|
free home sellers guide for for sale by owners
How to Sell Your Home By
Owner And Save Thousands of Dollars!
Please Print this page for
many helpful home selling tips.
Selling your
home by owner is easy and literally saves most home
sellers thousands of dollars!
If you have any
questions about selling your home, please email me at
questions@resultsmls.com
My Guide for Selling a Home By Owner
Preface: Why sell yourself?
Selling a home yourself, without an expensive real estate broker is
easier than most people think.
However, it will take some work on your part. You will be doing a lot of things
that
a real estate agent might normally do. Just follow this
step-by-step selling guide below, and you'll not only save lots of money, but
we'll make the house selling process as effortless as possible!
It's the money!
Sellers save thousands of dollars not paying a 6% or 7% commission. For example,
if your home can sell for $250,000, you’d save $15,000 to $17,500 in
commissions.
Sell Your Home Fast.
Because you are not paying an outrageous selling commission, you can afford to
price your home more aggressively. The lower the price, the more likely it sells
fast. You will still walk away with
thousands in savings, but you'll just be doing it faster.
It's so easy.
Despite what a real estate broker may say, selling a house is not rocket
science. They know that, and soon you will too. Just follow the simple selling
steps below. And, if you have any questions, call us and one
of our representatives will try to answer any questions you may
have. You are not alone – I am here
to help you every step of the way!
8 Easy Steps to Selling a Home By Owner
Step 1. Preparing your home to sell - make it look great
Presentation is everything! Home buyers are attracted to clean,
spacious and attractive houses. Your goal is to dazzle buyers. Brighten-up the
house and remove all clutter from counter tops, tables and rooms. Scrub-down
your house from top to bottom. Make it sparkle. Simple aesthetic improvements
such as trimming trees, planting flowers, fixing squeaking steps, broken tiles,
shampooing
rugs and even re-painting a faded bedroom will greatly enhance the
appeal of your house. Also, make sure your house smells good. That's right,
clean out the cat box and light mildly scented candles.
Invite a neighbor over to walk through your house like a buyer would. Get
their opinion on how it "shows." The stuffed donkey in the family room may have
to go
to your in-laws for a while.
Step 2. Pricing your home effectively
Do not over price your home. Over-pricing when you sell a home
reduces buyer
interest, makes competing homes look like better values, and
can lead to mortgage rejections once the appraisal is in. Over-pricing when
selling a home is the single biggest reason why many
"for sale by owner"
home sellers don't sell their homes successfully. Remember: the
home selling market dictates the price (not what you think it should be worth).
One of the best ways to correctly price your house when selling is to
find out how
much other homes, similar to your own, recently sold for in your neighborhood.
Talk to home sellers, buyers and check out the real estate listings
in your local newspaper. Typically,
if you set the price of your home at 5 to 10 percent above the market price, you
are likely to end up with an offer close to your home's true value. Also, you
may try calculating the cost per square foot of your home compared to the house
selling prices in your area (divide list price by square footage of livable
space). If your house has more features or other desirable qualities, you may
want to set a slightly higher house selling price.
The easiest way to accurately price your home is to contact a local
real estate appraiser.
Finally, set your house selling price just under a whole number,
such as $169,900 rather than $170,000.
Step 3. Get a real estate lawyer
Even though it's an additional expense, it may be wise to hire a
lawyer who will
protect your interests throughout the entire transaction. An experienced real
estate lawyer can help you evaluate complicated offers (those with a variety of
conditions), act as an escrow agent to hold the down payment, evaluate complex
mortgages and/or leases with options to buy, review contracts and handle your
home's closing process. They can also tell you what things, by law, you must
disclose to buyers prior to a sale and can also help you avoid inadvertently
discriminating against any potential buyers.
In some areas, title companies will handle all aspects of the
transaction and have
in-house legal departments that can assist you with legal issues that may arise.
Unless you're significantly experienced in the home selling process, having a
real
estate lawyer at your side provides peace-of-mind. You know you've got
someone looking out for your interests, not just the buyers.
Step 4. Marketing your home
Exposure, exposure, exposure. That's how sellers sell their home fast.
ResultsMLS.com
provides extensive home exposure because not only is your
home listed on the MLS and Realtor.com, but it’s also listed on all MLS
subsidiary sites. Also through our partnership with Homes.com which reaches over
4 million visitors each month your home will also be listing on the internet’s
most popular real estate sites including the following: Yahoo. Google, Trulia,
Oodle,Propbot, Hotpads.com, BargainNetwork, Vast, Harmonhomes.com,
Bobvila.com, Yahoo, Zillow, ReMax, Prudential, Century 21, etc.
Writing your sell ad
Your advertising copy should be thorough yet short,
simple and to-the-point.
Long, flowery prose will not make your house sound more appealing. It will
simply make it harder for the home buyer to read. Make sure to provide the
critical facts buyers are looking for such as the house's number of bathrooms, a
re-modeled kitchen, etc.
Most home buyers quickly scan ads, so it is important that your house stands
out. For example, you may want to add a theme-line such as "Priced below
market" or "Great schools." Stay away from industry jargon and use language
that makes home buyers comfortable. Survey our web site and see how
others
have written their ads. You will quickly see which are "buyer friendly." Copy
their
approach for your ad.
Home Photos: Yes, a picture is worth a
thousand words
If you are taking a photo of your home, be sure that the home's
yard/driveway is
uncluttered. Remove bikes, garbage cans and parked cars. The same applies for
interior shots. People are looking to buy your house, not your possessions.
Think
of furniture as props and the room a stage. Move things around if you have to.
Also, take lots of house photos. Film is cheap...your home deserves quality. The
more you shoot, the better the odds are that you'll get a few really good shots.
ResultsMLS.com will also make you a custom narrated video for your listing for
$79.00!
Lawn signs
Lawn signs are one the most important marketing tools for home
sellers. They
attract attention to your home. Professionally-produced signs (like the ones we
can send to you) telegraph to home buyers a "quality" image of your house.
Directional signs also help drive buyers to your property, especially if you do
not
live on a busy street.
Open houses
Open houses are sometimes a good way to attract buyers to your
home.
Typically, real estate agents conduct open houses for two reasons; 1. Clients
expect them 2. They are a good way to attract buyers, not just for the open
house but for all houses for sale in the Real Estate Agent's area (yes, your
competition). The fact is that very few houses sell due to a open house itself.
Home Brochures/Information sheets
It is a good idea to create an information sheet (with a photo)
about your home to
give potential buyers.
The MLS
The MLS or Multiple Listing Service can also help market your home,
particularly
to real estate agents who may know of buyers seeking a property like yours. The
MLS is a directory used by real estate agents to announce to other agents that
they have a home for sale. However, if a real estate agent finds you a buyer
after
seeing your home on the MLS, you must usually pay that agent a commission
(the law states that all commissions are negotiable, however).
You are your home's best salesman
As every salesman knows, to be effective you have to really know
your product.
And who knows your home better than you? Certainly not a real estate agent,
who, in all likelihood, has spent only a few moments in your house before
showing it to prospective buyers.
Sell your neighborhood as well as your house. Show enthusiasm, but don't get
caught-up talking too much about how "your daughter spent the best years of her
life in this very room."
Step 5. Negotiating an offer on your home
When a home buyer makes an offer (this is often presented to you
directly from
the buyer or through their lawyer), you should consult with your attorney.
Buyers
and sellers have an Attorney Review Period, which is usually three days, to
cancel or amend the offer. The offer becomes a contract at the end of the
Attorney Review Period, and is binding. Many of your home's offers can be
complicated and contain special clauses that favor the buyer.
Purchase price isn't everything. Carefully consider the purchase contract's
other
terms and conditions. Too many contingencies can leave loopholes and cause a
deal to collapse. Especially avoid contingencies that favor the house's buyer,
such as linking the escrow closing date to the buyer's sale of their current
home.
If the buyer insists on such terms, include a so-called kick-out clause in the
contract that will allow you to consider other offers if the buyer isn't able to
sell
within a certain period of time.
Assess your buyer's financial
qualifications
Is the buyer pre-approved? How much of a loan is the buyer seeking?
Unless
you are in an active market, lenders tend to shy away from underwriting a deal
in
which the purchase price is higher than the nearest comparable sale and the
buyer is putting less than 10% down. If this is the case, your buyer may not be
able to obtain financing.
Know the home selling market
How you judge an offer also can depend on market conditions. If the
selling
market is slow, you may feel vulnerable, especially if circumstances are
pressing
you to sell. Make sure any offer you accept does not keep you in escrow longer
than 30 days. In a hot market where multiple offers are likely, be wary of
countering more than one offer at a time (you could end up in legal trouble if
two
buyers both accept your counter offer). Also be wary of offers that promise more
money but contain poor contract terms (long escrow, multiple contingencies,
etc.).
If you feel the home's offer is insufficient, make a counter offer. Rarely is a
first
offer the buyer's absolute highest price they are willing to pay. Negotiating is
part
of the home selling process.
Again, your lawyer should review the details of all offers.
Step 6. Home inspections
All standard real estate contracts are going to give the
prospective home buyer
the right to inspect your property - so be prepared. Under a general inspection
you are obligated to make major repairs to appliances, plumbing, septic,
electrical and heating systems - or the buyer may cancel the offer. The
inspection
will also include your property's roof, as well as a termite inspection
If you are concerned about how your home will fare when inspected, you may
want to have someone local inspect your home. They can conduct an inspection
for you before a potential buyer has one done. This way, you can address the
problems before a buyer stumbles upon them.
Once the inspections are complete, the buyer makes an application to a
mortgage lender.
Step 7. Buyer appraisals and other details
The mortgage lender will order an appraisal of your home to make
sure they are
not paying more than the house is worth. They may also order a surveyor to
make sure that the property boundaries are properly laid out. They will also
order
a title search to determine if there are any liens against your property. These
tasks are all the responsibility of the buyer and/or their attorney.
At this point too, the mortgage company will issue a
commitment. Again, the
buyer (and their attorney) must complete all conditions listed on the mortgage
commitment.
Prior to closing, you should notify your lender that you will be paying off your
mortgage. After a closing date has been agreed to, you should contact your
utility
providers and advise them of your final billing date.
Step 8. Closing
The day of the
closing, the home's buyer will do a "walk through" of the
property
to make sure all agreed repairs are completed and that the home is
in the same
condition as when the buyer made their offer. If problems arise at this point,
the
closing can still take place with funds held in escrow to remedy the problem.
Closings usually occur 30 - 45 days after you have signed the sales contract.
Depending on what state you reside in, you may close with an attorney, or with a
title company. At the closing, all monies will be collected, any existing loans
or
liens will be paid, the deed will be transferred, and insurance will be issued
insuring a free and clear title. The home seller will receive the proceeds of
their
home in one to two business days after the closing.
Conclusion
This step-by-step home selling guide is a general overview of the
process when
selling a home. Selling a home yourself can be time consuming, but the financial
rewards can be tremendous. With help from
ResultsMLS.com, we
try to make the process of home selling on your own as easy as possible!
 
© 2006
ResultsMLS.com
Susanne Flynn - Broker License #303511
.
 |
(615) 822-5808 Office
(866) 232-1618 Fax
info@ResultsMLS.com |
|
