Key takeaways

  • New York does not require that you hire a real estate agent to sell your home. But selling without the assistance of a professional requires a lot of time and effort.
  • Selling without an agent saves you a listing agent's commission fee, but you may still be required to pay a commission for the buyer's agent.
  • New York homeowners are required to provide a signed property disclosure statement when selling a home.

If you’re looking for non-traditional ways to sell a home in New York, you could opt to handle the sale on your own without the help of a real estate agent. Taking this approach, which is known in the industry as “for sale by owner” or FSBO, means you won’t have to pay a listing agent’s commission fee. In an expensive state like New York, where the median home sale price is more than half a million dollars according to June Redfin data, that’s a significant savings.

But in exchange for that savings, you’ll be on the hook for a lot of work, including everything from marketing your home to negotiating the terms of a sale. It’s an approach that can be both time-consuming and potentially risky, given how much money is at stake. Here’s what to know about selling a house by owner in New York.

Selling a house without a Realtor in New York

Whether you’re selling a home in New York or anyplace else in the country, all FSBO sales involve the same basic process. Without the assistance of a pro, you’ll be the one who needs to take care of it all. Here are three main steps to follow:

Create a listing

In order to attract potential buyers, you must create a compelling listing for your home. A well-crafted listing should cover the basic details, such as the home’s age, square footage and number of bedrooms and bathrooms. Don’t forget to highlight any unique features or amenities too, such as a swimming pool or an accessory dwelling unit on-site. It’s also a good idea to call out neighborhood info, such as school district and nearby parks or shopping options.

Hiring a photographer to take high-quality photos of your home, or even a video tour, is also an important part of a well-developed listing. Most prospective buyers review property listings online nowadays, and photos are a key part of making them want to click instead of scroll on to the next listing.

The most crucial piece of the puzzle when creating a listing is deciding on the asking price for your home. How much is the house worth? To estimate accurately, you should research the prices of comparable properties in your area that have sold recently. It’s also important to assess current market conditions: Is the market slowing, and therefore making it more difficult to command top dollar? Or is it a highly competitive environment with multiple offers for each listing? All of these factors will play a role in the price you set for your home.

Market your listing

Once you have a solid listing, the next step is marketing your home to prospective buyers. This typically involves circulating your listing to as many house-hunters as possible. Social media platforms can be useful for bringing in a wide range of people (just be careful about how much information you share online with strangers).

An even better way for your home to reach prospective buyers, though, is via your area’s MLS, or multiple listing service. This compilation of homes for sale is typically only accessible to real estate pros, but there are many services that will list a FSBO home on the MLS for a fee. In New York, the options include Houzeo, I Sold My House, Net Realty Now and Flat Fee Realty.

Once your listing is live, you’ll need to be prepared to host open houses and schedule private viewings with interested buyers. Before doing either of these things, be sure your home is clean, decluttered and ready to show — you want it to make the best impression possible.

Negotiating and closing the deal

It’s natural to want to earn as much as you can from the sale of your home, but handling the negotiations to make this happen can be daunting. Without a professional real estate agent to help you navigate this step, you’ll need to do all the haggling yourself when it comes to both the final price and all of the other terms and conditions associated with the deal.

In New York, it’s customary for homebuyers and sellers to each hire their own attorney, both to protect their interests and to oversee the closing process. But even when it isn’t required, it’s smart for FSBO sellers to have a lawyer look over the transaction’s contract and other paperwork to make sure everything is in order.

Required disclosures for New York home sellers

There’s a great deal of paperwork that goes along with the home-sale process, and it can be complex. Typically, the agent deals with all this — but if you’re selling a home on your own, you’ll need to understand all the documentation and disclosure requirements yourself.

When selling a home in New York, homeowners are required to provide a signed property condition disclosure statement, which covers the home’s condition including any environmental issues relating to the property, material defects and the details of its mechanical systems. This document must be provided to a buyer or the buyer’s agent, before any binding sale documents have been signed.

In addition, if the property is part of a homeowners association, you’ll have to disclose a variety of info about the HOA’s rules, fee structure and finances.

Pros and cons of selling a house by owner in New York

While taking the FSBO route has its benefits, there are drawbacks that you should also consider before going it alone.

Pros

  • No listing agent commission: The commission a seller pays their listing agent is not an insignificant amount of money. It’s typically between 2.5 to 3 percent of a home’s sale price — in New York, where the median sale price in June was $573,300, a 2.5 percent commission would mean paying an agent more than $14,000.
  • Total control: When you sell a home on your own, you’re in charge. That means you make all the decisions, from how much to list your home for to when you hold showings. You have final authority over every step.
  • More streamlined process: When working with a Realtor, there’s a lot of juggling and coordinating of schedules. Realtors typically have multiple clients, so it’s not likely that you’ll be their sole focus.

Cons

  • More work: From creating the listing to marketing your property, hosting showings and negotiating a deal, selling a home on your own is a time-consuming effort.
  • No professional guidance: A Realtor brings a great deal of expertise and market knowledge to the entire home-sale process. Without a pro by your side, the process can be challenging — and a mistake can have serious consequences.
  • Potentially reduced profits: Agents are skilled negotiators, and not having one by your side may mean not making as much money on your sale. National Association of Realtors data shows that FSBO homes often sell for less than homes that are sold with the assistance of an agent.

FAQs

  • Yes. New York home sellers must pay the state’s transfer taxes, which cover transferring ownership to the buyer. The tax rate is $2 for each $500 of the home’s sale price (so, for a $500,000 home, the transfer tax would be $2,000). For homes that sell for $1 million or more, an additional tax applies, and additional taxes may apply within New York City as well. If a significant profit is made on the sale, there could be federal capital gains taxes to pay too.
  • In New York, it is typical for both homebuyers and home sellers to retain a real estate attorney. It’s especially important for FSBO sellers, who don’t have a Realtor’s guidance, to ensure that their sale is legally sound and their interests are protected.