Sell Your Own House
Does the thought of paying a realtor thousands of dollars to list and market your house make you cringe? It IS possible to sell your own house without a real estate agent - if you're willing to roll up your sleeves, do your homework and do the legwork yourself.
According to a number of different sources, between 80% and 90% of owners who attempt to sell their homes on their own eventually enlist the aid of a realtor. Of the remainder, most end up lowering their price in order to sell. What makes the difference?
In a few words, research, availability and hard work. Selling a house may LOOK easy, but there's far more to it than sticking a sign on the front lawn and waiting for the calls to come in. There's an amazing tangle of laws, regulation and knowledge that go into making a successful sale. If you're going to succeed in selling your house privately, you'll need at least a passing knowledge of it all.
Here are some suggestions that will ease the process of selling your own home.
Do Your Homework
Hit the local library, city hall and registrar of deeds. Learn all that you can about the home buying process - what inspections you'll need, what professionals will have to be involved, how to set up an escrow account, and how to find a good realty lawyer. While you're at it, get to know a few home appraisers and mortgage loan officers. Besides getting information from them, you'll find their services useful later, when buyers need information on financing.
Do Some More Homework
Probably the biggest reason that houses fail to sell is that they're priced out of the market. Even if you eventually bring it down to a more realistic price, making the mistake of pricing your home too high can have long term damage. Sellers will notice the length of time that the house is on the market, and they'll assume that there is a problem with the house.
What's the right price? That's where the homework comes in. Check MLS listings, Realtor sites and listings of recent sales to see the selling prices for properties that are both similar to yours and in your neighborhood.
Have Your Home Inspected and Appraised By a Professional
This will accomplish a few things. First and foremost, you'll get a realistic appraisal of your home’s value. It will give you a critical third-party view to your home and alert you to any needed repairs or problems before your potential buyers find them. It adds professional support to your required disclosure statements, and it may even convince your buyer not to do an inspection of his own.
Prepare Your House
Before you actually list your house, give it a good facelift (Home Staging). Make any needed repairs, especially ones that detract from its appearance. Give it a fresh coat of paint if possible. Wash down siding, touch up any painted trim, and straighten up the yard. The goal is to give your house 'curb appeal' - a term used to describe a home that gives an immediate welcoming, fresh impression.
Inside, depersonalize the house as much as you can. Pack away family photos and heirlooms, and give everything a thorough scrub down. A fresh coat of white or light paint in a neutral color will make everything seem light and airy, a very good thing in the real estate business. Get rid of all clutter in every room. Clean out closets and storage areas, and make sure that everything is scrupulously, white glove clean.
Advertise
There are options that can get your house listed without obligating you to pay a realtor's fee. Use the Internet - these days nearly 85% of all home buyers start their search on the internet. There are a number of For Sale By Owner web sites with varying fee structures where you can list your home, along with photos and particulars. List with several to increase your odds of finding a buyer.
Invest in a professional to photograph your home from its best angle. Use that photo on web sites, and in flyers and newspaper ads. Use professional looking signs - not just on your lawn, but at the end of your street to direct buyers toward you.
Show Your House
You can arrange an open house to kick things off, but for the most part, once you start advertising, you'll need to make yourself available to take calls and make appointments for showings. Selling your house isn't something you can do in just a few minutes a day. It's work, but if you put the work into it, you'll see results.
Negotiate
Once you have an interested buyer, be prepared to negotiate. You should already have a 'firm' floor price under which you won't consider, but even if the first offer is above that price, you'll benefit from 'meeting the buyer halfway'.
Follow Through On Required Inspections, And Make Sure That All Paperwork Is Filed On Time And In Order.
Once you have an offer for the price that you want, don't miss out by failing to file the required paperwork on time. Make sure that all inspections are done on time, and copies are provided to the buyers. Schedule and keep appointments, and follow through on your end of the deal.
2 Important Tips For “For Sale By Owner”
Tip 1: Know the real estate law in your state
You don't need to know every in and out of real estate law. You do need to understand what your obligations as a seller of real estate property are. Check with your state realty officiating office to find out about:
- mandatory disclosures
- fair housing practices
- necessary inspections
- any documents that you must have handy (lead paint certificates, for instance)
Tip 7: Get a lawyer familiar with real estate law to oversee the closing and finalize the paperwork
Once you have an offer, you don't want to risk losing the sale because you missed some important detail. Have an experienced lawyer draw up the contracts and make sure that every "T" is crossed properly.
Just keep in mind that knowledge is king. The more you know about the home selling process, the real estate market and your community, the better you'll do in a For Sale by Owner sale.
Getting Your Home in Top Selling Condition
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Curb Appeal
¨ Drive up to your home and look at it from afar. Look at it through the eyes of buyers.
¨ Check the shingles – repair or replace damaged shingles.
¨ Clean and repair the gutters.
¨ Clean and repair the HVAC units.
¨ Repair broken windows and shutters. Replace torn screens. Make sure frames and seams have solid caulking.
¨ Repair or replace door knobs, doorbell and light fixtures if necessary.
¨ Remove all toys, equipment and litter.
¨ Remove cobwebs and nests.
¨ Remove mildew, moss and stains from the side of your home – use bleach. Remove stains from the walkways and driveway – use concrete cleanser and/or kitty litter.
¨ Repair and clean patio furniture and deck area. Remove anything that can’t be repaired.
¨ Make sure the spa and pool sparkle.
¨ Go around and touch up the exterior of your home with putty and paint.
¨ Clean or paint the front door and mailbox.
¨ Hose off the exterior of your home, especially around entrances. Use siding cleanser.
¨ Wash the windows.
¨ Wash your garbage can and put it in a place where it’s not the first thing potential buyers see when they drive up.
¨ Stack the woodpile neatly.
¨ Mow the lawn.
¨ Trim the trees and shrubs.
¨ Weed the gardens.
¨ Add colorful plants or foliage to fill in bare spots.
¨ Edge the gardens and walkways.
¨ Sweep the walkways and driveway.
¨ Replace doormats that are worn and torn.
¨ Shine brass hardware on the doors and light fixtures. Polish stained wood doors and trim.
¨ Drive up to your home again and look at it from the eyes of a potential buyer. Walk into your home as a potential buyer. Determine what kind of impression the walkways and entrances now make.
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Overall Interior
¨ Walk through your home. Store, give away, throw, or donate anything that you won’t need until after the move; e.g. furniture, knick-knacks, clothing, toys, equipment, appliances, worn rugs, papers, books, cosmetics, jewelry, games, CDs, etc.
¨ Walk through your home again, this time with some tools. Fix loose door knobs, cracked molding, leaky faucets. Remove cob webs.
¨ Replace worn or broken door knobs, cabinet fixtures, light fixtures, light switches, outlet plates, faucets and vent covers.
¨ Clean the fireplace.
¨ Clean the vents.
¨ Clean and organize your closets. Add extra space by storing or giving away items.
¨ Add a fresh coat of paint in light, neutral colors.
¨ Shampoo the carpet. Replace if necessary. Clean and wax the floors.
¨ Vacuum the window blinds, shades and drapes. Wash or dry clean curtains. Wash all the windows, frames and sills.
¨ Add dishes of potpourri.
¨ Remove all valuables, such as jewelry, artwork, knick-knacks, medications, cash, coin collections and so on.
¨ Open all the window shades to create a spacious and bright look.
¨ Put pet supplies and dishes in a place where they are not the first thing potential buyers see or smell when they walk into a room.
Living Room and Family Room
¨ Make these rooms spacious and inviting.
¨ Discard or repair chipped furniture. Replace worn rugs and pillows.
¨ Remove magazines, games, toys and so on.
¨ Make sure the entertainment center sparkles.
¨ Vacuum upholstery, drapes, pillows, etc.
Dining Room
¨ Clean out your china cabinet. Polish any visible silver.
¨ Put a lovely centerpiece on the table – treat yourself to fresh flowers. Set the table for a formal dinner to help potential buyers imagine entertaining there.
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Bedrooms
¨ Arrange furniture to create a spacious look.
¨ Remove games, toys, magazines, cosmetics, jewelry – especially on the nightstands.
¨ Replace bedspreads, quilts and pillow shams if they are worn or faded.
Bathrooms
¨ Remove rust and mildew stains.
¨ Wash or replace shower curtains.
¨ Make sure everything sparkles – including grout.
¨ Replace worn rugs and towels.
Kitchen
¨ Make sure all appliances work.
¨ Throw or eat the foods that you’ve been storing for so long.
¨ Clean the inside of the refrigerator, stove and cabinets. Make sure everything is organized to create a spacious look.
¨ If your stove has electric burners, purchase new drip pans for each burner. Wash removable knobs in your dishwasher.
¨ Polish the cabinets with furniture oil.
¨ Make sure appliances, countertops and the sink sparkle. Install new faucets if necessary.
Attic, Basement and Garage
¨ Get rid of unnecessary items. Store or pack items you won’t need until after the move.
¨ Organize everything to create more floor space and make inspections easy. Put things on shelves or in matching boxes.
¨ Provide bright lighting.
¨ Clean all equipment and vents. Replace filters. Fix any insulation that might be showing.
¨ Take care of stale or musty odors. Open the windows, dust and wash the walls and floors, purchase room deodorizers.
When It’s Time to Show
¨ Make sure your property folder is out in the open. It should contain utility bills, an MLS profile, your Seller’s Disclosure, extra property flyers and extra business cards.
¨ Do a quick clean and vacuum. Air out your house. Dispose all trash.
¨ Put pets outside if it’s safe to do so.
¨ Turn on a radio with peaceful music.
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