In the sizzling Massachusetts housing market, savvy homeowners are ditching realtors and pocketing huge savings.
With median home prices soaring to $679,100 in 2024, the 6% realtor commission could cost you over $40,000.
But what if you could keep that cash?
From Boston’s bustling suburbs to the quiet Berkshires, Bay Staters are mastering the art of FSBO.
As property experts, we’ll reveal the secrets and share all the insider tips you need to succeed.
Key Notes
- FSBO in Massachusetts can save you over $40,000 in realtor commissions on median-priced homes.
- Massachusetts is a ‘buyer beware’ state with limited disclosure requirements, but some exceptions apply.
- Flat-fee MLS services can boost your home’s visibility without incurring full agent costs.
- Cash offers and ‘as-is’ sales are increasingly popular in the current Massachusetts market.
- Post-sale tax implications allow for up to $250,000 gain exclusion ($500,000 for married couples).
What exactly is FSBO in Massachussets?
For sale by owner means you’re selling your home without the help of a real estate agent. You’re in charge of everything from setting the price to negotiating with buyers.
Compared to traditional selling methods, it can be a rewarding process, as there’s no need to fork out realtor commissions.
Pros:
- Save on commission fees, which can be 5-6% of your home's sale price. This offers substantial savings, especially on higher-priced homes.
- Enjoy complete control over the selling process, from marketing and showing to the negotiation processes. You can set your timeline and make decisions without consulting an agent.
- Communicate directly with potential buyers for immediate feedback without delays.
Cons:
- It takes time and effort
- Do you have the market knowledge?
- Are you familiar with Massachusetts real estate laws?
Here’s a comparison table outlining the key differences between selling a house through a realtor versus selling it by owner (FSBO) in Massachusetts:
| Criteria | Selling with a Realtor | Selling by Owner (FSBO) |
|---|---|---|
| Average Commission Cost | Approximately 5% to 6% of sale price | Save on listing agent commission (approx. 3%) but may still pay buyer's agent commission (approx. 2.35%) |
| Average Sale Price | Typically higher, around $405,000 | Typically lower, around $310,000 |
| Timeline to Sell | Average of 4 to 12 weeks | Faster sales possible; sometimes within 2 weeks |
| Control Over Sale Process | Less control; realtor manages the process | Full control over pricing, showing, and negotiations |
| Marketing Exposure | Extensive marketing through MLS and realtor networks | Limited exposure unless using FSBO platforms; may need to pay for listings on MLS |
| Paperwork and Legal Issues | Realtor handles paperwork and legalities | Seller manages all paperwork; higher risk of legal mistakes |
| Negotiation Skills | Professional negotiation by experienced agents | Seller negotiates directly, can be challenging |
| Costs for Marketing | Included in commission; professional staging, photography, etc. | Seller covers marketing costs |
| Support and Guidance | Ongoing support and advice from the realtor | Limited support; may need to hire a lawyer complex issues |
Selling a Home in MA
The current real estate market in Massachusetts indicates strong demand.
In June 2024, the median home price hit about $679,100, a rise of over 6% from last year.
The types of homes available range from single-family houses to condos and multi-family units, catering to diverse buyer preferences. Popular neighborhoods include Brookline, Cambridge, and Wellesley, known for their excellent schools, vibrant communities, and proximity to urban amenities.
Many homes are being sold “as-is” which is good news for property owners looking to pocket instant cash. In addition, the market is currently favorable for sellers, with many homes selling above the list price.
How to Buy and Sell Without a Realtor
When selling a house in Massachusetts by owner, you first need to get it ready for potential buyers.
1. Conducting a Market Analysis
Look at similar homes in your area that have sold recently to give you an idea of what buyers are willing to offer.
Pay attention to things like:
- Square footage
- Number of bedrooms and bathrooms
- Recent upgrades or renovations
- Location and neighborhood amenities
2. Set the Right Price
Price your home realistically and use your market analysis to set a competitive price that reflects your home’s value.
Here are some general stats to give you an idea of what a 3-bedroom house currently goes for.
High-End Neighborhood – Brookline, MA – known for its excellent schools, vibrant community, and proximity to Boston
- Average Price: Approximately $2,387,500
- Price per Square Foot: About $1,800 (based on an average size of 1,329 sqft for similar homes)
Affordable Neighborhood – Brockton, MA – affordable housing market while providing access to amenities and public transportation.
- Average Price: Approximately $440,000
- Price per Square Foot: About $384 (based on an average size of 1,146 sqft for similar homes)
3. Polish Up
First impressions matter. Here are some ways to make your home shine:
- Declutter and deep clean every room
- Make minor repairs (leaky faucets, squeaky doors)
- Add a fresh coat of paint in neutral colors
- Boost curb appeal with landscaping and a tidy exterior
- Stage rooms to show off their potential
For example, keeping your lawn fertilized, trimmed, and free of weeds costs about $268 and delivers a 352% return on investment.
4. Follow the Paper Trail
If you don’t know what paperwork is needed to sell a house, this is what’s required in Massachusetts:
- Deed to your home
- Recent tax bills
- Utility bills
- Any warranties or manuals for appliances
- Homeowners association documents (if applicable)
If you’re unsure, speak to an attorney. They can help you navigate the legal requirements and make sure you’re protected throughout the process.
5. Massachusetts Property Disclosure Form
Massachusetts is a “buyer beware” state. This means you’re not required to disclose every little thing about your property.
But there are exceptions covering issues like:
- Known defects in the home
- The presence of lead paint (for homes built before 1978)
- Preparing for a Title V inspection and Information about the septic system (if you have one)
Marketing Your Home
How to sell a house myself in Massachusetts you ask? The answer starts with getting the word out.
Here’s how to do it effectively:
1. Get it Listed
List your home on a site like Craigslist or Facebook Marketplace. You’ll need to include this information:
- High-quality photos (consider hiring a professional photographer or offering virtual tours)
- A detailed, honest description of your home
- Your contact information
- The asking price
2. Get Ready for Open Houses and Private Showings
To put your best foot forward, follow these tips:
- Clean and declutter before each showing
- Set a comfortable temperature
- Turn on all lights and open curtains
- Have information sheets about your home ready for visitors
3. Use a Flat-Fee MLS Services
You can also consider looking into a flat-fee MLS service.
For a one-time fee, they’ll list your home on the MLS, which can significantly increase your visibility to buyers and their agents.
Want To Skip Show Houses & Costly Repairs?
Handling Offers and Negotiations
When the offers start rolling in, it’s time to put on your negotiator hat. Here’s what you need to know:
Look at more than just the price. Consider:
- The buyer’s financing (cash offers can be more attractive)
- Contingencies (like home inspections or the sale of the buyer’s current home)
- Proposed closing date
- Any requests for seller concessions
1. Negotiation Tips
If you want to keep the upper hand in negotiations, it’s important to appear calm and professional at all times.
You should also:
- Know your bottom line, but be willing to compromise
- Respond to offers in a timely manner
- Keep multiple offers on the table if possible
2. Counteroffers
If an offer isn’t quite what you’re looking for, you can make a counteroffer. This might involve adjusting the price, changing the closing date, or modifying contingencies.
3. Managing Multiple Offers
Multiple offers can be exciting, but they can also be tricky. This is the best way to navigate them:
- Set a deadline for “best and final” offers
- Be transparent with all potential buyers
- Carefully evaluate each offer before making a decision
Serious buyers typically offer an earnest money deposit to show their intent which is usually held in an escrow account until closing.
Close the Deal
You’re in the home stretch! Here’s what to expect as you close the deal:
1. The Role of the Title Company
The title company will:
- Conduct a title search to make sure there are no liens or claims on your property
- Provide title insurance to protect the buyer
- Handle the transfer of funds
2. Final Walkthrough
The buyer will do a final walkthrough of your home, usually a day or two before closing. For a seamless experience, ensure you have:
- Completed all agreed-upon repairs
- The home in the condition specified in the purchase agreement
- All systems and appliances are working properly
Before signing on the button line, ensure you understand every part of the purchase and sale contract, as it’s a legally binding document.
Closing Costs & Transfer
Be prepared for these closing costs, as they can add up to several thousands of dollars.
In Massachusetts, sellers typically pay:
- Real estate transfer taxes
- Attorney fees
- Mortgage payoff (if applicable)
- Title insurance for the buyer
You’ll also need to provide a certificate showing your home’s smoke and carbon monoxide detectors are up to code. You can schedule an inspection with your local fire department to get this certificate.
Once all papers are signed and funds are transferred, you’ll hand over the keys to the new owner.
Post-Sale Considerations
Once you’ve sealed the deal, there are still a few things to take care of:
Tax Implications
Talk to a tax professional about how the sale of your home will affect your taxes.
If you’ve lived in the home for at least two of the past five years, you could exclude up to $250,000 of the gain from your income ($500,000 for married couples filing jointly).
Moving Out
Don’t forget to cancel or transfer utilities and change your address at the post office.
Frequently Asked Questions
How much tax do you pay when you sell a house in Massachusetts?
When selling a house in Massachusetts, sellers are subject to an excise tax on the sale price. You could also owe capital gains tax if the profit from the sale exceeds the exclusion limits for primary residences.
Do I need a lawyer to sell my house in Massachusetts?
No, but hiring one is advisable due to the complex nature of real estate transactions.
From For Sale to Sold
Selling your house in Massachusetts by owner is a journey demanding time and effort. But for those willing to roll up their sleeves, the payout is rewarding. You save on commissions, maintain control over the process, and potentially pocket more from your sale.
Understand your market, price competitively, market effectively, and navigate the legal landscape carefully. If you feel out of your depth, seek professional help.
Or, skip the hassle altogether and contact us today for a cash offer for your home. No repairs, no showings, no waiting. Just a simple, straightforward sale on your timeline.