How Much Can You Really Save by Selling Your Home without an Agent?

Maybe a friend, neighbor, relative, or business associate is interested in buying your house. If you know a ready, willing, and financially qualified buyer who wants to work with you directly, you may save the full standard real estate brokerage commission for your area, less a nominal fee paid to a real estate attorney.

In the best-case scenario, given that you make all the right moves and are an astute negotiator, you may save yourself a good deal of money. You're more likely, however, not to save the typical 5 percent to 6 percent real estate brokerage commission. Here's why:

• Unless you already have a buyer in hand or you find one quickly, you have to spend money advertising and marketing your house. Advertising costs money; the longer your house is for sale, the more you spend.
• You may have to pay a real estate commission if a cooperating real estate agent brings you a buyer. Most homebuyers work with agents, and these agents must be paid for bringing you a bona fide buyer. This expense alone can cut your expected commission savings in half.
• Last, but not least, most buyers expect to share the commission savings you're enjoying by not using an agent. They may expect to split the savings with you. If you're a strong negotiator and the prospective buyers aren't, you may be able to keep most of the savings for yourself.

Unless you can find a buyer without having to advertise your house for sale, or you sell your house to a buyer who isn't working with an agent, you can realistically expect to save about 1 percent to 2 percent of the sale price when you sell your house yourself. Ultimately, of course, the amount you do or don't save depends on how much the buyers pay for your house. If you end up selling for a lower price than a good real estate agent could've fetched for you, the lower sale price may wipe out any commission savings.

Also, don't forget the value of your time — especially if you're self-employed or in a profession where your income suffers if you work less. Handling buyer and agent phone calls, showing the property, holding open houses, meeting property inspectors and appraisers, and handling escrow details take time.