For Sale by Owner… Selling your own home
Some homeowners try and sell their own home rather than use the services of a professional Realtor®. Usually this is done in an effort to save money. Factors such as market time, concessions, and negotiated sales price often cause a homeowner selling their own home to leave money on the table and therefore, these factors must be considered to maximize your money and minimize your market time. Use the tips below should you choose to sell your home yourself.
Know the details of your property!
You need to have on hand and become very familiar and comfortable with your property taxes, local tax rate, zoning, lot size/acreage, square footage, materials used in your home, its age, well and septic vs. city water and sewer, the terms of your mortgage loan, etc.
Know your property laws and current market!
Many sellers do not know that they are required to disclose (openly talk about) certain pertinent facts about their home or suffer legal action against them. The responsibility does not end when the property is sold but continues into the future indefinitely! You need to learn the property disclosure laws in your area. Also, know how much properties similar to yours are selling for and what the terms of those sales are.
Set your price and the financing options you wish to offer!
Once you have done the above homework, set your realistic price. And, should you choose, determine any financing options you wish to offer after speaking with your mortgage banker; this will prepare you to respond to questions about financing you are likely to receive from prospective buyers.
Walk in and around your property… with a buyer’s eye!
Look at your home from the perspective of a buyer, home inspector, and appraiser. Repair or replace all things that need to be repaired or replaced. Never attempt to cover up an existing problem with paint, carpet, or furniture-this is the type of thing you are likely to still be liable for AFTER closing!
Aesthetic Improvements:
Help improve the way your home looks to a buyer by:
- Applying fresh paint
- Keeping the yard well groomed
- Remove excessive clutter and personal photos particularly from countertops and large groupings of photos nailed to walls
Set your marketing budget!
Selling a home costs money-decide before you start how much you are willing to spend before hiring a professional Realtor® or rethinking your moving plans. Some expenses you will encounter are print advertising fees, signs, internet advertising fees, and paying a Realtor® who brings you your buyer. If you hire a Realtor®, he or she design, plan, coordinate, and pay for the marketing of your home.
Determine your marketing plan.
Now that you know what advertising costs, create a reasonable plan, within your budget, to reach prospective buyers. Don’t forget that you need to reach both local and out-of-town buyers!
Plan your schedule around showings!
You’ve made all sorts of plans, done a ton of homework already and now it’s time to make yourself available to the schedule of prospective buyers! If a buyer can’t get in to see your home…they won’t buy it. Make sure you have free time to schedule appointments at the prospective buyer's convenience, as well as for any open houses that you hold. If you work with a Realtor®, he or she will take care of showings and open houses on your behalf.
Negotiate the offer!
Buyers expect you to negotiate. Don’t be offended by low offers but also, don’t give away the farm! Leave your emotions out and make it simply a business transaction especially if you are eager to sell.
Put together your documents and contract packet.
In addition to the Offer to Purchase, there are many additional documents, forms, and disclosures the seller is required to provide the buyer. Review the contract carefully to determine when these documents are due and what the buyer's rights are once they receive the document. The content of these documents are controlled by state or federal law and must be adhered to in their entirety! When using the services of a Realtor®, he or she provides all of these forms to the buyer or his/her Realtor® and you, therefore, avoid legal responsibility for this critical step in the process.