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2. Marketing your property (SELLER TIPS) |
“Show Me The Money”
Before deciding to become a “by owner” seller, you need to understand one thing the amount of money you expect to save on commissions is pretty much what the buyer expects you to drop off the price.
"As the owner, you tend to look at your home through rose-colored glasses. Plus, you want to save money on the commission. Those two things will incline you to over-price the property.
You need to understand that a buyer will NOT give you full asking price for your property if you can't show them document proof that the asking price is actually what your property is worth.
Here are a few tips to ensure that your asking price is not unreasonably high:
1. Have a certified appraiser inspect your home. Keep the appraisal close so that you can show it to potential buyers and prove what your home is really worth. If the appraisal is under your asking price, ask the appraiser how you can improve your home to raise the value. If your home is priced unusually high, a buyer will have trouble getting financing. Lenders use appraisals to determine whether or not to finance a particular property.
2. Compare your home to other homes similar to yours. Check homes that have sold in the last 6 months, and show your buyers the sales prices of these homes.
3. Compare your asking price to other asking prices. Be sure not to confuse asking price with selling price. Check homes in your surrounding area and show the buyers what other owners are asking for their homes.
4. Use the appraisal, comparisons, and other asking prices and set your price somewhere in the middle.
Keep an Eye on The Market
Generally, if 25 percent or more of the homes sell within seven to ten days of being listed, and sell for asking price or above, the market is hot. If more than half the homes take 30 days or more and sell for less than the asking price, the market is cool.
How do you determine which market you are currently in?
Most people have heard of a Comparative Market Analysis. A CMA compares similar homes in your area that have sold recently and their selling prices to your home. Using a CMA gives you a value for your property.
A CMA, however, may not always prove to be useful. Sales prices for homes in certain areas for the last six months may sometimes be unavailable. There are other ways of determining a good asking price for your property. Here are a few examples:
1. Track the trends. For example if the trends show that property values are increasing by 1% in 4 months for your area, you could “forward price” your home. This just means that you would add 1% for every 4 months since the date of the last similar home's sale. For instance, if the comparable home to yours sold for $500,000 in October, and it's now February, you would add 1% to the selling price of the comparable home.
You should be careful not to overprice your home using this method. Be very aware of the increase in property value, as well as the time involved in that increase.
2. Check the number of homes on the market that are unsold. A real estate agent could give you these figures. If there are an increasing number of homes on the market, the market is slow. If there are a decreasing number of homes, then the market is Hot.
This method is not necessary when the market is stable. Or when the property price in your area neither rises nor lowers in a fixed amount of time.
After Sale Issues
Some homeowners experience problems after the sale, such as buyers demanding improvements be done, or want the sale rescinded. Although these scenarios do not happen in every transaction, there is always a possibility of problems after the sale. If you decide to sell your home without the help of a real estate agent, you should be informed of potential problems, and you should know beforehand how to handle them if they do arise. Keep in mind that the goal is to PREVENT these problems from arising.
Here are a few possible after-sale issues and what might have been done to prevent them:
• The buyer states that the roof leaks and wants you to pay for a new roof. If you were aware of the roof leak, you would have needed to disclose this information to the buyer before the sale. Perhaps the roof started leaking the very minute that the buyer bought the home. This is an unlikely scenario, but possible. In this case, you may still need to pay for some of the repair work. If the problem happened AFTER the sale, the solution is open to negotiation. If the problem happened BEFORE the sale, make sure that you have disclosed the information about the problem to the buyer prior to the end of the sale.
• The buyer states that he wants grounded electrical outlets in the kitchen and baths. To prevent this problem, you should always insist that they buyer have a professional home inspection, and that the buyer approves this inspection prior to the sale. Once the home inspection is approved by the buyer, if the problem is addressed in the inspection, the problem is theirs to deal with.
• The buyer states that the home was left in a mess, needing new carpet and repainting. You should offer the buyers a final walk-through just before closing the transaction. That way they can either approve or disapprove of the condition of the home before the sale is final. If they have approved the condition, and nothing has changed. then the buyer is responsible for improving this condition and not you.
These are only a few of the potential issues that may arise after you have closed the sale. A good thing to keep in mind is to have all problems or defects of your property disclosed to the buyer prior to the sale. A professional inspection and a final walk-through of the home are equally important. Understand that even these will not prevent some buyers from finding a problem after the sale. Some buyers are just impossible to please and may even try to seek litigation from you. You can use these tips, however, to give you a better position if a problem does arise.
Interest Rates and the FSBO Seller
Interest rates may change at any time. During the past few years, they have been at an all time low. However, this is subject to change and rates could increase at any moment. Interest rates have been at historic lows for several years now. Economists are currently predicting that interest rates will rise in the near future. No one knows when or how high these rates will go.
If you are planning to sell your home, you should be concerned about rising interest rates, and you should keep up to date on the rates in your area.
You can use the rising rates to your advantage, if you know how.
Most people, who prefer to be FSBO sellers, are doing so in order to save on a real estate agents commission. Remember, you are likely to save at least 6% in commission, so why not share this savings with your buyer?
You could drop the asking price of your home to 3% lower and still be saving an extra 3% for yourself. Assuming that the commission rates in your area are 6%. Some agents charge up to 10% commission. It would be a good idea to check the rates in your area and split the savings to share with your buyer, thus producing a quicker sale, and satisfaction for both of you. For instance, if the market value of your home is $200,000, you will save $12,000 if the commission rates in your area are generally 6%. If you drop half of that, or $6,000 off the price of your home, you are still saving $6,000, and your home is priced at $194,000, which is $6,000 below market value. This would be sure to interest potential buyers.
You could choose to drop the entire savings off the price of your home. You wouldn't be adding any extra money to your wallet, but it would definitely prove to move your house quickly. Use this technique if you just really need to sell fast and don't particular want to save the extra money.
If you decide to “share” the commission, you should be sure to pass that information along to your buyers. Buyers are price sensitive and nothing attracts them more than the thought of getting a bargain.
Safety Concerns
A major concern from FSBO sellers is safety. How do you know that each potential buyer is safe to show your home to? In order to procure a sale, you must make your home accessible to strangers. After all, if you could sell to a friend or family member, you would have already done that. So, how safe are you if you show your home to complete strangers, and what can you do to ensure your safety?
You can never be 100% sure of anyone that you don't know, and you can never be 100% assured of your safety when dealing with strangers. This is true whether you sell your home FSBO or whether you use a real estate agent. Either way, strangers are going to be in your home. There are risks of having someone stolen from you or having someone in your home that wishes to do you harm. You should keep in mind that the danger of showing your home is small. Here are some safety measures that you can take:
1. Always have a friend, neighbor, or family member with you when you show your home. You are more likely to avert someone who wishes to steal from you or harm you if there is more than one person at the showing. Remember, there's safety in numbers. Especially if you are having an open house where there will be multiple buyers present at the same time, you may want to enlist the help of several people.
2. Put away all your valuables. Any expensive jewellery, guns, etc., should be locked in a safety box or left with friends or family members during the showing.
3. In case the “fake” buyer is casing your home, and plans to return for items when you are gone, you may want to check into a security system, and make sure your locks are updated and functioning correctly. It's also a good idea to let your neighbors know that you are showing your home, and they can watch out for suspicious activity in your absence.
4. Always make sure to get a potential buyers name and phone number, and find out as much about them as possible. Ask them questions over the phone before the showing. You should be able to tell if they sound like they are sincere in their home search. Be wary of explicit questions about your absences from home, or about the neighborhood, such as when your neighbors are gone, etc.
5. Remember that you can't 100% guarantee that a buyer will be legitimate. You can, however, take measures to help protect yourself and your property.
Turn a Potential Buyer into a Buyer
One of the most frustrating moments of selling your home may be when a potential buyer does not know how to proceed with an agreement. Perhaps they have never bought or sold a home before and don't know what to do after you have showed them the property. Or maybe they have just always relied on a real estate agent to handle the particulars of a transaction, and just simply don't know how to deal with a seller directly.
There are ways of “moving” them forward when you sell your property directly.
Try to pros and cons strategy. Get a piece of paper, and both of you list the pros and cons of the transaction. The buyer has the opportunity to express his concerns about the price, neighborhood, they will be able to list what they want to offer, etc. You can list what your property's good points are, the asking price, and show the potential buyer why this would be a good investment for them.
Let the buyer know that this in no way obligates them to a purchase. You are simply giving them the opportunity to express any concerns that they have, or to list any assets of your property that they really like.
When both of you are finished, go through the list and see if there are any items that you both listed. Then you can begin negotiating on the price, or any improvements that the potential buyer thinks should be done. You want the buyer to feel relaxed talking to you and comfortable enough to make an offer.
You can always negotiate the price, since you're saving the commission that would normally be paid to an agent to sell for you. Let them know that you can knock the price down by 3 or even 4% if that will help them to make up their mind.
If you can't come to an agreement, but the buyer seems genuinely interested in the property, I suggest you refer them to an agent. Most agents would gladly help a buyer in negotiation, even for half the normal commission. This may make them feel more secure in the transaction, and may ultimately lead to a sale for you.
The Survey Says....
Do you have the qualities necessary to be a FSBO seller? Print out and take this quiz to find out.
1. Do you have the extra time to prepare paperwork, advertise, etc. to sell yourself?
Yes [] No []
2. Is saving thousands of dollars important to you??
Yes [] No []
3. Do you feel comfortable and enjoy talking about your home?
Yes [] No []
4. Do you have a fair idea of the process of selling a home?
Yes [] No []
5. Are you willing to show your home, possibly to strangers, and take precautions when doing so to ensure your safety?
Yes [] No []
6. Are you willing to learn about the paperwork that is necessary for the transaction?
Yes [] No []
7. Are you willing to seek help to handle certain documents that you can't do yourself?
Yes [] No []
8. Are you willing and able to handle tough negotiations if they arise?
Yes [] No []
9. Are you able to provide a clear title to your property?
Yes [] No []
10. Are you willing to seek the services of a real estate agent if your home doesn't sell within a certain amount of time and to set a reasonable time limit for the sale?
Yes [] No[]
Check your Score:
9-10 Yes = You're ready, able, and willing.
7-8 Yes = You have some qualities that make you ready, however, you need a little more information. Check out sites like ChangeMyStreet.com that provide links to tools and resources.
5-6 Yes = You need to consider what saving thousands of dollars in commission could really mean to you.
3-4 Yes = Not great, but maybe you should try it for a week or so, just to see how it goes.
1-2 Yes = Call an agent right away; you need help.
Old Home or New Home - Which Do You Deal With First?
If you are contemplating selling your home, you probably already know you're going to need another home. So, what should you do first, sell your existing home, or buy your future one?
Normally owners tend to sell their existing home first, so that they know for sure how much they have to buy the next one.
However, this raises some interesting concerns. Such as where do you live after you sell your home, if you haven't already bought another one? And if you can't find another home to buy right away, will interest rates increase, meaning that you'll pay more for your next home than you anticipated?
However, if you opt to buy your next home before your existing home sells, will you be faced with two house payments?
Many concerns arise from the selling of a home. But bear in mind that there is always a solution to any problem.
One way to avoid the problems of selling first or buying first is the put an offer on your future home, contingent upon the sale of your existing home. This simply means that you are not obligated to complete the transaction, or pay for the future home, until your existing home sells.
Unfortunately, while this may work in a cool market, no savvy seller will accept a contingent offer in a hot market. After all, why should they? They have other buyers waiting in line without contingent offers.
Deciding to sell or buy first depends on how much risk you feel comfortable with. If you decide to buy first, you could always rent out your existing home to help with the payments, until a buyer can be found.
Check out possible financing of a purchase before sale with a good mortgage broker. He can assess your chances of getting sufficient financing to make the deal. It may turn out that you can't handle it. On the other hand, you may find it's financially feasible for you... and you may actually want to rent out your old home as an investment, instead of selling!"
Leave Little to The Imagination
We've all heard it said that “a picture is worth a thousand words”.
There is no possible way to completely describe your home using words. Even the best of writers can not help a buyer to visualize a home without the help of pictures. Practically every listing for a home has pictures. After all, buyers need to see the property to really know if they're interested in it.
The very best way of obtaining a picture of your home is to use a digital camera. These are moderately inexpensive (just take the cost out of the thousands of dollars you're saving in commission).
Here are some Tips to keep in mind when taking pictures to ensure that they show your home to it's full potential:
1. Always include a shot of the front of your home. Stand as far back as possible so you get as much of the home as you can.
2. Try to take the pictures when the sun is not strong. This will elevate unwanted shadows. Cloudy or overcast days are best.
3. Include shots of living room, kitchen, and master bedroom, and any other rooms or assets of your home that may be interesting. For example, fireplaces, marble floors, hardwood, and any architectural designs, such as columns or crown molding.
4. Try not to use flash. Use natural light from windows with lights turned on.
5. Use full-size digital images for creating flyers. Downsize your image to 50KB or less for sending to the Internet.
If you place an ad in a newspaper, you can limit the description of your home, thus saving you money. (Most newspapers charge by the word) You can, however, give a brief description, followed by a nice photo, and then refer buyers to your internet listing where buyers will be able to see multiple photos of your home.
Buying a Condominium
Many buyers will hesitate to buy a condominium, especially directly from the owner. There are many reasons for this hesitation, and there are many ways to overcome it.
Cons
When buying a condo you also buy into a home-owner's association. Buyers considering the purchase of a condominium should check to see how well the association is run, and demand a copy of the bylaws that govern that particular association. You will also want to check on any outstanding or past lawsuits.
Some other things to look out for:
• Construction problems such as leaking roofs, or cracked foundations.
• Extreme restrictions on making improvements or changes to the property
• Any complaints about the neighbors behavior
It's important to remember that buying a condo means buying into a different kind of lifestyle. It's sort of a cross between living in a rental apartment and owning your own home. Issues of privacy and security must be addressed. While modern condos are often quiet and relatively crime free, it's not the same as living separately in a single family home. If you're not sure, it may be a good idea to look before you leap. Consider renting a condo for 6 months or so and try out the lifestyle, before making a purchase commitment.
Pros
There are almost always amenities included with the purchase of a condominium. Access to swimming pools, exercise rooms, recreation centers, and tennis courts are sometimes included in the purchase. And most condominium units have security features installed that you may or may not receive with the purchase of a single home, such as locked gates, security guards, cameras, etc. The added security is a major reason that some people lean towards condominium ownership.
Buying a condominium does require doing some research. You want to examine any possible problems and, if needed, negotiate the price to alleviate some of these concerns.
Selling a Condominium
If you are on the selling end of the condominium ownership, there are difficulties besides the ones listed above that you will need to overcome. However, by owning a condo, you can give a potential buyer first-hand information that will save them the time to research it on their own. You already know the pros and cons related to condominium ownership. You can give potential buyers insights into the life you led while living in your condo. You can explain to them any amenities that are included in the ownership.
Keep in mind that advertising a condominium for sale is more difficult than advertising a single residential home for sale. First, it's nearly impossible to post a for sale sign in front of the property. You may not be located in the front of the building where a sign can be easily seen.
Finally, there's the difficulty of explaining what you have to offer when you do get a call from an interested buyer. You want to be able to give a good description, without rambling. One idea is to have a printed listed of features handy so you can simply run down the list for the caller.
Listing on FSBO internet site can help alleviate some of the difficulty of selling a condominium. You can post photos of your home, as well as photos of the amenities included. Then potential buyers can have a good idea of what is offered before they call you.
You can also give them directions to your unit. Include a map or explicit instructions on which unit you are located in. This will help them to find you easier, and erase the frustration of getting lost in the building, and maybe forgetting the sale entirely.
Finally, once a buyer who's seen your web page contacts you, you can give detailed instructions for getting past a gate or locked door. (You may be able to give out a one-time code or one that you can change on a daily basis to help protect your project from people coming back and getting in later on.)
Driving buyers to your web page listing can make all the difference when trying to sell a condo by owner.
Holidays are a Busy Time
We all know how busy the time around the Christmas Holiday can be. This is actually just the opposite when it comes to real estate. Many homeowners will wait until after the holidays to list their home for sale. If you do decide to sell your home during the holidays, here are some tips to make it easier to lure prospective buyers.
1. Decorate - Your buyer may actually want to see what your home would look like during the holiday season. Decorate it as you normally would. Keep potpourri, or something home baked around to get the buyer in the spirit of the holidays.
2. Clean - Make sure that you have all your decorating boxes, and any leftover dishes from baking cleaned up and put away. You don't want your home to seem cluttered.
3. Explain your timing - Most buyers will want to know why you are selling during a time that is normally so hectic for everyone. Be sure if they ask that you let them know your motivation for selling during the holiday season.
4. Christmas is the time for saving. Consider offering your buyers a discount. Remember, you're saving money on commission, so share this savings with potential buyers. After all, everyone loves a deal at Christmas Time.
5. Entice your Holiday Shoppers - Make sure to clean up around the outside of your property. Keep landscaping looking nice, and decorate the outside as you would normally do. Keep the outside lights on even during the day. This will help to overcome to dreary looks that winter can bring. If you have fireplaces, then have fires burning. Let your buyer feel the warmth and holiday spirit that your home offers.
Along the same lines as holiday selling, you also need to take certain steps to help sell your home in winter.
You should include words or phrases in your ads such as, “warm”, “cozy”, or “winter wonderland”. You also want to be sure to include the type of heating that your home offers. Be sure to list fireplaces, if you have them.
When you do have a buyer come by, have your fireplaces burning, have your heat turned up, so that your buyers don't feel a chill, have your driveway shoveled if there's snow, and keep your lights on, inside and out. You can also purchase flowers that bloom in winter to add life to otherwise dreary landscaping.
Vacation Homes FSBO
There are difficulties associated with selling a second or vacation home. Especially for the FSBO seller. Let's take a look at some of these difficulties and some suggestions to make them easier.
1. Showing your home. It could be extremely difficult to show a vacation home. Chances are, the home is located at least a few hundred miles from your primary residence. You won't have the option of driving to the home each time a potential buyer wants to see it. There are solutions to this problem. You could simply ask a neighbor or friend who lives in the area to show the home for you. You could also hire a discount broker to show the home and tell potential buyers about the assets. You would be required to pay the broker a commission if he sells the home for you, but it would still be less expensive than hiring a real estate agent to handle the sale.
2. The location of the home. Depending on where the vacation property is located, it may be harder to sell in certain seasons. For instance, if your property is located on the beach, it would be harder to attract interested buyers during the winter months. It would be better to wait until the optimal season to list your home for sale. On the other hand, some buyers, generally older couples looking for a warmer climate for winter, may be just as interested in the property during the winter.
3. You must know your market. Recreational or vacation property is normally affected more by cycles in the real estate market.
This simply means that when the economy is up, and unemployment, etc., is down, that vacation homes seem like a good idea to some buyers. If the market is down, you may have a harder time selling. Just be sure to know how the market is affecting.
FSBO
Many homeowners are opting to list their homes FSBO or For Sale By Owner. This simply means that you are selling your home without the help of a real estate agent and saving thousands of dollars in commission.
Let's look at a few of the advantages of being a FSBO seller:
1. You will save money. Real estate agents generally charge at least 6%, and some up to 10% of the selling price in commissions. If you decide to sell your home on your own, that is thousands of dollars that you could save.
2. You could sell your house more quickly. Buyers will realize that you are selling FSBO, and may expect the price to be below market value. After all, you are saving money, and you could pass on some of this saving to your buyers. This will sell your home quicker than if you used an agent and had no room for price negotiation.
3. You are in control. You set your price, you decide when and if a potential buyer can visit your home. In essence you are in full control of the situation and can cater the transaction to your individual needs.
While there are advantages to selling FSBO, there can also be disadvantages. Let's take a look at some disadvantages, and ways to overcome them.
1. You will be responsible for showing your home to prospective buyers. You will need to organize your time so that it doesn't become burdensome to you. One good way to do this is to plan and hold an open house. This way, you are in control of the date and time that your house will be shown.
2. You will be responsible for your own advertising. Without advertising, buyers won't know that your home is for sale. You should check out prices for newspaper classifieds, as well as signs to post on your property, and in the surrounding areas.
3. You will be responsible for disclosing anything applicable to buyers before a sale. It would be a good idea to hire a real estate attorney to make sure that you don't accidentally do something that could be construed as illegal.
4. You will need to know, or be willing to learn, how to negotiate. A buyer may fully want to purchase your property, but if their offer is below your asking price, you will need to know what to do to get them to a higher offer.
5. You will need to find an escrow company to help with the closing.
Just remember that selling your home is not easy. Even with the help of a real estate agent this is true. You can sell it yourself and save the thousands of dollars in commission if you are prepared.
Presentation is Everything
Here are some tips to help you improve the overall impression that your home will make to potential buyers.
1. Make it shine - Besides cleaning; you should also consider purchasing new door knobs and handles, cabinet handles, and drawer knobs. This will be fairly inexpensive, and will make your home seem newer to buyers.
2. Touch It Up - If your home has not been recently painted, consider touching up the entryway, and anywhere else that it may be needed. This will give your home a clean, fresh appeal to buyers.
3. Landscaping - Make sure your lawn is cut, and hedges trimmed if needed. You don't want potential buyers getting lost in the jungle of grass in your yard. Also consider adding plants and flowers, especially around the entryway to add to your home's appeal.
4. Cleanliness is next to Godliness - Be sure everything is cleaned. Everything means carpets, floors, tubs, sinks, and yes, even windows. You will have more trouble keeping buyers interested if they think your home looks like a pig sty.
5. De-Clutter - Make sure that you remove any clutter from closets, garages, pantries, etc. A good rule of thumb is to reduce everything by half. You can put unneeded items in storage until after the showing. Most buyers are looking for space, so show them your home's potential space by cleaning out anything that would make it look cluttered.
A Season For Change?
In the real estate market it stands to reason that there are times when buyers are abundant, and times when they are not. During the holidays and also during the school year, buyers may not be as plentiful as they are during summer months. This doesn't mean that you shouldn't sell during these times. You just need to be more prepared for the slower market. That being said, if you are considering selling, now is the time. We are approaching the summer months, and schools will be letting out. More than 40% of home sales actually occur between late spring and summer. What this means to you is that now is the hottest season, not only for temperatures, but also for the real estate market.
Why Now is The Right Time
Strong market conditions in most areas of the country make now an even better time for FSBO sellers. Even though interest rates are rising (keep in mind that economists fully expect them to lower relatively soon), they have remained fairly low. Warm weather is generally when homeowners begin to think about improvements on their current home, or buying a new home altogether. Abundance in areas of employment and wages also help to ensure success for the FSBO seller. If the real estate market is “hot” it can result in quicker sales and even a higher selling price. Plus, keep in mind, that with temperatures warmer than in winter months, buyers will be more willing to drive around and look for properties. So if you are considering selling, now is the time to post that sign.
What Goes Up…WILL Come Down
Although rising mortgage interest rates can be a problem for some buyers, you as the seller shouldn't worry much about the rise. Economists have predicted that interest rates will lower in the near future. No one knows for sure how long it will take or how low the rates will go. However, the rates for a long-term mortgage are still fairly low right now. You need to keep in mind that interest rates change constantly, and there are many economic factors used to determine what the interest rates will be.
You may want to check with your local lenders to find out what the average interest rate will be. Keep in mind that rates will be different for different buyers. For instance, a buyer with A+ credit will likely have a lower interest rate than a buyer with past credit problems.
Setting a Realistic Asking Price
The asking price may be difficult to determine. There are many factors to consider when deciding what your asking price should be. Here are some tips to help you determine and set a fair price to offer your buyers.
1. Compare your home to similar homes in your area. Find out the selling price of those homes as well as the market value.
2. Have a certified appraiser inspect your home. This will usually cost you about $300, but it will give you a good idea of what the property is worth, and how much lenders will be willing to finance for the buyers.
3. Get 2 or 3 real estate agents to give you a comparable market analysis. CMA's have the sale prices of homes similar to yours that have sold in the last 6 months.
4. Offer to share. You know that you are going to save at least 6% by not using a real estate agent. Offer a discount to your buyers by lowering the asking price 2 or 3 percent. You will still save money, and this could help you sell your home faster.
Eternity Listing
Ok, so you've listed your home, you've advertised, you've help multiple open houses, you've even knocked the price well below market value, and your home still hasn't sold. What have you done wrong, and how do you fix it?
1. Check the price. Make sure that you have listed the home within or below the market value. Double check the appraisal, the comparative market analysis, and any other fact that you used in determining the price.
2. Check your advertising technique. Make sure that you not only posted a sign in front of your home, but that you posted signs around your neighborhood leading to your home. Make sure that you posted pictures with your newspaper ads. You have to advertise to get buyers.
3. Check the market. Is the real estate market in your area hot? Are any homes selling? You need to be sure that the market is not slow to ensure a quick sale.
4. Analyze your location. If you are in a high crime area, or near a noisy airport, you may want to consider dropping your price a bit. After all, Location is everything.
5. Rethink your showing. Maybe your home wasn't as clean and tidy as it could have been. If there were minor improvements, such as carpet cleaning, or touch up painting that needed to be done, maybe you should take care of these, and then show your home again.
If these suggestions still do not help you sell your home, then maybe you should consider listing with an agent. You could also consider renting out the property.
If you are determined to sell, you could take the home off the market for a few weeks and then list again. If the market is the problem, chances are it will be easier to sell the second time around.
Disclosures
If you decide to sell FSBO, you need to understand that you are responsible for disclosing to buyers anything that is wrong with your home. For example, if the roof leaks, if there is bad wiring, or leaks in the pipes, then you must tell the potential buyer about these problems.
A disclosure is simply letting a buyer know any thing that you are certain is wrong with your property, and needs to be repaired. A disclosure let's the buyer make an informed decision on whether or not to purchase your property.
Keep in mind that whatever you disclose could possibly force the buyers to lower their offer. You don't want to be in a situation, however, where you don't disclose a known problem, and then be tied up in litigations after the buyer discovers the problem. It really is in your advantage, as the seller, to disclose all known problems. If the buyer purchases the property, even with the disclosures, then it will be the buyer’s responsibility to fix them. However, if you don't disclose know problems, and then the buyer finds them, they can come back and make you pay for the repairs, or it could void the deal completely.
Mandated disclosures vary by state. You may be able to obtain a set of disclosures for your state online. Keep in mind that every state also has different time limits set for when you must disclose a known problem. You should check to see what the time limit is in your state before you decide to list your property, just to protect yourself from any future issues with legalities.
Note that selling your home “as is” is an option. You will still have to disclose any known problems, but you will not be required to repair them.
You Have a Buyer.....Now What?
You've done all your research, you've listed your property, you've advertised, and finally, you've gotten an offer. You accept the offer, and you're ready to close the deal. Here is a list of things that must be done next:
1. Sales Agreement - And get your buyer to sign it. You'll want an attorney to draw up your sales agreement, or at least to check it over for you. It will be a legally binding document, so you want it done right.
2. Escrow - You'll need to open escrow. There are title and insurance companies practically everywhere. You can also check out www.ANSS.com.
3. Disclose - Find out what the time frame is in your state for disclosures. You need to disclose all problems or defects in the property within this time frame.
4. Inspection - Most lenders will require a professional inspection. You will need to allow this inspection and quickly correct any problems that you are responsible for.
5. Buyer Financing - Be sure to track your buyer's progress with financing. After all, if they can't get financed, then you don't have a sale. If problems arise, and the buyers can't get financed, you will need to put your home back on the market as quickly as possible.
6. Title - Clearing title is normally a smooth transaction. If there are any problems, such as a lien that was paid off, or an easement from a neighbor that you weren't aware of, then you need to get the title cleared. You may want to enlist the help of an attorney for this.
7. Close - When the buyers get their financing approved, and the title to your property is clear, the escrow officer will call you in to sign the deed over. The buyers will put their funds into escrow. And a few days later title will transfer. You'll need to be out of your old home. And the new owners will move in.
Share The Wealth
OK, so you've decided that you want to list your home FSBO. The though of saving all those thousands of dollars in commissions is no doubt responsible. Keep in mind that buyers will undoubtedly know that you are saving this commission. They will be expecting a deal from you.
I'm sure you've done the math. You know that you are saving at least 6% and in some areas up to 10% in commission. If your home sells for $200,000, then you are saving $12,000. So, if you are saving all this money, why not offer a discount to your buyer, and ensure that your sale goes through quicker? If you offer your buyer a 3% discount, then you are still saving $6,000, and your buyer is saving $6,000 of the market value of your home. It's a win-win situation for both of you.
If you aren't in a hurry to sell your property, then by all means don't offer a discount if you don't want. It's entirely up to you. But if you need to move your property quickly, and you don't mind letting go of some of your savings, then offering a discount is a sure way to attract interested buyers.
No Takers
Ok, so you listed your home, you advertised, and you still haven't sold. You haven't even had an offer. What could you possibly have done wrong?
Here are some reasons why your home may not be producing interested buyers and what you can do to correct the problem.
1. Check your Price - Make sure it is well within the market value. A good rule is to price it somewhere in the middle between the highest and lowest similar home sales. Be sure to have a comparative market analysis done to see what similar homes have sold for and price your home accordingly. You can get a CMA done from real estate agents or from
(Electronic Appraiser)
2. Check the show quality - Make sure that your home is showing well. Make sure it is clean inside and out, and without clutter.
3. Check your advertising strategy - Are you posting signs appropriately? Did you include pictures on your internet listings? Have you worded the description of your home in newspaper ads correctly and completely? Proper advertising is a key to the sale of your home; after all, if you don't advertise it, buyer won't know to look at it.
What Do You Disclose and When?
Disclosures are simply to let buyers know of any known problems with your property. According to state laws, if you know ahead of a sale of any defects, you must disclose these to your buyer. Unless you are selling your property “as is” which will take the responsibility of improvements away from you.
When to disclose is entirely up to the state in which you live. Some states require that you make disclosures before the sales agreement is signed. Other states allow you up to 5 days after the agreement is signed to disclose problems or defects.
The bottom line is that you must disclose problems or defects to protect yourself from liability. If you don't a buyer could potentially come back after the sale and take court action to make you pay for repairs on the property. A disclosure will protect you from such court actions.
When It's Not Enough
When you decide to sell your home, it will be appraised before a lender will finance a buyer for the purchase. After all, the lender must know what the property is valued at before they can agree to a mortgage with the buyer. Now let's assume that you've agreed on a price with a buyer, and the appraisal just isn't enough to cover that price. There are a few ways to resolve this problem.
• You can lower your price to accommodate the appraisal.
• The buyer can as to have the home appraised again.
• The buyer can use another lender which would bring in another appraiser.
• The buyer could try to come up with more money to make up the difference.
When the real estate market starts to cool, then appraisals typically become more conservative.
Currently some lenders require that an appraisal meet the sales price in order for the lender to use that particular appraiser. This happens regularly. The appraiser is happy to point out anything that would possibly raise the appraisal because they in turn will be paid for their service. If they don't agree to make the appraisal work for the asking price, then the lender simply would not give them the job and they won't get paid. However, federal regulations are trying to ban this because they are worried that too many homeowners will end up with mortgages that are far over what their property value is. They are trying to stop lender influence over appraisals altogether.
All of this is having a negative effect on the home appraisal business. Appraiser have begun leaning toward more conservative appraisals, and lenders have begun to slow their financing of higher priced homes.
The fact is that lower appraisals, and not just lower interest rates, have made it easier for buyers to purchase properties at very high prices. These rules from the federal government will slow this or may stop it completely.
This isn't meant to point the finger and assign blame to either side. It's simply a symptom of a heated real estate market. If you decide to sell, it's not unlikely that you will have to accept a price lower than you had anticipated. If you are contemplating selling your home, know that this process is likely to worsen over time. Homeowners may decide to sell now, just to ensure that the price they want for their home is the price that they will get.
Localizing the Price Drop
Experts have come to the conclusion that the drop in real estate prices will not affect the nation as a whole, but will affect each area locally. Here are ways to determine whether or not the price drop will affect your general area and, more importantly, your property.
• Local Jobs - As long as you area doesn't have high unemployment rates and the job market is strong, then your property should hold its value. You can check these statistics at sites like www.bls.gov and your state's labor department.
• Demand - The demand must be strong for your property to hold its value. Demand simply means that people are looking to buy in your area, that there are circumstances which make it a desirable area to live in. Keep in mind that demand can and does change depending on these circumstances. The National Association of Realtors ® provides some detailed information for different areas. You can also do an internet search and find statistics for your area.
• Sales - Sales is a given. If homes are selling well in your area, then the market is good in your area. It can't get any simpler than that. If homes aren't selling, then it may be a good idea to wait. You can get to www.dqnews.com for a look at the statistics in many areas, or contact one of your local real estate agents.
• Media - While national news coverage is typically dominated by the War in Iraq and upcoming Elections, your local media is a good place to watch for news of the real estate market. Keep in mind that news stories tend to be exaggerated. Use any information you receive from news sources carefully.
Be Careful Not to Wait Too Long
If you are thinking of selling, and want to wait until the market gets higher, you need to keep in mind that the real estate market is unpredictable. No one can say when prices will rise or drop. If you wait you may very well get more than market value, OR you may very well get far below. Be informed of the market in your neighborhood, watch the trends over the last 2 or 3 years, and weigh your options carefully. You don't want to wait to sell only to find out that the market has actually dropped.
How to Have a Safe Showing
If you are serious about selling, you will eventually have to let people that you don't know come into your home. How do you know that these people don't have ulterior motives? How you know that they don't simply want to steal from you nor do you harm? There's no way to be 100% sure that a potential buyer is indeed serious about the home and not just there for some other reason. This is true even if you decide to list your home with a real estate agency. There are some steps that you can take to help ensure your safety when dealing with potential buyers.
1. Find out as much information about the buyer as you can. When they call to ask for a showing, you should always write down their name and phone number. You will also want to ask them a few questions, such as where they live, why they are planning on moving, do they currently own their home, etc. Before the date that you set for them to come by, you will want to call them back, just to confirm. This will give you a chance to see if they gave you a legitimate phone number.
2. Keep a guest book near the front door or entryway where the buyer will be entering your home. Have each buyer sign the book with their name, address, phone number, and the date that they were in your home. This will serve two purposes. First, you have a list of everyone that was in your home in case you do notice a problem afterwards, and second, you will have a list of these buyers, and you keep in contact with them to see if they are still interested after the showing.
3. Don't allow anyone to just “drop in”. Make sure that all your signs and advertisements state that your home is “shown by appointment only” If you do have someone come by without an appointment, don't automatically send them away. They may be a serious buyer. Just be sure to get all their information before you let them inside.
4. You may want to consider never showing your home after dark. This applies even to “drop ins”. You can simply ask them to call and set an appointment.
5. Don't show your home alone. Have a friend or family member be with you when you do have buyers come by. Remember, there's safety in numbers.
6. Keep your valuables locked in a safe or lock box. You could also have a neighbor or friend hold them for you until after your showing. Make a list of any valuables that are in your home at the time of the showing. Sometimes you may not notice that an item is missing for days or even weeks. Check the list when the buyers are gone to ensure that everything is still there.
7. If you decide to host an open house, it will be difficult to screen people beforehand. Just make sure that you have each visitor sign your guest book, and make certain that you have someone with you during the open house.
Make a Good First Impression
The first impression that a buyer will have of your home is the outside. While the inside of your home may be modern and lovely, if the outside is not appealing, chances are that buyers will not stop. You must create a reason for them to consider your home. You must have Curb Appeal.
So before you post that sign and expect potential buyers to start swarming your property, there are a few things that you need to examine to make sure that the first impression buyers receive of your home is a good one.
1. Make sure your lawn, and any hedges or bushes are trimmed.
2. Be sure to rake any leaves off the lawn.
3. Remove any dead plants, either in your yard, or on your porch or patio.
4. Consider putting potted plants near the entryway. This will brighten up your home, especially if it's during the winter months.
5. Be sure that your driveway is cleaned, and make sure to have all trash out of your driveway and off the lawn.
6. If you have dogs, it would be a good idea to have them away from the entryway that the buyers will be using. Large dogs can sometimes scare a buyer into not stopping.
7. If you have taken photos of your home for your listings, make sure that the photos are not shaded or dark. Take them on cloudy days to alleviate shadows, and take at least three times more photos than you are planning on using. This way you can choose the ones that show off your home the best.
8. Have a friend or neighbor gives you their opinion on anything that needs done. Let them offer you constructive criticism. After all, they will be able to look at your home with an outsiders view.
Make Your Showing Successful
When you decide to sell your home, you may not consider right away the impression that you will need to make to your buyers. If your home doesn't show well, chances are that your potential buyers will not be impressed enough to make an offer. Even if the location and price are just right, the showing could possibly be the deal breaker. Here are a few tips to ensure that your home shows to its full potential:
1. Make sure your appliances are clean, and clean behind them to remove any dust bunnies
2. Make sure to clean and spot treat all carpeting. You may want to consider having a professional carpet cleaner come by if there are multiple stains, or if the “walking path” from room to room is very stained or matted down. Also be sure to vacuum all carpeting prior to the showing.
3. Dust all your furniture, as well as all light fixtures and pictures.
4. Clean all your windows, blinds, shades, and if your curtains need it, consider having them washed or dry cleaned.
5. Clean all baseboards and doorways. Be sure to clean off any fingerprints left on door entrees.
6. Clean all walls and touch-up paint if necessary.
7. Make sure all your closets are cleaned and organized. Most buyers will want to inspect closet space. You can store extra clothes, shoes, etc. if needed.
8. Be sure to also clean and organize kitchen cabinets and pantries.
9. Clean bathrooms. Make sure no mildew or soap scum is left in tubs or showers. Put air fresheners or potpourri in bathrooms with a fresh, clean scent. Put hand towels in towel holders that match the theme of your bathroom. If you don't have coordinating towels or towel rods, these can be purchased inexpensively, and will add appeal to your bathroom.
10. De-clutter everything: closets, counters, even shelves. You want buyers to see the spaciousness of your home and clutter will make it seem small and closed. Store kitchen appliances such as can openers and toasters out of sight. You may also want to remove some of your furniture if your rooms appear to be over furnished. Remember you are trying to give an impression of spaciousness.
11. White or neutral shades make rooms appear larger. Deep shades, such as red or burgundy, make them appear smaller. If you don't have time to repaint, consider adding light colored furniture or curtains to rooms that have dark paint. This will brighten them up a bit. You can also add fresh flowers to brighten up otherwise dull rooms.
12. Open your drapes and blinds to let in natural light. If your rooms appear dark, purchase bulbs with higher wattage. Just be careful not to make it too bright.
Remember, you only get one chance to make a good first impression. Make sure that your home is clean and inviting for your buyers.
Marketing Strategies
Marketing is a necessity in any sale. If buyers don't know that you have something to sell, then they can't possibly buy it. When you decide to sell your home, you will obviously post a sign, take out a classified ad, and maybe even advertise by word-of-mouth to get prospective buyers. There are other marketing strategies that could prove to be very useful to the FSBO seller:
• Market your home online. Statistics show that over 80% of buyers are starting their search online. ChangeMyStreet.com reaches over 65% of the online buyers, so an ad placed here promises a great response.
• Contact major employers in your area and ask if you can put a notice on their bulletin boards. This will not only target potential buyers in your area, but also anyone relocating to the area to work for these employers.
• If there are lower priced homes in your neighborhood, put flyers in the doors or mailboxes of those homes. For instance, if you are selling a single family home and there are townhouses in your neighborhood as well, the possibility of a buyer wanting to move up from a townhouse is pretty good. Also, if you are selling a condominium in an area where there are apartments, the apartment dwellers are good candidates for purchasing your home. Many homes are sold to buyers who live very close-by and want to stay in the same neighborhood or school district.
• Make sure your friends and neighbors know that you are selling your house. They may not be interested, but they may know someone who is.
• Put flyers on bulletin boards at your local grocery stores, health clubs, and libraries.
• If you are willing to pay a real estate agent to bring a buyer to you, do a nice flyer inviting agents to show the home. Indicate the commission that you will pay. Drop off several of the flyers to local real estate offices and ask if you can put them in the agents’ office mailbox.
• There are many “discount” agents in the country who will place your ad in the multiple listing services used by agents. You must be willing to pay the agent who brings a buyer and there will also be a cost associated with placing the listing in the MLS.
Open House Strategies
Open houses are a good way to get multiple buyers into your home at one time. This can lead to competition among your buyers and also could lead to a bidding war in which these buyers try to outbid the others in hopes of having the highest offer and ultimately purchasing the property. Keep in mind that open houses are generally not responsible for the ultimate sale of a property. They are, however, a good way to show your home that will save you time. Here are some points to consider when hosting an open house.
• Advertise the open house in the real estate section of your newspaper. Most open houses are held on the weekend, so be sure to advertise when the buyers have time to see the ad and make plans to attend.
• Make sure your home is cleaned and ready for the showing. Play soft music, have a fire in fireplaces if it's cold outside, and keep lights on in dark rooms to make them more inviting. Also use potpourri or fresh baked goods to add a nice “homey” smell.
• Keep your valuable hidden away to ensure their safety.
• Put a guest book or visitors log near the entryway and have guests sign with their name, address, and phone number.
• Have house information flyers and financing sheets ready.
• When buyers come through, let them look around without you. Introduce yourself at the door, shake hands and tell them you’re available to answer questions. Then, let them look.
• Before they leave, ask if you can answer any questions. Also, ask if you can tell them anything about the neighborhood or schools.
• Follow up after the open house with everyone who came through. Simply ask if they have any more questions that you can answer and whether or not they were interested in the house.
Effective Advertising
The key to getting interested buyers to your home is effective advertising. If you don't advertise your home, no one will know that it's for sale. Consequently, you can ask a real estate agent to list your home on an MLS for you, however, they will probably require a small fee for this service. And if your deciding factor for becoming a FSBO seller is savings, then you may not want to part with the fees involved.
You can advertise your home without the help of an MLS listing.
It may come as a surprise to many sellers, but today buyers identify areas in which they want to purchase and then cruise those areas looking for homes for sale. If they see a listed property, they call their agent and ask to see it. If they see a FSBO, they may call you and ask to come by. That's why the step in successfully selling your home is to get a good visible sign in the yard. ChangeMyStreet will provide you with a sign when you list online with a Standard or Premier package.
After you post your sign, you need to get the word out to prospective buyers that you have a property for sale. Word of mouth proves to be very effective. Make sure all your friends, family members, and neighbors know that you are planning to sell.
Other methods of spreading the word are to create a flyer and then:
• Post the flyer on bulletin boards in local grocery or convenience stores.
• Give it to housing offices in local companies.
• See if you can have it displayed in malls and shopping centers.
• Tack it on bulletin boards at any nearby colleges.
• Get that flyer out anywhere that people might see it. Drop one by your local real estate offices so that buyer's agents can show it to their clients.
You should also consider putting an advertisement in your local paper, and papers in nearby areas. Be sure you add that you are selling “by owner”. Buyer usually assumes that this will mean a reduction in the price as opposed to market value. However, you need to understand that if your price is really high, you may scare potential buyer’s right out of the sale.
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The Agent's Approach to Marketing
When you decide to let an agent list your property for sale, you will first provide them with all the information about your home. Items such as square footage, special features, acreage, etc. will need to be given to your agent.
Any information that would be helpful should be given to your agent. If you have made recent improvements, painted, added new appliances, etc. Also be sure to include negative values of your home, so they can be prepared for negative responses from potential buyers.
What to expect
Your agent is required to list your home in their local MLS within 24 hours of signing a listing agreement. These first two weeks are the most likely time for you to be contacted by potential buyers.
During the first two weeks, the agent will schedule an MLS tour. This is a tour in which other agents interested in homes in your area will view the home. This is a time when your agent will receive feedback from other agents and find out if your home is overpriced or untellable in any way. Be sure to ask your agent what comments were made from other agents during its tour.
During these first two weeks, your agent will also place a newspaper ad, to announce the home for sale, or give open house information. The agent will be in contact with any potential buyer who calls and will work to qualify them in terms of their ability to purchase and their actual interest and motivation in the home.
Agents will also add pictures and descriptions of the home to their website. Some agents will also provide such information as a map, local schools, crime rates, etc. to let buyers know the community overview of where your home is located, as well as facts about the neighborhood, employers, and local services such as children's day care.
Internet savvy agents will also take advantage of the free listings sites on the Internet which can include home search sites, classified ad sites, and even some FSBO sites which accept agent listings. Ask your agent for a list of the sites to which s/he will send your listing. The listing sites or the agent's personal Web site can also be featured in your flyers and newspaper ads to direct buyers to go to the Internet to learn more about your home.
S/he will also use this time to network with other agents from all over the area and across the country to sell your home, with personal phone calls, e-mails and faxes.
If you don't get any traffic or offers during the first two weeks it could mean something is seriously wrong. That is why your agent may actually delay in having you sign an agreement. If there are some repairs or painting that needs to be done, carpets that need to be cleaned, or clutter removed, you will need time to take care of those things.
Once the home is listed it is open to all the agents who have access to the MLS. You will most likely get calls from your agent about immediate showings. You will need to have your home ready for these showings to erase the dangers of getting low or even no offers.
Every home is different and each seller is unique. Your home will be marketed according to your special needs. Not only is price a consideration, so are your circumstances.
If you are in a hurry to sell because of a transfer or the purchase of another home, your agent may have to price your home more aggressively to attract a buyer quickly. In that case, seller urgency may be used as part of the marketing plan to obtain a rapid closing.
Open House Specifics
Many agents choose not to hold open houses because they seldom result in a sale. They are mostly attended by unprepared buyers, or curiosity seekers that just want to look at your home, but aren't remotely interested in buying. They can also attract criminals who just want a chance to steal valuables, prescription medicines, guns, etc. For this reason hosting an open house can prove to be a great liability, and some agents would rather not deal with this liability.
Open houses, can however, be a good way to get your for sale home noticed. Some agents actually group together with other home sellers in the area, and make it a “tour of homes” for their clients. Hosting an open house is a good way to get multiple buyers into your home for a showing all at once.
For a successful open house, make sure everything is clean and organized. Closets and countertops should not be cluttered. Remove everything that is non-essential and pack it away or store it. Ask your agent about ways to make your home seem more appealing. Make certain that your landscaping is in good shape and it's always a good idea to have flowers in your yard, and on porches and patios.
Be Helpful to Your Agent
One of the first surprises a seller experiences is how much the agent may require in the way of assistance. A great deal of the marketing success of your home depends on you. For example, the way you prepare your home for sale has a direct bearing on how much a buyer will offer for the home. Homes in move-in condition always command higher prices than those which need "work." The rule of thumb is that the less the buyer has to do to move in, the better.
Since you never know when you will be asked to show your home, it is essential that you keep it clean and clutter free. You may not have notice that a potential buyer is coming, and you don't want them to see you home in a “mess”. A bad odor can kill a buyer's enthusiasm as quickly as peeling paint. So can cluttered closets, dirty windows, and unmade beds. Every morning make sure that you pick up and clean anything that may need it, so it will look ready at a moment's notice.
Many people hire a REALTOR® because they know that the agent and broker bear the up front costs of advertising and marketing the home. But the presentation of the home is strictly the seller's job. Some improvements, such as repainting or professional carpet cleaning, will need to be done to ensure a higher sales price.
Work with your agent to determine what you should do to your home to improve your chances of getting a higher sales price.
Change Of Heart
If you have opted to sell your home, and have gotten a buyer who has agreed to the price, and you have agreed to the terms of the buyer's arrangement, then you've done what you set out to do. Now what happens when all of a sudden you are overcome with a wave of nostalgia and decide that you just can't go through with the sale? What are your options, and can you be faced with repercussions for backing out of the deal?
You need to understand, first and foremost, that no matter if you received an offer even higher than your asking price; you are never under any obligation to accept that offer. However, if you used a real estate agent, you may be responsible for paying that agent's commission if they brought a buyer that was ready and able to purchase the property for sale.
Many people do not realize that sellers change their minds about a real estate transaction almost as often as buyers do. So, understand if you do have second thoughts about selling your home, it wouldn't be the first time that a seller felt like backing out. You need to consider, however, why you decided to sell in the first place. You also need to consider the potential legal actions that could be taken against you by the buyer if you stop the transaction.
Whether or not a seller could be held responsible in legal action for backing out of a deal depends on how the purchase and sales agreements were written. For example, the agreement might state that upon any default, the defaulting party would forfeit the right to any earnest money paid or received, and that the other party would be open to seek legal ramifications.. Although not too common, a buyer could petition the court to force the seller to sell the property to him (called a suit for "specific performance") or seek compensation for damages if they had spent money in anticipation of closing on the property. An absolute worst case scenario could mean that one of the following might occur:
1. The buyer could bring legal action against the seller
2. The seller would be faced with court fees, attorney’s fees, etc.
3. The seller could be forced to pay the real estate commission, even though he will not receive money from the sale
If you are considering backing out of a deal, you need to contact your real estate agent. He may have information that could have an effect on your decision, such as the buyer couldn't get approved for financing, or has simply changed his mind also. You should never back out of a sale without checking first to make sure there is a sale to back out of.
You need to know that if you do decide to cancel the sale, you won't be able to re-list your home as a FSBO (For Sale By Owner) seller until a certain amount of time has passed. Depending on what your original listing agreement stated, and what is legal or customary in your area, you will have a certain time period in which you must wait before re-listing. This is to protect agents from sellers that back out only to sell the home on their own, just to avoid paying the agent's commission.
If you should decide that maybe you've made a mistake in selling, stop and take a deep breath. Make a list of why you decided to sell in the first place, whether it was for the money, for a larger home, a better neighborhood, etc., and carefully consider this list. Chances are, if you take a moment to consider why you wanted to sell, and let your emotional moment pass, you will decide that selling is what you really want, after all. You don't want to bring possible legal action on yourself if you're only feeling nostalgia for a moment. Be very sure of what you're doing.
Advertising
Advertising is one of the most important steps in selling your home. You should check into various advertising techniques. Internet services can help you to determine what advertising techniques will work best for you.
Listed below are tips for successful advertising and ways to market your home successfully.
1. Post Signs
In addition to a “For Sale” sign in your front yard, you will also need directional signs that point the way to your property. You should have several of these leading from your home all the way to any intersections or main roads. These are especially important when you plan to host an open house, so that buyers will be able to find you easily.
Make flyers that include information about your home, asking price, and your contact information. These flyers can be put up on bulletin boards, or put into community newsletters. Attach a brochure/flyer holder to the for sale sign in your front yard. Be sure to add a color picture of your home.
Be sure to include the website address where your home is listed. This gives buyers the chance to find out more information about your home and to see the pictures that you've posted, and ensures that buyers who do contact you are serious in their effort to see your home and not just curious to see what it looks like.
2. Internet Advertising
Be sure to list your home on a FSBO site such as ChangeMyStreet.com. The internet can prove to be very useful in your advertising attempt. Be sure to read the guides and useful informational articles at ChangeMyStreet.com.
3. Newspaper Ads
Be sure to place an advertisement in your local newspaper, as well as newspapers in areas directly surrounding your home. You might go as far as 100 miles away, in case someone from another area is interested in relocating.
You can also list your ad with online classifieds. There are many sites locally and nationally that will let you list your home. Most of these sites will let you place an ad for free. You can search on the internet for free classified sites, and don't forget any publications in your community, and church bulletins. Don't forget to include in any information or advertisements that you are selling FSBO.
Handling Glitches
Glitches are inevitable. They're practically what make the world go round. Try to think of one time when you were doing something important and DIDN'T have a glitch. You probably can't think of one. Real estate transactions are not immune to problems and glitches. If you are prepared, you won't be surprised when you're faced with one, and you'll know what to do to correct the problem.
Here are some points to keep in mind:
1. Understand That Your Home May Not Be Worth What You Think
The biggest shock most sellers face is what agents and buyers think their home is worth. Sometimes sellers can be pleasantly surprised, but the reality is that markets change, and home values rise and fall. Many subjective factors such as floor plan, condition, updates and drive-up appeal affect home values.
The truth is that buyers will determine the worth of your home, in this market, at this particular time, and that has very little to do with what you think the home is worth.
2. Everyone Won't Love Your Home Like You Do
After all, this is your home. You have invested time and money into making it what you want. Buyer's won't typically have the exact same taste as you, and may not think you're home is as special as you do.
In fact, buyers will look at your home and think of ways to make it suit them. They may put up a wall between your living and dining room, tear down the paneling that you worked so hard to put up, or rip up the carpet that you had imported. Changes to homes cost money, so they will think your home is worth less considering all the changes that they are planning to do.
Your home will be in competition with countless other homes on your buyer’s tour. You must make sure that your home is clean and repaired to make it stand out in the minds of your buyers.
3. Temper, Temper
You will come to think of your buyer much like you do your doctor. You will like him personally, but not so much when it comes to the sale of your home. You will think of the buyer as your adversary because they want to pay the least possible price for your home, while you want to receive the highest possible amount for the sale.
The buyer during negotiations may find petty problems with your home. Many of these problems will be legitimate; however, some may simply be petty, because they are trying to improve their negotiating leverage.
Stay calm and focused on your goal - to sell your home. If your buyer is being unreasonable, let the agents handle the negotiations. Keep in mind that no closing can take place until all the parties are in agreement.
Don't hide your feelings from your agent. If you are truly uncomfortable about anything that is being said or done, inform your agent immediately.
4. Prepare For Drop-Ins
You will want to keep your home in good, clean condition. You don't know when buyers will be coming by to look. Even if you have planned an open house, you must be prepared for buyers who will see your signs or advertisements and may just drop in for a showing. Keep in mind that your agent may call with a potential buyer at any moment, so be sure your home is always ready.
5. Bad Manners
Bad manners are becoming more common it seems. Don't be visibly upset when buyers forget to wipe their feet at the door, or forget to close closet doors when they leave a room. It won't be worth passing up a potentially good sale just to play Miss Manners with your buyers.
6. Inspections
If your home needs repairs, it's best to take care of them before they become a problem. Have an inspection done so that you will know of any problems, and can have them repaired before you list your home for sale.
7. Preventing Problems
Problems arise. It's inevitable, especially in real estate transactions. There are so many people that are involved in a real estate transaction that problems are very likely. Schedule all steps in the transaction early, so you leave room for delay. Keep in touch with your agent so you know what steps have been completed and when.
Make a Good Impression
A first impression is always important, especially when you're dealing in real estate. Making a good first impression can mean the difference between making a sale or not.
Here are some tips to ensure that your home makes a lasting and good impression on your potential buyers:
1. The First Impression - The outside of your home will be your buyer's first impression. Make sure your lawns are cut, and trees or shrubs are trimmed. Also consider putting flowers either in a flower bed, or in pots on your porch or patio. Keep your driveway and walkways swept and clean.
2. De-Clutter - Removing clutter is very important to show your buyers how much space your home has. If your countertops are cluttered, it will lead buyers to view them as small. Also, remove clutter from closets; most buyers are always interested in closet space. You may need to consider putting items in storage until after your sale.
3. Nice Smells - You want to keep your home smelling nice. You should avoid strong odors. Be sure to eliminate pet and smoking smells. You might consider putting potpourri or lightly scented candles in bathrooms, and bake something or buy something from your local bakery...
4. Fix It Up - Be sure to replace any burned out lights. Check faucets for leaks and make sure doors and windows all open properly. Buyers will expect everything to operate correctly, and while the repairs may seem small to you, your buyers may consider them neglectful, and decide to look elsewhere for a new home.
5. Make it look Nice - Put your best china on your table. Put coordinating towels in bathrooms. Dress up your home just like you would if your in-laws were coming to visit.
6. Eye It - Step outside and walk into your home. See if you like what you see. Imagine if you were stepping into this home for the first time. You need to keep a critical eye when inspecting your home and watch for anything negative that catches your eye.
It's A Seller's Market
A seller's market means that there are many buyers for few homes. If you're planning on selling your home, a seller's market is the best you could hope for. Just be careful not to take advantage of the fact. You don't want to overprice your property just because you think that buyers will be fighting over it.
You will naturally want to sell your property for the highest price, but keep in mind that falsely elevated prices could mean that when you buy again, you will also be paying an elevated price.
Your real estate agent can assist you in pricing your home properly for sale by using the following techniques:
1. Comparative Market Analysis:
A CMA will tell you what homes that are similar to yours have sold for within the last six months. Your asking price should be set within this range.
2. Using the Right Marketing Techniques:
Marketing techniques include signs, newspapers advertisements, internet listings, newsletter flyers, bulletin board postings, etc. Your real estate agent can tell you what marketing strategies will work more successfully for your home. You can work together to make your marketing a success.
3. Using Negotiations:
Negotiating with your buyer is very important. Your agent can help you determine what items will need to be negotiated and what items won't.
First Impressions
If you decide to sell your home, you want buyers to be interested. You want them to remember your home when they see it. You want them to make an offer. You need them to be interested enough to make that offer. Here are suggestions to make your home stand out in the minds of your buyers, and make them remember it above the many others they may be looking at:
1. Be Ready - You need to always be ready to show your home. You never know when a potential buyer will knock on your door, and you don't want to get caught with a messy home. You should always keep the house clean and be ready to show on a moment's notice. Keep dishes washed, beds made, bathrooms cleaned, and carpets swept at all times.
2. Keep the Lights On - You don't want your home to appear dark and dreary. Keeping lights on will keep shadows from forming and make your home seem larger and
3. Make it Smelly - Putting candles or potpourri in rooms, especially bathrooms is a really good idea. You could bake something, or buy something that smells homemade from a bakery. The trick is to have your home smelling “homey” and pleasant. Also make sure that any pets are washed, and cat boxes cleaned out, as well as garbage emptied.
4. Liven it Up - Adding flowers can make otherwise dreary rooms look lively and inviting. Consider putting potted flowers or fresh cut flowers in rooms, and even add them to your porch or patio.
5. Sunday Best - Put out your best hand towels in designs to coordinate with your bathrooms, put good china on your dining room table, and simply dress up your home to look its best
6. Step Back - You don't need to hover around your visitors when you are showing your home. Let your buyers see for themselves what your home has to offer. Do remove or lock away any valuables before you leave your guests alone. You should be available to answer questions, without standing over them.
If You Show It...They Will Come
If you are planning to sell your home, you must be willing to show it to potential buyers. After all, they aren't going to buy something that they haven't inspected thoroughly. This showing will need to be done whether you use a real estate agent, or whether you sell it FSBO.
If you use an agent to list your property, they will probably want to put a lockbox on your door. This allows the agent or other agents to bring buyers by when you aren't home. This also means that you will have to keep your home clean and presentable at all time. You can have the agent call first to make sure you're ready. If you're not, you simply let the agent know that it's not a good time, and plan a showing for later. You do, however, run the risk of losing a potential buyer if you're not ready to show at all times.
When you sell yourself, you still must make sure that your home is ready at all times. You will ultimately be the one who handles calls from prospective buyers and lets them know they can come by. You will also be the one showing them the property. You must take the time to walk them through the home and property, answer questions, and call them after the showing to determine their interest.
Safety While Showing:
Whether you use an agent, or sell on your own, there will always be concerns of safety. You can never be 100% sure that buyers are sincere and not just looking to steal from you or do you harm in some way. For this reason, I suggest that you have all your valuables either locked in a safety box, or taken to a friend or neighbors house while you are showing your home. You should also watch your buyers carefully. You don't want them to feel that you don't trust them, but you don't want to leave them completely alone with your possessions, either. You also need to consider having someone with you when you show your home. Ask a friend or neighbor to come by while you're showing if you are alone.
You should always capture the buyer's name, address, and telephone number. This is a good idea for call backs, to see if they were interested. It will also prove useful if you do have problems with one of the buyers. During the initial call for a showing time, try to find out as much about the buyer as possible. It's better to have more information than you need than to not have enough.
If you are terribly concerned about your safety, and just don't feel comfortable having strangers in your home, then a better idea would be to let your agent show your home while you are not there.
Getting The Word Out
It's an age old necessity. If you want to sell something, you have to let people know what you are selling. If they don't know you're selling, they won't know to buy.
All real estate agents have a marketing plan for selling your home. Most will list on the Multiple Listing Service and let other brokers help them sell. They will also place ads in newspapers, on their agency's website, post signs, and just simply spread the word about your property.
If you are selling your home on your own, you also need a marketing plan. You would ideally post a for sale by owner sign in your front yard and place an ad in your local newspaper. However, these two things alone do not marketing plan make.
There are other ways to spread the word to potential buyers about your home. You could create flyers and post them on your signs. You could post your home on employment or community bulletin boards. And don't forget the power of word-of-mouth. Tell everyone that you are selling. Friends, neighbors, family members, and co-workers may not be interested in buying your home, but they may just know someone who is.
Perhaps one of the very best ways to advertise your home for sale is the internet. Most homes in the nation now have computers and access the internet regularly. It has been estimated that 80% of home buyers use the internet as a searching technique to find homes for sale. You must realize the impact that the internet could have on helping you to market your home. You will first need to list your home on a FSBO (For Sale By Owner) site such as ChangeMyStreet.com. Typically the sites make it easy. They let you give a detailed description of your home, including photos, and sometimes provide an answering service, buyer's mortgage referral, and much more.
Someone looking for homes in your area would see your listing and call you. You would then show your home and go from there. However, for them to see your internet listing, you must make sure that they know where it is.
In addition to your phone number you should list the internet site where your home is listed also. This should be placed on all your signs, as well as your newspaper advertisements.
Internet listings have multiple advantages. Your potential buyers can inspect your home from the comfort of theirs. They can see photos of your home; learn about your neighborhood, and even what other homes in your area have recently sold for.
Real estate agents use the Multiple Listing Service to showcase homes to multiple buyers. By listing on the internet, you are basically doing the same thing, without using or paying an agent.
Putting together a marketing plan does not have to be hard. You already know what you need. You need signs, newspaper ads, and maybe more importantly, the internet. Do some minor marketing work and watch the buyers start pouring in.
Buyers Will Have Questions
You can find useful information to help you answer buyer’s questions at Sellers Handbook . However, there are other things to consider when talking to buyers.
First, if your home has features that you can't show the buyer, for instance, if you're showing your home in the morning and the sun sets beautifully over a pond in your back yard, then be sure to tell the buyer that. Be sure also to mention any features that are not evident, such as if you have hardwood floors underneath the carpeting. Buyers will want to know every little thing that makes your home special.
Let buyers look at the house without you. As they are leaving, always ask if they have questions and take that opportunity to chat about where they've been looking, certain things about your home that they liked, etc. Make friendly small talk as much as possible. The key word here is Friendly.
Some buyers will ask you questions during the showing. Questions may be about the house or about the reason you are selling.
You should naturally disclose any information about the house to the buyer. You will be required by some state laws to make the buyer known of any problems of defects with the house. You should always answer questions truthfully if you know the answer. If you don't know the answer, just tell them as much as you do know, and add that you assume the buyer who purchases the property will have a thorough inspection done.
Questions about why you are selling could be more difficult than general questions about the home. Buyers will want to determine how desperate you are to sell, and whether or not you may come down on your asking price. The best way to handle questions about why you are selling is to be truthful, but try not to sound desperate to sell.
Below are some questions you may be asked by your buyers:
• How long have you been trying to sell? This question is intended to determine how desperate you are to sell. If the house has been on the market for a long while, the buyer assumes that you will accept a lower offer just to get the sale over with. Answer truthfully and, if you are in a hurry, inform them that you would like to get the sale over with fairly quickly, and will consider any offer that will help you to settle quickly.
• How did you set your asking price? This is a great question as long as you’ve done your homework on the comparable sales and properties currently on the market – and priced your home accordingly. Simply say you’ve priced according to the comparables and offer to show those to the buyer.
• Why are you selling? This question is an attempt to get at how motivated you are to sell. The more motivated you appear to be, the more the buyer thinks you will take a lower price. If you are very motivated to sell quickly, indicate that you would be very interested in reasonable offers, which accommodate your timeframe.
• Will you take less? Very straightforward and right to the point. All buyers will probably be thinking it, but few may ask. Just inform them that you have set your asking price based on comparable home sales, but you will consider any reasonable offer.
• Why are you selling without an agent? This could be pure curiosity or the buyer may actually be considering the fact that you will be saving money on commission. Let them know that you feel you could save both of you money by selling FSBO.
Make the Most of Your Ads
Most buyers will discover your home either by driving by and seeing your sign, or by reading your advertisement in the local newspaper.
Advertising is not inexpensive, most newspapers charge by the word, so you want to keep your ad short and sweet. Your main goal for placing an ad is to get interested buyers to call you for more information, and for a showing. You don't need a lot of words; you simply need a short description, and your contact information.
Keep it short, but be sure to include:
• For Sale By Owner at the beginning of the ad. Buyers will be very interested to know that you are selling your home on your own.
• Your asking price. Most buyers will want to see what you are asking for your home, so be sure to add this.
• Your neighborhood or general area. If your neighborhood is highly desirable and hard to get a home in, then list the name of the neighborhood. On the other hand, if you feel your neighborhood may be less desirable, then simply list the area of the town or community that your home is located in.
• The size of your house. For example, 3 bedrooms, 2 baths, and if you have a really large yard, you could say that also. Most buyers would love the idea of a large yard...
• One thing that will make your home stands out. For example, if you just completely remodeled the kitchen, or maybe added an in-ground pool. You need to list the most interesting feature that will make your home stand out.
• Be sure to list your phone number.
Here's an example of a good newspaper advertisement
FSBO- 4BD/3BA Ranch Style Home in Sequatchi Point. Great Neighborhood. Priced below market @ $125,000. Call 321-555-1234.
You could also choose to place a larger and more informative ad. Informative ads are good to place on bulletin boards or in newsletters. It may be a little too expensive for your newspaper ad. You would include all the information above, as well as extensive information about your home.
For Example
FSBO in Sequatchie Point. 4BD/3BA Ranch Style Home with built-in barbecue and 30ft. in-ground swimming pool. Fireplaces in LR and MB. Newly remodeled kitchen with up to date appliances. Close to shopping, but quiet retreat. Great neighborhood. Priced to sell below market at $125,000. Call 321-555-1234 for more details.
Make Your Home Show Worthy
When someone is interested in buying your home, they need to be able to see themselves living there. You want your home to make them feel at home and comfortable.
Here are ways to make your home more appealing to your potential buyers:
1. It must be Clean!!
You've heard the saying “Cleanliness is next to Godliness”. This is ever true in the real estate business. Your home must be cleaned. All carpeting should be vacuumed and shampooed if necessary. All windows should be cleaned, as well as appliances. Furniture should be dusted, dishes washed, beds made....You get the point. Your home must always be kept looking its best if you expect to impress potential buyers.
2. De-Clutter
Along with cleaning, you should also de-clutter your home. Clean out and organize closets and cabinets or pantries. Your buyers will be looking for space. You want to show them how much space potential your home has. If needed, you may even want to consider clearing some items from your garage. You can put extra items in storage while you are showing your home.
3. Smell it Up
But in a good way. If you have pets, make sure they are bathed and de-odored. It may also be a good idea to keep them outside during showings. If you smoke, make sure that you clean windows and picture frames to keep trapped odors from smelling up your showing. You may also want to put candles or potpourri in bathrooms, and it's a good idea to have fresh cut flowers, especially in rooms that may appear dull or dreary.
4. If It's Broken, Fix It
Potential buyers will want to flush your toilets and check the working order of sinks, showers, tubs, etc. If you have a problem that you know needs fixed, then fix it. If your light bulbs are blown, then replace them. You can even consider touching up paint in spots that need it. Make sure your doors and windows all work properly. Even if it's an easily fixed problem, buyers don't want to be burdened with repairs when they move into a new home. So make sure all your minor repairs are done before your showing.
You Only Get One Chance To Make A Good Impression
The very first impression that a prospective buyer has of your home is when they pull up outside. Studies show that 50 percent of the purchase decisions are actually made during the first 60 seconds while the buyer is walking up to your door. So, the look and condition of the outside of your home, is technically, more important than the inside.
Remember, you only get one chance to make a good impression. Here are some tips to make the first impression of your home a good one.
Spruce It Up - If your house needs painting, paint it or hire someone to paint it for you. If you can't have it painted, then you can wash the outside with a pressure washer, or a water hose to make it look cleaner. Put flowers around your porches and patios or decks.
Make a grand entrance - Make sure the area where buyers will be entering your home is clean. Clean the door handles, windows, replace any broken screens, etc. Also make sure all outside lights are cleaned and working properly.
Landscaping - Be sure to mow your lawn and trim shrubs and trees. Also, if you have a flower bed or garden, make sure you pull all the weeds and dead plants. You don't necessarily need to re-landscape, but you do want to clean and detail the landscaping that you have. Make sure flowers are well watered and all plants look healthy.
The Driveway - Clean and sweep your driveway and clean up and oil or grease. Check your garage doors, and replace batteries in the opener if necessary. Make sure all outside lights are in working order.
Gutters - Remove leaves and such from gutters and from the roof. Make sure your gutters are working properly and are properly aligned. If you have a shingled roof, inspect the shingles and replace or repair any damaged ones. Also, if you have a chimney, clean it if necessary.
Foundation - Check the foundation for cracks or problems and make necessary repairs.
Patio Appeal -Clean your patio and put away any gardening equipment, or barbecue utensils. Clean your outdoor furniture just as you would your indoor furniture. Make any minor repairs that may be needed to decking, screens, etc. as an outdoor grill or barbecue. Repair cracks, missing slats, enclosures and screens. This also applies to swimming pools and hot tubs. Make sure that they are clean and the water is sparkling.
Improvements and Repairs
If you are planning on selling your home, you need to have a general idea of improvements that need to be made. You also need a good idea of the amount of improvements or repairs that you should do. You don't want to go overboard and remodel your kitchen for $20,000. You just need to do the most basic and necessary improvements or repairs to get your home ready for sale.
Sellers tend to go from one extreme to the other. One seller may not want to repair or improve anything, and another may think they need to overdo repairs.
It's always safer in the middle. I suggest that you do all the minor, inexpensive work first. Minor work includes cleaning and maybe painting. When you finish with minor improvements or repairs, then you can determine if any major jobs need to be done.
If you do have an area that would be considered a major repair, and you really feel that improvements are necessary to help sell the home, then I suggest doing the minimum that you can get by with. For instance, if your kitchen is outdated, and in need of repairs, instead of remodeling a complete new kitchen, you should consider simply having the cabinets repainted or restrained, instead of replacing them altogether. Doing major repairs can prove to be very expensive, and there is no guarantee that you will get your money back. You need to only do what repairs and improvements are necessary to help ensure the sale of your home.
Upgrading an Older Home
If you're considering the sale of your home by owner, you may be wondering if you should spend money upgrading it. In order to get a quick sale you may need to upgrade. However, you want to make sure that you're going to get your money back. It hardly makes sense to spend $20,000 upgrading your home, if you only receive $5,000 over the market price.
If your home is less than 20 years old, or has recently been improved or upgraded, then you probably won't need to worry with any future upgrades. If, on the other hand, your home was furnished with appliances from the 1950s, then you may want to consider a few upgrades, if only for cosmetic purposes.
New light fixtures, or cabinet handles and knobs, and even new door knobs can make your home seem newer and more modern. You don't have to spend a lot of money doing upgrades, you simply need to replace a few items, and you can watch your home transform to the 21st century.
Keep in mind that upgrading something that can't be seen is not very cost effective. Having your trash disposal replaced when it is still in good working order is not a good idea, just to add more monetary value to your home.
To Do List for Sellers
Below is a quick checklist that will help you prepare your home for sale. You should focus on the exterior of the house first, because the outside will be a buyer’s first impression of your home. Do the inexpensive fixes first. You can always negotiate with the buyer on the more expensive repairs at the time of sale.
Print out this checklist and go through your home, marking off items as you get them done. When you're finished your home will be show perfect.
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