410,000 (the second offer we received with Caldwell Banker). This was also after we raised the price and relisted to $407,000. We closed in a month and our agent arranged compensation for the additional days delayed from the buyer. Also interesting...

I also invited Katrina to call me so we could discuss her comments. I am still waiting. I will update if I hear from her." loading="lazy">

Conclusion: Is Faira right for you?

• Faira buyers can receive up to 2% as a rebate if they're willing to do much of the legwork themselves
• Faira agents are contractual employees who are paid commission, rather than a flat fee This should encourage your agent to sell your property for top dollar

Cons of using Faira:

• Faira's pricing is misleading, and you may encounter hidden fees
• The full-service selling option, Faira Premium, costs as much — or more! — as using a traditional agent
• Faira is available in a very limited market — and its geographic footprint is shrinking

Faira was built on the idea of harnessing technology to make the process of buying and selling real estate transparent and accessible.

However, in practice, the company's confusing and — in our opinion — misleading pricing models lead us to believe Faira hasn't lived up to its promises.

We DON'T recommend using Faira for buying or selling a home. Instead, we recommend that you shop around. Interview agents who have experience and knowledge in your area and at your price point.

FAQs about Faira Real Estate

Faira's business hours and contact information

Faira’s business hours:

Faira’s contact information:

The post Faira Review 2022 appeared first on Semya-Moya.

Between saving up a down payment, approaching lenders, and making offers on potential homes, it’s easy to overlook the cost of closing on a Tennessee real estate transaction. While it may be an understandable oversight, failing to plan for closing can be a costly mistake. Closing costs add up fast and, without a healthy savings buffer, the unanticipated fees and taxes can place your property purchase in jeopardy.

To avoid any unpleasant surprises come closing, you’ll need to do your own homework and set some realistic financial expectations. Partnering with an experienced, local real estate agent is a good first step when it comes to understanding and preparing for closing costs.

If you want to work with a top-rated, Tennessee-based buyer’s agent, we can help! Simply fill out our online form and one of our friendly Clever reps will be in touch to connect you with a local Partner Agent for a free, no-obligation consultation.

Closing Costs for Tennessee Homes: What to Expect

According to a recent study from Bankrate, the average cost of closing on a Tennessee real estate transaction is $2,030. Unfortunately, Bankrate’s calculations exclude several key closing cost variables, such as transfer taxes, miscellaneous state fees, escrow fees, and home inspection fees.

This means that the real cost of closing in Tennessee is significantly higher than $2,030.

For a more accurate estimate of closing costs, experts recommend that buyers save between 2% and 5% of the home’s value to put towards closing. In Tennessee, the median home value is $166,900 — therefore, prospective buyers should expect to pay between $3,338 and $8,345 in closing costs.

While closing costs can be expensive, one of the largest mortgage expenses is the interest rate. Over the life of the loan, a few small percentage points can result in hundreds of thousands of dollars in interest payments.

One of the best ways to lower your interest rate? Shop around and compare lenders! Fill out the form below for a quote from a licensed, local lender – even if you’re pre-approved it pays to compare.

Common Closing Costs for Tennessee Home Buyers

Here’s what Tennessee home buyers typically need to pay at closing:

Credit Report Fee

This fee is charged by credit agencies when you request a report on your credit history and current credit score.

Underwriting Fee

This fee is required by your lender to cover the costs of checking your financial information, verifying your application, and approving a suitable loan amount.

Loan Origination Fee

This fee is also paid to your lender and covers the cost of obtaining and establishing your mortgage. The loan origination fee is typically expressed as a percentage of your mortgage. In Tennessee, loan origination fees are usually between 0.6% and 1% of your loan amount.

Specialty Loan Fees

If you’re taking out a non-conventional loan, you can expect to pay one or more specialty loan fees. For example, FHA loan providers will require you to pay an upfront mortgage insurance premium. Alternatively, if you apply for VA financing, you’ll need to pay a one-time VA funding fee.

Discount Points

Purchasing discount points is an optional closing cost that sellers can pay to reduce their mortgage interest rate. A single discount point can reduce your interest rate by up to 0.25% and typically costs 1% of the total loan amount.

Appraisal Fee

If you’re planning on taking out a mortgage to buy a home, your lender will require that you have an appraiser assess the value of the property in question. In Tennessee, the cost of hiring an appraiser is between $230 and $375.

Survey and Home Inspection Fees

After making an offer on a prospective home, you’ll need to hire a licensed home inspector and/or surveyor to check the property for major and minor defects. Survey and home inspection fees are non-refundable and based on the square footage of the property.

Transfer Tax

When a real estate transaction is finalized, the buyer is required to pay a variety of federal, state, and county transfer taxes. According to the National Association of Realtors, the average cost of transfer taxes in Tennessee is 0.37% of the home’s value.

Recording Fee

This fee covers the cost of lodging and registering a real estate purchase in your county’s recording office. In Tennessee, the buyer generally pays 50% of the recording fee.

Title Insurance

If you’re proceeding with a property purchase, taking out title insurance will protect you against losses related to the home’s title. Common title issues include outstanding property taxes, unpaid mortgages, and active liens.

Escrow Fee

This fee is paid to the attorney or third-party escrow company in charge of overseeing the holding and transfer of your property purchase funds. In Tennessee, escrow closing fees are usually split equally between the buyer and seller.

Real Estate Agent Commission

The buyer’s agent and seller’s agent will both receive their commission during the closing process. Luckily for you, it is the home seller, not the home buyer, who is responsible for paying real estate commission costs.

Other Costs to Consider

Unfortunately, the costs of homeownership continue long after the closing process is finalized. Before pulling the trigger on a home purchase, you need to be sure that you’ve factored in the long-term costs of owning property. To give you an idea of the financial outlay, we’ve listed five recurring costs of owning a home in Tennessee.

Property Taxes

Your property tax assessment is based on the combined value of your home and land lot. According to WalletHub, the average Tennessee homeowner can expect to pay 0.74% of their home value in annual property taxes.

Homeowners Insurance

To secure homeowners insurance coverage, you’ll need to pay a monthly insurance premium and, in the event of a claim, an out-of-pocket insurance deductible.

Private Mortgage Insurance

If you are unwilling or unable to put down at least a 20% down payment, your lender will require that you pay private mortgage insurance (PMI). Although it will vary from lender to lender, the average annual cost of PMI is between 0.5% and 1% of the total loan.

Utility Payments

Monthly or quarterly electricity, gas, water, and internet bills are a fact of life for homeowners. For an average-sized home in Tennessee, the cost of utilities is just under $160 per month.

General Maintenance and Repairs

Spending money on property maintenance and home repairs is another recurring cost of homeownership. To keep your property in top condition, Tennessee homeowners should try to put at least 4% of their home’s value toward annual maintenance and repair costs.

How to Save on Closing Costs in Tennessee When Buying a Home

After settling on a final purchase price, the last thing most buyers want to think about is putting more money towards closing costs. As a buyer, the first thing you can do is ask your agent if they can negotiate for the seller to cover a portion of your closing costs.

If you’re a first-time home buyer in Tennessee, you should also take advantage of the closing cost assistance programs offered by the Tennessee Housing Development Agency (THDA). For example, if you can secure a THDA Great Choice Home Loan, you may also be eligible for a no-interest second mortgage of up to 5% of your property’s value.

Ready to Buy? Get in Touch with an Experienced, Local Real Estate Agent!

If you’re still unsure about closing cost requirements and transfer fee responsibilities, it might be time to get in touch with a Tennessee-based Clever Partner Agent. The Clever Partner Network is made up of more than 3,000 top-rated, full-service agents drawn from major national real estate companies and regional brokerages (e.g. Keller Williams, RE/MAX, Century 21).

Whether you’re in a hot or cold market, Clever Partner Agents will always represent your best interests throughout the negotiation process, from uncovering additional cost savings to minimizing closing costs and fees.

What’s more, when you buy a Tennessee home through a Clever Partner Agent, you’ll also have access to exclusive, on-demand property showings. In a competitive market, securing a fast-tracked showing can be the difference between making an early offer and missing out on your dream home.

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The post Tennessee Buyer Closing Costs: How Much Will You Pay? appeared first on Semya-Moya.

After years of setting aside a little every month and socking away every yearly bonus, you finally have a down payment to buy a house. You've picked up the phone to call a realtor. But do you really have enough money to buy a house?

Unfortunately, you could need several thousand dollars over and above the down payment to buy a house. You might have planned on paying for a home inspection, but that's not a significant expense when compared to closing costs. A local real estate agent can set realistic explanations on the additional costs involved in Ohio, so that you know how much money to save for them.

Want to connect with a top-rated, Ohio buyer's agent? Fill out our online form and a Clever representative will introduce you to one of our local Partner Agents for a no-obligation consultation.

Closing Costs for Ohio Homes: What to Expect

When closing on a home, there are mortgage underwriting fees, title search fees, and appraisal fees. The state will charge taxes on the sale and the country might charge recording fees. All of the fees involved in buying a house are lumped together under the banner term "closing costs."

The buyer pays any fees associated with getting a mortgage. Typical fees could be application fees, interest paid up front, loan origination and underwriting fees, and escrow deposits.

Closing costs average between 2-3% of what you pay for the home. Median home values in Ohio are $139,600, so your closing costs could be between $2,792-$4,188. Forgetting to include closing costs in your home buying budget could lead to problems if you have to scramble to come up with the cash.

And while closing costs can be expensive, one of the largest mortgage expenses is the interest rate. Over the life of the loan, a few small percentage points can result in hundreds of thousands of dollars in interest payments.

One of the best ways to lower your interest rate? Shop around and compare lenders! Fill out the form below for a quote from a licensed, local lender – even if you’re pre-approved it pays to compare.

Common Closing Costs for Ohio Home Buyers

Many of the closing costs you'll pay are associated with your mortgage, which is why buyers typically pay more closing costs than sellers.

At almost every step of the mortgage application process, lenders charge a fee. A loan application fee, a credit check fee, an underwriting fee, an appraisal fee, expect to frequently open your checkbook. Lower-qualified applicant could be required to pay interest, or points, up-front to lower the bank's risk.

In Ohio, the state charges real estate transfer taxes of $1.00 per $1,000 of the home's selling price. The assessor's office may charge title recording fees, and the title search is also your responsibility.

Home buyers in a buyer's market have more negotiating power. If that's you, you might be able to negotiate with the seller for them to pay some of your closing costs. Sellers can't contribute anything to cover fees related to your mortgage, but might be willing to split other fees. Your real estate agent will have suggestions on which costs can be negotiated or reduced.

Other Costs to Consider

After the closing costs have been paid, you'll need to afford the costs of home ownership.

At your closing, mortgage lenders usually require that new home owners put at least half a year's property taxes into an escrow account. The lender will pay the property taxes for you, which protect their assets. If you don't pay your property taxes the city will place a lien against the property and they want to make sure this doesn't happen.

For the same reason, payments for your homeowners insurance will be included in the escrow. Your house is the collateral for your mortgage. If you don't buy a homeowners insurance policy and something happens to your house the bank's asset is now at risk.

Monthly utility bills for heat and electricity can be expensive, particularly during an Ohio winter. If your rent payment previously included heat and electricity, ask the current owner for an estimate of these expenses so you can budget for them. Heat alone can run several hundred dollars a month in the coldest type of the year, depending on your heating system.

And that heating system could break at a very inconvenient time. We recommend you set aside at least 1% of your home's value each year for maintenance. Each of your home's major systems will need yearly maintenance to stay in top form and be at their most efficient.

The cost of owning a house are more than just your monthly mortgage payment. Before deciding to become a homeowner, ensure your financial stability and put all these costs into your budget.

How to Save on Closing Costs in Ohio When Buying a Home

Paying less for your home will save you money on the house itself but also in closing costs. Real estate agents are experts in negotiation and can help you bargain with the homeowner for a lower price.

When you're ready to make an offer, they'll know if it's a buyer's or a seller's market, if other offers have fallen through, or if the house has been on the market for a while. These factors could help you place an under-market bid that the seller will accept. The home inspection provides another opportunity for negotiation. The home inspector could find repairs that are needed that you can use to barter down the seller's asking price.

Scheduling your closing date to the end of the month saves you money, too. Mortgage lenders charged accrued interest for the days out of the month that you own the home, so if you own it for just a few days you won't pay much interest.

Home buyers, particularly first-time home buyers, can get help with closing costs through state assistance programs. You might qualify for a grant or a no-interest loan. The Ohio Housing Finance Agency offers down payment and closing cost assistance of 2.5% or 5% of the home's purchase price. If you still own the home at year seven they forgive the loan.

Clever Partner Agents save you money at every step throughout the home buying process. Plus we offer Clever Cash Back to buyers in 41 out 50 states. Reach out to be connected with an agent in Ohio today!

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The post Ohio Buyer Closing Costs: How Much Will You Pay? appeared first on Semya-Moya.

Attorney fees, escrow fees, inspection costs, transfer taxes, discount points, and more. There are a whole host of expenses that you simply can’t avoid when it comes time to close the purchase of a home.

The closing costs that you incur will vary based on the state and county where you’re located. A local real estate agent will be able to guide you so that you know everything that you’ll need to pay for.

Want to hire a top-rated Minnesota buyer’s agent? Clever can help! Fill out our online form and we’ll reach out to answer your questions and introduce you to one of our Partner Agents for a no-obligation consultation.

Let’s take a look at the costs involved in closing a real estate deal in Minnesota.

Closing Costs for Minnesota Homes: What to Expect

Because closing costs aren’t one big expense paid for all at once, buyers often don’t know how much they will end up spending this stage. Since buying a home is such a major financial commitment, it’s important that you know exactly how much to budget for while closing on the purchase of your home.

A study by BankRate found that the closing costs in Minnesota totaled $1,957 on average. That includes $939 in loan origination fees and $1,018 in third-party fees.

However, that number doesn't take into account the various costs that come into play when you buy a home. Title search and insurance, taxes, discount points, and attorney fees are some such variable costs you might also have to cover.

If you take all of those expenses into consideration, closing costs amount to about 5% of the selling price of a home. Let’s say you buy a house in Duluth at the median value of $174,300. Even in a relatively affordable market such as that, you can expect to pay around $8715 on closing costs.

While closing costs can be expensive, one of the largest mortgage expenses is the interest rate. Over the life of the loan, a few small percentage points can result in hundreds of thousands of dollars in interest payments.

One of the best ways to lower your interest rate? Shop around and compare lenders! Fill out the form below for a quote from a licensed, local lender – even if you’re pre-approved it pays to compare.

Common Closing Costs for Minnesota Home Buyers

Loan Origination Fees

This is an upfront fee collected by the lender to process your loan application. This often covers services like underwriting and credit risk analysis.

Origination fees are generally a percentage of the loan being borrowed. Most lenders charge between 0.5% and 1%. If you’re getting a loan that is much larger than average, you should be able to negotiate lower loan origination fees with your lender.

Attorney Fees

Buyers often hire a real estate attorney to make sure that they complete all their legal obligations and that they aren’t missing any key terms in their contracts. Your lawyer, along with your agent, makes sure that your interests are protected in the transaction.

Real estate attorneys charge customers either by the hour or a one-time fee for the entire closing process. You can expect to pay at least around $1,000 for the services of an attorney.

Discount Points

Discount points, sometimes also called mortgage points, are a way for borrowers to pay to have the interest rate on their mortgage reduced. You can purchase a certain number of discount points during closing in exchange for a lower interest rate.

The cost of discount points varies from lender to lender. Generally, you can purchase one discount point for 1% of the value of your loan amount. That discount point could reduce your interest by anywhere between 0.125% to 0.25%.

Recording Fees

This is a payment made to the local government for publicly recording a real estate transaction. This includes the change to the property title, as well as information about existing liens and mortgages.

The amount charged in recording fees varies from county to county. In Washington County, for example, the basic recording fees is $46. However, there are miscellaneous fees that are levied based on the nature of the house being sold.

Other Costs to Consider

Homeowners Insurance

Homeowners insurance covers damage caused by everything from fire to burglary. You can get this insurance from your existing lender or shop around for it if you think you’re able to get better rates from a different bank.

In Minnesota, snow storms are often a threat to the structural underpinnings of houses. A collapsed roof as a result of snow buildup could be covered by homeowners insurance but water damage caused by melting snow may not be. So make sure to check the terms of the insurance before signing up and getting added coverage based on the condition where you live.

Property Tax

Property taxes are collected by local governments to pay their employees as well as fund amenities and public services. The amount that you pay will depend on the appraised value of your home and can increase or decrease accordingly.

Property tax also depends on the tax rate in your local county. In Washington County, the average property tax is 1.101% whereas Ramsey County imposes 1.339%. So your property tax calculations will depend on the county in which your house is located.

Home Maintenance

For as long as you own a home, there will be things that require facelifts and fix-ups. Maintenance costs can be one of your bigger expenses as a homeowner.

The general rule of thumb is that you should set aside 1% of the value of your home for maintenance and repair costs. So if you own a home priced at Minnesota’s median value of $235,500, your maintenance costs each year will come out to about $2355 on average.

How to Save on Closing Costs in Minnesota When Buying a Home

Negotiate with Sellers

A number of closing costs can be paid for either by the buyer or seller. Buyers will often be able to get sellers to foot part of their closing costs if negotiations go well.

There are a few conditions that give buyers enough leverage to get sellers to pay for some of the expenses that come up during closing. Being in a buyer’s market is an obvious one. If your seller has bought another home and needs to move quickly, you may be able to get them to pay for some closing costs in exchange for accelerating the deal. An experienced real estate agent will be able to find ways to strike deals with sellers at this stage.

Minnesota Closing Cost Assistance

Minnesota’s housing finance agency, Minnesota Housing, offers a few loans that can be used to make a down payment or cover closing costs. In order to avail of these loans, you must already have a first mortgage with Minnesota Housing.

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The post Minnesota Buyer Closing Costs: How Much Will You Pay? appeared first on Semya-Moya.

Buyers and sellers in Florida must use a specific contract for any homes that are bought or sold "as is". Although this form is fairly simple, there are a number of nuances that buyers and sellers should be aware of.

If you are buying or selling a house "as is" in Florida, it’s crucial you work with an experienced real estate agent to ensure you fill out all necessary paperwork correctly.

Get in touch with us to speak with a top agent and learn how they can help you navigate your "as is" sale or purchase.

In this article, we’ll explain what an "as is" sale is and what specific regulations Florida has in place.

What does "as is" mean in real estate?

The term "as is" means slightly different things depending on whether you’re talking about real estate as a whole or in Florida specifically:

What does it mean to sell a property "as is"?

When a property is sold "as is," it means that the buyer will get the property in its current condition. More specifically, this means that the seller will not entertain requests for repairs, no matter how serious an issue is — if something disastrous turns up during the inspection, the seller won’t do a thing about it.

What does "as is" mean in Florida real estate?

In Florida, "as is" means basically the same thing as it does anywhere else: the property will be sold in its current state and without any repairs. However, things are a little different in Florida because there is a specific form that needs to be filled out. This form states that the buyer will be responsible for paying for any required repairs on the home.

What is an "as is" residential contract for sale and purchase?

An "as-is" residential contract for sale and purchase is a contract a buyer and seller sign that stipulates that the seller will not pay for any repairs. With a conventional sale, there is usually room for negotiations regarding payment for repairs. However, when a buyer signs an "as is" contract, they waive that opportunity and agree to purchase the property in its current condition, flaws and all.

How does a Florida "as is" specific contract work?

Usually, purchase contracts in Florida have three lines that buyers and sellers will use to detail the amount the seller has agreed to pay for repairs. However, in an "as is" sale, these lines would be superfluous since payment for repairs is not up for debate.

Because of this, Florida uses a specific form for "as is" sales. In this form, the three lines for repairs are absent. The form states that the agreement is subject to a satisfactory inspection, but after that, the buyer is on their own if they want to go ahead with the purchase.

The form also stipulates that if the buyer’s lender requires any repairs, the buyer will need to pay for those themselves. This is different from a conventional sale, in which the buyer and sell would typically enter negotiations upon the discovery of a significant issue.

Should I use a Florida "as is" contract?

If you are selling a home in Florida and you wish to put it up for sale in its current condition and don’t want to pay for any repairs then you should use an "as is" contract. This will make it clear to the buyer that there is no room for negotiation as far as repairs go.

If you are buying a home in Florida, conventional real estate contracts offer more protections, so those are the preferred option.

How can I get out of a real estate contract in Florida?

As a seller, there is usually no easy way out of a real estate contract in Florida. If you can no longer go through with the home sale, your best bet is to refund the buyer’s earnest money, pay for their expenses, and try to appeal to them on a personal level. Let them know what changed and try to get them to empathize with your situation.

As a buyer, you have even fewer options. Unless you have contingencies in place that cover your current situation, you’ll lose your earnest money deposit if you back out of a real estate contract.

Who is the best person to help with an "as is" real estate contract in Florida?

If you need help with an "as is" real estate contract in Florida, you should get in contact with a real estate agent. An experienced realtor will have firsthand experience buying and selling "as is" properties. They’ll be well-versed in the intricacies of Florida’s "as is" contracts and will be able to answer any questions you may have.

Clever connects buyers and sellers with top-rated local real estate agents who have the experience necessary to successfully navigate "as is" contracts. Clever partners with agents from major brands like Keller Williams, Century 21, and RE/MAX who offer full-service quality at a discount price.

Sellers can sell their homes for just 1.5%.

Want to learn more? Fill out our form to schedule a free, no-obligation consultation with one of our qualified real estate agents.

Top FAQs About Florida Real Estate Contracts

Can you write your own real estate contract?

Yes, it’s possible to write your own real estate contract, but it is not advised. Each state and county has its own real estate regulations and without professional real estate or legal experience you stand a slim chance of being able to properly interpret the law. When entering a purchase agreement, always work with an attorney and real estate agent to make sure all your bases are covered legally.

What should be included in a real estate contract?

The most important things to include in a real estate contract are the agreed upon sales price and any contingencies that will allow either the buyer or the seller to back out of the deal. Additionally, the contract should include a list of all items included in the property, the amount of earnest money deposited, an itemized list of closing costs and who will pay them, the condition of the property, and of course, the signatures of all relevant parties.

Who signs the purchase and sale agreement first?

Generally, the buyer will be the first to sign the purchase and sale agreement. Once signed, they will deposit their earnest money and hand off the contract to the seller. The seller will then sign the contract.

Why sell a house "as is?"

Sellers often list a house "as is" when they need to get it off their hands quickly. Usually, this means they are in financial straits or a major life event is forcing them to move. An "as is" sale allows a seller to bypass much of the work usually associated with a home sale such as fixing it up, doing renovations, and performing pre-sale repairs. As a trade off, the seller will profit less from the sale and may have trouble attracting buyers.

What is a FAR/BAR "as is" contract?

A FAR/BAR "as is" contract is a real estate contract for an "as is" home sale that has been approved by the FAR or the BAR — the Florida Association of Realtors and the Florida Bar Association, respectively. The FAR/BAR have specific forms that Florida buyers and sellers use for "as is" real estate transactions.

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The post Understanding a Florida "As Is" Residential Contract appeared first on Semya-Moya.

When you decide to buy your dream home, you may think saving your down payment is the only cost to consider. However, you must prepare to cover a long list of additional out-of-pocket costs.

We recommend that you consult an experienced local real estate agent to get a complete picture of how much it will cost you to close on your dream home. Home buyers must know what they’re getting into before making an offer on a home.

Want to get connected with a top-rated, New Hampshire buyer’s agent? Clever can help! Fill out our online form and we’ll be in touch to answer any questions you might have and introduce you to one of our local Partner Agents for a no-obligation consultation.

Ready to cover your bases and get ready to close on your home? Read on for your personal guide to New Hampshire Real Estate Closing Costs.

Closing Costs for New Hampshire Homes: What to Expect

According to recent data from Bankrate, New Hampshire closing costs are $2,048 on average.

However, this number didn’t take into account fluctuating fees such as taxes, title searches, escrow fees, discount points, home buyer rebates, escrow fees, and other government fees.

Typically, buyers can expect to pay between 2% to 5% of the purchase price in closing costs. The median listing price in the state of New Hampshire is $300,000, you can expect to pay between $6,000 and $15,000 in closing costs for this home. However, you should keep in mind that your total closing-related expenses will depend on certain variable costs and your lender.

While closing costs can be expensive, one of the largest mortgage expenses is the interest rate. Over the life of the loan, a few small percentage points can result in hundreds of thousands of dollars in interest payments.

One of the best ways to lower your interest rate? Shop around and compare lenders! Fill out the form below for a quote from a licensed, local lender – even if you’re pre-approved it pays to compare.

Common Closing Costs for New Hampshire Home Buyers

Calculating the exact amount you’ll pay in closing costs may be challenging. However, learning and understanding the closing fees you might have to cover can help you estimate your closing costs. Don’t know where to start?

Here are the most common New Hampshire closing costs you’ll be on the hook for when buying a house.

• Application Fee: You’ll pay this fee to cover the cost of processing your home loan application. The amount and applicability will depend on your lender.
• Escrow Fee: This fee is also known as the closing fee. The buyer pays between $350 and $600 to the title or escrow company to conduct the closing.
• Home Appraisal Fee: Before closing on your home, the appraiser will have to confirm the value of your home. This fee can range between $400 and $600 depending on your property.
• Courier Fees: These fees will cover transporting documents to complete the closing on your home. Courier fees shouldn’t exceed $50.
• Credit Reports: Your lender will need your credit score and history to determine the interest rate and terms on your home loan. You’ll need to pay between $25 and $75 to cover the cost of requesting your credit report.
• Home Inspection Fee: Before closing on your home, you must request a home inspection to verify the condition of your home. NH home inspections can cost between $400 and $1,200 depending on the tests you request.
• Flood Zone: This fee shouldn’t exceed $50. A company will determine if your property is located in a flood zone.
• Title Search Fee: Before signing the deed for your home, the title company must conduct a title search to make sure no one has a claim over the property. This fee should range between $125 and $200.
• Homeowners Insurance: This fee may vary depending on the property, and your credit. Getting homeowners insurance on your property should cost you $600 or more.
• Transfer Taxes: Transfer taxes in New Hampshire are 1.5% of the sale price. Typically, buyers are only responsible for 50% of these taxes unless otherwise agreed upon between both parties.
• Underwriting Fee: Your lender’s underwriter is in charge of approving your home loan. We recommend you ask your lender to learn how much they will charge you for their underwriting services.
• Recording Fee: You’ll have to pay this fee to your local recording office to record your deed on the property. It should cost you around $50 to record the transaction.
• Origination Fee: This fee is charged by your lender to cover all their administrative costs. Typically, lenders charge about 1% of your loan amount.
• Prepaid Interest: This cost will depend on your lender. Most companies ask buyers to prepay the interest accrued between the closing date and first mortgage payment.
• Legal Fees: These fees will cover all attorney costs to prepare and close the deed on your property. Legal fees can range between $600 and $1,000 depending on the attorney and transaction.
• Property Taxes: Most lenders will ask you to pay any property taxes due in the next 60 days at the time of closing. The effective New Hampshire property tax rate is 2.104% of the property assessed value.

Other Costs to Consider

Saving your down payment and covering your closing costs are the first steps to purchasing your home. However, these expenses are just your initial costs to buy your home. Before taking the leap, you should consider all the recurring costs you’ll need to cover on a monthly basis.

Property taxes, utility bills, and maintenance costs are some examples of typical monthly homeowner expenses. Can you afford your mortgage payments and your monthly recurring costs? Before buying a home, you must have enough financial stability to cover all your home buying and ownership costs.

How to Save on Closing Costs in New Hampshire When Buying a Home

Closing costs shouldn’t stop you from buying your dream home. Believe it or not, you can take advantage of New Hampshire home buyer programs, closing cost assistance programs, or even negotiate with home sellers to lower these costs. HomeFlex Plus and the NHHFA Down Payment Assistance are some state-sponsored programs you may consider.

You can also look into bank loyalty programs that offer discounts on closing costs to their customers. An experienced local real estate agent may also help you negotiate with home sellers to cover some of your closing costs. It may come as a surprise but when you choose to partner with a Clever Partner Agent, you can save even more on your closing costs.

When you buy a home with a Clever Partner Agent, you could also be eligible for Clever Cash Back. We'll send you a check and that money's all yours. You may choose to use it toward your closing costs, mortgage points, or even a vacation for your family—the decision's up to you.

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The post New Hampshire Buyer Closing Costs: How Much Will You Pay? appeared first on Semya-Moya.

If you're planning to sell your house, you might consider listing it for sale by owner, or "FSBO." Selling FSBO means not using a real estate agent. Instead, you’re doing everything yourself. While you can save some money this way, FSBO is a lot of work and comes with risks.

When you sell your home by owner, you're in charge of everything from setting the price and marketing the property to filling out the paperwork and negotiating with the buyer. You'll have to do practically all of the heavy lifting of the sale yourself, but in return, you won’t have to pay a listing agent.

Bottom line: Should you sell FSBO?

Selling your house for sale by owner isn’t worth the risk for most sellers. It’s time-consuming, difficult, and, at the end of the day you may not even save money by doing it. FSBO homes tend to sell for less on average than agented homes do and you run the risk of creating legal and financial problems if you make a mistake with the paperwork.

The only times when selling FSBO may make sense is if you already have a buyer lined up (such as a friend or family member) or you live in a hot real estate market where homes "sell themselves."

In both cases, you’ll have less of a need for a realtor to help market and show your home. However, even in these situations you still need experience selling houses.

If you’re looking to save money on your home sale, we recommend using a discount realtor instead. With a discount realtor you’ll pay a reduced listing fee, so you can keep thousands of extra dollars in your pocket. But you’ll still have a realtor on your side helping with things that often trip up FSBO sellers, like pricing, paperwork, and negotiations.

» MORE: Compare the Best Discount Real Estate Brokers

How to sell FSBO by state

The actual process for selling FSBO varies a lot by state due to differing laws and regulations. To help you figure out how to sell for sale by owner where you live, click on your state below.

FSBO Pros and Cons

There are a lot of factors to consider when deciding whether or not to sell your house for sale by owner. Costs, time, effort, and legal and financial risks should all factor into your decision.

To help you decide, check out some of the pros and cons of FSBO below.

❌ Cons of selling FSBO

FSBO homes often sell for less

On average, FSBO homes sell for anywhere from 5.5-26% less than homes that are sold with an agent. That’s a lot more than the approximately 2.72% you’ll save by not paying a listing fee.

The lower sale price has a number of potential causes. In a recent Clever Data Center study, we discovered that pricing a home is one of the most challenging steps for sellers. Pricing mistakes can lead to your home selling for less than it’s worth.

A second challenge is with negotiations. Realtors are experienced negotiators and they know when to push hard for concessions and when an offer is a fair one. Most buyers have their own agents, so you’ll be negotiating not with the buyer directly, but with the agent, who’s likely to be a seasoned professional.

While the final sale price is dependent on a lot of factors — especially the strength of your local real estate market — it is something to be aware of before you decide to sell without a realtor.

If you’re looking for savings, there is an alternative. Our Clever Partner Agents charge a discounted listing fee that can save you thousands, while still offering full service. They come from trusted brokerages, like Keller Williams and RE/MAX, and having them on your side offers the sort of peace of mind that you won’t get selling FSBO.

Selling FSBO is a lot of work

Selling a house is a full-time job and will require a lot of your time. First, you’ll have to prepare the house, which includes carrying out potential repair work and renovations. Unfortunately, it can be difficult to know which renovations are worth investing in and which are unlikely to attract much buyer interest. That’s the sort of knowledge that a real estate agent would bring to the table.

You’ll also need to take care of:

• Pricing
• Writing a listing description
• Photography
• Marketing
• Staging
• Showings
• Negotiations
• Paperwork
• Closing

All of this work can quickly become overwhelming, especially if you don’t already have experience selling homes. And if you have other commitments — such as a day job or you’re raising a family — then selling a home without a realtor is going to be especially difficult.

You’ll likely still have to pay some commission

While you won’t have to pay a listing fee if you sell FSBO, you’ll likely still have to pay the buyer’s agent commission, which is 2.65% on average. While the buyer’s agent commission is technically negotiable, failing to offer a competitive one (or none at all) will make it a lot harder to sell your home.

If you don’t offer a buyer’s agent commission, you may also see less foot traffic to your listing. According to the National Association of Realtors, 87% of buyers used an agent in 2020. That commission is an incentive for buyer’s agents to bring their clients to see your home, and you don’t want to be at the bottom of the list when they’re filling up their schedule with showings.

Buyer’s agent commission isn’t set in stone — it’s completely negotiable. But when planning your sale by owner, it’s a good idea to research the typical commission rates in your area and consider advertising a competitive buyer’s agent commission in your listing to get as much interest from buyers as possible.

You’ll be dealing with a lot of paperwork

There’s a lot of paperwork involved with selling a house. In some states, you’ll be looking at more than 100 pages of paperwork at closing.

» LEARN: Your state's FSBO requirements, including paperwork

Not only is paperwork tedious and time consuming, but it also exposes you to risks if any errors are made. Especially if you live in a state where sellers are required to disclose any defects with the home, mistakenly failing to do so could expose you to legal action and financial penalties later on.

Our own Clever Data Center research even found that fear of paperwork errors is one of the top reasons some buyers are hesitant about buying a FSBO home. In effect, that means all that extra paperwork could also result in your house attracting fewer potential buyers.

✅ Pros of selling FSBO

You won’t pay a listing fee

The main reason for selling FSBO for most people is saving money. When you sell without a realtor, you’ll be able to avoid paying the listing fee. That’s usually equivalent to around 2.72% of the final sale price on average, which in a home sale represents thousands of dollars worth of savings.

While those savings are significant, they shouldn’t be the only factor in determining whether or not FSBO is right for you. You’ll also need to consider whether you have the time to manage all the extra work FSBO involves and your local market conditions.

Also, don’t forget that the listing fee is only one half of the total commission that home sellers typically pay. Even if you don’t have an agent, you’ll still likely be responsible for the other half — the buyer’s agent commission — which is 2.65% of the final sale price on average.

You’ll have complete control

Selling FSBO is appealing for many DIYers. You’ll have control over just about every step of the home sale process, from setting a list price to negotiating with potential buyers.

That control may be especially appealing if you’re in no hurry to sell. When you work with a real estate agent and sign a listing agreement, that listing agreement may stipulate a timeline for when the house should be sold by. For most sellers, that’s a good thing since it incentivizes the realtor to work harder to sell your home quickly.

But if you’d rather take your time — or even if you’re not sure you actually want to sell and you’re just "testing the waters" — then having more control over your sale could be a good option.

May work best for your specific situation

In certain situations you may have limited need for a realtor. For example, if you already know who your buyer is — such as if you’re selling to a relative or close friend — then there’s no need to have a realtor list and market your property.

Also, if you already have lots of experience selling homes and you live in a hot real estate market, then your property may attract plenty of buyers regardless of whether or not you have a realtor.

Keep in mind, however, that even in the above situations you may still want to bring in a realtor at some point, especially to help with closing and paperwork.

How to sell your home by owner

Selling your home by owner is more complicated than just sticking a "For Sale" sign in your front yard. Since you'll basically be competing with professional listing agents for prospective buyers' attention and money, you need to start thinking like a pro.

Here's what you'll have to do to sell your house the right way. Remember, although FSBO means you'll save thousands of dollars on commission costs, errors can cost you time and money — and your savings can be completely erased if your home sells for less than its full fair market value.

1. Get your home ready for sale

A key to getting the best price for your home is making it look as perfect as possible. Here are some tips.

2. Choose a listing price

Everyone wants to sell their home for the most money possible. However, when you sell a house for sale by owner, you run the risk of either over- or underpricing.

A house that is priced too high will sit on the market for a long time. You'll lose money in carrying costs such as utility bills and property taxes while waiting for it to sell. Even worse, when buyers see a home sitting on the market too long, they assume something’s wrong with it. You may have a hard time regaining foot traffic even if you cut the price.

On the flip side, FSBOs can also be prone to underpricing. Recent studies show that homes sold by owner can sell for up to 26% less than those listed with licensed real estate agents — meaning that these sellers came out at a loss even after saving on agent fees. This price difference isn’t because FSBO homes are inherently worth less. It’s because many sellers just don’t price their homes high enough.

Licensed real estate agents have the training and experience to market your home at the right price to the right buyers.

If you want to sell your home by owner, you need to know how to price it correctly and fairly. That means finding a listing price that is neither too high nor too low for your market.

When sellers hire a real estate agent to sell your home, they’ll complete what’s known as a comparative market analysis, or CMA. This analysis examines comparable sales — sales of houses similar to yours and in the same neighborhood.

If you’re selling your home FSBO, you will probably be able to find an agent who will run a CMA for you without listing your house. In fact, it’s a good idea to request CMAs from a couple of different agents and see where they differ. Agents will be happy to offer a CMA in the hopes of winning your business if you ultimately don’t sell FSBO.

Another simple way you can get an idea of a fair price yourself is by looking at comparable listings in your neighborhood. A good rule of thumb is to look on websites like Zillow for active listings priced within $50,000 of what you think your house is worth. Then compare how your home’s features stack up.

Consider:

• Does your house have the same number of bedrooms and bathrooms?
• Do you have less or more square footage?
• Has your house had any major updates or renovations in recent years?
• Is your home in a better or worse school district?

Honestly answering these questions will give you an idea of what you should charge.

Still, trouble with pricing is one of the biggest reasons why people switch from FSBO to an agent, according to Clever CEO Ben Mizes. "FSBO sellers often overprice their home and need an agent to help price it correctly."

>> MORE: 7 Secrets to Get the Highest Selling Price for Your Home

3. Market your home

Once you have your house ready to sell, you need to attract buyers.

Remember, you’re competing with professional real estate agents who have lots of experience and marketing resources. Don’t expect a yard sign and a Craigslist ad to cut it!

In fact, our own Data Center survey found that the number one way buyers found homes was online through sites like Zillow and Realtor.com.

To successfully reach prospective buyers, you'll need to work hard and spend some money to market your home on the internet. Here are some ideas to consider.

Should you use a flat-fee MLS?

If you want agents to bring buyers in, you should strongly consider listing on the local MLS (multiple listing service). Real estate websites like Zillow and Realtor.com pull listings from the MLS, so it's the best way to get your listing in front of buyers.

Technically, only licensed real estate agents can post on the MLS. You can get around this by paying a flat fee MLS company to post your house on the MLS on your behalf. They typically cost between $99 and $500. Plans are typically barebones and you’ll usually need to write the listing description, price your property, and arrange for photography on your own.

>> MORE: Find the Best Flat-Fee MLS Companies

4. Field offers from buyers and screen calls from agents

Many FSBO sellers will tell you that the worst part of the sale process is handling the massive amount of phone calls they inevitably receive. As soon as you list your home, your phone will start ringing — and not just from prospective buyers.

Along with calls from realtors representing folks looking to buy property, you’ll also get calls (potentially hundreds, in a larger market) from real estate agents trying to persuade you to hire them to list and sell your house.

Filtering out these agents — and the tire-kickers who aren’t serious about buying your home — can become a job in itself.

Politely turn down prospecting agents (unless you decide going with a licensed realtor is a better idea for you), and make sure you qualify the buyers who call.

Ask prospective buyers questions to determine:

• Are they serious about buying your property?
• Have they been pre-approved for financing if they’re planning to use a mortgage?
• Will the buyers be able to close the deal themselves? Or are they wholesalers who will transfer the sale contract to someone else for more money?

5. Negotiate with buyers for the best price

Once you've found a serious buyer, now comes the fun part: negotiation. Because the vast majority of buyers use agents, you'll likely be negotiating with the agent.

Remember that price isn’t everything. When negotiating an offer, you’ll also need to consider contingencies — conditions under which the buyer can renegotiate the sale or back out altogether. These conditions might include the buyer failing to qualify for a mortgage, the results of an appraisal or home inspection, or whether the buyer is able to sell their current home in time.

As a seller, you can also request earnest money, also known as "good faith money" — a deposit the buyer pays upfront (usually to a third party, such as their title company) to show they’re serious about the deal. If the buyer backs out of the sale under a condition not covered by a contingency, you’re entitled to keep their earnest money.

The closing date is also another matter up for negotiation. This is the date at which you’ll legally transfer your property to the buyer. All parties must agree to the intended closing date, although it can change due to holdups with the buyer’s mortgage lender, etc.

When deciding on the terms of the sale, a good rule of thumb is to avoid more than three rounds of negotiations — you don’t want your buyer to get burnt out.

Another useful strategy: any time you concede to something the buyer wants, ask for something in exchange, even if it’s something small. Your buyer will quickly learn not to make small asks!

Above all, it's essential to keep your emotions out of it. This is where FSBO becomes particularly tricky; after all, it's your home, and you have strong feelings about its value! Realtors know the best strategies for making counteroffers and how to handle concession requests. Also, keep in mind that, if you hire a realtor, they want to get the highest possible price, too, since they're working on commission.

>> MORE: 8 real estate negotiation tips for home sellers

What paperwork do you need to sell a house by owner?

A house sale requires a ton of paperwork. When you're selling your home FSBO, you're in charge of it all!

The specific paperwork you need to fill out varies by state. You can find the paperwork requirements for your state in our state guides to selling FSBO.

At the very least, you'll need a written purchase and sale agreement. This document contains every detail of the deal. You'll need to list not only the purchase price and the buyer's financing details but also exactly what fixtures and appliances you’re including in the sale.

You'll also have to fill out and sign a disclosure statement that contains all of the known flaws of the property.

If you're not using a realtor, we strongly recommend consulting a real estate attorney to help you make sure your paperwork is error-free. Inaccuracies can result in potential legal and financial repercussions.

However, keep in mind that attorney fees can add up to $500-$1,500. For potentially just $3,000, you can use a discount real estate agent who will handle not only all of the complicated paperwork but also all the marketing and negotiations on your behalf as well.

Consider alternatives to FSBO

As you can probably tell, selling your home FSBO is no easy task. In fact, it's probably more expensive than you think when you consider all of the marketing costs, attorney fees, and agent commissions you'll have to pay anyway. That's not to mention all of the hours you'll have to put in preparing your house for the market and negotiating a sale.

If you’re having second thoughts, check out these alternatives to FSBO.

Discount real estate broker

If the main reason you're considering FSBO is to save money, but you’re worried about the risks and work involved, then a discount broker is a better option. Discount realtors offer a reduced listing fee while still providing you with a full-service real estate agent. You can compare some of the top discount real estate agents in the table below.

When comparing different discount realtors, it’s important to research their service quality. Some companies offer a team-based approach, which means that you’ll be dealing with multiple people from the company instead of just your agent.

Others, such as Clever, offer a more traditional realtor experience. You’ll get a dedicated full-service realtor, except you’ll pay a lot less.

» MORE: Our ranking of the best discount brokers

iBuyers

If you’re looking to sell fast, an iBuyer may be a good option. iBuyers are large companies that buy houses for cash. They offer speed and convenience, but they do come with some significant drawbacks.

If you’re looking to save money, iBuyers are a bad choice. They tend offer less than what you can get on the open market. On top of that, they charge high fees — often well above what a traditional real estate agent would charge.

They are also not yet available nationwide. Even in states where iBuyers do operate, they tend to focus on major metropolitan areas. Plus, they have stringent criteria for what kind of homes qualify.

While those are significant drawbacks, if speed and convenience are your top priorities then an iBuyer may be worth considering.

» MORE: The best iBuyer companies ranked

Should I sell my house FSBO

Selling a home by owner requires a lot of time, skill, and patience. It also requires a great deal of attention to detail because a small mistake could end up costing you big time. And don’t be surprised if, at the end of the day, your house still sells for significantly less than what you were expecting.

Unless you have a buyer lined up already or you live in an area where demand for homes is very high — and you have experience selling homes already! — we suggest staying clear of the FSBO route. The risks are just too high compared to the benefits.

Instead, try an alternative option like a discount realtor instead. Clever, for example, can match you with a top local real estate agent who charges a listing fee of just 1.5% ($3,000 minimum). You’ll still save thousands of dollars on your sale, but you’ll get the reassurance that comes with having your own realtor looking out for you.

Frequently Asked FSBO Questions

Related links

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

The Best 2% Commission Realtors of 2024

Listing with a 2% commission realtor can save you thousands, but what's the catch? Read on to learn where to find a 2% listing fee and what you'll get in return.

Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

Like most things in real estate, your listing agent's commission is negotiable. This is our expert guide to negotiating realtor fees.

Current Average Realtor Commission Rates

Looking for average real estate commission rates by state? We surveyed U.S. realtors and crunched the numbers to find accurate data for all 50 states.

The post How to Sell Your House For Sale by Owner appeared first on Semya-Moya.

In Minnesota, the average realtor commission rate is 4.23% to 6.59%. If you sell a house worth $324,200 — the median home value in Minnesota — that’s over $10,800, which is a huge chunk of your potential profits.

Selling without a real estate agent, known as listing For Sale By Owner (FSBO), is a viable option for experienced home sellers who are willing to put in the time and effort.

However, selling FSBO has risks. Research shows that FSBO homes typically sell for about 6% less than those listed with agents AND you'll still usually be on the hook for offering a competitive buyer's agent commission. FSBO homes also often take longer to sell and are more likely to fall out of contract after accepting an offer.

Since FSBO homes tend to sell for less money, you may pocket more profit by working with a low commission realtor who can sell your home for top dollar. For example, Clever pre-negotiates 1.5% listing fees with top-rated local agents. You'll get the support of a full-service agent for a fraction of the typical price, so you can walk away from your sale with the most cash possible.

» SAVE: Sell with a top local agent for just 1.5% listing fees

Or, keep reading to learn how to successfully sell your house without an agent. We'll explain the ins and outs of any costs, Minnesota FSBO paperwork, pricing strategies, and more.

What FSBO sellers in Minnesota need to know

Real estate laws, processes, and trends vary greatly across the country. Understanding the details of your market and getting accurate information can make a FSBO sale complicated.

We'll go into more details about what you need to do in minnesota, but here's an overview of the state's laws and regulations.

Minnesota FSBO overview

Additionally, you'll need to know and understand all of your responsibilities as a FSBO seller, which include:

• Preparing your home by making necessary repairs, cleaning, and staging your home.
• Accurately and competitively pricing your home.
• Marketing your home by writing a listing description, taking high-quality photos, posting the listing on different sites (free and/or paid), and promoting your home on social media, in print ads, and via word of mouth.
• Vetting buyers to ensure they're qualified, from a financial perspective. Accepting an offer from an unqualified buyer will cause your sale to fall through.
• Negotiating the final price, contingencies, repair concessions, and other aspects of the purchase agreement.
• Properly filling out all necessary paperwork for a real estate transaction in Minnesota.

How to price your home

Pricing strategy is often make-or-break for FSBO sellers. List your home for too little and you leave money on the table. Price it too high and the listing goes stale, forcing a price drop that could make buyers wary of the home.

To get an accurate idea of what your house is worth, look at comparable listings in your area.

For example, if you live in Minneapolis and think your house is worth about $363,000, search Zillow for active listings that are about $50,000 more and less than that. Analyze details about the houses and how they compare to yours. Ask yourself:

• Is the school district better or worse?
• Does it have the same number of bedrooms and bathrooms?
• Has the house been renovated more recently than yours?
• How do the neighborhoods and nearby amenities compare?

Answering these questions honestly will help you see if your price is in the right ballpark.

From there, be realistic about what pricing strategy will lead to higher offers. Here are some key pricing metrics that will help you decide the best listing price for your home and market:

State of the Minnesota real estate market

How to list your Minnesota home for sale by owner

Once you've decided on a price, it's time to write a listing description that speaks to local buyers. Understanding their priorities will help you identify what features of your property to highlight in your listing and attract more interest.

Top buyer priorities in Minnesota

When it comes to advertising and posting your listing, you have several options as a FSBO seller. Each choice has its own pros and cons as well as costs:

• For Sale By Owner yard sign: You can buy a FSBO sign from most hardware stores or online for $20-$50. Be sure to choose one that allows you to add your phone numbers so interested buyers can contact you for property information and showings.
• Craigslist: Posting your home on Craigslist is free and simple. Just go to the Minnesota page, find your city, and create a "real estate — by owner" listing.
• FSBO websites: There are multiple FSBO listing websites that allow you to post your home for free or a few hundred dollars. But each differs in how many photos you can include, how long the listing is live, and the changes you can make — do your research before choosing a for sale by owner site.
• Flat-Fee MLS companies: Flat-fee MLS services will list your house on your local Multiple Listing Service (MLS) for significantly less than a realtor. However, they provide few additional services unless you opt for their most expensive packages, which often cost more than using a discount brokerage.

If you choose to use a flat-fee MLS company, you'll have to offer a buyer's agent commission. The MLS is how real estate agents find homes for their clients, and typically a buyer's agent commission is included to incentivize these realtors to show the house to their clients.

How realtor commissions work in Minnesota

Traditionally, both the buyer's agent and the listing agent are paid a commission by the homeowner. When sellers work with a realtor, they negotiate a commission as part of the listing agreement.

Based on the average commission rates in Minnesota, this typically ranges from 2.14% to 3.32% of the sale price.

In a typical sale, the seller also agrees to a commission rate for the realtor who brings the buyer to the table, which runs between 2.09% to 3.27%.

As a FSBO seller, you automatically avoid paying a listing commission. However, there is a solid argument for offering a buyer's agent commission.

A buyer’s agent's commission is an incentive for realtors to show your house to their clients. If you don't offer a commission that is competitive compared to similar homes in your area, then your home could be shown less. Agents may prioritize taking buyers to homes with a commission.

The best way to avoid paying any commission fees is to sell to an unrepresented buyer. However, know that nearly 87% of buyers work with a realtor. If you decide not to offer a buyer's agent commission, you may severely restrict your pool of buyers.

Further, if you list FSBO, you'll likely receive multiple calls from agents offering to connect you with their buyers...if you pay them a competitive buyer's agent commission (typically 2.68% in Minnesota).

» LEARN: How real estate commissions work

How commission costs break down in Minnesota

When you sell your home, there are four common scenarios when it comes to commissions:

• List FSBO and sell to a buyer without an agent: Pay no commission
• List FSBO and sell to a represented buyer: Cover the buyer's agent commission
• List with a traditional agent and sell to a represented buyer: Cover both agents' commissions
• List with a discount agent and sell to a represented buyer: Cover the buyer's agent commission, but save on the listing commission.

The table below shows how this could break down in Minnesota:

Paperwork to sell a house by owner in Minnesota

Once you find a buyer for your house, it's time to start the closing process. In a typical real estate transaction, your agent will make sure you fill out all the necessary documents and forms. As a FSBO seller, you'll have to navigate the paperwork by yourself.

This process varies by state — here’s a quick breakdown of Minnesota’s requirements.

Required for all Minnesota real estate sales

Possible additional documents

Minnesota disclosure forms

Many closing documents are legally binding agreements. Any errors can derail your sale and cost you thousands in fees or in costs to re-list your house.

To avoid an expensive mistake, consider working with a low commission realtor instead.

FSBO pros and cons

Before deciding to sell your home by owner, weigh all the pros and cons to make the right choice for your situation.

Pros

• More control: As a FSBO seller, you can decide the price, listing timeframe, showing schedule, marketing strategy, negotiation tactics, and more.
• No competition with other clients: Some agents take on more clients than they can handle, which could mean not getting the attention you need to meet your home-selling goals.
• Lower commission: As a FSBO seller, you could sell your home without paying any commissions. Based on Minnesota's average commission rates, that could leave 2.14% to 6.59% of your sale price in your pocket. Even if your buyer has an agent, you'll still avoid paying 2.14% to 3.32% in listing commissions.

Cons

• Less visibility with buyers: Unless you pay for a flat-fee MLS service, your home won't be on the local MLS. Most agents use MLSes (not Zillow and Trulia) to find properties for their clients and most buyers work with a realtor. So if you're not on the MLS, fewer buyers will see your listing.
• Risks of inaccurate pricing: Many FSBO sellers find it difficult to be objective when pricing their house and list for too much. If you make this mistake, you won't attract buyers and the listing will become stale. Eventually, you could be forced to accept a low offer or take your home off the market and relist with an agent.
• Safety issues: As a FSBO seller, it will be your responsibility to show your home to prospective buyers. Not everyone is comfortable being alone with strangers in their homes since incidents such as theft or harassment can occur. Make sure to gauge your own comfort levels before deciding to sell FSBO.
• More work and stress: Selling a home is a full-time job. Trying to cram all the steps and responsibilities into your schedule is a hassle many FSBO sellers aren't prepared for.

FSBO alternatives to consider

If saving money is your main reason for selling your home by owner, there are alternatives.

Semya-Moya

Clever is a nationwide real estate service that connects sellers with top, local agents. You pay Clever nothing and only pay your full-service agent 1.5% if and when your home sells.

Semya-Moya

Get Started

💲 Listing Fee

1.5% ($3,000 min.)

💰 Buyer Savings

Cash back after closing

⭐ Avg. Customer Rating

5/5 (2,735 reviews)

✍️ Editor's Take

Pros

Cons

Reviews

Locations

Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.

Try Clever for free — save thousands on commission!

• Clever is a free, nationwide agent matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
• You get multiple agent matches so you can interview several, compare marketing plans, and choose the best fit.
• Clever pre-negotiates low rates on your behalf — you get full service for just a 1.5% listing fee ($3,000 minimum).
• If you buy with Clever, you can get cash back to help pay for your move.

• You may not get matched with an agent from your preferred real estate brokerage.
• Agents may not provide premium services like drone photography and professional home staging.

As of 11/6/2023, Clever has a 5.0 out of 5 rating on Trustpilot, based on 2,589 reviews.

Read reviews from real Clever customers here.

Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.

Discount real estate services in Minnesota

While pricing and services vary, discount real estate companies will help you sell your house for less than a traditional realtor. In most cases, you'll still need to offer a competitive buyer's agent commission, but you'll save on listing fees.

Redfin

Full Review

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

$5,550

⭐ Avg. Customer Rating

2.9/5 (331 reviews)

✍️ Editor's Take

Pros

Cons

Reviews

Locations

Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.

Read the full Redfin review.

• If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
• Redfin gives its listings premium placement in its popular home search app.

• If finding the right agent is a top priority, you'll have limited options — Redfin only has a few agents in each of its markets.
• Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.

Redfin has a 2.9 out of 5 rating (331 reviews) across popular review sites like Google and Yelp.

Read reviews from real Redfin customers here.

Redfin is available in 80+ U.S. markets (see all locations).

» LEARN: About discount real estate services

Flat-fee MLS services in Minnesota

As mentioned before, a flat-fee MLS service will post your listing on the local MLS, usually for a low, upfront fee. In Minnesota, this will typically cost you a couple hundred dollars.

Here are some Minnesota flat-fee MLS companies to compare:

123 Flat Fee Minnesota

123 Flat Fee Minnesota

Best For

Sellers who expect a lot of in-person showings

Price Range

$299-599

Pros & Cons

Pros:

• You'll have access to ShowingTime, an app that agents use to coordinate showings.
• The Premium package comes with a lot of materials to help you with open houses and showings like yard signs, directional signs, and property flyers.

Cons:

• The basic package only allows six photos. You'll usually want to include more photos to give people a better look at your property online.
• The company doesn't cover all of Minnesota. You can check out its website for specific regions.

Minnesota Flat Fee MLS

Minnesota Flat Fee MLS

Best For

Sellers on a tight budget

Price Range

$99-149

Pros & Cons

Pros:

• The $149 listing option lets you post as many photos as the MLS allows.
• This service participates in four MLSs that cover nearly all of the state.

Cons:

• You don't have many options for add ons or additional services
• Both packages only include a six-month listing. There's no options for longer listing periods.

Real Estate Corners, Inc

Real Estate Corners, Inc

Best For

Experienced sellers looking for a simple MLS listing

Price Range

$299

Pros & Cons

Pros:

• The base package lets you add up to 24 photos to your listing.
• Your listing will also be posted on RealEstateCorners.com.
• You can add on a lot of extras like listing brochures, a competitive market analysis, and new sale and listing monitoring in your neighborhood.

Cons:

• You only have one package to choose from. It's not a great option for people who want a basic listing on a shoestring budget.

» LEARN: About flat-fee MLS services in Minnesota

iBuyers

iBuyers will buy qualifying homes for cash, meaning you avoid realtor fees — and the stress of listing on the open market entirely. While these companies make fair-market offers, they will deduct any required repairs after an on-site visit. They also charge a service fee typically ranging between 6-14%.

» LEARN: How to sell to an iBuyer

5 tips for selling your home without a realtor in Minnesota

Pulling off a FSBO sale successfully is a difficult feat to accomplish. Here are some helpful tips from Clever CEO and real estate investor Ben Mizes, who has experience listing homes without an agent.

1. Make minor repairs

Small upgrades and repairs can do a lot to sway potential buyers. The key is knowing how and where to spend your money to get higher offers. Simple DIY projects like a fresh coat of paint or new cabinet pulls have a high return on investment, whereas pricier improvements like adding a new bedroom may not.

Overall, the most important factor is knowing where the line is between necessary and over-the-top. You want your house to meet buyers' expectations.

"If your kitchen is a disaster, spending more money on a remodel to get it in solid condition will pay off in the end," said Mizes. "But spending money on high-end features to take it from good to extravagant will be a waste."

Also, consider how valuable specific repairs are to buyers in your area. Focus on upgrades that have a higher cost recuperation in your region.

Home repairs with highest resale value in Minnesota

Note: A resale value of more than 100% indicates a profitable repair.

2. Price your Minnesota home competitively

Pricing your Minnesota home can be tricky, as there are multiple variables that contribute to setting a price. For starters, your home's value is not set in stone, but rather determined by the local real estate market. In a seller's market, your home will be worth a little more than in a buyer's market.

Right now, Minnesota is experiencing one of the hottest seller's markets in the United States, which works in your favor. However, housing market conditions can vary between areas, so it's essential to dial in on your unique market to create the best pricing strategy. For example, the median home value in Minneapolis is slightly higher at $267,000, while the median home value in Saint Paul is much lower at $196,000.

You should also look beyond home values to see what homes in your area are actually selling for. Using the above examples, the median Minneapolis home is listed for $320,000 but selling for $264,200. In Saint Paul, the median home is listed for $221,100 and selling for $214,500.

Seeing these trends will help you decide on the best listing price for your ultimate goal sale price.

3. Stage and market your home

It pays to do a little home staging prior to listing your home on the market. A little staging can help to make the rooms feel bigger, remove traces of personalization, and add "homey" touches that make your home stand out. The goal of home staging is to help the buyers picture themselves living in the home.

Investing in professional photography can help your home staging efforts to shine in photos. This is especially important if you plan on using popular websites like Zillow or Trulia to market your home, since listings on these sites tend to be photo-heavy.

What's in your listing is just as important as the way it looks. A powerful description not only talks about the home, but also sells a vision. Talk about your home's best features that matter to Minnesota residents, like energy-efficient windows to keep out the winter cold.

>> LEARN how much it costs to stage a home

4. Prepare for showings

Organization is key when showing your home to potential buyers. You'll need a good system for scheduling showings and saving buyers' and agents’ contact information. You'll want to be flexible and try to show your house at buyers’ convenience.

Keep the home clean and decluttered at all times. The last thing you want is to scramble around with a vacuum after a buyer calls for a last-minute showing.

Also, focus on creating a homey atmosphere for buyers. You want to make a great first impression on as many buyers as possible, so add little touches that speak to most people.

"Bake cookies or light scented candles before a showing," advises Mizes. "Smell plays a huge part in how buyers will perceive and remember your house. Use comforting scents to your advantage so they feel at home the moment they walk through the door."

5. Negotiate for the best possible price

Negotiations are about deciding more than the final sale price. You and the buyer (or their agent) will also have to agree upon contract contingencies, how closing costs are divided, the timeline, and more.

To gain the upper hand, get creative with the seller concessions you offer a buyer. While they might cost you a little more at closing, concessions sweeten the deal for buyers and could lead to a higher final sale price.

The most popular concessions vary from market to market. Knowing what works with buyers in your area will help you strengthen your offer.

For example, a Clever survey of local real estate professionals found that in Minnesota, sellers often cover 4.10% to 5.00% of buyers' closing costs. On a home of median value, that equates to $13,293 to $16,211, but can help you close the deal sooner and for more money.

You should also consider offering these popular seller concessions:

Most common seller concessions in Minnesota

Conclusion: Is FSBO right for you?

FSBO isn't a perfect fit for everyone. But now that you know what awaits, if you're feeling confident about all the steps and possible challenges, you might be ready to sell without a realtor.

Remember, to succeed at selling a house by owner you'll need to:

• Make a plan: From getting photos of your property to lining up the correct paperwork, there’ll be a lot on your FSBO to-do list. Work out a schedule for when you need to accomplish everything so you can find a buyer and close in a timeframe that works for you.
• Get ready to hustle: Attracting qualified buyers is hard work. You'll need a great listing description and a killer marketing strategy to generate interest. Also, prepare to spend a considerable amount of your time fielding calls from prospective buyers, handling showings, hosting open houses, and more.
• Make smart investments: Even though your main goal as a FSBO seller is saving money, spending some money on small upgrades or repairs can lead to higher offers and a faster sale. Also, consider paying for a flat-fee MLS service to list your home on the local MLS to reach more buyers.
• Seek some professional advice: You don't have to sign a listing contract to talk to a realtor. Professional agents understand that smart sellers weigh their options; they'll be willing to meet for a free consultation. After seeing your home and looking at comps, they might notice issues or advantages you overlooked. Once you've heard their advice, if you still want to sell by owner, you can do so confidently because you thoroughly explored all your choices.

If you'd like some professional guidance with no strings attached, Clever can help. Fill out your basic info below to connect with a top, local realtor for a no-obligation consultation.

Additional resources for Minnesota home sellers

8 Steps to Selling a House in Minnesota

Selling your house in Minnesota? Our in-depth guide breaks down the process into 8 easy-to-understand steps, from listing through closing.

Disclosure Requirements for Selling Minnesota Real Estate

Are you a seller confused about what property defects you must report to potential buyers? Read on for our guide to Minnesota real estate seller disclosures.

Top 4 We Buy Houses for Cash Companies in Minnesota

Need to sell your home quickly? Compare top Minnesota We Buy Houses for Cash Companies and popular alternatives.

The post How to Sell a House By Owner in Minnesota appeared first on Semya-Moya.