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Selling a home by owner can be perceived as a complicated process of marketing, showing, negotiating, inspecting, and signing. Some homeowners wouldn’t dream of embarking down the road of selling their homes themselves.
Often, homeowners mistake the idea of a FSBO (For Sale By Owner) as "saving the commission" when, in reality, you earn the commission. So, the question is, is home selling as hard as it seems?
Let’s break down the basics of a For Sale By Owner.
1. Adopt a new perspective.
Breaking down a daunting task into manageable pieces may help make the home selling process easier, so first things first: selling your home is a business transaction.
While the four walls of your house undoubtedly hold an abundance of memories, it’s important to go through a paradigm shift and remove the emotional tug the home has on you.
Take a business-like approach to selling your home to maintain clarity throughout the process.
2. Create a to-do list.
Start compiling your to-do list by scheduling an appointment with a real estate attorney or closing agent, as this may prevent a delay later down the road. The appointment will disclose time-sensitive issues such as termite inspection, well and septic inspections, radon, etc.
Walk outside to the other side of the street and get an unbiased view of your home. You’ve heard it before: curb appeal is so important. Every home makes a first impression, and you want yours to attract buyers from the moment they drive up.
Trim trees and shrubs so that you can clearly see walkways and windows. Power wash the exterior of the home, clean windows, and touch up any painted surfaces.
3. Freshen up.
Step inside and assess the unique scent that every home has. Find any hidden sources of odor and eliminate them (unless, of course, your dog is the culprit).
Clean your home as you’ve never cleaned before. Depersonalize and declutter every room. Buyers are attracted to clean, open spaces, and they want to be able to envision themselves living in your home. So, while your children’s art is precious, it’s probably better boxed away while you show your home.
Ask a friend to come by and give you their honest opinion, or hire a professional stager to get your home in tip-top shape. Fix all of those nagging items that have taken up permanent residence on your "honey-do" list.
Buyers will notice the leaking faucet, so take time to repair those items or hire a handyman.
4. Set the price.
Now comes the moment where keeping your emotions in check is critical. We all tend to overvalue our home, particularly if we’ve invested sweat equity, but home selling is the time to be realistic.
With the vast amount of information available through internet research, you should be able to get a very good sense of the fair market value of your home. Sites such as MilitaryByOwner provide you with the resources you need to take an in-depth look at the home prices in your area.
Use MilitaryByOwner’s search feature to find homes in the same zip code with an identical number of bedrooms and bathrooms and see how they compare to yours.
Websites can give you a ballpark of how much homes are valued in your area, but a professional appraiser can provide a much more accurate assessment. An average appraisal can run between $350-500 in most locations. But investing the money now can save you from finding out at closing that the bank will not lend above the appraised price. This will also help you price your home competitively.
Asking the fair market value for your home helps ensure it won’t linger on the market or, on the other side of the spectrum, leave you wondering if you should have set your price higher.
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5. Advertise Your FSBO.
Once you have set a well-researched asking price, it’s time to get the word out. Market your home in every possible way. Advertise on MilitaryByOwner, utilizing a package that allows you to include photos and a virtual tour link.
You've taken the FSBO path to save money on the commission, but that only happens if the home actually sells. Reinvest some of the money you expect to save and put it toward an aggressive marketing strategy.
6. Your photos matter.
Take high-quality photos, shot from different perspectives at various times of day, then choose the best of the best. Create a slideshow or virtual tour of your home and upload it to YouTube.
We live in a visual age, and the power of high-quality images can't be understated. Good photos will help make your ad more shareable. Blurry, poorly lit photos will cause prospective buyers to scroll on by, while good quality, clear images could inspire a buyer to find out more.
7. Utilize social media.
Share photos and details of your home on your Facebook page, and set your post’s settings to "public." Ask friends to share the information with people they know who may be in the market for a home in your area.
The quality photos you took of your home will make your post more shareable and create interest.
Other ideas for sharing your home listing on social media:
- Do a Facebook Live video or upload a video tour of your home. Make the post public and ask your friends to share.
- Publicize any Open Houses across your social media.
- Mention your home ad on your own social media pages, LinkedIn, or YouTube channel or blog, if you have them.
- You may have good results posting in your local Facebook neighborhood or military oriented groups (ask for permission from admins first).
8. Extend advertising locally and with paid services.
Place "For Sale" signs in your yard and at nearby intersections. Create a professional and detailed flyer, including photos, and place them in a waterproof container in front of your house for potential buyers to pick up. Post flyers in the housing office of the military installations near you, as well as on bulletin boards at local stores near other homes for sale by owner.
Get for sale or rent signs from MilitaryByOwner.
Consider the option to list your home on MLS (Multiple Listing Service), the system used by real estate professionals to advertise homes. There is a fee involved in listing it, and if a buyer
finds your home on MLS, you will be required to pay a commission.
Bottom line: have a creative and thorough marketing strategy.
Photo by Prostock-studio via Canva.com
9. Schedule showings.
Be available to show your home to potential buyers. In a 9-5 world, it isn’t easy to be at someone’s beck and call, but if you don’t show it, it won’t sell.
Enlist the help of family and friends to show the home or ease the burden of the life events that keep you from being available.
Should you have an open house?
You’ll see arguments that Open Houses aren’t effective or not worth the effort. However, 47% of homebuyers will attend an Open House, according to the National Association of Realtors.
If you decide to have an Open House for your FSBO, you’ll want to be present and personable, as well as keep your home and belongings safe. Prospective buyers need the space to walk around and envision themselves in your home.
10. Ask for feedback.
Ask potential buyers for their honest feedback. Set out a notebook for them to share what they did and didn't like about your home.
Remember to separate your emotions. Stay objective and don’t take what potential buyers have to say about your home personally. This can help you to make the changes necessary to sell the property quickly.
11. Be prepared for paperwork.
Get ready for your potential buyers by purchasing the state-specific forms required to sell your home. MilitaryByOwner makes this easy by offering a Home Sales Package from US Legal Forms.
Due to the intricacies of real estate transactions, you need to employ the services of a closing agent to carry out the legal portion of the transaction.
The parties authorized to perform real estate closings vary from state to state, so consult your current mortgage lender to ask for guidance on whom best to contract for assistance. Establish a relationship with your closing agent before receiving offers on the home so they’re prepared to assist with reviewing all documents.
Receiving an Offer to Purchase is exciting. But before moving forward, you should ensure the offer is from a pre-qualified buyer. Asking to see a Pre-Approval Letter from the potential buyer will save both of you a lot of time and needless negotiating, and no, it’s not rude to ask.
Take the time to consider the offer and contemplate your counter-offer options through your business-like perspective. Driving away a potential buyer because you’re offended that they asked for a carpeting allowance to replace your 1970s shag is not in your best interest.
12. Close on your FSBO.
Once you’ve agreed upon the terms of the sale, submit all documents to your closing agent.
From this point forward, the agent will assist you with the inspections and documents required for a real estate transaction, such as appraisals, termite inspections, and a title search. At the end of this phase, you'll close. Closing will officially transfer ownership of the property from you to the buyer.
Congratulations! You've successfully sold your home by owner. You can sit back and enjoy the fruits of your labor: your proceeds check.
Get even more tips for your FSBO:
Thinking of listing your home For Sale By Owner, but need a little help? See our FREE guide below.
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