Here's a general list of tasks that you should be ready to do and complete if you are planning to sell a "For Sale by Owner" home.  Following these steps will lead you to a successful closing of your home for sale by owner.  

Set your asking price.  This should be based on the selling price of homes that have recently sold in your area. Called a CMA (Comparative Market Analysis)

Estimate your cash profit.  Your cash profit is the amount you receive from the sale less mortgage and other bills.

Make necessary home improvements.  Only make the improvements if the cost will create a justifiable increase in the asking price for your "for sale by owner" home.

Prepare the for sale by owner home for viewing by buyers. 

• First work on the exterior of the for sale by owner home.  Manicure the lawn.  Rake the leaves.  Spruce up shrubs and trees.  Repair fences and touch-up the paint if necessary.  Repair shutters, gutters and shingles.  Clean and paint siding.
  
  
• Then work on the interior.  Brighten up your home by painting with light colors.  Remove clutter from your home.  Consider having a yard sale to get rid of items you don't need.  Clean everything!  Eliminate all squeaks, leaks, and rattles.

Obtain the necessary forms.  In most cases, you will need sales contracts and disclosure forms.  You can get these from any major office supply store like Office Depot, Office Max, etc.  You can also find these online.

Fill out the forms in advance.  Make several copies to have on hand at all time.  That way if a buyer accepts your price, the only thing you'll have to do is get his or her signature.

Get a professional appraisal or inspection or both, if desired.  While neither of these is required for you to do, the lender and the buyer will often have their own appraisal and inspection done.  Having your own completed gives you a chance to make any necessary repairs.

Hire a real estate attorney or escrow.  During the process, you will need a third party to hold onto the deed and deposits made by the buyer.  You can kill two birds with one stone by hiring an attorney since you will likely need one in the process anyway.

Decide your for sale by owner home showing days.  Set the date in the future to give you enough time to prepare it for public viewing.

Start advertising your home.  Choose among several methods of advertising your for sale by owner home.  From internet advertising to yard signs to newspaper advertising, many options are available.  Start getting the word out about your home.  You can also add your home to the MLS online.

Negotiate with serious buyers.  If you receive a complicated offer from a buyer, you should review it with a real estate attorney to make sure you completely understand the terms before agreeing to the offer.  Always use qualified, professional help when preparing the contract and disclosures.

Have the buyer sign the sales contract.  At this time you also collect an earnest money deposit, which is held by the escrow agent, or your real estate attorney, until closing.

Select a real estate attorney, if you haven't already, to handle the closing.  In some states, the lender's attorney handles the closing.  In this case, your attorney is your representative during the process.

Recalculate your cash profit from the sale given the final sale price of the for sale by owner home.

Review the settlement statement before closing.  Make sure the calculations match your estimations.

Closing day.  Bring your driver's license.  Collect your cash.  Hand over the deed.

Congratulations! You have sold your for sale by owner home.

Contact Don Orason for more information regarding "For Sale By Owner"

San Jose CA Real Estate Agent - Area Expert.  Serving San Jose and all Santa Clara County. San Jose, Almaden Valley, Blossom Valley, Los Gatos, Saratoga, Willow Glen, Silver Creek, Evergreen, Campbell and surrounding areas. Search ALL Homes and Real Estate for Sale. Free Home Evaluations. Buyers and Sellers have access to important information which affects Santa Clara County Real Estate. Consistently on the cutting-edge of new real estate technology that will benefit YOU!

I would like to get some feedback from anyone reading this what they think about home buyers putting in their offer based on what they "think" is going to happen in the real estate market vs...where the market is TODAY.

In a declining real estate market, buyers would love to catch the bottom, just like in a declining stock market.  So some buyers try and put in offers based on their prediction on where the market will be in a few months etc...not a bad idea ... but... the bottom line I feel is "If a home is price correctly, then it will sell at the most the market will bear" and get top dollar and sell quickly for that area.  It's hard to justify putting in a low ball offer on a home that is already "priced correctly" for TODAY'S market.

I know it's a real estate agents job to give direction in price to the buyers by giving accurate comps and explaining the comparisons...

So what do you think?  Are you seeing much of this?