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When you’re ready to move on from your current home, one of the first questions you’ll probably ask yourself is: What is the cheapest way to sell a house? Selling a property is a complex process, and between real estate commissions, closing costs, and home preparation expenses, many homeowners are shocked at how much they lose in fees.
The good news? There are several inexpensive ways to reduce unnecessary costs. This guide will walk you through the cheapest way to sell your home, from using flat-fee MLS listings to DIY methods like For-Sale-By-Owner (FSBO). So whether you’re focused on selling your home in Birmingham, AL or a house in Los Angeles, CA, keep reading to explore how to save money when selling a house without sacrificing too much on your final sale price.
Methods to sell cheaper
1. For-Sale-By-Owner (FSBO)
One of the cheapest ways to sell a house is to skip the traditional real estate process entirely. By selling FSBO, you take full control of marketing, showing the property, and negotiating directly with buyers. This approach eliminates the standard 5-6% commission you’d otherwise pay an agent, which can save you tens of thousands of dollars.
Pros:
- Full control over the marketing, pricing, showings, and negotiations.
- Significant savings on agent commissions.
- Direct communication with buyers and motivation to maximize profit, as well as intimate knowledge of the neighborhood and community perks.
Cons:
- Requires time and negotiation skills
- Limited exposure compared to professional listings
- You’ll need to manage legal paperwork yourself
If you’re wondering, “What is the cheapest way to sell a house?”, FSBO should definitely be considered. However, it is important to note that NAR data shows that FSBO homes statistically sell for less than those sold using a realtor. That being said, success depends on your comfort level with handling marketing and contracts.
2. Online real estate platforms like Redfin
Listing your property on trusted online real estate platforms like Redfin gives your home massive exposure without the hefty costs of a traditional agent. Many sellers find that combining FSBO with online platforms is the easiest way to sell a house without overspending.
You’ll find that some online services even allow you to handle everything online, from photo uploads to buyer communication, making this one of the cheapest ways to sell online while still reaching motivated buyers.
3. Flat-fee MLS listings
If you want your property on the Multiple Listing Service (MLS) — which is the main database agents use to find homes for their clients — you don’t need to hire a full-service realtor. Instead, you can pay a flat fee MLS listing service. This lets you access thousands of agents and buyers without paying a traditional commission.
Flat-fee MLS options typically charge a one-time fee ranging from $100 to $500, a fraction of the cost of a full agent. It’s one of the least expensive ways to sell a home while still tapping into the professional network of buyers and agents and ensuring wide visibility.
4. Discount brokers or flat-fee realtors
Another option for sellers who don’t want to go completely solo is working with a discount broker. These agents charge either a reduced commission (often 1-2%) or a flat fee rather than the standard 5-6%. While you won’t save as much as you would going FSBO, you’ll still keep significantly more money than if you hired a full-service realtor.
This approach gives you access to pricing expertise, negotiation skills, and professional marketing support, all while lowering the costs associated with selling. It’s an appealing choice for homeowners who want the security of professional guidance without sacrificing their bottom line.
5. Selling to cash buyers
If speed is your top priority, cash-buying companies will purchase your home directly. The major drawback is that you’ll typically need to sell for less than market value. However, these companies can close quickly, sometimes in as little as seven days, and often cover many of the closing costs.
This option is ideal if:
- You’re facing foreclosure
- You inherited a property you don’t want to maintain
- You prioritize speed over profit
While this isn’t always the cheapest way to sell your home in terms of maximizing profits, it can be the easiest way to sell a house when time is limited.
Bonus tips to save money and sell faster
Regardless of which method you choose, preparing your home for sale is crucial. Luckily, there are inexpensive, practical steps you can take to reduce costs and increase your selling power.
1. Prepare your home
Presentation matters. Start by decluttering every room and giving your home a deep clean- both inside and out. Simple fixes like repainting walls in neutral colors, replacing outdated light fixtures, and repairing small issues such as leaky faucets can make a huge difference in how buyers perceive your property.
Curb appeal also matters. Mowing the lawn, trimming shrubs, and adding fresh mulch are low-cost steps that can instantly boost your home’s exterior appearance.
2. Price it right
One of the most common mistakes sellers make is overpricing. Setting a realistic, competitive price helps attract buyers quickly and prevents your house from sitting on the market. Use Redfin’s home value estimator or get a low-cost professional appraisal to guide your pricing strategy.
3. Market yourself online
One of the best ways to maximize exposure without spending much is by marketing your home online. Free and low-cost platforms such as Facebook Marketplace, Craigslist, local neighborhood groups, and community boards allow you to connect directly with potential buyers. By posting across multiple platforms, you can reach a wide audience, generate more interest in your property, and increase your chances of a quick sale.
4. Negotiate closing costs
Closing costs are another area where sellers can save. These costs, which may include title insurance, transfer taxes, and attorney fees, typically account for 1-3% of the home’s sale price. To cut down, sellers can negotiate with buyers to cover their own costs or split fees. Those selling FSBO may also avoid certain administrative expenses typically covered by agents.
5. Consider a quick cash sale (If profit is secondary)
If your priority is speed and convenience over maximizing profit, a cash sale can be a good fit. Some buyers may even cover certain fees, further reducing your expenses. Just keep in mind that you’ll typically sell for less than through traditional methods.
FAQs about reducing costs when selling a house
What devalues a house the most?
Major structural issues, outdated interiors, neglected repairs, and poor curb appeal are the top factors that reduce property value. Overpricing your home can also lead to a stale listing that loses buyer interest.
Do cash-buying companies typically pay closing costs?
In some cases, cash-buying companies will cover closing costs entirely, making this an effective way to minimize out-of-pocket expenses.
Are closing costs the seller’s responsibility?
For the most part, yes. In most states, sellers cover some closing costs, typically 1-3% of the sale price, which may include title insurance, transfer taxes, and attorney fees.
What is the lowest commission to sell a house?
Some discount brokers offer commissions as low as 1%, while flat-fee MLS services may only cost a few hundred dollars upfront.
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