Selling Your Own Home

You may consider selling your home yourself rather than working with an experienced real estate agent; However, if you choose this option, be prepared for a lot of work. It can and has been done, but if you do not have the time and energy to commit to it, this option might not be an option for you. Also if you need to sell your property in a hurry, you may need to consider using an experienced real estate agent.

If selling your home on your own sounds like too much work, you might want to consider assist-to-sell programs, which most agents offer and can include a marketing strategy, flyers to promote your home and even yard signs at a reasonable cost to you. Most of the time, individuals do not have the time or the resources that a real estate agent may have, so it is best to use someone that is fully committed to selling your property, has access to a wide variety of resources and is focused on getting the highest price possible for the sale of your property.

Whether you choose to use a real estate agent or not, you still need to do your homework. The following is a checklist to help walk you through the process:

Know your property. Become familiar with facts about your property such as property taxes, zoning, lot size, square footage, etc. Look at the terms of your existing loan.

Research the current market and property laws in your area. How much are other properties similar to yours selling for? What are the terms of the sales? What property disclosure laws do you need to take in consideration?

Set the price. Now that you have the specifics about your home and have checked out the selling price of other similar properties in your area, set a realistic price.

Determine financing alternatives. Contact several lenders in your area to determine what the options are for a prospective buyer. You need to know the answers to questions when you are asked or your lack of knowledge may turn a prospective buyer away.

Perform a “walk-through” of your property. Look at it from the view point of both the inspector and the prospective buyer. Take notes on anything that needs to be repaired or replaced. A few things to consider include:

Outside:

• Does your home have ‘curb appeal’. This means does you home look appealing from the street?
• Does it need a new coat of paint due to color or because it is faded or cracked?
• If you have a yard, is the lawn well maintained and landscaped attractively? Are all toys put away such as bikes, scooters, etc?
• If you a selling a condo, you are limited, but is the front door area appealing as well as the balcony if there is one?
• Are the windows and doors attractive and in good condition?
• Are the roof and the gutters in good condition?

Inside:

• Are the interior paints and finishes in good condition, or do they need to be freshened up? This is one area with the best ratio of least expense to most desired. For a minimal investment, you could possibly make or break a sale by having your home look well-kept and inviting.
• Are the appliances in good working condition and of recent vintage?
• Are the electrical systems and plumbing in good condition? Are they fully functional?
• Are all of the floor coverings clean and in good condition? Like the paint, are they attractive and well-kept? Floor coverings are worth paying for so that you home makes a good impression.
• Are the sealants (sinks, shower, tub, windows) in good condition?
• Are all light fixtures working properly and is there good lighting in each room so that prospective buyers won’t think you are hiding something?

** Make sure all repairs are noted in your inspection.

Know your neighborhood. Most prospective buyers will want to know about the local schools, shopping, parks, transportation, etc. Be prepared so that you can answer all questions knowledgeably.

Establish a marketing budget. How much are you willing to spend to sell your home?

• Real estate commission if you use an agency to sell.
• Advertising cost, signs, other fees if you plan to sell yourself.
• Attorney, closing agent and other professional fees.
• Excise tax for the sale.
• Prorated cost for your share of annual expenses, such as property taxes, home owner association fees and fuel tank rentals.
• Any other fees typically paid by the seller in your area (surveys, inspections,etc).
• Real estate agents fees deal with transactions every day and can give you a very close estimate of seller closing cost.

Investigate the real estate sections of local newspapers and other publications. What will get you the most “bang for your buck”? Are there free real estate publications in your area that accept ads from individual sellers? Is it better to run a text-only classified ad or do they ‘photo boxes’ where you can run both text and a photo of your property in your local area paper?

Don’t forget the Internet. Most agents have their own website, which include their clients listings as well as the entire MLS search. If you work with an agent, your property will most likely be placed on their web site and on the full MLS search as part of the services they will offer you.

In addition, some newspapers automatically (or for an extra fee) offer Internet advertising tied in to their traditional print ads. Learn the rates and deadlines for each publication., then decide which ones are best for you and your market.

Establish a marketing plan. Now that you know what advertising will cost, create a plan on how to best (within your budget) reach prospective buyers, both local and out-of-town. Since many people do relocate from a distance, be sure to include Internet advertising in you plan. If your town is large enough, the local newspaper might have a national edition that you want to place your ad in, at least periodically.

Write the text and/or design your ad. You will need a well-written few lines that will run as a classified ad or a photo box ad. In addition, you might decide to run a larger, custom-designed ad in the paper and/or to use as flyers to hand out at open houses or anywhere else you might meet prospective buyers. Do not skimp on this. A well-crafted ad can attract buyers while a poorly designed and executed one can turn buyers off to your property. Even it you do not have full service agent representation, you may consider assist-to-sell, which some agents off at a lower price.

Clean your schedule. Make arrangements so that you have free time to schedule appointments at the prospective buyer’s convenience, as well as for any ‘open houses’ that you hold. If you are working with an agent, they will take care of showings and open houses on your behalf. It is best to allow your agent to show your home on their own so that the prospective buyer does not feel uncomfortable or pressured.

Purchase and install a ‘For Sale’ sign. This should be well designed, attractive and weatherproof. The sign must be placed where it can clearly be seen from the street. If you are working with an agent, they will most likely take care of this on your behalf.

Prepare a fact sheet. Design a single sheet description of your property listing the features and benefits that will draw in prospective buyers. This should be attractive and professional looking. Have enough copies on hand to give out when holding an open house. Again, if you are working with an agent, they will most likely take care of this for you.

Purchase ‘open house’ signs. Make sure that they include a place to write the address of your property and the date and time of the open house. You will want to place several signs in conspicuous locations around the neighborhood as well as the one in the front yard. Be sure to place signs on the main streets leading to your home with directional arrows that point prospective buyers to your house even if they do not know the area. Make sure that you take these signs down as soon as the open house is over. You do not want people showing up on your doorstep at all hours of the day and night.

Set up schedule of open houses. While open houses are usually held on the weekend, this is not convenient for all buyers. Make sure that you coordinate your print advertising to include information about your next open house.

Keep a list of prospective buyers. As people come through during open houses, or as they call from reading your ads or seeing the sign out front, keep a list with their names and phone numbers. Concentrate your attention on those who seem serious about your property, as opposed to those who are just checking out the neighborhood or whiling away a Sunday afternoon. Make sure that you make follow up phone calls to all those who seem seriously interested in your property.

Once you have an offer, it’s time to negotiate. Leave your emotions behind when you enter negotiations. You never want to get angry or give away the fact that you’re overly eager.

Get your forms in order. A number of forms are required for the legal sale of your property. In addition to the contract of purchase and any counteroffers, there are about twenty other forms that the seller is required to provide to the buyer. It is necessary to review the contract carefully to determine when these forms/documents are due and what the buyer’s rights are once they receive the document. The form and content of many of these documents are prescribed by state and federal law and must be adhered to in theie entirety. The proper forms may be obtained from your local Board of Realtors or from your real estate agent who is representing you.

Negotiate final terms of the sale. Buyer(s) need to come to an agreement, in writing, regarding the following:

• Price
• Inspection contingencies
• Financing terms
• Date of closing
• Date of possession
• It would be prudent for you to have a attorney review any and all contracts before the deal is finalized.

Final walk-through. When both the buyer(s) and a witness can be present, schedule a final walk-through before you complete settlement in order to determine that the property being conveyed meets the expectations of all parties involved. Resolve any issues before the transfer of title.

Find and make arrangements for the home you will be moving to. Unless you have already built or bought a new residence, you will need to be the ‘buyer’ for a new property while being the ‘seller’ for the current one simultaneously. If possible, schedule both transactions to close at the same time, or else close your purchase shortly before closing your sale. You need to be moved out before the new owners take possession.