How to Sell a House Without an Agent.
For Sale by Owner is a great option to save money by selling your home yourself without an agent, and it's not so daunting and challenging as it appears. Home owners are driven to take selling their home into their own hands for 3 main reasons.
>>>> Reason Number 1...Saving money on real estate agents commissions appears to be the biggest factor, and independent sellers will save even more as the price of their home increases. For instance, a home that sells for $200,000 means $10,000 commission at 5%. Commission from a home that sells for $600,000 jumps to $30,000.
>>>> Reason Number 2...While some home sellers may have more compelling grounds to sell their home themselves especially if they have little equity in their home. Let's look at this example, say you’re selling your home for $200,000 and you have 20% equity or $40,000. A real estate agents commission of 5% would be $10,000. That's a quarter of what you really own in the house.
>>>> Reason Number 3...A home will probably sell for approximately the same whether you’re selling it yourself or using a real estate agent, because it is the marketplace which decides the value. Private sales are more inviting in sellers' market where a lot of people look for homes and getting a qualified purchaser is much easier.
Plan ahead for your for sale by owner strategy. Choose what you will be able to do yourself and where you'll need some need professional help. You should likewise have a contingency plan in the event your house doesn't sell as fast as you were hoping for.
There are some important issues you should take into consider when selling your home on your own...
>>>> Number 1...The selling price. Fair market value pricing is vital to getting a smooth and quick sale. It's highly recommended that you have your house appraised, this way you'll know the right market price that you should be asking.
>>>> Number 2...Renovations and upgrades. Doing small upgrades like a fresh coat of paint or ripping out that old carpet and installing laminate flooring will bring a good return on your investment. They're inexpensive and powerful ways to entice buyers. And being a for sale by owner seller are excellent ways to freshen up your home. Other good investments but more costly though are renovations of kitchens and bathrooms. These areas get a lot of use and can charm a possible purchaser’s decision.
It's important to keep in mind when considering these types of most costly renovations...Not to increase the value of your house way beyond the selling price of other homes in your area. Otherwise, you might price yourself out of your target market. Expensive improvements might be required if your home is older and outdated. When a small kitchen or lack of extra bathroom deters possible purchasers you might have no other alternative but to take on these major renovations.
>>>> Number 3...Advertising. For Sale by Owner signs positioned in front of your home can be really powerful provided it looks professionally made. Stay away from pre-printed signboards sold in hardware stores because they appear cheesy and unprofessional. Order or create your own for sale sign appearing like those real estate agents use. Make sure you put the basic information on your signs...Number of bedrooms and bathrooms, your home features, viewing by appointment, and your phone number. Make the sign double sided so it can be viewed in both directions.
Making use of your local newspaper and bulletin boards can attract a few possible purchasers. Don't bother with large size expensive advertisements. Smaller ads showing a photo and listing your homes basic features can be very effective. Don't forget using good old traditional word of mouth either. Inform your family, co-workers, acquaintances and neighbors that you’re selling home.
>>>> Number 4...Legal assistance. The legalities of the real estate transaction and necessary paperwork can be a big challenge to most people. Make use of a lawyer to have a professional person who will look after all the documents and protect your interest. A lawyer will besides increase your credibleness because a purchaser will feel more relaxed to put down a deposit into your lawyer's trust account. Find your lawyer ahead of time and allow for this expense.
>>>> Number 5...Preparing your home. This is where the "First Impression" really pays off. Make a point the house and its environment is neat and tidy. The following guidelines will help you to show it well and make a sale more quickly:
- Make sure the grass is cut and trimmed, rake up leaves and get rid of weeds.
- Wash all the windows inside and out.
- Clean the carpets, hire a carpet cleaner company, if necessary get rid of them, at least in the most visible places.
- Make certain your home gives the viewer a spacious and uncluttered look, including closets and storage areas.
- Pack away any personal items [like family photos] this gives the viewer the opportunity to identify themselves with the house.
- Repair or replace broken or sticky door handles, locks and switches.
- Clear your gutters and drains and spouts.
- Use soft and natural colors if you’re repainting.
- Have all the curtains opened; pull up shades and blinds to let in as much natural light as possible.
- Turn artificial lights on [even if the suns shinning] when expecting buyers.
For sale by owner can save you a lot of money, but you'll need to work hard for it. Consequently, it's not the choice for everybody. Once you determine to sell by yourself you'll have to become your own real estate agent. This means you'll have to pick up on the basics of real estate and spend quite a bit of time marketing your home. If you cannot make the necessary commitment required by for sale by owner you will be better off hiring a good agent and let them sell your house the old-fashioned way.