In today’s challenging housing market, New England home sellers are looking for ways to make every proceed penny count. You may even be researching how to sell a house by owner in Rhode Island.

Taking a “for sale by owner” (FSBO) strategy might seem like a good way to save on real estate agent commissions, but is it the best option for your situation? Many sellers find the process — from pricing to paperwork — overwhelming. For these and other reasons, FSBO sales hit a historical low in 2024, with only 6% of sellers taking the DIY route.

However, for some, the task is part of an exciting adventure. In this guide, we will break down how to sell a house by owner in Rhode Island, the challenges you might face, and alternatives that could maximize your sale.

Why sell a house by owner in Rhode Island?

For some homeowners in Rhode Island, selling FSBO offers the appeal of savings and control. By bypassing a Realtor, you might reduce the fees involved in selling a home, but it’s important to understand how recent changes in the real estate industry could impact those savings.

Pros of selling a house by owner

• You could save up to 3% on listing agent fees.
• You can take full control of the sale process.
• You can communicate directly with buyers, avoiding delays.

Cons of selling a house by owner

• FSBO homes typically sell for less money. (More on this below.)
• If you don’t have a buyer lined up, FSBO sales may take longer.
• Managing negotiations, showings, and legal paperwork is time-consuming and complex.
• Without experienced support, you might accept a poor deal.
• Accurately pricing your home is challenging and risky if set poorly.
• Marketing your property requires significant time and financial investment.
• You may face safety risks when showing your home to unvetted buyers.
• Legal liabilities can arise if you fail to comply with Rhode Island’s seller disclosure laws.

Consider the proceeds tradeoff

Selling FSBO can be rewarding for some, but it comes with significant hurdles that often outweigh the potential savings.

For example, while FSBO sellers might initially save on agent fees, research shows they often leave significant money on the table. According to the National Association of Realtors (NAR), FSBO homes sold for a median of $380,000 last year compared to the median selling price of all homes, which was $435,000. That’s a potential loss of $55,000 in proceeds in an effort to save about $11,4000 (3%) in commissions.

How to sell a house by owner in Rhode Island

Selling a home by owner in Rhode Island requires you to handle every aspect of the process, from pricing and marketing to legal paperwork. You’ll need to comply with Rhode Island’s real estate laws, such as preparing the necessary seller disclosures and coordinating with title companies to transfer ownership.

In Rhode Island, sellers are required to hire an attorney to close a home sale. Even if this was optional, FSBO transactions often warrant legal guidance to minimize risks and avoid costly mistakes. Real estate attorneys in the state typically charge between $160 and $415 per hour, depending on the complexity of the transaction.

While you might assume pricing your home is the first step in the FSBO process, it’s better to wait until the property is fully prepared. Repairs, upgrades, and cleaning efforts can significantly impact the accuracy of your pricing and the overall success of your sale.

1. Prepare your Rhode Island house for sale

To make your home stand out, you’ll want to prepare it so buyers can see its best features. Start with obvious repairs and then address cosmetic issues, such as chipped paint, scuffed floors, or broken fixtures. Even seemingly minor fixes, like new light switches and drawer knobs, can boost the home’s appeal.

• Declutter and depersonalize: Clear out any unnecessary items and personal belongings to help buyers see themselves living in the home.
• Deep clean: To make the house shine, give it a thorough cleaning. Focus on high-traffic areas, kitchens, and bathrooms. Consider hiring a professional cleaning service.
• Make needed repairs: Fix leaky faucets, broken window screens, door handles and hinges, and replace or repair broken kitchen appliances.
• Increase curb appeal: When a buyer walks up to (and into) a home, their first impression really counts. Spruce up your yard, plant flowers, and give the walls a fresh coat of paint. Consider also painting or replacing the front door to create a more welcoming entry.

2. Set a competitive list price

Pricing your home correctly is one of the most crucial steps to attracting buyers. Too high, and your property may sit on the market for months. Too low, and you risk leaving money on the table.

To set a competitive list price in Rhode Island, consider the following:

• Research nearby home sales: Look at recent closed sales of similar houses in your area (called comps), noting their price, condition, and property features.
• Look at local market conditions: Check whether homes are selling fast or sitting on the market. This will tell you whether prices are going up, remaining stable, or dropping in your housing market.
• Request a value estimate: Use an online tool like HomeLight’s Home Value Estimator to get a ballpark idea of what your home might be worth. This free estimator compares local sales data and transaction records of similar homes to give you a preliminary estimate.

• Pay for a pre-listing appraisal: While this is an optional step, a professional appraisal can give you a much more accurate listing price range. This service usually costs around $300-$450.