 |
|||
|
|||
|
|
||
|
||
|
||
|
||
|
|
|||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
|
| Buyer/Seller FAQ |
|
How can I sell my home For Sale By Owner? Maybe the first question should be "Do I really have the time, energy and perseverance to sell my home For Sale By Owner?". About 70% of For Sale By Owners want to save the real estate commission. So what does it take to save several thousand dollars? Selling real estate is a full time job and top agents generally earn their fee with their market knowledge, networking skills, relationships and experience. If you decide to do-it-yourself, it's probably going to take more than putting a sign in the yard and an ad in the newspaper. You will need to coordinate showings and open houses while developing marketing abilities, negotiating skills and financing expertise because you are now the "agent" who will "earn" the commission you wish to save. If you're still determined to sell your home yourself, consider the following suggestions. Pricing Your Home A listing appraisal prepared by a state certified residential appraiser is a very useful report. The cost of a listing appraisal is generally a tiny fraction of the anticipated sales price and insignificant in relation to the big picture. A professional analysis of the market, verified sales data and listing information provide a factual basis on which to make a sound financial decision regarding the sale of your home. A listing appraisal helps protect you from over-anticipating the market or under-selling your home. It shows prospective buyers that you are serious enough about marketing your property to have it professionally evaluated. A prospective buyer may wish to give a copy of your appraisal to their lender when applying for mortgage financing. Temper your expectations of an immediate sale. Remember that if the average marketing time for your property type in your area is 90 days, an immediate sale was offset by a sale that required 180 days! Advertising Your Home Advertising should be part of your overall marketing plan. The frequency and media location of your advertising will depend on the type of property you wish to sell, your specific market and how much you want to spend. Ads placed in local newspapers and home buyer's guides should supplement your yard sign with a "flyer" box. Marketing Your Home Your marketing plan should include maximizing curb appeal, a thorough interior/exterior prep of the home, consideration of incentives and exposure to the widest array of potential buyers. Just about every home seems to have a "job jar" of little fix-it items and now is the time to take care of them. Manicure the landscaping to enhance the curbside view. A light, bright, clutter free home shows better, so clean up and clear out overcrowded spaces. Consider holding a garage sale and open house together on the same week-end, but be aware you will need help staffing the sale while you show your home. Decide early what incentives you are willing to offer. It might be a simple, inexpensive home warranty or you may need to offer financing incentives such as points and closing costs. Providing incentives generally helps your home appeal to more buyers. Getting exposure for your home may include personal networking among family and friends, at work, at clubs/organizations and church. Don't forget to cooperate with Buyer's Agents/Brokers who represent buyers for a fee. Negotiating the Sale of Your Home Most loans are subject to the appraisal, so your listing appraisal should provide a confident bargaining position. The best buyers are generally pre-approved. They are serious about purchasing a home and have applied for a loan, providing their lender with enough employment, credit and financial information to be approved for a maximum mortgage amount. They generally have a pre-approval letter or certificate stating the conditions under which they may purchase their home of choice. The next best buyers are pre-qualified, having provided enough information to their lender to know what mortgage amount they can afford, subject to loan application and credit approval. Other buyers start at square one in the application/approval process. You should know that the top line and the bottom line are generally quite different when selling your home. Even if you have "saved" the real estate commission, you will still have expenses deducted from the sales price. Contact an attorney or title company to get information regarding closing costs and fees, including transfer. Calculate the cost of any incentives that you offered and your buyer accepted. Check on the status of your real estate taxes and figure your tax pro-ration compared to your tax escrow (if any). Get an estimate on the cost of a termite inspection, or any other inspection that you may be required to pay. If you have a mortgage, contact your lender for payoff figures, pre-payment penalties (if any) and any extra fees involved. This should be a worst case scenario, so include all fees that you might be required to pay. Subtract these items from your top line to estimate your net profit. Help Your Buyer Finance Your Home Many lenders will re-order an appraisal for lending purposes if they know one was recently completed, saving money and processing time. Ask your lender to provide an informational financing sheet including rates, monthly payments based on selected loan amounts, down payment requirements and closing cost breakdown. Your listing appraisal may help your buyer "jump start" the mortgage financing process. Re-Negotiating the Sale of Your Home Oops! You thought this was a done deal. Somewhere between signing the contract and the day you want to close, a question may arise. Unexpected repair issues may come to light through a complete home inspection or as a requirement of certain loan programs. There may be a title problem. Either way, a little pre-planning should help. Contact your attorney or a title company to discuss clear title. Consider having a complete home inspection prior to offering your home and include the results in your marketing plan. Many state certified residential appraisers have experience with repair considerations for certain loan programs. Ask. Closing the Sale of Your Home If you haven't given up and hired an agent along the way--You made it! back |
All information deemed reliable but not guaranteed. Information provider(s) shall not be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Site designed and maintained by Delta Media Group. Information on this site was last updated 07/13/2004