How to sell a house by owner in Massachusetts

Good news, Bay State home seller: You can save yourself some money by selling your house independently, without having to pay a hefty commission to a real estate agent. But be prepared, because selling this way can be challenging: You’ll need to handle all the tasks usually managed by a Realtor, which is demanding — and can even be risky. Here’s everything to consider if you’re thinking about selling a house by owner in Massachusetts.

Selling a house without a Realtor in Massachusetts

The “for sale by owner” process, often called FSBO for short, involves several important steps that, in a traditional agent-assisted sale, would be handled by a licensed professional. FSBO sellers are responsible for the following:

Creating a listing

To attract buyers, write a compelling description of your home that highlights its key features. Include basic details such as the property’s age, square footage and number of bedrooms and bathrooms, as well as any unique amenities like a hot tub, fire pit or mountain view. Provide information about the neighborhood and local schools, too. 

High-quality photos and videos are also essential for attracting buyers, as most people start their home search online. Investing in professional photography can enhance your property’s appeal and draw in more potential purchasers.

Pricing your home correctly is particularly crucial. Be sure to research local market conditions in your particular part of Massachusetts, looking at recent sale prices of comparable properties in your neighborhood. Try to set a realistic price based on the performance of similar homes, rather than letting nostalgia or sentimental value affect your decision.

Marketing the property

Once your listing is ready, the next phase involves getting it seen by as many potential buyers as possible. Leveraging online platforms like Craigslist, Facebook Marketplace and Nextdoor can boost your listing’s visibility. Just be mindful about what kind of information you share about your home online, especially if your family is still living there.

The most comprehensive way to market your listing is to place it on your area’s MLS, or multiple listing service. Typically this compilation of for-sale properties is only accessible by real estate pros, but there are several companies that will list your home on the local MLS for a fee. Options for Massachusetts FSBO sellers include Houzeo, Greene Realty Group, Simply Sell Realty, InstaMLS and Entry Only New England. Homes listed on the MLS will also generally appear on large listing sites like Zillow and Realtor.com.

Marketing also includes inviting buyers to view the home in person, via open houses or private showings. Without a Realtor, you’ll be coordinating and scheduling the visits — keep the house tidy for last-minute appointments, and always use common-sense precautions when letting strangers into your home.

Closing the deal

This might be the hardest part of the process to handle without professional guidance. Making a deal typically involves negotiating on price and contract terms, which many people are uncomfortable doing. There’s also quite a lot of paperwork involved in a real estate transaction, and a rookie mistake can be costly in a financial deal of this size. 

That’s why it’s smart for FSBO sellers to engage a real estate attorney, even though they’re not required to by the state. (Massachusetts law does require that an attorney be present at closing, but this is often the attorney representing the buyer’s mortgage lender.) Legal assistance ensures you’re protected throughout the transaction. 

Required disclosures for Massachusetts home sellers

If the property is part of a homeowners association, you’ll need to disclose information about the HOA rules, fees and financial status.

But beyond that, Massachusetts is a “buyer beware” state — It’s the buyer’s responsibility to investigate any potential problems before purchasing. That means home sellers are not required to disclose most issues with the property, as sellers in most other states are. However, you still must disclose two specific things: whether lead paint is present in the home and whether there is a septic system. And if a buyer inquires about other aspects of the property, you are still obligated to answer honestly and cannot conceal any information. Consult with an attorney if you’re not sure about your disclosure obligations.

Pros and cons of selling a house by owner in Massachusetts

The FSBO approach to selling a house can be advantageous, especially if you have previous experience selling a home. However, it also comes with notable challenges.

Pros

• Commission savings: FSBO sellers avoid a listing agent’s fee, which can save thousands. Agents typically earn between 2.5 and 3 percent of a home’s sale price, and in a high-priced state like Massachusetts, that can be significant — the state’s median price in July was $678,500, according to the Massachusetts Association of Realtors, and 2.5 percent of that would come to nearly $17,000. (Keep in mind, though, that depending on the details of your contract you may still have to pay your buyer’s agent’s commission.)
• Speedier transactions: FSBO sellers can often expedite the sale process since they don’t have to coordinate with a Realtor managing multiple clients, thus reducing scheduling delays.
• Complete control: Handling the sale yourself allows you full autonomy over every aspect of the transaction, enabling you to make decisions according to your own preferences without external input.

Cons

• Fewer potential buyers: Real estate agents leverage extensive tools and networks to market properties widely, attracting the largest possible amount of potential buyers. FSBO sellers aren’t likely to match that kind of exposure.
• Less profit: Additionally, FSBO homes tend to sell for less compared to those sold with an agent. It can be tough for an amateur to negotiate pricing against a seasoned professional, and lack of experience can lead to lower prices.
• No professional guidance: Realtors offer expertise in local market conditions, accurate home valuation, effective marketing strategies and navigating complex paperwork. Without this support, FSBO sellers may face a tough road.

FAQs

• Do I need a lawyer to sell a house by owner in Massachusetts?

  Massachusetts law does require an attorney to be present to oversee a real estate closing. However, this is typically the lawyer representing the buyer’s mortgage lender — you as a home seller are not required to enlist your own attorney. Doing so anyway is often a smart move, though, as you want to make sure your interests are fully protected in a financial transaction this large and complex.

• Do you have to pay taxes when you sell your house in Massachusetts?

  Yes. Massachusetts imposes a transfer tax on real estate transactions, generally calculated at $4.56 per every $1,000 in home value, which is typically the seller’s responsibility. (On a $300,000 home, for example, that would come to $1,368.) In addition, home sellers in every state are responsible for any applicable property taxes up until closing day, and if you make a very significant profit on your sale, you may owe capital gains taxes on your earnings.