The average realtor commission rate in Illinois ranges from 4.55 % to 7.20 %. If you sell a house for $244,500 — Illinois’ median home value — you’ll make more than $10,300, which is a significant portion of your possible gains.
For experienced home sellers who are ready to put in the time and effort, selling without a real estate agent, often known as listing For Sale by Owner websites, is a realistic choice.
Selling FSBO, on the other hand, has its drawbacks. According to research, FSBO properties sell for roughly 6% less than those listed with agents, and you’ll still be responsible for paying a competitive buyer’s agent commission. In addition, FSBO homes take longer to sell and are more likely to go out of the contract once an offer is accepted.
Although FSBO houses sell for less money, dealing with low commission real estate agents who can sell your home for the top price can help you make more money.
Now before you come up with a million questions take a walk with us and we’ll clear the smoke to aid you in your decision-making.
So, is FSBO a blessing or a curse? Read on to know more.
What Are The Benefits And Drawbacks When Selling A House In Illinois?
You save a lot
The biggest motivation for homeowners to sell their homes off-market is to avoid paying commissions and closing charges. While you can surely bargain for the buyer to cover all closing costs, you can’t avoid paying the listing agent 6% of the sale price.
Is it possible to sell for $100,000? Expect to pay your realtor a hefty $6,000 commission.
Do you want to keep 100% of the sale proceeds? Your greatest option is to sell your home yourself!
You control everything
When selling a house by owner in Illinois, you have complete control over the process as you just need affidavit of consideration. When you engage an agent to sell your home, they have complete control over the process. If any of the following scenarios apply to you, selling by owner may be your best option.
- Pay no commissions to realtors.
- Negotiate a longer (or shorter) closing timeframe.
- Keep the sales a secret.
- Inspections that you have booked
- There will be no open houses or showings.
- Sell it as-is or make small improvements.
A Real Estate Agent will not keep the sale confidential (that’s why you hired them in the first place — to list on various flat fee MLS Illinois companies). Your realtor will schedule all showings, open houses, and inspections at a time that is convenient for all parties.
Again, the advantage is that you’re in control. Although keeping control of the transaction may be desirable, outsourcing it to a third party might save time.
You lack expertise
Agents are skilled at selling your home in a way that appeals to buyers and understands how to respond to their desires.
They should also be familiar with the market and be able to price your home competitively.
Obviously, we’re talking about knowledgeable and experienced agents. Anyone can obtain a real estate agent license in a matter of months, but it does not automatically qualify them as an expert. These abilities take years to develop.
Examining past sold homes for how good the images were, how long it took to sell, and how many offers were made to previous owners is a smart approach to assessing a possible listing agent. More offers usually indicate that the home was desired and well-marketed. Also, if the sales price was not significantly lower than the listing price, it indicates that the agent was a good consultant (i.e. truthful) regarding market value.
Scammers thrive in this environment
Wire fraud and online phishing scams should also be avoided by FSBO sellers.
When sellers receive an email from a title firm that appears to be authentic but contains fraudulent wiring instructions that send the money to a scammer’s account, this is known as wire fraud. You usually can’t get it back after it’s gone.
Some con artists would say that they wish to buy your home but are unable to visit it. As a deposit, they’ll offer to send a money order. They’ll ask for their money back a few days later. Your bank realizes the money order was fraudulent after you submit the refund, and you won’t be able to get your money back.
It’s a cumbersome process
You’ve decided to sell your home. It has piqued the interest of others. Great! You must now schedule inspections, negotiations, and the selection of an offer. Does it appear to be time-consuming? That’s right, it is! Although you’ll save money on commissions and have complete control over the process, the extra work may be more than you can handle right now.
Are you looking after your children or your parents (or both!)? Working more than 40 hours per week? It might not be easy to come by free time. It’s possible that hiring a third party to manage your transaction is just what you need.
How to Sell a House by Owner in Illinois?
Follow these easy-peasy steps to bag the best deal when selling your house by owner in Illinois:
Self-awareness is your best friend
A comparative market analysis is prepared by an agent to assist potential sellers in determining the list price; you’ll need to do something similar.
This analysis takes into account whether adjacent similar homes (known as comps) sold at, below, or above list price, how quickly they sold, and any variations between your property and the sold house (such as whether the closed sale had a garage versus yours). Look for closing information on real estate websites when determining the market worth of your home and follow the same processes.
Remember, no matter how much you think a home is worth, if you don’t have facts to back up your listing price, a buyer may have trouble getting it assessed for the amount their lender requires.
Buyers may question whether something is amiss with a home that has been on the market for a long time. Price your home to sell — with a listing price that appeals to buyers and isn’t too much above the norm in your area, according to your market research.
Preparing a home for sale entails more than just making sure there are no children’s toys on the floor. Before putting your house on the market, several experts recommend packing up at least half of your belongings. Examine your surroundings for simple and cheap repairs, such as replacing burned-out light bulbs or repainting your teen’s black bedroom.
Hire someone to capture it
Invest in a professional photographer for listing photos if you want to maximize your return on investment when you sell. Professional photography makes your listing stand out on the MLS and adds value to it.
Start listing on MLS for a set cost, letting potential buyers and their agents find it. When buyers search in your area and select details that match your house, your home will appear in their searches.
Market like your life depends on it
When you deal with an agent, they may have a buyer pool and a network of people to whom they can show your home. You’ll have to discover other means to reach your buyers if you don’t have an agent. Take a leaf from successful local agents: do they mail postcards, display yard signs, and post “for sale” advertisements in neighborhood groups? They should be copied.
Don’t Mix Schedules
Once your house is “live” on the MLS, you should begin receiving phone calls from people who want to schedule showings. To avoid repeat bookings and to notify sellers when they need to leave the residence, agents utilize tracking software and online calendars. Consider creating a separate Google calendar or spreadsheet just for this.
Is it a good idea to hold an open house? Most likely not. According to research, finding fresh leads — purchasers who are already interested in the market — is more beneficial for realtors than selling a specific house.
Pursue potential buyers
Follow up after visitors have walked through your door! For example, an agent might contact the buyer’s agent for feedback or send a form asking for input. If they have any queries, call or email them.
While you can inquire about their impressions of the house, they may be wary of saying anything unfavorable due to the fact that you are the owner. Strive for separation and professionalism.
Review and negotiate
Review and compare offer as they come in. To discover the best overall offer, check at closing deadlines if the buyer is offering you a rent-back period, or other stipulations. Tactfully handle these negotiations and don’t take the negative reviews personally.
Prepare all legal requirements
The legal requirements for selling a home vary by state. It’s a good idea to have a lawyer evaluate or prepare these documents for you. You’ll need a purchase agreement and a settlement statement at the very least.
Working with a title company to ensure the home has a clear title is part of the settlement process. All paperwork, including the title, deed, and any homeowner’s association covenants, as well as the mortgage payoff amounts, must be collected. Some states require lawyers to be present at closing, so you’ll have to employ one now even if you didn’t hire one earlier in the process.
Is it worth the effort after all?
In Illinois, selling a home without the help of a real estate agent is more difficult. You can expect to complete more work on your own.
However, if saving money is the only reason to go this route, then there are alternatives…
With Houzeo, you can list your property as an owner and facilitate the closing process. You won’t have to worry about complicated processes because the site is entirely online. Houzeo assists you in listing your property on the Multiple Listing Service (MLS) for a single fee (Flat Fee MLS) and handles other activities that would otherwise require manual involvement. Another important factor is that real estate agent commissions are decreasing as a result of platforms like Houzeo. This is largely due to the flat-cost MLS system that has gained popularity in recent years.