For Sale By Owner
If you are selling your home yourself, it is wise to consult a real estate attorney to make sure that you are in compliance with all state and federal requirements. If you have a loan on the property you are selling, it is also wise to have the attorney review your loan documents. In addition, you will need to answer the following questions.
1. How do we set a realistic price?
2. Will we be released from our mortgage obligation if the buyers assume our loan?
3. How much cash will we actually net after our selling expenses?
4. Will we have to pay a prepayment penalty?
5. What are loan discounts and points? Do we have to pay? Why? How much do points cost?
6. What is special financing?
7. How is a property shown to best advantage?
8. How do we protect ourselves against unqualified buyers?
9. Does your state have mandatory disclosures and how do we comply?
10. What federal environmental hazards disclosures are required and how do we comply?
11. How do we protect ourselves legally?
Residential real estate sales often result largely due to emotional reasons. It is difficult for owners to separate the house, i.e. the brick, mortar and timber from their memories of the life they have lived in their home. For this reason, it is often difficult for owners to objectively evaluate their home. You should look at your property with an extremely critical eye since this is how buyers will judge your property.
Remember, the first impressions are lasting impressions! Therefore, see to it that the exterior of your home is inviting by following these guidelines
1. The lawn should be trimmed, the sidewalks edged, and the yard cleaned. If the season is suitable, the flowerbeds should be cultivated and flowers blooming.
2. Touch up anything that needs it.
3. Consider the value of a quick coat of exterior paint.
4. Make sure there are no toys or animals in the front yard during buyer showings.
5. Have porch furniture attractively placed.
6. Check your doorbell to make sure it rings.
The interior of your home is equally important. Be critical of your property, since the buyers will be. Do not hesitate to make small inexpensive repairs. Also, always have your home neat and tidy. Your goal is to create the impression of a relaxed, family environment.
1. Unless the interior of the home is completely run down and in bad repair, decorating merely makes the home more salable; it almost never increases the purchase price.
2. Give special attention to the kitchen and bathroom as these rooms sell more homes than anything else.
3. Windows should be sparkling clean and walls unmarred. Carpets should be cleaned.
4. Fix leaky faucets, loose doorknobs, sticky drawers and warped cabinet doors.
5. Remove all unnecessary material from the attic and basement to show off their full storage and utility space.
6. Keep stairways clear to avoid cluttered appearance and possible accidents. Keep all rooms clean, bright and neatly arranged.
7. Turn on lights in dark rooms and open the blinds or window treatments. Depending on the season, have fire in fireplace and outdoor grill ready to use.
8. Clear counters and other areas of as many of your personal items as possible.
Remember, your goal is to assist the buyer in visualizing what the home would be like with their belongings, not yours.
1. Virtually every Buyer buys by comparison. Having only one house to show prevents you from helping the buyer do comparison-shopping.
2. It is difficult to determine the tastes and requirements of a Buyer if you have not had the opportunity to fully qualify him/her beforehand.
3. Do you have the legal expertise to personally prepare a valid and fully enforceable agreement? If not, be sure to have an attorney review all documents.
4. Buyers are reluctant to discuss their finances with the other principal. Most sellers fail to ask for a credit report, source of down payment, as well as other information critical to determining the buyers’ credit worthiness.
5. If you have to call the Buyer back yourself, you are weakening your bargaining position and may give the buyer the impression that you are desperate to sell. A seller who seems anxious usually receives less money for their house.
6. Buyers normally will not discuss the disadvantages or shortcomings they feel are present in your property. Thus, because you do not know what their objections are, it is virtually impossible to overcome them.
7. By showing your property to whoever calls on your ad or your signs, you will often waste valuable time doing showings for unqualified prospects.
8. Buyers who know you are selling For Sale by Owner almost always deduct the six percent off your asking price. You are essentially viewed as a "wholesaler" and thus, Buyers expect to pay a wholesale price, rather than a retail price.
9. Obtaining the name and phone numbers of everyone who calls is often difficult. Buyers are often reluctant to provide strangers with accurate information about who they are and what they can afford.
10. For most sellers, their home is their most valuable possession. Are you willing to risk having your most valuable possession sold by someone other than a well-trained, seasoned professional?
1. Obtain and qualify prospects, eliminating professional lookers and non-qualified prospects.
2. Diplomatically handle objections and overcome them.
3. Assist in helping both the Seller and the Buyer navigate through the complex world of financing.
4. Follow up with prospects without weakening your position.
5. Handle the sale of your buyer's house if they need to sell prior to purchasing.
6. Explain closing costs.
7. Know how to justify your asking price to the Buyer.
8. Relieve you of having to stay home to wait for Buyer's phone calls or for showings.
9. Provide strangers access to your property without jeopardizing you or your family.
10. Guide you through the closing process, including inspections, disclosures, obtaining flood hazard and hazardous materials information, assist in obtaining permits, assist the appraiser in valuing the property at the price where it sold, as well as a variety of other issues that may occur in any given transaction.
