For-Sale-by-Owner Tips

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A lot of people want to sell their home by owner because they want to save on the real estate commission. That’s understandable. Let’s first look at the facts. Nationally, the facts are that 90% who try to sell by owner end up hiring a realtor. A good realtor who advertises will get you 10 to 15% more for your house than if you would have sold it yourself, even if you’re paying a 6 or 7 % commission. You therefore come out ahead. Here are other things to consider.

 

You have to price it right. Owners often don’t understand pricing and are not objective because they are attached to their homes, so they price it way too high. To avoid pricing yourself out of the market, get some ideas of what the price should be. Get an opinion from a realtor. After all, it’s free!

Get your home ready. First and foremost, make sure you have fresh clean flooring and fresh paint because buyers make up their minds in the first 30 seconds. First impressions count.

  

Market your home. Two things sell real estate—price and marketing. Marketing is a struggle for those trying to sell their home on their own. You have to figure out a way to make your property stand out, whether it’s using the Internet, paper, a sign in your yard, etc. Marketing sells properties.

Don’t take it personally. When people look at your house, let them take their time and if they have anything to say, don’t take it personally. 

Be ready to negotiate. When you negotiate with a buyer, you have to do so in good faith and know what their real estate goals are. Never reveal why you are selling, and if they ask, say it’s personal because you don’t want to give them leverage. 

Know the steps in selling. You have to get the home ready first. When you have a buyer, make sure the buyer is prequalified with a letter from their lender. It’s not too much to ask. If a buyer isn’t prequalified, suggest a couple of lenders for them. Remember you need to negotiate a lot of things besides price such as inspections, the closing time, etc. When writing the contract, you’ll need to discuss such issues as the price, down payment, inspection time and closing time. Once you get the contract written, the inspection period is a big negotiation time where the buyer will have seven to 14 days to perform inspections on the house, so be ready to negotiate. Knowing when to move is also important, so don’t move out before or on the day of the closing. The buyer and seller should mutually agree on where the closing should take place. Last, but not least, have your documentation ready, such as seller’s disclosures the buyer needs to sign, lead-based paint forms, etc.   

If you dare to sell your home by owner, we can give you some advice. You can reach us at (502) 458-2722 or jp@jpsold.com.