When a person sells their own home, void of a real estate agent or broker, they are doing what is called in the industry, a FSBO or “For Sale by Owner.” Many people prefer selling their home as a means of cutting out the heavy realtor fees. Although it is certainly possible to successfully sell your home without an agent, keep in mind that it generally requires a great deal of dedication, extra effort, and some good, old-fashioned know how.
Okay, so how to sell your own house – for starters, you will need to determine the value of your home by researching other homes sold in your neighborhood over the past six months including ones currently on the market. This can be done by checking with your local city hall or following flyers, newspaper advertisements, or books that list homes for sale. Records with the National Association of Realtors show that about 33% of people selling their own home say they would never do it again. The main reasons include challenges with setting the asking price, liability concerns, marketing/advertising handicaps, and time invested. However, by being prepared, you cannot just sell your own home but sell it for more than you expected.
After setting the price, you want to advertise so buyers know your home is now on the market. Place a “For Sale by Owner” sign in your yard, take out local newspaper space, and even post a sign at the local grocery store. Before long, you will get calls but remember that the majority will only be inquiries and not from serious buyers. Therefore, be patient and diligent. The first and probably most important thing you need to do is ensure your property is ready for sale. If things are not in perfect condition, then serious buyers will not take the bait. This means you have curb appeal, nice plants in the yard, green grass, and the house is painted, etc.
For the inside, the flooring needs to be in great shape, walls painted, countertops cleared of unsightly belongings, and so on. Presentation is the key to attracting buyers so be sure you are prepared before the sign goes up in the yard. First impressions count so make sure that your home makes a positive statement. In fact, try to look at your home through the eyes of a buyer and make appropriate changes.
The price is critical as well. Pricing your home appropriately is serious business. This will be based on current market value, not what you think the house is worth. The key here is to detach your emotions, although sometimes hard. Be sure to budget your selling costs and then prepare a list of your net proceeds so you have a good estimate as to the money needed out of the sale. Then, there is the factor of legal documentation.
Another tip for how to sell your own house involves understanding the various forms of legal documentation to include the contract, which you are responsible for assembling, completing, and most importantly, understanding. Other documents needed might include mortgage payoff, loan application, deposit received, buyer’s cost sheet, property fact sheet, personal property, closing and settlement fees, property survey, exclusion list, seller’s statement and/or plot plan of representation, and appraisal.
Finally, be sure to use effective marketing and stay optimistic. For the marketing, once the price has been set, make sure your marketing and advertising is strong, telling potential buyers in an effective manner why your house is better than any other house. Then, as potential buyers look at your home that you will need to be there since you are the “selling agent.” However, it is important that while showing the home, you also provide buyers the opportunity to look around without you hanging over their shoulders. Whenever possible, take the time to point out positive characteristics about the house. Above all, be positive and soon, you will have a contract on the table.