When you sell a home on your own, there is more required than just putting up a curbside sign and waiting for buyers to come to your door with money in hand. However, doing a little "homework" can help you understand what is involved when you decide to sell your home.
Sellers, who are emotionally attached to their homes, often price them too high. To determine a realistic price, compare your home with similar homes in your neighborhood or town. If houses are not selling quickly or if the price of your home is higher than those around you, you may have to set the price lower than you originally intended. You may choose to hire an appraiser to help you determine an appropriate selling price.
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All too often, owners skimp on advertising. In addition to the "For Sale" sign in your front yard, post others where legally allowed. Compile a brochure or fact sheet listing the asking price, lot size, individual rooms and dimensions, heating and cooling systems (with monthly utility bills for the last year), appliances or other fixtures included, present financing, taxes, and any unusual or particularly attractive features. Don’t forget to include a telephone number and show your property by appointment only. The Internet can also be a useful tool when selling your home. People who may be relocating to your area can view photos and a fact sheet, which could spark their interest.
It may be wise to screen potential buyers. If they seem interested, inquire about their potential down payment. If you are getting close to a deal, consider asking the buyer to supply a financial statement from a bank or mortgage lender. A serious buyer will be happy to provide the requested information. You may even ask buyers if they have obtained a "pre-approval" or "pre-qualification" letter from a bank or mortgage company, to ensure that the funds they are offering for your house would be available for them to borrow.
If you need assistance, a "hybrid" real estate company may prove a lower-priced alternative to traditional full commission brokers. These companies generally charge a flat fee—based on the asking price of the house—to screen prospective buyers, arrange appointments, suggest a price, and negotiate with buyers. However, showing the house would be the owner’s job.
If you decide to sell your home on your own, remember the following:
1. Price It Fairly. Compare your house to others in your neighborhood that have recently been sold, and factor in any improvements or unusual assets.
2. Advertise. Use more than just a "For Sale" sign on your lawn. Circulate brochures, run ads in the local newspapers, and post notices on bulletin boards and real estate websites.
3. Screen Buyers. Before accepting an offer, ask the buyer to provide a financial statement or obtain mortgage pre-approval or pre-qualification.
When should you decide to discontinue selling the home on your own? Assuming a house is properly priced and in a reasonably active market, a homeowner attempting to sell without professional assistance should allow for a predetermined time period without a written offer. If you find you want or need to move more quickly, consider using a hybrid real estate company or a professional broker.
Selling a home on your own can be a great deal of work, but you may save thousands of dollars that would otherwise be "lost" to real estate commissions. On the other hand, while the prospect of improving your financial position may be tantalizing, the task may be too time-consuming or beyond your expertise. Professional real estate assistance, whether from a service or a broker/agent, may "save" you more than you realize as you prepare to sell your home. The decision of whether you should sell your house by yourself or with professional assistance is complicated. However, doing a little research can help you decide the best strategy for you and your situation. $
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