If you are planning on selling your own home, you can save thousands of dollars by avoiding a realtors 6% fee. On a $400,000 home that translates into $24,000 to be paid out of your pocket to the realtor. Add in attorney fees and other closing costs associated with selling your own home and that big profit you thought you would make on the sale of your home has evaporated. The following tips will help you sell your own home quickly. Additionally, learn how to prepare your home for the marketplace and maximize your profits. Whats Your Market? Do you know your local real estate market? Specifically, are you familiar with home prices, market conditions, the schools, local government, etc? Knowledge is power as well as money in your pocket. Here are two ways to find out what homes like yours are selling for in your area: 1) Call several real estate appraisers. Let them know you are selling your own home and ask for a comp search (comparative sales search). 2) Check with a realtor for the going market rate. Prepare Your Home. To get top dollar when selling your own home, make all minor repairs and paint rooms as needed. Cut the lawn and trim the shrubbery, get rid of everything you do not need, and put everything in its place. Get a professional home inspection. Then correct every item on the inspectors list. Then have that same inspector re-inspect the home and give you a report stating the home is in perfect order. This will become a great marketing tool to show prospective buyers. Realtor vs. Do It Yourself. Once you are prepared to list your home, you will need to decide whether to use a realtor or do it all yourself. That 6% fee can be a real drag on your profits, especially if you are in a hot market and buyers are certain to be interested in your home. You can negotiate a lower fee or a flat rate with a realtor especially if you want them to share some of the headaches involved in selling your own home. Start Marketing. Hire a photographer to take pictures of the inside and outside of your home. Find a photographer who is familiar with real estate photography and who can put your home in the best possible light. Next, create professional looking brochures or flyers just like realtors use. Include several full color pictures, details about the house and your asking price. Finally, add your information to select For Sale by Owner websites. Make sure that you put all the web contact information in your brochures and flyers. Use a temporary email address to avoid spammers now and well after youre done selling your own home. Asking price. Obviously, your asking price is a major consideration when selling your own home. Remember that comp search you did earlier? Order an appraisal from the real estate appraiser who quoted you the highest value for your home. Then you can price your home slightly under the appraised value if you wish to sell quickly. It is important to ask several appraisers for a comp search before ordering your appraisal. I have seen appraisers differ as much as $100,000 on the value of a home. Buy a Warranty. Offer a one year home warranty especially if your house is older. A warranty gives potential buyers the assurance you are standing by your sale as well as offering peace of mind in the event something major breaks [like your furnace]. Sweeten the Deal. In some cases you can sell your home much faster if you offer incentives to buyers. You wont call them that, but if by including your brand new washer and dryer units in with the sale helps to tip the sale in your favor, by all means include them as part of your sale package. Wiggle Room. If your local real estate market isnt particularly hot, but you do have someone who has shown interest in the house: 1) Make certain you have some room to drop your price to accommodate the buyer. 2) Offer no money down financing. Call a local mortgage broker and ask them to pre-qualify your prospects on one of their no money down loans programs. Simply tell the buyer to call your mortgage broker for financing. 3) Offer to pay for the buyers closing costs. This expense would only be a few thousand dollars and can be paid at close with your equity. You may give up a few thousand dollars but think of the money youll save by deciding not to use the 6% commission agent. Use an Attorney. If you decide to sell the home yourself, hire a real estate attorney before you start the selling process to make certain your contracts and other paperwork is in order. You will pay extra for his professional advice, but you will save many headaches or heartaches later on. Yes, many sellers are choosing to represent themselves when selling their own home. You can too, but please know that the work you will have to do in order to bring about a successful sale can be time consuming and loaded with pitfalls. Count all the costs and go with the plan that works best for you when selling your own home. Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked. |
