How to Sell a House By Owner in South Dakota

Regardless of how Realtor fees play out, buyers’ agents will expect compensation for the work they do to find you a buyer. This can include arranging showings and helping to find and qualify the buyer. In addition, because a FSBO seller doesn’t have an agent, the buyer’s agent could end up carrying more of the workload to get the sale to the closing table.

A FSBO sale does not mean you won’t need professional guidance. In South Dakota, sellers are not required to hire a real estate attorney, but FSBO sales typically warrant legal and professional oversight to avoid risks during the transaction and liabilities down the road.

It’s prudent to hire an attorney to review the purchase contract and prepare all the necessary sale documents, including the Property Condition Disclosure Statement. (We’ll address what disclosures are required when selling a home in South Dakota later in this post.)

Why sell a house by owner in South Dakota?

Why are you choosing to sell your house by owner? According to a recent NAR survey, the top three reasons most U.S. homeowners cite for selling FSBO are:

1. Did not want to pay an agent commission (31%)
2. Sold the house to a relative, friend, or neighbor (36%)
3. The buyers contacted the seller directly (20%)

When considering your reasons for selling solo, weigh commission fees and proceeds carefully. Sales data from NAR reveals that FSBO houses sold last year at a median of $310,000, much lower than the median price of agent-assisted homes, which was $405,000. (Yes, that’s $95,000 less.) If your motive is to save money, selling a house by owner in South Dakota may not be the best choice for you.

So as you can see, selling FSBO can be a mixed bag. Before we share some proven home-selling tips, let’s look at some key advantages and disadvantages of selling a house by owner.

Advantages of selling a house by owner

• Save on listing agent commission fees, typically around 3% of the sale price.
• Full control over the entire home sale process.
• Deal directly with potential buyers without “go-between” communications.

Disadvantages of selling a house by owner

• FSBO homes often sell for lower prices.
• Without a prearranged buyer, FSBO listings can take longer to sell.
• Managing all communications and negotiations yourself can be very time-consuming.
• Lack of expert negotiation support can result in less favorable deals.
• Setting an accurate listing price is challenging and risky.
• Marketing your home requires significant time and effort.
• You will still incur selling costs like transfer taxes and settlement fees, and may face higher seller concessions without an agent in your corner.
• Showing your home to unvetted strangers can be a safety risk.
• Without an agent’s guidance, you might face legal issues related to property disclosures.

Despite these challenges, we’re here to guide you through the FSBO process if you’re determined to sell your South Dakota home without an agent. For some, selling a home FSBO is a rewarding challenge, offering success in more ways than proceeds.

Steps to sell a house by owner

Next, we’ll share a detailed step-by-step list illustrating the entire FSBO process you can expect.

1. Prepare your house for sale

Whether you’re selling with a Realtor or by owner, you’ll want to get your South Dakota home ready before any showings. This is vital to increase your chances of receiving a fair price. According to a recent HomeLight survey of more than 1,000 experienced agents, a well-staged home can sell for up to 13% more than an unstaged home.

Here are some key home preparations to put on your FSBO to-do list.

Indoors

• Declutter everywhere, including floors, shelves, and surfaces.
• Make needed repairs, such as leaky faucets or broken door handles.
• Update with new light fixtures, faucets, or cabinet hardware.
• Refinish worn or scratched hardwood floors.
• Repaint overly bold or dingy walls with neutral colors.
• Reduce furniture in crowded rooms, possibly using a storage unit.
• Stage the home with touches like fresh flowers or a basket of produce.
• Use rugs to strategically define living spaces.
• Deep clean the entire house until it shines.
• Open blinds or drapes to enhance natural lighting and highlight views. Replace dim, blown, or missing bulbs with bright ones.
• Create a dedicated space or room for an in-home office to attract remote workers.

Outdoors

HomeLight data shows that buyers typically pay 7% more for a home with great curb appeal.

• Mow the lawn and remove weeds.
• Apply fresh mulch generously.
• Enhance landscaping with a new walkway, flowerbed, or shrubs.
• Repaint the exterior if needed.
• Install a new garage door if the current one is old or broken.
• Repair any storm damage, like loose shingles or gutter issues.
• Clean and power wash decks and patio areas.
• Ensure the HVAC system is well-maintained for South Dakota’s harsh winters.

2. Do the right research to set your listing price

Setting the listing price is perhaps the most critical moment in the FSBO process. You don’t want to leave money on the table, yet you want to encourage healthy buyer activity on your listing.

If you were using a Realtor, the listing agent would conduct a comparative market analysis (CMA). This is a detailed report of nearby comparable properties, known in the industry as “comps.” The agent would research similar homes that have recently sold or are pending sale. In some cases, they might even compare homes that were pulled off the market without a sale.

In a HomeLight survey, 28% of agents said the most common mistake sellers are making is overpricing their property. A professional CMA from an experienced agent can help you avoid this misstep. However, with a little time and effort, a FSBO seller can find their own comps and set a competitive price.

Conduct your own “CMA Lite”

If you’re willing to roll up your sleeves and do some homework, we’ll show you how you can do a simplified CMA, or what could be called a “CMA Lite.”

Start with an online value estimate

Get online and locate a few reputable property value estimators to check your home’s value. HomeLight’s Home Value Estimator uses publicly available data such as tax records and assessments, your home’s last sale price, and recent sales records for other nearby homes.

We also include an additional layer of property information to our estimates using a short questionnaire. Simply tell us some details about your South Dakota home, such as:

• How much work does it need?
• What type of home is it (single-family, condo, townhouse, or other)?
• Roughly when was your house built?
• Are you planning to sell soon?

Using these insights, we’ll provide you with a preliminary estimate of home value in under two minutes.

Whether you use HomeLight’s home value estimate or other estimators (Zillow, Realtor, Redfin, Chase), think of any online home pricing tool as an initial step — and recognize that the data used in these tech-driven tools may be limited.

Narrowly filter your search for comps

When you’re ready to find your own comps, we recommend you choose a proven home listing site like Zillow. You’ll want to filter your searches to the area very near your house (within blocks if possible) and with similar characteristics. If you’re not finding good comps, expand the site’s search map.

You’ll also want to filter results by details like:

• Listing status (look at recently sold, pending, and active)
• Number of bedrooms
• Number of bathrooms
• Square footage
• Home type (single-family, condo, etc.)

Beyond the above criteria, the more houses you find with floor plans and an age similar to yours, the better.

Use a site like Zillow to collect your data

As an example, let’s take a look at how to filter your search for comps on Zillow.

• Navigate to Zillow.
• Type in your South Dakota address. If a pop-up with your home’s specs appears, close it with the “X” on the top right (or sometimes you must click “Back to search” on the top left).
• Filter by “sold.” Yellow dots should appear on the map surrounding your house, and you will see all the recently sold homes on the right.

• Now, filter by the number of bedrooms and bathrooms and check the box “Use exact match.”

• Next, filter by home type.

• Next, select the “More” box. Here you can specify square footage, lot size, year built, and — crucially — the “sold in last” (time period) category.

• While still in the “More” filter box, scroll down and select to view houses that sold in the last 30 days. If you find there are not many results in your area, try expanding to 90 days. However, the further back you go, the less relevant the comps.
• If necessary, click the plus or minus buttons to widen the search area.
• Once you’ve collected data for sold houses, revise or restart the search to view active and pending listings, as well.

Invest in a home appraisal

If you want to further reduce guesswork about how to price your South Dakota home, consider paying an appraiser to provide a professional opinion of value for your home. An appraiser will combine recent property data, research of the surrounding market, and information collected from a walkthrough of your home to determine an appraised value.

For a single-family home, a professional appraisal will likely cost between $300 and $550 — well worth the money to avoid potentially over- or underpricing your property by thousands.

Make sense of your comp research

Compare your South Dakota home’s features against the nearby comps you collected. If you’ve been successful, the houses you studied will give an indication of an appropriate price range for your home.

From there, you can make dollar adjustments based on characteristics that add value (e.g., a covered patio, home office, energy-efficient appliances, an extra bedroom) versus detracting from it (e.g., a loud or overly busy street, deferred maintenance, less overall square footage). A fenced backyard, deck, or rec room are some of the most valuable home features in South Dakota.

Consider the differences and similarities of your comps with the appraised value of your home to pick a listing price that will encourage activity. Keep in mind that if it’s too high, it may feel out of reach to many buyers struggling with high interest rates. But you also want to maximize your proceeds. This is a tricky balancing act for most FSBO buyers.

3. Photograph your home

The quality of your listing photos can be powerful, either drawing in buyers for showings or pushing them away.

To give your listing an extra edge, consider hiring an experienced real estate photographer. While they may charge as much as $160 to $200 an hour, the ROI can easily prove exceptional. Ask your photographer about including a video tour in their quote.

But if you do go the DIY route, make sure to:

• Use a good camera with a wide-angle lens.
• Pay attention to lighting.
• Include a photo of every room.
• Take multiple pictures of living areas, kitchens, and bathrooms.
• Try shooting different angles.

Review our guide on how to take quality real estate photos for further guidance.

4. Create a compelling listing with details

Along with magnetic photos, craft an informative and compelling listing. Leverage both the listing description field (a paragraph or two highlighting key features) and the property details field to tell buyers all about your home and what makes it desirable.

Tell a story with your description

Draw in potential buyers with a powerful listing description that tells a story about your South Dakota house, including details like:

• Your home’s most unique and desirable features, like a breakfast nook or sunroom
• Recent upgrades like a kitchen or bathroom remodel, new roof, or HVAC system
• High-end appliances, materials, or finishes
• Outdoor features like a pool or patio
• Neighborhood features and amenities
• Nearby parks, walking trails, restaurants, and attractions
• Highlights in larger areas (Sioux Falls or Rapid City), such as the best restaurants, sporting venues, historic sites, museums, or other cultural opportunities.

Your home’s listing description is a chance to describe what a photo may not be able to show. Be certain to also write an attention-grabbing headline. The main listing photo and headline are often your first shot at curb appeal.

Include lots of property details

Aside from writing the description, you may be prompted to enter information like:

• Age of the home
• Square footage
• Architectural style (i.e., split-level, rancher, craftsman)
• Appliances included
• Exterior building materials
• Flooring types
• HOA fees
• School zone information
• Lot size

Real estate agents and potential buyers will read the “fine print” on your listing, so it’s important to include accurate details — and plenty of them.

5. List your home online

It’s finally time to post your South Dakota home online. While you can create FSBO listings for free on popular search sites, you’d have to painstakingly post site by site, and your listing wouldn’t reach the majority of buyers and agents.

To give your home the most buyer exposure, pay to have it included on your local multiple listing service (MLS). This is an industry platform agents use to share properties with one another. But more importantly, posting on the MLS will feed your listing to buyers’ agent databases and to common real estate search websites most buyers use.

Only licensed South Dakota real estate agents and brokers who are MLS members can post to the local MLS. As a sell-by-owner seller, you have two options to gain access: paying an agent to post for you or using a FSBO platform online.

Pay an agent to list your FSBO house on the MLS

A local agent may be willing to list your house on the MLS for a flat fee, without any other involvement in your home sale transaction. If you decide to go this route, ask whether the fee includes updating your listing if necessary.

Use a FSBO platform with an MLS option

You can use various paid websites to list your South Dakota house online as “for sale by owner.” These sites offer packages ranging from about $100 to $400 for just a listing, or a larger flat fee of $3,000 to $5,000 that includes any number of additional professional marketing services.

Some of these companies display their rates on their websites, but others won’t quote a fee until you input your address or select an area of the country. A few examples include:

• unrealestate.com
• mlsmyhome.com
• ISoldMyHouse.com
• FSBO.com
• Houwzer
• Houzeo
• Homie Real Estate
• Assist-2-Sell
• Help-U-Sell

It’s important to note that most of these companies serve FSBO sellers throughout the country, which can cause challenges if the representatives you contact don’t fully understand the local market trends in your South Dakota neighborhood.

Whatever option you choose, read the agreement’s fine print carefully. Some FSBO service providers have hidden fees, and others require a percentage of your home sale.

Not willing to pay for the MLS?

If you’re determined to save money by foregoing the MLS, creating a free FSBO listing on Zillow might be your best option. You can post a video and photos, and get wide exposure via Zillow and the Zillow-owned website, Trulia.

6. Market your home

Now it’s time to spread the word about your South Dakota home.

Experienced real estate agents know that posting a home on the MLS is just the beginning of the marketing phase. A successful home sale requires a carefully crafted marketing plan to reach the right buyers and attract the best offers.

Create a wide-reaching, targeted marketing strategy that combines paid advertising, printed flyers, social media posts, physical yard signs, and open houses. The obvious goal is to reach as many ready-buyers as possible, which will increase your odds of receiving more offers and higher proceeds.

Here are some of the basic steps you can take to market your FSBO home:

Place a professional-looking FSBO sign by the road

Purchase a custom yard sign rather than a cheap, generic one you write on with a Sharpie. You can order a custom sign on a website like Vistaprint that will include your contact information, plus a stand, for as little as $25 plus shipping. Note that some MLS providers in  South Dakota may have rules about whether you can post a FSBO yard sign while your home is on the MLS.

You should also check the laws in your  South Dakota community and your HOA’s rules about posting signs. For example, your town or HOA may limit the size or placement of for-sale or open-house signs.

Share on social media

Share your home across key social media platforms, and ask your friends to share, too. Many South Dakota home shoppers are likely to look at the MLS, Zillow, Facebook, and Instagram, so you want to post on these sites and others that can add to your overall buyer fishing net.

It can also be helpful to follow real estate agent accounts to see their social media strategies to get additional ideas about what works and doesn’t work in your South Dakota market.

Hold an open house

Try these strategies for a successful open house event:

• Share details on Facebook and Nextdoor.
• Update your MLS listing with the open house details (if you’re able to as part of paying the flat fee), or update your DIY FSBO listing.
• Place open-house signs at nearby intersections.
• Tidy up the house before potential buyers come through.
• Pass out info sheets with the address, bullet points about the house, your contact info, and perhaps one photo.
• If you can, collect visitors’ info — then follow up later to ask if they have any questions.

Find more expert tips for how to hold an open house at this link.

7. Manage home showings

If your marketing is successful, your next step will be to show the home to prospective buyers. For many FSBO sellers, this is the busiest part of the home sale process. A big reason some owner-sellers switch to using an agent is that they underestimate the time, effort, and expertise needed to manage this crucial selling step. This is where a seasoned agent can bring a comforting level of added security to the process.

To manage the logistics of showings:

• Respond to inquiries ASAP.
• Set end times if you need to fit many showings in one day. This will also create a sense of demand and urgency for buyers to place offers.
• Remove or secure valuables.
• Make sure the home is clean and tidy for showings.
• Follow up with buyers’ agents after showings to get their feedback.

Should you be present for showings?

If you’d rather not be present for every showing, consider using a lockbox with a code to let buyers’ agents enter your house. This is standard industry practice among agents. However, be certain you’re working with someone legitimate. Use Google or sites like arello.com to check their real estate license number.

With unrepresented buyers, plan to be on the property for the showing. During a showing, we recommend you:

• Point out a few highlights of the house.
• Let buyers look without hovering.
• Be prepared to answer questions.
• Avoid the temptation to tell all; let the house and listing do the talking.

If you can be present during the home showings, keep things organized by setting appointments in a calendar and then follow up with potential buyers afterward. Yes, it’s your home, but try to remain detached and neutral if a potential buyer shares their feedback — good or bad.

8. Evaluate offers, negotiate a deal, and make disclosures

You’ve got your first offer — congratulations! Before signing anything, make sure buyers are prequalified by a mortgage lender before going under contract.

Here are key considerations when considering an offer on your South Dakota home:

• Vet potential buyers by requiring a mortgage pre-approval letter or proof of funds.
• Require everything in writing.
• Remember, you can counter-offer and negotiate.
• Look for a good real estate attorney. (See the next step!)

Property condition disclosure

In South Dakota, home sellers are required by law to complete the state’s Property Condition Disclosure Statement. This form provides potential buyers with information about the condition of the home, including known defects and other facts that could affect property value.

Whether required by law or not, some FSBO sellers may prefer to provide the disclosures before an offer has even been presented so that a prospective buyer is more informed ahead of time and less likely to withdraw from a deal later on.

What will you be asked to disclose? In South Dakota, you can expect to disclose any significant defects or issues you’re aware of concerning the following:

• Structural condition and any known defects
• Roof condition and any known issues
• Plumbing system condition and any known leaks or defects
• Electrical system condition and any known issues
• Heating and cooling systems condition
• Presence of termites, pests, or infestations
• Condition of appliances included in the sale
• Water supply source and any known issues
• Presence of hazardous materials like lead paint, asbestos, or radon
• History of flooding or water damage
• Previous fire or smoke damage
• Any known zoning violations, unrecorded liens, or legal disputes
• Covenants or restrictions affecting the use of the property (or HOA.)
• Environmental hazards or contamination
• Issues with the septic system or sewer connection
• Any known easements, encroachments, or boundary disputes
• Fireplace, wood stove, or chimney flue (and last cleaning date)

If you are in doubt about a problem with the home’s condition, most agents recommend you disclose it. If you know of a significant issue and choose not to disclose it, and that defect is later discovered, you could be held liable for damage or subsequent costs.

9. Close the sale — with professional help

Time to button up that deal.

While some states require that FSBO sellers hire a real estate lawyer to help close their sale, South Dakota does not. However, it’s a good idea to invest in the services of an experienced attorney as you close on what is likely the biggest or most complex financial transaction of your life. By doing so, you’ll minimize your legal and financial risk, plus simplify the process for yourself.

Real estate attorney fees can vary depending on where you live and how much legal assistance you want or need. In South Dakota, they generally range from $150 to $350 per hour — well worth it for professional guidance and protection.

FSBO mistakes to avoid in South Dakota

On your FSBO journey, watch out for these major pitfalls:

• Missing out on the MLS.
• Forgetting or refusing to pay the buyer’s agent commission.
• Over- or under-pricing.
• Letting your house sit on the market too long.
• Not getting enough marketing exposure.
• Being overly fixated on any one detail.
• Not showing your home’s full potential if you don’t declutter and remove personal decor.

Alternatives to selling by owner in South Dakota

If you decide you don’t want the hassle or pressure of a FSBO home sale, you’ve got other options.

Enlist the help of a top-performing agent

If you look at the big picture, the services and price gains you can get with a proven real estate agent may put more money in your pocket than selling by owner. A top-rated agent is also better equipped to help you achieve your selling and moving timelines.

Interested in such expertise? HomeLight can connect you to top-performing agents in your South Dakota market who have built a network of trusted local professionals. Our free tool analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes only two minutes to receive your matches.

Request a cash offer to buy your South Dakota home

If you’d like to skip the sale preparation altogether (and still avoid paying Realtor commissions), you can opt to sell your home as-is to an all-cash buyer instead.

For convenience and peace of mind, consider requesting a cash offer from HomeLight’s Simple Sale platform. Tell us a few details about your South Dakota home, and within 24 hours, we’ll send a no-obligation all-cash offer your way. If you decide to accept the offer, Simple Sale sellers have the ability to close in as little as 10 days.

Without leaving the Simple Sale platform, you’ll also be able to compare your cash offer to an estimation of what your home would sell for on the open market so you can make an informed decision.

Ready to sell your South Dakota home?

Unless you already have a buyer lined up, selling a house by owner in South Dakota requires a significant investment of time and effort. You’ll need to pull your own comps, capture excellent pictures, create a listing, market the house online, field inquiries, host showings, negotiate, and close the deal. And that’s after preparing the house itself.

You also have to consider that FSBO listings tend to sell for less than agent-assisted sales. An experienced agent who knows the area can make recommendations for targeted upgrades to help you maximize your sale price and get a premium offer. This can help to offset or, in some cases, more than make up for the cost of commission — while saving you time and headaches.

If you choose to sell by owner, you should have a good idea now of what to expect from the process. But keep in mind, our internal transaction data at HomeLight shows that the top 5% of real estate agents sell homes for as much as 10% more than average, and we’d be happy to introduce you to some of the best agents in your South Dakota market.

Disclaimer: This post is intended for educational purposes. HomeLight recommends you research your area’s real estate regulations and consult a trusted advisor.

Source: (Roger Starnes Sr / Unsplash)