For Sale By Owner – 10 Inside Tips For Selling Your Home Yourself

If you interview anyone who has ever tried to sell their own home, they’ll swear the “For Sale by Owner” sign will keep the phone off the hook. Unfortunately, many of the calls will be from real estate agents looking to obtain your listing. Oh darn…

This is not why selling FSBO is challenging. No way Jose, there’s more to it. But in the end it is worth it if you are able to sell your home and pocket the commission you would’ve otherwise payed the agent.

The secret of those who have successfully sold their own home is being  properly prepared. Preparing your home for sale will serve to attract and get offers from qualified buyers. This is the first step. It is the step at which most sellers get frustrated and give up on their dreams of selling the home themselves.

However, some sellers accomplish selling their own homes without a struggle. You can be one of them.

Here are 10 tips (stolen from industry experts) that you should be aware of to help you get the cash out of your home.

1. Set Your Asking Price Correctly
This is critical and often misunderstood. Setting your price too high can be as costly as setting it too low. The market decides what your home is worth not you. Therefore, establishing the price of your home must be done objectively. This means comparing features, upgrades, condition of your house against others in the area. Also the terms under which a home was sold affects the price. You must budget if it is customary for seller to pay buyer’s closing cost or jump with joy if home sellers are not shelling out a dime.

2. Get Your Home Ready For Showings
There are many first impressions in the real estate world, but nothing like a personal visit. If you want to demand a higher price for your home, your buyers should be able to walk through your home and see nothing but perfection. One blooper on your part as small as a tiny carpet stain or mold in the bathroom will bring down the sales price far more than what it would cost to repair. Buyers are constantly looking for the most minute details to pick on your home. Trust me I’ve seen them.  

3. Get Out The Paper And Put Your Words In Ink
Ok, so this is probably where you will wish you had someone else do this for you, but relax, it’s not that bad. You must know what a contract says and understand what it means when you put your signature in there. In most states you are able to buy a standard real estate contract through the board of realtors or a real estate lawyer. Aside from the purchase and sales contract make sure you gather the following:

Mortgage Payoff
Loan Application
Earnest Money Deposit Receipt
Property Profile Fact Sheet
Buyer’s Cost Sheet
Closing & Settlement Statement (Preliminary)
Personal Property
Exclusion List
Property Survey (if needed)
Sellers Statement /Plot Plan of Representation

4. Let The World Know Your Home Is For Sale.Â
Beyond the sign you will put on your lawn, you should find effective ways to spread the word about your home. Include advertising through the newspaper, online, real estate agents, investors. Most importantly, make sure buyers are able to get information on your home 24/7. You’d be surprised the times people will inquire about your home. And yes, they will want to see it now.

5. Do Not Let Buyers Get On Your Nerves When Showing.Â
Buyers will pick on your home. That is almost guaranteed. It’s best to let the buyer roam around on their own. Point out the positives and do not get defensive at their negatives.

6. Do The Buyers Have Money?
You will be amazed, shocked and almost disgusted at the number of buyers who don’t have any money and are out and about looking at homes. Make sure to deal only with quailfied buyers by getting them pre-approved before wasting much of your time.

7. Effective Negotiation Skills
It is almost a given that a buyer will offer you something below your asking price. One too many buyers have the mentality of offering 10% below asking everytime. Don’t get discouraged. Part of negotiating is to test each other. If they send you something below what you are willing to take, then counter them back at the price you want keeping in mind that if the buyer is financing the home it must appraise. If you priced your home right you should not have to worry about this.

8 . Get Inside The Buyer’s Head
Often times your best negotiating tool comes from understanding the buyer’s motivation. Maybe there is a financing program and they must buy before a certain deadline. If you home is the only one they’ve liked, they’ll be motivated to pay more for it. Maybe the just sold their home and will be without a place unless they buy now. Find out their story.

9. Stay In The Home Until You Sell
A vacant home is harder to sell than an occupied home. Vacant homes have an empty feeling and you are also letting the buyer know you’ve bought another home and must sell quick to avoid paying two mortgages. Not a good idea

10. Keep Your Own Story To Yourself.Â
Just like you’ll try to understand the buyer, the buyer will try to understand you. Don’t let them find out the real reason why you are selling as this will give them an advantage over you at the negotiating table.

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