Selling Your Own Home – 7 Proven Steps for Success
- Is FSBO Right For You?
- Correctly Price Your Property
- Create the Listing for Selling Your Own Home
- Don’t Be Emotional
- Negotiate The Price
- Hire A Real Estate Attorney
- Consider an i-Buyer
- Is FSBO Right For You?
- Correctly Price Your Property
- Create the Listing for Selling Your Own Home
- Don’t Be Emotional
- Negotiate The Price
- Hire A Real Estate Attorney
- Consider an i-Buyer
- LET’S KEEP IN TOUCH!
Selling your own home without an agent can save you thousands, but you could lose money if you don’t do it correctly. We’ll discuss 7 proven steps to help you do it correctly.
If you are looking to increase gains on a home sale, an enticing choice is to post a “for sale by owner” sign in the yard. Usually, real estate brokers take 5 to 6 percent of the sale price, which may mean as much as $12,000 in commissions on the sale of $200,000 homes. The commission could result in a slightly higher percentage of the sales being lost to broker fees, given that many sellers already have a mortgage.
You need to do it the correct way, regardless of whether you want to sell your own home to walk away with more money or maintain more leverage over the sales process. To optimize the selling price and minimize any headaches, that can mean spending a little extra money upfront. To make selling
your own home on your own a success, here are eight things you should do:
Is FSBO Right For You?
The very first step to selling your own home successfully is to determine if you are up to the challenge. It can be done, but you really have to be careful.
Home sales are transactions that are complicated and time-consuming. As a private seller, planning, selling and showing your home would be up to you. Plus, there are documents and legal provisions that could enable you to employ a lawyer for real estate, a title company and other professional service providers. It might not be possible for certain homes, such as vacation properties in other states, to sell a property without an agent to manage these matters.
Owners who wish to sell their own property should have a strategy in place for what it would look like in this process. Every phase in the sales process should be outlined in this plan and it is also helpful to define in advance which professionals will be used when the time comes to finalize a deal, such as attorneys and escrow agents.
Correctly Price Your Property
Pricing a property correctly can be among the most challenging aspects of the FSBO process. Ultimately, your property is worth what people will pay for it; but it can be tricky to determine that number.
Normally, a real estate agent provides a comparative market analysis to price your home appropriately. This analysis will look at the features and condition of your house and compare it to other recent sales in the area to determine the appropriate asking price.
If you don’t have an agent, you could do your own market analysis using free online resources such as Zillow and Trulia. I wouldn’t necessarily rely on the estimate they provide, but they are a good starting point. Sellers could also scour local tax records for recent sales data to determine going prices in the neighborhood.
The next hurdle to tackle after pricing is planning the home for listing and showings. It can go a long way towards making your home appealing to buyers by cleaning out the excess, enhancing lighting and making cosmetic repairs.
Hire a skilled photographer who can make your home look the best, rather than taking your own pictures. Another choice is to use a service such as roOomy, which enables individuals to digitally set up their home by uploading room pictures, erasing old or unsightly furniture, and replacing it with more stylishly decorated images.
Create the Listing for Selling Your Own Home
Now it’s time to create a listing. Homeowners have options that run the gamut from posting free ads on Facebook sales groups and Craigslist to setting up a dedicated website to market the property.
However, the visibility of listings on these sites can make selling your own home a challenge, Hills says. Without inclusion on the multiple listing service, known as MLS, a property won’t turn up on many real estate websites. For a flat fee of around $400 to $500, you can be included in the MLS and expand your potential customer base, but be aware you’ll likely need to pay a 2% to 3% commission to the buyer’s agent if they have one.
{SEE – 6 Ways to Invest in Real Estate With Little to No Money}
Don’t Be Emotional
Remove emotion from the equation when it comes to listing and viewing your house. Homeowners certainly have their favorite property characteristics, but buyers could have other preferences, and it may be off-putting to concentrate solely on the items you enjoy. You need to change your perception from selling your home to selling a house in the sales process.
You will need to be ready to display the house in time, respond promptly to emails and calls, and provide detailed data. You have to ask yourself if you can adequately market the property. In today’s digital environment, if you wait too long to answer their concerns, homebuyers can move on to the next house.
Negotiate The Price
Every seller should be prepared to negotiate the price with buyers. Buyers often expect there will be some haggling over the price. Failing to do so could mean a lower selling price than what the buyer may have been willing to pay.
If you have a real estate attorney already lined up, that individual may be able to review the offer details. In some cases, the highest price may not be the best offer. For instance, it may be better to take a lower cash offer than a higher bid that is contingent on financing.
Hire A Real Estate Attorney
The paperwork for home sales is comprehensive between the documents required for the mortgage, title transfer and other legal requirements. The standard real estate contract in Maryland is 19 pages long. You need to use a lawyer if you’re not using a realtor.
A handful of states, such as New York and Georgia, have legislation requiring all transactions to be supervised by a real estate attorney, including those in which the buyer and seller have agents. Even if your state does not require it, a real estate attorney may be a reliable guide who can provide referrals to escrow agents and title companies as well as answer any questions you might have about the sales process.
Consider an i-Buyer
A newer option for homeowners is to sell their property to an iBuyer. Companies such as Zillow, Opendoor and RedfinNow make cash offers for homes, and this can be a convenient way to quickly sell a property.
“We’ve reduced the typical 90-day home sales process into a few simple steps online,” says Beatrice de Jong, consumer trends expert for Opendoor.
Homeowners submit a short questionnaire about their home and receive a cash offer within 24 hours. Once accepted, the company conducts a free home assessment to determine what repairs, if any, need to be completed. The homeowner then has the option of completing those repairs themselves or allowing Opendoor to do it and deduct the cost from the sale price.
Going the “for sale by owner” route can result in more cash in your pocket, but you need to be smart about how you approach the sale. Spending time and money on your listing and an attorney can help ensure you get the best price possible and that the transaction goes smoothly.
We discussed the 7 proven steps to selling your home without an agent and how you could lose money if you don’t do it correctly. If you don’t want to go it alone consider contacting me to help you with the process.
Recommended Amazon Books on “Selling Your Own Home Without a Agent”
Check, Check, Sold: A Checklist Guide to Selling Your Own Home For More Money Without An Agent
For Sale by Owner: It’s Not Rocket Science; Just Follow the Rules
Simple and Sold – Sell Your Home Fast and Keep the Commission
How To Sell Your House In A Slow Market
