Homes for sale by owner? Indeed. Here are some tips to make it easier on yourself as a home owner who wants to sell your property without a real estate agent.
While the highest percentage of homes are sold through real estate agents, if your home is so desirable to buyers, why not just sell it yourself and you keep the commission – or at the least split it with the lucky buyer so that you both benefit? You benefit with more cash in your pocket after it’s all over and the buyer gets to move into your home at a lower price. That’s win / win.
So the question becomes – why not sell your house yourself, and if it so easy then why is it not even more popular?
The simple answers to the questions are that it is not as easy as you might think to sell your house on your own. For many people the whole idea is daunting and altogether too big so it’s a task they will gladly pay someone else to do.
WHEN IS THE BEST TIME TO SELL YOUR HOME
In order to sell your house promptly there are a number of planning and marketing steps. So let’s talk about getting prepared to sell your house. Timing is one thing.
Although some people are house shopping throughout the year, often buying is fueled at peak times.
A primary market for houses is families. Kids have to attend school. Usually parents dont want to disrupt their children’s school year or have to drive the kids back and forth across town to the old school for a portion of the year.
That’s why the two big times for home sales are spring and fall as the school year ends and before the fall start of the next school year. Many of the other homes that are bought and sold are flow-on from the initial sales of the owners of this first group. So the major home sales time of the year is more restricted than you might think.
You can add to that climate concerns for the evaluation of foundations and yards, and then there is the fact that many people do not want to move at certain times of the year (for example, the Christmas season) and you will come to the conclusion that adequate preparation of your home for sale for those peak time periods is essential for a fast sale and good sale price.
PRICING YOUR HOME
First of all you have to price your home properly and competitively.
One of main problems of private sales is a lack of realism on the part of private home sellers. It’s not hard to understand why. It’s human nature. It’s not that the private home seller intends to be unrealistic.
Typically a home owner thinks their property is in great condition and of course it’s in a attractive location and yes, it has a better layout or some lovely features that other homes don’t have, so they hike the hoped-for price up to an unrealistic level that is out of harmony with the real market.
The simple solution to this problem is to have your house professionally appraised by a home appraiser. If you are still not sure you can always pay for another valuation. Either way you will be still far ahead of the game.
Some folks have used actual real estate published data, information from their local city, or even asked realtors for their input and expertise as well.
PRESENT YOUR HOME JUST LIKE A PROFESSIONAL SELLER WOULD
Act as if you were a professional real estate agent selling your home. Make it the most presentable you can.
First impressions are everything. Get rid of a lot of the personal clutter that homes are typically filled with. Clean the house thoroughly. Mow the lawns and cut the edges and tidy the front and back yards up to be their best. Complete those minor repairs around the house that you have been meaning to do.
ADVERTISE YOUR HOME ON THE INTERNET
When making major purchases these days, such as buying a home, most people use the Internet. So be sure that your home is listed on the internet with a nice snapshot and complete correct details. The worldwide web is a great way to make sure that it is extensively known that your “home for sale by owner” is available.
BE AVAILABLE AND RESPOND TO PROSPECTIVE BUYERS QUICKLY
Ensure that the phone number or email is correct and is answered promptly. If you and your spouse work most of the day, either have an answering machine, a cell phone or both. Accessibility on the spot is most important.
Be prepared to show your home promptly within a reasonable time frame and at times of day that is convenient for your prospective purchasers.
HAVE THE LEGAL PAPERWORK READY
Be sure that you have the legal paperwork available to close the home sale promptly. This involves having at least two copies of the sales contract available. One for your records, the other for the purchaser.
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1. Price It Right. Not Too High, Not Too Low.
Correctly setting your asking price is critical. Setting a price that is above the market level can be just as costly as going too low.
Home prices are the result of variations in the marketplace, not by your emotional connection or by what you consider your home is worth.
In order to establish a realistic price for your home, without bias compare the price, features and condition of all similar properties in both your neighbourhood and other comparable ones, which have sold over the past few months. You can do this by reviewing your local, regional or national real estate listings.
It is also important for you to be au fait with the terms of each prospective sale. Terms are often as central as price in today’s marketplace.
2. Make A Great First Impression With The Presentation Of Your Home.
The original impression is vital. Keep your home clean. Take care your home makes a positive first impression by thoroughly inspecting all details and viewing it through the independent eyes of a buyer.
Don’t disregard needed repairs because your prospective buyers certainly won’t.
Your mission is to make certain that your home stands out favourably from the competition.
3. Be Ready With All The Necessary Legal Documents.
Surprisingly it’s quite easy and you can do it yourself. You should get all the pertinent papers together but all you really need is an “Offer to Purchase” document in which you and the prospective buyer confirm the price and conditions. You both sign the agreement and to complete and close the sale.
Some legal forms that you may well need include: Real Property Report, Property Profile Fact Sheet, Seller Disclosure, Seller’s Statement of Representation, Personal Property Exclusion List, Purchase and Sale Contract, Deposit Receipt, Mortgage Verification, Loan Application, Buyer’s Cost Sheet, Closing and Settlement. Your lawyer will handle most of these.
4. Have A Plan To Market Your Home Effectively.
List your home on the internet with a site such as GoByOwners.com where home owners can list their home for sale AT NO COST.
Also you should locate other strategies to spread the word about your home.
Local buyers can be reached through the newspaper. Be sure you also reach out to many buyers who could already be working with a realtor.
You may want to cooperate with a realtor and offer them one or two thousand dollars if they bring you a buyer. If you decide to sign a contract with a realtor (they may tell you they have genuine buyers), make sure you get an unconditional release clause written into the agreement.
Once it’s listed there, you can print information sheets about your home from the GoByOwners.com site.
Be very flexible and service-oriented towards pre-qualified buyers. Make it easy for them to view your home at a time that suits them.
Ensure there is always someone suitable available to pick up the phone. Collect your messages often during the sale time and respond to them quickly. Then be prepared to give qualified prospects a tour of your home as soon as possible.
Talking about the phone, you probably don’t want your 5 year old (or your babysitter) answering the phone and turning a genuine prospect off.
5. Remain Professional and Objective During Home Inspections.
Don’t let your personal attachment or sentiment get in the way of successfully selling your family home. The best way to do this during a home inspection is to remain physically in the background, out of the way. A prospective buyer might say something negative about your home, such as “it’s smaller than I expected, or the carpet is a bit tatty, or we’d have to change those curtains, etc”). When they do, instead of getting hurt and defensive, it is better to point out the positives of your home. Just like a professional real estate agent would do.
Home Sale By Owners
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When you are selling your home, you can either go the conventional route and pay a real estate agent around 6percent in commission, or you can join the growing do-it-yourself trend. “Homes for sale by owner” or FSBO (that’s just “sale by owner”, of course) is where private houses are put on the market and promoted without using the assistance of a real estate agent.
More and more Americans are choosing the FSBO alternative, according to figures. Perhaps you know somebody who has sold their home this way. Certainly, there is more work involved but take into account the massive savings available by doing the job yourself.
A quick trip around your calculator will confirm a $6,000 savings on a $100,000 house which escalates to a saving of $24,000 on a $400K house. Even if you share a little of that with the buyer by way of a reduction at the last minute to seal the deal, you come out ahead – and so does the buyer.
MARKETING YOUR HOME BY YOURSELF
When it comes to advertising your home, the ad you write is decidedly important as a first point of connection with your potential home buyers. You have to hook their attention. You have to stand out above the bunch of competing home sellers.
Here are some handy hints to help you create effective ads, even if you’ve never written an commercial before.
1. Write A Short Catchy Headline To Your Ad.
Be confident. Tell them the top feature of the house, but keep it to the point.
2. Add in 2-3 Other Convincing aspects Of The Home.
Also tell buyers there are other great features about this particular house but you just don’t have opportunity detail them all in the ad. This creates a sense of curiosity.
3. Offer An Incentive.
Maybe a free $200 gas card or store gift card if they sign the documents before a certain date. Relatively inexpensive, but this little extra can sometimes swing the deal.
4. State The Price And Mention “Already Reduced”.
If you set the “already reduced” price a little higher than you want, you still have room to reduce it while making the target amount you want from the sale.
5. Include Your Live Contact Information.
If it’s your cell phone number, keep the phone on all day. When they call, be ready to mention recent updates, your just-reduced pricing, and the incentive you’re offering. Remind them it’s realistically priced because you did your market research before placing your home on the market. And tell them why you love the home. Help them fall in love with it, in other words.
If you use a website contact form, offer some free information such as a property brochure, an inspection report or an appraisal as an extra reason for them to enter their contact details.
FREE LISTINGS
Home owners with a “home for sale by owner” property can list their home at www.GoByOwners.com at no cost, or get their home featured at the site for a small fee.
Homes For Sale By Owner – www.GoByOwners.com
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