Selling Your Own Home
As an alternative to working with an experienced real estate agent,you might consider selling your home yourself; however, if you choosethis option, be prepared for a lot of work! It can and has been done,of course, but if you don't have the time and energy to commit to it(or need to sell in a hurry), this option might not be for you.
If selling your home on your own sounds like too much work, youmight want to consider assist-to-sell programs, which most agents offerand can include yard signs, a marketing strategy and flyers at a veryreasonable cost to you. Nine out of ten times, most do not have thetime or the resources that a real estate agent may have, so it is bestto use someone that is fully committed to selling your property, hasaccess to a wide variety of resources and is focused on getting thehighest price possible for the sale of your property.
Whether you choose to use a real estate agent or not,you still need to do your homework! The following is a checklist tohelp walk you through the process:
Know your property. If you are not already,become familiar with such facts about your property as property taxes,zoning, lot size, square footage, etc. Look at the terms of yourexisting loan.
Research the current market and property laws in your area. How much are properties similar to yours selling for? What are theterms of the sales? What property disclosure laws do you need to takeinto consideration?
Set the price. Once you know the specificsabout your home and have checked out what similar properties in yourarea are selling for, set a realistic price.
Determine financing alternatives. Contactlenders in your area to determine what the options are for yourprospective buyer. You want to be informed before they ask, or yourlack of knowledge may turn them off from dealing with you.
Perform a "walk-through" of your property. Look at it from the perspective of both the prospective buyer and theinspector. Take notes on all items that need to be repaired orreplaced. Things to consider include:
Outside:
- From the street, is the house appealing? This is called "curb appeal".
- Doesit need a new coat of paint (either because the old paint is obviouslycracked or faded, or because of an uncommon choice in color that mightturn off prospective buyers)?
- If a house with a yard, is the lawn and landscaping attractive and well-kept?
- If it is a condo, you can't do much about the building, but is the front door (and balcony, if there is one) appealing?
- Are the windows and doors attractive and in good condition?
- Are the roof (and the gutters) in good condition?
- Is the grass nicely cut, are the hedges trimmed, are the leaves swept up? Are all toys put away such as bikes, scooters, etc.?
Inside:
- Are the interior paints and finishes in good condition(recently updated), or do they need to be freshened up? This is onearea with the best ratio of least expensive to most desired. For aminimal investment, you could possibly make or break a sale by havingyour home look well-kept and inviting.
- Are the appliances in good working order and of recent vintage?
- Are the plumbing and electrical systems in good condition? Are they fully functional?
- Arethe carpets or other floor coverings clean and in good condition? Likethe paint, are they attractive and well-kept? Floor coverings are worthpaying for so that your home makes a good impression.
- Are the sealants (sink, shower, tub, windows) in good condition?
- Areall light fixtures working properly, and is there good lighting in eachroom so that prospective buyers won't think you're hiding something?
**Make all repairs noted in your inspection.
Know your neighborhood. Most prospective buyerswill want to know about the local schools, shopping, parks,transportation, etc. Be prepared so you can knowledgeably answer theirquestions.
Establish a marketing budget. How much are you willing to spend to sell your house?
- Real estate commission if you use an agency to sell.
- Advertising costs, signs, other fees if you plan to sell by owner.
- Attorney, closing agent and other professional fees.
- Excise tax for the sale.
- Prorated costs for your share of annual expenses, such as property taxes, home owner association fees, and fuel tank rentals.
- Any other fees typically paid by the seller in your area (surveys, inspections, etc.).
- Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.
Investigate the real estate sections of local newspapers and other publications. What will get you the most "bang for your buck?" Are there "throwaway"(i.e., free) real estate publications in your area that accept ads fromindividual sellers? In the local paper(s), is it better (in your area)to run a text-only classified, or do they have "photo boxes" where youcan run both text and a photo of your property?
Don't forget the Internet. As you have probablynoticed from the website you have found this article on, most agentshave their own website, which includes their clients' listings as wellas the entire MLS search. If you work with an agent, your property willmost likely be placed on their web site (if they have one) and on thefull MLS search as part of the services they will offer you. If thereal estate agent's website you are currently viewing does not serviceyour area, log onto www.agentwebpros.com to find an agent who will be able to list your property on their website.
In addition, some newspapers automatically (or for an extrafee) offer Internet advertising tied in to their traditional print ads.Learn the rates and deadlines for each publication, then decide whichone (or more) is best for you and your market.
Establish a marketing plan. Now that you knowwhat advertising will cost, create a plan on how to best (within yourbudget) reach prospective buyers, both local and out-of-town. Sincemany people do relocate from a distance, be sure to include Internetadvertising in your plan. If your town is large enough, the "local"newspaper might have a national edition that you want to place your adin, at least periodically.
Write the text and/or design your ad. At thevery least, you will need a well-written few sentences that will run asa classified ad or a photo box ad. In addition, you might decide to runa larger, custom-designed ad in the paper and/or to use as flyers tohand out at open houses (or anywhere else you might meet prospectivebuyers). Don't skimp on this. A professional, well-crafted ad canattract buyers while a poorly designed and executed one can turn buyersoff to your property. Even if you do not have full service agentrepresentation, you may consider assist-to-sell, which some agentsoffer at a lower price.
Clear your schedule. Make arrangements sothat you have free time to schedule appointments at the prospectivebuyer's convenience, as well as for any "open houses" that you hold. Ifyou are working with an agent, he or she will take care of showings andopen houses on your behalf. It is best to allow your agent to show yourhome on their own so that the prospective buyer does not feeluncomfortable or pressured.
Purchase and install a "for sale" sign. Thisshould be well-designed, attractive and weatherproof. The sign must beplaced where it can clearly be seen from the street. If you are workingwith an agent, he or she will most likely provide the sign to you.
Prepare a fact sheet. Design a single sheetdescription of your property listing the features and benefits thatwill draw in prospective buyers. This should be attractive andprofessional looking. Have enough copies on hand to give out at openhouse showings. Again, if you are working with an agent, he or she willmost likely do this on your behalf.
Purchase "open house" signs. Make sure thatthey include a place to write the address of your property and thedate/time of the open house. In addition to one for the front yard,you'll want to place several in conspicuous locations around theneighborhood, such as main streets leading to your house. For these,directional arrows can point prospective buyers to your house even ifthey don't know the area. Make sure that you take these signs down assoon as the open house is over. You don't want people showing up onyour doorstep at all hours of the day and night.
Set up a schedule of open houses. While mostare held on the weekend, this is not convenient for all buyers. Makesure that you coordinate your print advertising to include informationabout your next open house.
Keep a list of prospective buyers. As peoplecome through during open houses, or as they call from reading your adsor seeing the sign out front, keep a list with their names and phonenumbers. Concentrate your attention on those who seem serious aboutyour property, as opposed to those who are just checking out theneighborhood or whiling away a Sunday afternoon. Make sure that youmake follow up telephone calls to all those who seem seriouslyinterested in your property.
Once you have an offer, it's time to negotiate. Leave your emotions behind when you enter negotiations. You never wantto get angry or give away the fact that you're overly eager.
Get your forms in order. A number of formsare required for the legal sale of your property. In addition to thecontract of purchase and any counteroffers, there are approximately 20other forms that the seller is required to provide to the buyer. It isnecessary to review the contract carefully to determine when theseforms/documents are due and what the buyer's rights are once theyreceive the document. The form and content of many of these documentsare prescribed by state or federal law and must be adhered to in theirentirety. The proper forms may be obtained from your local Board ofRealtors or from your real estate agent who is representing you.
Negotiate final terms of the sale. Buyer(s) need to come to an agreement (in writing) regarding the following:
- Price
- Inspection contingencies
- Financing terms
- Date of closing
- Date of possession
- It would be prudent for you to have an attorney review any and all contracts before the deal is finalized
Final walk-through. When both the buyer(s) and awitness can be present, schedule a final walk-through before youcomplete settlement in order to determine that the property beingconveyed meets the expectations of all parties involved. Resolve anydisputes before the transfer of title.
Find and make arrangements for the home you will be moving to. Unless you have already built or bought a new residence, you'll need tobe the "buyer" for a new property while simultaneously being the"seller" for your current one. If possible, schedule both transactionsto close at the same time, or else close your purchase shortly beforeclosing your sale. You need to be moved out before the new owners takepossession.
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