10
INSIDE TIPS
FOR SELLING YOUR HOME YOURSELF
Private Sale:
Sell Your Own Home
"...selling
a home on one's own can be challenging as many home sellers will
attest to."
| If you ask anyone who has ever
tried to sell their home themselves they'll tell you that from
the moment the "For Sale by Owner" sign goes up, the
phone begins to ring. Unfortunately, many of those calls
will not be from prospective buyers, but rather from real estate
agents looking to obtain your listing. |
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How
Much Will I Make
Selling My Home? Calculator
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Obviously the idea of not having
to pay a commission to a real estate agent is attractive to any
home seller. But because of all the issues involved in the
process, selling a home on one's own can be challenging, as many
home sellers will attest to.
The key is to be properly
prepared. If you are not, your home could remain on the
market longer than you expect because you are not attracting and
getting offers from qualified buyers. This can be a point
where many homeowners become frustrated and consider giving up
their dream of selling their home themselves. However, there are
sellers who accomplish selling their own homes, very well. You
can be one of them.
This article has been specially
prepared to help home sellers, such as yourself, understand the
elements involved so you, on your own, can sell your home
quickly and for the most amount of profit. To help you prepare,
here are 10 inside tips that you should be aware of before
you make the decision as to whether or not this is the right
approach for you.
1. Price it
Right.
Correctly setting your asking
price is critical. Setting your price too high can be as
costly as setting it too low. Home prices are determined
by fluctuations in the marketplace, not by your emotional
attachment or by what you feel your home is worth.
In order to establish a realistic
price for your home, objectively compare the price, features and
condition of all similar homes in both your neighborhood and
other similar ones which have sold in recent months. It is
also important for you to be familiar with the terms of each
potential sale.
Terms are often as important as price in
today's market. Carefully budget your selling costs and
prepare a net proceeds sheet to calculate your best estimate of
what you will take away from your home sale. Prospective
buyers may also request this kind of analysis of buying costs.
2. Prepare
Your Home for Sale. (More)
First impression is crucial.
Make sure your home makes a positive statement by carefully
inspecting all details and viewing it through the objective eyes
of a buyer. Don't gloss over needed repairs and fix-ups,
as your prospective buyers won't. Your job is to ensure
that your home stands out favorably from the competition.
3. Prepare
Yourself With All Necessary Legal Documentation.
Not surprisingly, there are many
important legal contracts and documents that you must assemble,
complete and understand. A partial checklist of forms that
you will require for prospective buyers and for legal
documentation is as follows:
* Seller Disclosure
* Purchase Contract
* Mortgage Payoff
* Loan Application
* Deposit Receipt
* Property Profile Fact Sheet
* Buyer's Cost Sheet
* Closing & Settlement
* Personal Property Exclusion List
* Property Survey / Plot Plan
* Seller's Statement of Representation
4. Market Your
Home Effectively.
Beyond the sign you will put on
your lawn, you should find effective ways to spread the word
about your home. Local buyers can be reached through the
newspaper, but this is only a small part of the market you are
after. Be sure you include the many buyers who could
already be working with a Realtor®. To locate them,
target as many top agents as possible in your market to see if
the criteria of their buyers matches that of your home's.
Because out-of town buyers are
also an important target, you should create a strategy to reach
these people as well. Above all, you should be very
service-minded and make it easy for pre-qualified buyers to view
your home. Ensure there is always someone available to
answer the phone, pick up messages promptly, and be ready to
give qualified prospects a tour of your home as soon as
possible.
5. Remain
Objective During a Showing of Your Home.
Keep emotion out of the sale of
your home, and the best way to do this during a showing is to
remain physically in the background. If a prospective buyer says
something negative about your home, it is better to
counter-balance this point of view by illustrating the positives
rather than becoming defensive.
6. Pre-Qualify
Your Prospects.
Don't waste your time
entertaining buyers who could never afford your home.
Research their financial steadiness with respect to job
security, salary, debts, liabilities and credit standing.
7. Negotiate
Effectively & Knowledgeably.
There will be many details to
resolve before a sale can be considered final: price,
terms, inspections, possession date, buyer concerns and
objections. Make sure you fully understand the contract
you have drawn up so you can in turn explain details and
ramifications to the buyer and make any amendments to the sale
that are necessary. The contract you use should be
thoroughly examined by your real estate attorney. Some
real estate brokers may be willing to help you do this.
While this is going on, manage the buyer's interest in your home
so that it doesn't wane during negotiations.
8. Know Your
Buyer.
Your objective during
negotiations is to control the pace and set the duration.
Try to determine what your buyer's motivation is. Does he or she
need to move quickly? Do they have enough money to pay
your asking price? Knowing this information will give you
the advantage in the negotiation because you will know up front,
what you will need to do in order to get what you want.
9. Don't Move
Out Before You Sell. (More)
Studies have shown that it is
more difficult to sell a home that is vacant. It looks
forlorn, forgotten, simply not appealing. It could even cost you
money. If you move, you're also telling buyers that you
have a new home and are motivated to sell fast which can, of
course, give them an advantage at the negotiating table.
10. Know Why
You're Selling and Keep it to Yourself.
The flip side of
"understanding your buyer" is to "understand
yourself". Your reasons for selling will affect
everything from your list price to how much time and money you
will invest in getting your home ready for sale. Your
motivation will help you determine what is more important to
you: the money you walk away with, the length of time your
property is on the market, or both. Different goals will dictate
different strategies. As someone who wants to sell without
a real estate agent in an effort to save the commission, it is
likely that money is one of your primary considerations, (see
below). Whatever your reasons, however, it is very
important to keep them to yourself so as not to place yourself
at a disadvantage at the negotiation table. When asked, simply
say your housing needs have changed.
How to Assess
Your Net Gain
To analyze whether or not you
will end up ahead by choosing to sell on your own, consider the
fact that most buyers do use a real estate agent because it
doesn't cost them anything for this service (i.e. the seller
pays the agent's fee). Be cautious as buyers, investors
and speculators who seek out For Sale by Owners are typically
those in search of a bargain. The low-ball offers from
these types of buyers will often net you much lower in the long
run. What you will have to judge for yourself is the
following:
1. Be as prepared as possible
with your marketing, negotiations, evaluations, showings and
all legalities.
2. Consider what it will cost
you to effectively market your home and assemble all necessary
materials from the "for sale" sign to any contracts?
3. What price will a buyer
offer you as a For Sale by Owner minus the costs identified in
point 2 above. Is this net price higher than the price
an experienced agent could net for you minus his/her
commission?
Private sale can be a rewarding
and cost-effective way to sell your home. Just make sure
you've done your homework!
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