For Sale by Owner- The Top 10 Tips to Sell Your Home
Written by Jennifer Cox on October 24, 2008
Most realtors® will tell you that you can not sell your own home, either directly telling you what a terrible idea it is, or by innuendo, with subtle hints that you are facing certain failure. Well, it’s not true. You can sell your home. It requires research, preparation, and marketing effort.
This report has been prepared to help home owners who want to sell their own home.
1. Check out the competition- Before putting your home up for sale, check out the competition. Find the homes near you that are for sale, and check them out online. For each home, note the price, number of bedrooms, and number of bathrooms. Also note the condition and age of the homes. Write down lot size, take note of updates and upgrades, and overall curb appeal. Search the auditor’s site for square footage information, and assessed value. This critical research will help you set your price.
2. Price your home correctly – If you set your price too high, you will not get many showings. Home prices are really driven by the buyers and consumer demand, not by how much you think your home is worth. If you really want to sell your home, price your home slightly below similar homes that are for sale in your area. No Showings = No Offers!
3. Spruce up your home for market – Buyers will decide if they like your home in the first 30 seconds. I’ve had people make up their mind about a home in the entry. Today’s buyers will not accept dirty carpets, walls that need painted or cluttered rooms. Buyers know the difference between items stacked in boxes, ready to be moved vs. living in clutter. Forget about decorating allowances. Buyers want move in ready.
4. Prepare your home for market – Now that you think your home is ready to sell, go through it again. Have a pre-marketing home inspection and take care of the “nickel and dime” items as well as any defects. This one step alone has the potential to save you thousands of dollars. The condition of your home is second only to price. If you have a “full house” with “full closets”, then rent a storage facility and move out all of your extra “stuff”. Take down most, if not all, of your personal pictures. Buyers want to envision their furniture, pictures and family in the home.
5. Develop your marketing material – There is a lot more to home selling than putting a sign in the yard. Develop a flyer on your home with color pictures. Buyers have a lot of questions. Make sure you have the answers readily available, whether you are or not. Decide what web sites you will use for online exposure.
6. Gather the required legal documents – There are many important legal documents you will need to complete and understand. A partial list includes: state required seller discloser, lead based paint, purchase contract and more. Know what the contract language means and be ready to work with terms like “material defect,” or Owner’s Policy of Title Insurance vs. Lender’s Policy of Title Insurance and how that may affect your bottom line.
7. Consider offering a buyer co-op – Most buyers are represented by a Real Estate Agent. You will attract more buyers if you offer to pay the buyer’s agent commission. Buyers want to be assured that their best interests are represented in the transaction, and prefer a professional, third party “go-between”, even if you are on your own. Many buyers will make the decision to skip your home if their realtor is not involved in the transaction.
8. Don’t move before you sell – Empty homes are harder to sell. Empty homes look abandoned. When buyers tour your well staged house, it helps them to feel “at home”. When there are no belongings in the home, the buyers can focus on the imperfections on the walls and floors. Every paint error or carpet spot is magnified.
9. Understand Negotiation – Buyers may give you a low offer. Don’t reject these offers. Send a signal that you will negotiate, by slightly reducing off your asking price. All buyers expect a deal in this market, and want to negotiate. This is part of the process. Don’t take it personally. The best offers will usually come in the first few weeks a home is put on the market.
10. Have a realistic bottom line – If your bottom line is higher than similar homes, then the decision to not sell will be made for you by the market.
