Preparation and organization will go a long way toward the successful sale of your home. This workbook is a step-by-step instructional guide to keep you on track during the entire home selling process. Make notes and check off items as you go along.
Thousands of homeowners nationwide choose to sell their homes without the services of a real estate agent or broker - as much as 15 percent of home sales annually are accomplished on a “For Sale By Owner” basis (also known as FSBO, or “fizz-bow”).
Is FSBO the method for you? If you’ve never done it before, it certainly can be challenging, but if you are willing to do the work necessary to market your house and work with potential buyers, there are some advan- tages.
Typically, a real estate agent or broker who lists and sells your home gets paid with a commission of between 5% to 7% of the selling price. That means that if your house sells for $200,000, you would end up paying between $10,000 and $14,000. The commission makes up by far the biggest chunk of the expenses as- sociated with selling your house. If you sell it without the help of an agent, you save that money.
Here are a few things to consider if you are interested in selling “FSBO”
In short, selling by yourself is not simple. But, neither is selling through a real estate agent. The FSBO option can be worth your work, if you are committed to saving money, equity and quite possibly time. You will never know unless you try!
Educate Yourself!
Use the resources offered by Real Estate Broker Ryan Solberg and you’ll be on your way to the smooth sale of your home. If you fail to sell or get frustrated during the process, don’t worry! You can always decide to call Realtor Ryan to sell your home for top dollar, with the least amount of stress, in the shortest possible time. I love helping for sale by owners because they are motivated to sell, but just need a little help from a broker to get the job done.
Having realistic expectations of the time it takes to sell your home is important in today’s market. The average home in the US takes about 45 days to sell without an agent. By researching the micro market in your area you can get an idea of the time it will take you to sell. To find out what the selling conditions are like in your market, use the internet and your local newspaper to gather market information as well as talk to your neighbors and friends who are selling in your area.
The following page contains a checklist of the common areas inspected when a home is sold. These parts of your house will most likely be under scrutiny while you property is under contract and their condition can make or break the sale. Making basic repairs to any deficiencies now can save major trouble down the road.
Get a jump on prospective buyers with a professional home inspection.
After an inspection, you’ll know the defects of your home inadvance - and there will be no surprises later on. A completed whole house inspection is also a selling point that shows buyers you’ve done everything you can to secure a safe and functioning house. Once you’ve had a full inspection, you’ll know how much work you need
to complete. Set your goals using the SMART system.
Homeowners often consider remodeling to increase market value, but it is often thesmall things that give you the most bang for your buck. Replace worn cabinet knobs and handles. Consider nickel or other modern styles that complement your home. Replace gaudy chandeliers and other light fixtures with simple designs. A fresh coat of paint does wonders for a room. Use neutral ones, or soft colors that complement cabinetry. Your local home improvement store has color palettes for nearly every situation.
Home improvements can definitely pay off in the end, if you approach them wisely and with realistic expectations. The biggest mistake most people make when they renovate is expecting to get a dollar-for-dollar return. However, even the most desired upgrades rarely yield 100% return. Don’t forget to budget your money. When undertaking a renovation project, most people underestimate their budget by 20-30%. Finally, make sure to complete the repairs on any defects you may have found during your home inspection, in the previous section, prior to starting any major renovation projects.
You can do as little as just cleaning your house and removing clutter or as much as moving, removing or even replacing furniture and decor. The end goal in staging your home is to create a friendly, attractive, functional and spacious house that a buyer could call home. Below is checklist of staging ideas to make your property more attractive to potential home buyers.
Sellers often receive the most buyer inquiries within the first several days a house is placed on the market. When you first list your home, there is likely to be immediate interest from potential buyers and agents. As time passes, and more properties come on the market, this initial burst of interest will fade. So it is important to price your home correctly when you first list it.
OVERPRICING
If you overprice your home with the idea you can drop the price later, you are hurting your chances of selling during this first wave of buyer interest. Keep in mind that these buyers have probably done their homework and will likely know how much your house is worth.
The graphs illustrate the pitfalls of overpricing.
PRE DETERMINE PRICE CHANGES OR DROPS AND TIMING
The best realtors come up with a pre-determined price strategy, similar to a game plan for a sport. For example, every two weeks we plan to drop the price 1% until we get to 9 weeks, then we stay at our bottom line and continue doing everything in our power to sell! You can determine this later, but know that this is not easy for the average seller, so it is best done up front.
MLS (MULTIPLE LISTING SERVICE) AND REALTOR.COM AND ZILLOW.COM
If you choose to list with an agent (whether it be a full service listing or a flat fee MLS entry only), your exposure will be increased greatly. By listing in the MLS, you are advertising your property to buyers who are using an agent to help them find their next home. If a buyer’s agent brings you a buyer through the MLS you will only pay about half the commission you would have had you listed with an agent (for example, instead of paying 6% you might pay 3%). And, of course, if you find a buyer on your own, you pay no commission to a buyer’s agent at all. For more information about the MLS, reach out to Ryan Solberg today: 321-373-3536
PHOTOS, VIDEOS, 360 TOURS
You will need to take photos for your internet listing and your property flyer. It is important that these photos are well-lit and show minimal clutter and maximum space. Hiring us makes it all perfect and flawless. Please consider calling us for help.
Depending on how you have advertised you may hear from potential buyers in several ways: direct phone calls, voicemail, e-mail, or even knocks on the door. Check your messages on a regular basis and follow-up with buyers right away to keep their interest.
TIPS FOR TALKING TO BUYERS
Make sure to note your conversation on a Buyer Prospect Info Sheet, located on the next page. If the potential buyers did not set up a showing, call them to follow-up the next day. Many people prefer text nowadays.
Make sure your buyer is qualified to purchase your property. Ask for a letter from their lender showing that they have been pre-approved or pre-qualified for an amount greater than or equal to the price of your property. Do not consider an offer until you know the buyer is pre-approved or pre-qualified for a mortgage loan. If a buyer cannot afford to buy your property, everyone’s time has been wasted. If you choose to accept an offer from a buyer that is not pre-approved or pre-qualified, providing this should be the first condition in the sales contract.
Q: Why would an agent contact me?
Agents may contact you for one of several reasons: to solicit business, to sell your property, to help you find a new home, or to show your property to a client.
Q: Do I have to pay a commission if an agent brings a buyer?
If you sell your house to a buyer that an agent has brought, you will most likely owe them an agreed upon commission, generally around 2-3%. If you have an MLS listing, the commission amount will be set, based on the amount you chose to offer when you completed your MLS paperwork. Of course, you are not obligated to accept any offer.
Q: Should I let agents preview?
Of course, they have many buyers. Can give you free comps, tips, tricks, and you will find the top agents out there working hard. Save a list and keep a top agents number you may need it if you can not sell yourself.
While many people are uncomfortable trying to negotiate, there are some tips you can follow that may help negotiations run as smoothly as possible.
