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Doing a For Sale By Owner (also known as FSBO), without
representation, is not terribly difficult if the market is moving fast
and inventory is snapped up as soon as it becomes available for
sale. However, for most FSBOs, finding buyers is typically a
challenge.
The National Association of Realtors reports that the majority of
for sale by owners end up listing with a Realtor. Part of the
reason is because most buyers are represented by an agent.
Other reasons are because owners who sell by themselves lack
the expertise to price a home to sell and fall short on marketing
knowledge.
Here are tips on how to do a sale by
owner: STEP 1
How Much is My Home Worth?
Pricing a home to sell is part intuition, part research and part
market timing.
You can't always depend on an agent's opinion of value because
sometimes agents take overpriced listings just to lure your
business away from the competitors.
However, you do not want fall victim to a seller's biggest mistake
and not price your home correctly, because the first two weeks
on the market are crucial. That's when buyers' interest levels are
the highest.
Preparing Your Home to Sell
Gone are the days of selling homes with unmade beds, dishes in
the sink and toys scattered throughout. Today's homes must be
spotless and resemble a model home.
Before you begin to prepare your house for sale, examine the
home from a stranger's viewpoint. Ask a friend to help, who might
be more removed from your attachment.
Consider spending money on improvements, fixing things that
don't work and making repairs before selling to improve your
profit.
Do not underestimate the power of home staging. It can mean the
difference between selling now for more money or not at all.
Pets in the home present its own set of challenges. It's harder to
sell a home where pets live.
Marketing Your Home
With all the money you will be saving over hiring an agent, spend
a big chunk on advertising. Figure out your target audience and
get the message to them.
Choose several or all of these house marketing tips, from how to
do photographs, print advertising, direct mail and eflyers to
hosting tours.
All marketing should be geared toward making your phone ring
and increasing traffic to your home.
Avoid marketing mistakes by being flexible with showings,
offering incentives to buyers and obtaining buyer feedback.
Seasonal sales require unique approaches. The way you would
sell in spring is very different than selling in winter.
If you decide to offer a commission to selling agents, you will
want to put a lockbox on your premises for easy access by
agents when you are not home.
Follow these tips for how to hold an open house, and remember
that in some areas, Saturdays are just as popular as Sundays.
Hire a good photographer to shoot a virtual tour with at least two
to four spins of your house, and advertise the virtual tour link in
your marketing materials
representation, is not terribly difficult if the market is moving fast
and inventory is snapped up as soon as it becomes available for
sale. However, for most FSBOs, finding buyers is typically a
challenge.
The National Association of Realtors reports that the majority of
for sale by owners end up listing with a Realtor. Part of the
reason is because most buyers are represented by an agent.
Other reasons are because owners who sell by themselves lack
the expertise to price a home to sell and fall short on marketing
knowledge.
Here are tips on how to do a sale by
owner: STEP 1
How Much is My Home Worth?
Pricing a home to sell is part intuition, part research and part
market timing.
You can't always depend on an agent's opinion of value because
sometimes agents take overpriced listings just to lure your
business away from the competitors.
However, you do not want fall victim to a seller's biggest mistake
and not price your home correctly, because the first two weeks
on the market are crucial. That's when buyers' interest levels are
the highest.
Preparing Your Home to Sell
Gone are the days of selling homes with unmade beds, dishes in
the sink and toys scattered throughout. Today's homes must be
spotless and resemble a model home.
Before you begin to prepare your house for sale, examine the
home from a stranger's viewpoint. Ask a friend to help, who might
be more removed from your attachment.
Consider spending money on improvements, fixing things that
don't work and making repairs before selling to improve your
profit.
Do not underestimate the power of home staging. It can mean the
difference between selling now for more money or not at all.
Pets in the home present its own set of challenges. It's harder to
sell a home where pets live.
Marketing Your Home
With all the money you will be saving over hiring an agent, spend
a big chunk on advertising. Figure out your target audience and
get the message to them.
Choose several or all of these house marketing tips, from how to
do photographs, print advertising, direct mail and eflyers to
hosting tours.
All marketing should be geared toward making your phone ring
and increasing traffic to your home.
Avoid marketing mistakes by being flexible with showings,
offering incentives to buyers and obtaining buyer feedback.
Seasonal sales require unique approaches. The way you would
sell in spring is very different than selling in winter.
If you decide to offer a commission to selling agents, you will
want to put a lockbox on your premises for easy access by
agents when you are not home.
Follow these tips for how to hold an open house, and remember
that in some areas, Saturdays are just as popular as Sundays.
Hire a good photographer to shoot a virtual tour with at least two
to four spins of your house, and advertise the virtual tour link in
your marketing materials
| STEP 2 After a buyer has expressed the desire to purchase a for-sale-by-owner's home, the negotiation starts. As a For Sale by Owner, you are in a unique position to negotiate directly with the buyer, providing you are not paying a buyer's agent fee. If you are paying the agent who brings you a buyer, you will probably negotiate the offer contract with the agent. Purchase Contract Negotiation If a buyer does not have an agent, you can offer to help the buyer write the purchase contract. Buyers may write different offers depending on the climate of your market. Review how buyers write offers in a buyers' market to the way buyers write offers in a sellers market. Make sure your buyer is prequalified by a lender to purchase your home. Accept an earnest money deposit that makes your buyer, as the expression goes, put money where the mouth is. Think about asking the buyer for a contingency offer, which is subject to finding your replacement home. If you are concerned that you won't find a suitable home, making your offer contingent on it is one way to guarantee you won't be homeless. On the other hand, the buyer might ask you for a contingency sale. Handled correctly, you can always bump the buyer out of the deal or force the buyer to remove the contingency if a better offer comes in. Expect that you will write a counter offer. You don't have to accept the buyer's offer, and if it is too low, always counter; don't walk away. Sometimes buyers want to test the water by poking in a toe. Review the reasons why you might end up rejecting the buyer's offer to determine if they apply to you. If the buyer refuses to pay your price, you might want to sweeten the deal by offering to buy-down the mortgage for the buyer or offer to pay some of the buyer's closing costs. What FSBOs Should Know About Home Inspections When selling as a for sale by owner, it's prudent to obtain your own home inspection before putting the house on the market. This way you know what is wrong and can fix it or otherwise address it. Plus, you can give the buyer a copy of your home inspection, which the buyer might accept in-lieu-of hiring another inspector. A real estate agent will not advise a buyer to accept your inspection, but unrepresented buyers won't know any better. If the buyer opts to obtain a home inspection, then here is what you need to do to get ready for a home inspection. These tips will ensure the home inspector moves through your home quickly and efficiently. Sometimes buyers hire bad home inspectors. In that case, let your pre-sale home inspector talk to the buyer's home inspector. Be prepared for the buyer to conduct a final walk-through inspection. This is not the time for a buyer to renegotiate. Home Disclosures In many parts of the country, buyers ask for pest control reports from the seller. It's better to get those inspections completed before entering into a purchase contract, otherwise, agree that specified reports are subject to your approval since you will not know upfront if repairs are indicated or required. Federal law and your state law will mandate required disclosures and material facts. You must give the buyer a copy of all required disclosures and it's smart to obtain the buyer's signature of receipt. If you live in a planned unit development such as a condo or townhome, the buyer will ask for a copy of the homeowner association rules and regulations. If there is a fee charged to produce these documents, it is generally negotiable as to which party pays it. The buyer will likely obtain title insurance, which again is a negotiable expense between the parties. For peace of mind after the sale, it is a good idea to offer to pay for a home warranty plan for the buyer. This way, when every little thing breaks or malfunctions, the buyer isn't calling you to fix it or blaming you for the failure. |
| DO YOU HAVE A BUYER FOR YOUR HOME? DO YOU NEED THE PAPERWORK REQUIRED TO MAKE AN OFFER ON YOUR HOME? CONTACT ME, NO OBLIGATION! I WILL EMAIL YOU ALL THE FORMS YOU WILL NEED! |