HOME FOR SALE BY OWNER (FSBO)
Are you thinking of selling your own home? Before you take the first step, it is important that you thoroughly research all that is entailed and evaluate honestly whether or not selling your own home is something you are truly comfortable doing. Keep in mind that real estate agents go through extensive training and education, and have many resources at their disposal. If you do decide to sell your own home, be sure to educate yourself as thoroughly as possible about the selling process.
The industry report found below titled, “For Sale by Owner: How to Sell Your House Yourself” can help guide you in the process of selling your own home. It discusses key concerns including: how to price your home, how to prepare your home for sale, and how to negotiate with potential buyers. Concluding this report is a special section which will help you determine if selling your home yourself will provide you a desirable net gain.
Ask someone who has, or has attempted, to sell their home without the assistance of a real estate agent and he or she will likely admit how challenging the process was. They might also tell you how many real estate agents phoned, offering their services. Though selling your home has the benefit of keeping what would be a commission in your pocket, it also has the disadvantage of being a tiresome and involved process. Indeed, real estate agents have a wealth of knowledge and experience that may not be at your disposable.
To succeed at selling your own home, you must be well informed and prepared. If you fail to acquire the necessary skills and knowledge, your home might not sell in a timely manner. Indeed, you may fail to attract qualified buyers. However, the task is not impossible – it is possible to successfully sell your own home.
This industry report can help you be a success story. These points will help you learn how to sell your home quickly, and for its fair market value. Importantly, you should consider these tips before deciding whether or not selling your own home is right for you.
FOR SALE BY OWNER
- List at the right price.
Asking the right price for your home is an essential aspect of a quick and favourable sale. Setting the price too high or too low can be a costly mistake. Importantly, the value of your home is set by the market, and not your personal opinion as to its worth. To set the correct price, objectively compare the features of your home: its size, condition etc., to homes in your area that are currently for sale or have already sold. In addition to researching what price to select, also consider the terms that may be attached to potential sales. Terms can be as important as sale price. Be sure to budget what it will cost you to sell your home and prepare a net proceeds sheet to determine an estimate of the proceeds you will receive from the sale. A potential buyer may want the same kind of analysis conducted reflecting the costs of buying your home.
- Make sure that your home is prepared for sale.
A buyer’s first impression of your home is critical. Thus, be sure your home makes a great first impression. Enter your home with the objective eyes a potential buyer will view it with, and inspect all aspects. Pay attention to needed repairs because your buyer will likely notice them immediately. You must ensure your home exceeds the competition.
- Be prepared with the necessary legal documents.
The sale of a home requires many legal contracts and documents which will be your responsibility to gather, complete, and ultimately understand. Below is a partial list of what forms you will need:
- Seller Disclosure
- Mortgage Payoff
- Deposit Receipt
- Buyer’s Cost Sheet
- Personal Property
- Property Survey/Plot Plan
- Purchase Contract
- Loan Application
- Property Profile Fact Sheet
- Closing & Settlement
- Exclusion List
- Sellers Statement of Representation
Putting a “for sale” sign on your lawn is only a first step for marketing your property. Local buyers may be attracted by an advertisement placed in a newspaper. Buyers looking for a house through their realtor may only be reached via that agent. Contact the best agents in your area to find out if your home may suit one of their clients. Remember to also target potential buyers who may be relocating to your city or town. Be sure to provide a high level of service to potential buyers by answering the phone and returning messages promptly, and be prepared to make viewing your home as convenient for them as possible.
During a showing of your home, try not to upstage your home and remain in the background. Do not let your emotions guide your comments. However, if a buyer does point out a flaw, be sure to also point out many of the positive features of your home.
You will only waste your time showing your home to people who are unable to afford it, so make sure potential buyers have been pre-qualified for a mortgage. It is suggested you research their financial ability such as finding out about their employment, debt load, liabilities, and credit score.
The negotiation process will address more than simply the sale price of your home. You will have to consider terms, inspections, the possession date and also any buyer objections or concerns. Be sure to completely understand the contract, as you may have to explain aspects of it to your buyer, as well as making any necessary amendments. The contract should be reviewed by a real estate lawyer, although some real estate brokers may also be willing to help you. During the negotiation process, be sure to keep your buyer’s interest piqued.
During the negotiation, ensure that you are in control of both the pace and the length of the process. To help meet this objective, try to uncover what has motivated your potential buyer to purchase your home. Specifically try to find out if the buyer must move quickly or not and also whether he or she can afford your asking price. The more information you have at your disposal, the greater advantage you will have.
It is a fact that a home that is vacant can be much more difficult to sell than one that still contains furnishings and a neutral decor. Though it is also suggested to de-personalize your home, a home devoid of contents looks forgotten, unloved, and generally un-enticing. Even if a buyer finds your empty home attractive, you may lose money on the sale. Indeed, an empty home suggests the need for a quick sale, which – particularly if true – gives the potential buyer an advantage during the negotiation process.
While striving to understand your buyer, don’t forget to understand your own motivations as well. Your reason for selling will determine everything about the sale, from what price you list it at to how much money you are willing to invest in preparing your home for sale. Once you are clear about your motivation, you can determine whether the price or duration of the sale is more important. Different strategies can produce markedly different results. Whatever your motivation is be sure to keep it to yourself. If you are pressed for details, simply tell you prospective buyer that you now have different housing needs.
Given that you are considering selling without an agent, a cost saving endeavour, price is likely important to you. If so, please take a look at the points below concerning the net gain of selling your own home.
WILL SELLING YOUR HOUSE YOURSELF PROVIDE A DESIRABLE NET GAIN?
A Few Points to Remember:
- Your buyer will likely use a real estate agent as the seller pays the agent’s fees.
- Buyers, investors, and speculators who search for homes for sale by owners are often bargain hunters and will offer a price much lower because your home is being sold by yourself.
Consider These Points to Decide: is Your Net Gain Worthwhile?
- Be prepared and do your homework.
You must be knowledgeable about marketing strategies, negotiations, evaluations, home showing, and also all legal concerns.
- Figure out: what will selling your home cost you?
Research what it will cost you to effectively market your home. You will be responsible for everything from a for sale sign to the necessary contracts.
- Subtract points 1 & 2 from the price offered.
Is your net price, the sale price minus the cost of preparation, marketing, etc., equal to or higher than the net price an agent could get on your behalf?
If you are uncertain about whether you want to sell your home yourself or hire a real estate agent, please do not hesitate to contact me. Let me explain the benefits of working with an agent like myself, versus the benefits of selling your home yourself. The better informed you are, the better decision you can make.