If you've been trying to sell your home yourself without much luck, I'd like to give you some information that might help you get it sold. By understanding what is involved in a For Sale By Owner (FSBO) you will have a better chance of getting it sold ... even in the current buyers market.
Believe me, I understand that you'd like to save money by trying to sell your home yourself. It just makes sense; you've worked hard to build equity in your home and you'd like to keep as much of it as you can. But keep in mind that selling your home is a complicated, legal process with strict rules and regulations. And since it involves a legally binding contract you must be sure you do it correctly or it could end up costing you more money to sell your home yourself.
To help you in your endeavor, I've posted this blog to explain as much of the process as possible. This is not a substitute for expert representation, just a general guideline as to what to expect. If at any time you feel overwhelmed by the procedure, I'd be happy to help you sell your home. Just give me a call.
The price is right ... or is it?
First, and most importantly, you will need to set a price for your home. It is imperative that you price your home correctly, the first time. If you overprice it expecting to drop it later, the ramifications include it languishing on the market too long. Buyers become suspicious of a home that has been on the market for while. Obviously, if you underprice it, you won't get as much as you could. By following these tips on how to price your home, you should be able to come up with a fair market value for your home in which it should sell within a reasonable amount of time.
• What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities? To get this information, request a free Comparative Market Analysis (CMA) from me.
• What's the market like? How many other houses are for sale in your area? Are you competing against new homes?
• Do you have special concerns that would affect the price you'll receive? For example, do you have to find another house before you can vacate this one?
• For a few hundred dollars, a qualified appraiser can give you an estimate of your home's value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute (http://www.appraisalinstitute.org/) or ask me for some recommendations.
• Since most buyers will need to take out a mortgage, it's important that a home sell at fair market value.
• Studies show that homes priced higher than three percent over the correct price take longer to sell.
Gather required documentation
Once you've decided on a price, you should gather and prepare the necessary forms so that you will have all the proper documentation ready for selling your home.
1. Property Disclosure Form. This form requires you to reveal all known defects to your property. Check with your state government to see if there is a special form required in your state.
2. Purchasers Access to Premises Agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move.
3. Sales Contract. The agreement between you and the buyer on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.
4. Sales Contract Contingency Clauses. In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies-such as the buyer's need to sell a home before purchasing yours.
5. Pre- and Post-Occupancy Agreements. Unless you're planning on moving out and the buyer moving in on the day of closing, you'll need an agreement on the terms and costs of occupancy once the sale closes.
6. Lead-Based Paint Disclosure Pamphlet. If your home was built before 1978, you must provide the pamphlet to all sellers. You also must have buyers sign a statement indicating they received the pamphlet.
Hire professionals
Once you've gotten all the required forms together, you should contact a list of service professionals that will be necessary to help you sell your home.
1. Real estate attorney
2. Appraiser
3. Home inspector
4. Mortgage loan officer
5. Environmental specialist
6. Lead paint inspector
7. Radon inspector
8. Tax adviser
9. Sanitary systems expert
10. Occupancy permit inspector
11. Zoning inspector
12. Survey company
13. Flood plain inspector
14. Termite inspector
15. Title company
16. Insurance consultant
17. Moving company
Open house - Get ready
Now it's time to open your home up to all potential buyers. (This is where using an experienced realtor is helpful, we can screen all potential buyers to see if they are qualified to purchase your home before they are allowed to visit).
Very few people will buy a home sight unseen. So prepare your home for buyers to walk through. This is not an easy process because your home needs to be in tip-top shape and ready to be scrutinized by the most discerning buyers. Ask me about ways to prepare your home for optimal attractiveness with curb appeal.
Once your home is in shape, you're ready for the Open House. Essential for providing potential buyers a look inside your home, the Open House is a great marketing tool. Here's what is necessary for a successful Open House:
Advertise your open house. Ideally you should advertise both the weekend before, and the weekend of, the open house. Check with your local paper to see when their ad closing deadlines are.
Create a property summary sheet. This sheet gives prospective buyers an overview of your home. Include dimensions for each room, copies of a property survey, summaries of utility costs and property taxes, and a list of when capital items, such as the roof and furnace, were added.
Develop a sign-in form for prospects' addresses. You'll ideally want both phone numbers and e-mail addresses to follow up with prospective buyers.
Put up signs. One or two days before the open house, place directional signs at major intersections within three to four blocks of your house. Be sure you check on anti-sign regulations in your area.
Get your house ready. Remove clutter, clean your house, wash your windows, add flowers, turn on lights, open draperies and blinds, remove valuables and breakables, confine pets, turn on soft music, and set up a table for your property fact sheet near the entrance.
Develop a follow-up sheet. Getting feedback on your home from prospects who attended your open house will give you a better understanding of how to make your home more appealing to buyers.
Following these bits of advice will help your FSBO sell easier. If you feel overwhelmed by the process and need help, I'd be happy to help you sell your home. I have the knowledge, experience and proven track record to get your home sold quickly for the best price. Just give me a call at (203) 241-5384 or email me at Martha@MarthaHandy.com.
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