Choosing how to sell your home is a big decision. In Edmonton and across Alberta, two common routes are listing your home with a realtor and selling directly to a buyer, such as a home buying company. If you have been searching for how to sell a house without a realtor in Edmonton, or you are asking whether to list with a realtor or sell to a buyer, this guide sets the two routes side by side in plain language.

We are not going to tell you one is better. Listing with a realtor is the right choice for many homeowners, and selling directly suits others. A fair note: We Buy Edmonton Houses buys homes directly, so we have an interest in one of these routes. We have tried to describe both fairly, so you can ask better questions and decide what fits your situation.

This article is general education only. It is not legal, tax or financial advice. Please speak with licensed professionals about your own circumstances.

The two routes at a glance

This table gives a quick overview. Details for each row follow in the sections below. Neither column is presented as faster or as bringing a higher price, because that depends on your home, the market and the buyer.

There are other ways to sell without a realtor too, such as selling privately on your own. This article focuses on the two routes above.

What costs are involved on each route?

It helps to compare routes by what you would actually receive after all costs, not by a single headline number. Here is what to ask about.

If you list with a realtor

The Real Estate Council of Alberta (RECA), the provincial regulator, says there is no standard commission for real estate services in Alberta, and that commissions are negotiable. It also says the seller typically agrees to pay commission to their brokerage when the home sells, and that the agreement will state how much of that is shared with the buyer's brokerage.

RECA requires licensees to have a written service agreement with clients for residential sales, and to tell you how they will be paid. RECA also notes that GST applies to brokerage services. Read the agreement closely before you sign, and ask what is included, such as photography, marketing and advertising, and what is billed separately.

Other costs can include repairs or cleaning before the sale, and legal fees.

If you sell directly to a buyer

Ask the buyer in plain terms whether any fees, commissions or deductions apply, and ask to see them in writing. Also ask who pays for the lawyers, title work and other closing costs. If the answers are not clear, ask again. Different buyers handle these costs differently.

On either route

Your lawyer's fees and the costs of paying out your mortgage are likely to be part of the picture, so ask your lawyer and your lender what to expect. If you are wondering how a sale could affect your taxes, an accountant or tax professional is the right person to ask.

How do showings and privacy compare?

Showings are often the part of selling that people feel most strongly about, in both directions.

With a listing, your home is usually marketed to the public. Depending on your plan with your realtor, that can include photos, private showings and open houses. RECA lists hosting open houses among the things a real estate licensee may do. Some owners like the exposure and the chance to meet many buyers. Others find it hard to keep a home show-ready, or to schedule viewings around work, children, pets or tenants.

With a direct sale, you generally deal with one buyer, so fewer people tend to walk through. The buyer may still want to see the home in person or review photos first. Some owners value the privacy. Others miss the wider audience that a public listing can reach.

There is no right answer here. It comes down to how much time, privacy and effort you are comfortable giving. Ask any realtor or buyer exactly what they would need from you, and how often.

How much preparation does each route involve?

With a listing, preparation is often a bigger part of the plan. RECA points sellers to several things to think about before listing: market conditions and timing, pricing strategy, preparing the home, legal and financial considerations, and marketing and negotiation. In practice, that can mean cleaning, decluttering, small repairs, photos and sometimes staging. A realtor can help you decide what is worth doing for your home and what is not.

With a direct sale, the amount of preparation depends on the buyer and on the agreement. Some buyers purchase homes "as-is," which means they agree to take the home in its current condition and you are not agreeing to make repairs. That does not necessarily remove all of a seller's responsibilities, so ask your lawyer what the as-is wording means in your specific contract. It is also worth being open about any known problems with the home.

On either route, your lawyer and realtor can tell you which documents you may need, such as a Real Property Report (a surveyor's drawing showing where the buildings sit on your lot) and your property title information.

What affects certainty on each route?

No sale is certain until a purchase agreement is signed, any conditions are met or waived, and the transaction closes. A condition is a requirement written into the contract, such as a buyer arranging financing or completing an inspection. Until conditions are dealt with, the deal is not final.

With a listing, the outcome depends on the buyer who makes an offer, the conditions attached to it, and how that buyer is financing the purchase. Offers can differ a lot from one buyer to the next, so a realtor can help you compare them on more than price.

With a direct sale, certainty depends on the same things: the buyer's terms, how the purchase is funded, and what conditions are in the agreement. Useful questions include:

• Is the company buying the home itself, or could the contract be passed to someone else?

• How is the purchase being paid for?

• Does the agreement have conditions, and what happens if they are not met?

• Can either side cancel, and under what terms?

You can read more in our guide to how selling to a home buying company works, step by step. Whichever route you choose, a lawyer's review of the agreement before you sign is one of the most useful steps you can take.

Which questions can help you decide?

Before choosing, it can help to ask yourself what matters most to you. There are no wrong answers.

• How comfortable am I with strangers touring my home, and with keeping it show-ready?

• How much time and energy do I have for preparing the home and handling showings?

• What condition is the home in, and am I willing to make repairs?

• How important is it to me to reach as many potential buyers as possible?

• How important is privacy, or a simpler process?

• Do I have a mortgage, co-owners or tenants that affect my options?

• Which costs matter most to me, and have I compared what I would receive on each route after all costs?

Your answers may point you toward one route, or toward getting more information before you decide. Many people speak with a realtor and with a direct buyer, then compare what they hear side by side.

Who should you talk to before you decide?

We encourage you to speak with a realtor and a lawyer, whichever route you lean toward.

A licensed realtor can explain how the market sees your home and what listing would involve. RECA recommends checking that anyone you work with is properly licensed using its free ProCheck tool. Before you hire a brokerage, ask for the service agreement in writing. RECA explains that once you sign one you become a client, which means the licensee must act in your best interests, while a customer receives more limited service.

A real estate lawyer can review any agreement before you sign it, whoever the buyer is. In Alberta, a Transfer of Land must be registered with the Land Titles Office when ownership changes, and lawyers also help with title searches and with reviewing documents.

An accountant or financial professional can answer questions about taxes and how a sale affects your wider finances.

If you would like to talk through how selling directly to a buyer would work for your home, you are welcome to contact We Buy Edmonton Houses. We serve the Edmonton area, and a conversation does not obligate you to anything.

This article is general information only. It is not legal, tax or financial advice, and laws and practices can change. Please consult a licensed professional about your own situation.

Sources

• Selling a Home, Real Estate Council of Alberta

• Real Estate 101: What You Need to Know as a Consumer, Real Estate Council of Alberta

• Real estate commissions and fees, Real Estate Council of Alberta

• Can You Buy a Home Without a Lawyer in Alberta?, LawNow Magazine, Centre for Public Legal Education Alberta