Many people prefer trying to sell their home by themselves as a way of cutting out the heavy realtor fees. It is possible to successfully, sell your home without an agent, but in most cases, it takes a little extra effort and expertise. A great way to determine the value of your home is by researching all homes sold in your neighborhood over the past six months including ones currently on the market.
To do this, you can check the public records at your City Hall or, if you plan to sell your home in the future, start keeping a log based on newspaper advertisements, listings in real estate books or on their bulletin boards, or on line through MLS listings with Realtor.com or similar websites. Records with the National Association of Realtors show that almost two-thirds of people surveyed selling their own home say they would never do it again. The main reasons given included setting the asking price, liability concerns, marketing/advertising handicaps, and the time invested.
However, if you choose to sell your own home, you can still talk to realtors for advice. In addition, the Internet offers hundreds of websites with do-it-yourself information for pricing your home, paperwork, appraisals, contracts, etc. Once you have set your price and started advertisement including the “For Sale by Owner” sign posted in your yard, you will start getting phone calls. Unfortunately, most of the calls you will receive will not come from potential buyers, but from real estate agents trying to get your business. They know that if you sell your home, they lose thousands of dollars in fees and therefore, will sell hard to get you to list with them.
The first and probably most important thing you need to do is ensure your property is ready for sale. If things are not in tip-top shape, you will not attract serious buyers and your home could sit on the market for a long time. It is usually at this point when sellers get frustrated and turn to listing with an agent. To have the best opportunity for selling your home, here are some proven tips to help you:
Preparation
Again, this is probably the most important aspect of selling your home. First impressions do count so make sure that your home makes a positive statement. Try to look at your home through the eyes of a buyer and see what they would see. If there is something that needs to be fixed, take the time to have it done right. In the end, you will be glad you did.
Right price
This is critical whether selling on your own or with a real estate agent. Pricing your home appropriately is serious business and is based on the current market value, not what you think the house should be worth due to all the time and effort you have put into making it a great home. You will need to detach your emotions. You will need to budget your selling costs and then prepare a list of your net proceeds to get to your best estimate of what you need out of the house. In addition, potential buyers may also want this kind of analysis of buying costs.
Legal Documentation
Selling your home will require several forms of legal documentation to include the contract, which you are responsible for assembling, completing, and most importantly, understanding. Other documents needed might include:
Mortgage Payoff
Loan Application
Deposit receive
Buyer’s Cost Sheet
Property Fact Sheet
Personal Property
Closing and Settlement
Property Survey
Exclusion List
Seller’s Statement and/or Plot Plan of Representation
Appraisal
Effective Marketing
Once the price is determined, next comes the important step of getting word out to the public that your home is for sale. Marketing and advertising need to be strong and effectively say why your home is better than any other is.
Okay, you have the sign in your front yard but that will not do it. Place ads in your local paper as well as small community papers. Post signs on bulletin boards in real estate offices or in stores. Advertise on the Internet through Realtor.com or similar websites. Have several Open Houses, and most importantly, tell everyone. Word of mouth has always been and will continue to be the most effective way to market.
Stay Optimistic
As potential buyers come through to look at your home, since you are the “agent”, you will obviously need to be there. However, it is important that while you show your home, you also allow the buyers to look around without feeling as if you are looking over their shoulder all the time. If there is something they do not particularly like about your home, they may want to talk about it but because it is your home, if you are close by all the time they may not feel they can adequately discuss any issues. When you get the chance, point out the positive things or extra amenities your home has. On the other side, be sure they know about any issues too to keep you out of legal trouble.
Pre-qualification
Rather than spending time on entertaining buyers who cannot even afford to purchase your home, make sure you research their financial security with respect to employment and credit.
Negotiations
Before a sale can be considered as final, there are numerous details to resolve such as price, inspections, terms, buyer concerns, possession date, and any objections. You need to fully understand the contract – if you do not, contact an attorney to help you with this piece of the process. It is important for you to control the pace and duration of the negotiations. You should try to determine what your buyer’s motivation is and how quickly they need to move.
Many people are successful in selling their own home. Just accept the fact that you need to be well prepared and expect that it might take a little longer than it would by using an agent, although certainly not impossible.