 Why go FSBO(For Sale By Owner)??Hello and welcome! I'd like to start by talking a little bit about why I offer this service to those trying to sell their house FSBO, and my thoughts about this process. As a business professional, I would of course love to help you sell your home, and would appreciate your business. As a real estate expert, I know firsthand how complex the process of selling your home is, from the right price (extremely important) to understanding how to stage your home for maximum appeal, knowing which repairs will help the value of your home and which are just throwing money away. I don't know how to fix my car, and I've only attempted acupunture by myself once , these experiences have taught me that sometimes it is best to seek the advice of someone who has been there, done that, and done it well. With that in mind, if you've come to the same conclusions, I would love to sit down and talk with you about my exclusive marketing plan for your home. I also offer a refund of fees you have already spent on marketing your home, which means you will have lost nothing by deciding to list your home. I will happily relieve all stress, inconvenience and frustration for you. One more thing before I get to the promised help: Some people really don't need a real estate agent, and have enough time, patience and know-how to successfully market their home and navigate contracts and negotiations. The following tips below should help you to do just that. Bear with me, because I tried to make this as informative as possible. As a business professional, I take a long-sighted view of the future. I know that even if I don't help you with this sale, a satisfied client will refer me and think about using me again. If my advice helps you to sell your home, I hope you will consider consulting me for the purchase of your next property, or referring a friend to me, or to this website. Good luck in your endeavor! Top Areas to Understand
These are the areas of expertise and the roles that a good agent will fill for you. Therefore, as your own agent, it's important to understand how to navigate each issue as it comes up. Needs Analysis This sounds very basic, but it's important to understand your sense of urgency, motivation and time frame. It's a far different proposition to sell a house when you need to move in two months then it is when you have all the time in the world. This will drive your strategy when offers come in, and you need to make decisions about accepting one. A motivated seller has priorities that include closing quickly and on time, keeping contingencies to a minimum, etc. Evaluate where you fall in this spectrum and your reasons for deciding to sell. This is also a good time to look at closing and escrow costs you will have. Pricing Strategy And here we are. It can't really be overstated how important it is to price your home right. When I do a comparative market analysis (complimentary, by the way), it involves a complex search through properties that are comparable to yours. While I may look at active or pending listings, the only way to truly determine what the market will bear is to look at properties that have actually sold recently. This will tell me how long they were on the market for, how much they actually sold for (above or below asking price), and what special features, dimensions and square footage they had. Only then can I utilize all this information to come up with the top price the market will bear, without going so high that it won't sell. So, as your own agent, it's important that you take the steps to come to a realistic price that will attract the largest amount of buyers, possibly even creating an air of competition.
Property Preparation Yet another incredibly important topic to cover. After all your hard work and research, you've priced your home to sell. Once a buyer gets there, you certainly don't want them to turn around and walk away. When a buyer comes to your property, they don't want to see you home, they want to see a house that they can envision themselves living in. They want open spaces and room to breath. How can you make this happen?
Curb Appeal A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they do come inside your house by spending some time working on the property's exterior appearance. The next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.
Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach clean and tidy? What could you do to make it more attractive?
Staging Staging your home can be a very important part of getting buyers to see it in a different light. Especially if your home is vacant, it's imporant to give a sense of the feel of the space. Without vision it can be hard to see yourself in another person's space. After you've decluttered, and thoroughly, thoroughly cleaned and painted, consider setting the stage for some aspects that buyers really are looking for. Sometimes even when we know we're falling for something, we still do. When I bought my first home, I walked into the smell of cookies baking. Of course I knew it was a ploy, but at the same time it started to feel so cozy....baking bread, cookies, fresh flowers on the table. Having all the blinds pulled up, lights on, and your house bright and smelling great can be big pluses. Marketing Strategy Now how are you going to advertise your sparkling, beautiful, well-priced home? The best place to start is to come up with a thought out plan and develop a timetable. Exposure is what will make your home sell quickly, and exposing it to the right audience is especially important. When I list houses, they are on the Regional MLS (Multiple Listing Service) with a virtual tour, Realtor.com www.Realtor.com, on my Broker's site, and on my personal web site at www.cometodelraybeach.com. Decide which mediums you will choose to use, and then the best way to present your home in them. You will also want to think about offering a courtesy to an agent who brings a buyer for your house. Since the large majority of buyers do work with an agent, this will improve your chances immensely. While it is negotiable, a typical commission would be a minimum of 2.5%. Up to 3% and you might have some agents going out of their way to show your home! It is important to remember that someone must write the contracts, and keep things on track. It will probably be the buyer's agent. In reality, you will be paying them for much more than bringing a buyer, and still be saving the other 3%. Writing your sell ad Long, flowery prose will not make your house sound more appealing. It will simply make it harder for the home buyer to read. Make sure to provide the critical facts buyers are looking for such as the house's number of bathrooms, a re-modeled kitchen, etc. Most home buyers quickly scan ads, so it is important that your house stands out. For example, you may want to add a theme-line such as "Priced below market" or "Great schools." You should mention special features that your house has, and you should really, really have a quality picture. If you are taking a photo of your home, be sure that the home's yard/driveway is uncluttered. Remove bikes, garbage cans and parked cars. The same applies for interior shots. People are looking to buy your house, not your possessions. Think of furniture as props and the room a stage. Move things around if you have to. Also, take lots of house photos. The more you shoot, the better the odds are that you'll get a few really good shots. You'll probably want to check out the Internet as well. If you decide to put your property on the Internet, look carefully into who will be the main audience for the site. You want a quality site that attracts qualified buyers, not those who can't get financing and are hoping you will do it for them. There are many sites to consider, but try to find one that is more locally-based, and ask them how they go about promoting their site, how many hits it gets, average time it takes an owner to sell. You'll also want to see a sample site and know how many pictures you are allowed to place on it. These are all imporant questions to evaluate before you spend your money on any website. As for signs, you'll want a noticeable, nice looking sign, with a flyer box with good quality, well-presented flyers. You'll of course want to keep this full at all times, as this will be a large source of buyer interest. Directional signs with your address at busy intersections can also be very helpful in sending people your way. Sit down and brainstorm. Where is your audience for this house? Where could you find them and what would be the most effective way to reach them? Always feel free to e-mail me with any questions you may have. Negotiating an Offer When you receive an offer, it can be hard to know whether or not to accept it. If your house is recently on the market, and you have marketed it well, hopefully buyer interest is high. A multiple offer situation can be overwhelming but exciting. You want to consider more than just how high the offer is. Other factors can determine how financially sound a buyer is, and the likelihood that they are qualified enough to follow a deal through to the end. A good real estate agent verifies a buyer's pre-approval status before he shows them property. When you sell by owner you'll deal with many people, including those who are qualified to buy a home and those who don't have a chance of getting a home financed. People who know they cannot buy sometimes think that for sale by owner homes offer a better opportunity, because they're hoping to find a seller who will finance the transaction. Ask these questions to get a better feel for someone's buying power:
A potential buyer should also have earnest money to put down. Typically at least one percent, but many people will offer more, and this can be a clear sign that they are financially stable. Contracts You can write a contract yourself on a piece of paper, but it probably wouldn't offer much protection for either your or your buyer. The forms you use should be valid for your Florida's real estae laws and cover issues that are important for your location. The contract should spell out what happens to the buyer's earnest money, if the deal falls through:
The earnest money is not yours until the house sells or the buyer breaks the contract in such a way that it becomes yours by prior agreement. It must be credited to the buyer's funds on closing day and ideally should be held in someone's trust account until then. If you've offered a courtesy to a buyer's agent, they will typically use their own form to write an offer. It's imporant to understand what this contract really means and your liability. For instance, a buyer will have many ways to "escape" from a contract for a period of time. For a seller, once you have signed an agreement with a buyer, you are pretty much locked in. No getting out if a better offer comes along. It's important to understand all of this. If you don't, you might consider taking the contract to an attorney who can explain it to you. Don't cut corners here, neglecting to get advice from an attorney or other knowledgeable person will cost you money, not save it. Repairs If you are planning on doing no repairs, this should be stated in your ad for your property. Otherwise, after the home inspection process you will need to negotiate repairs with the buyer. You should understand the difference between repairs and flaws with your house, and know which you feel comfortable dealing with. It's also important at this stage to understand the final terms and conditions of your agreement with the buyer, and removing any contingencies that might be part of your agreement. Disclosures One more thing to mention is the need for disclosures. Just because you're selling your home by yourself does not mean you aren't held accountable to many of the same laws as agents. For instance, if you do not provide your buyer with a completely filled out and signed property disclosure, they can back out of your agreement at any time before the sale closes, and are entitled to all of their earnest money back. If your house was built prior to 1978, federal law requires that you disclose that the home could contain lead-based paint and give buyers details about past tests for lead paints. You must also offer buyers the opportunity to do their own lead paint testing. Most people don't perform the tests, but you must furnish them with a lead paint pamphlet, which is available free online from the EPA. You will also need a disclosure if your house has man-made siding. Appraisals The mortgage lender will order an appraisal of your home to make sure they are not paying more than the house is worth. They may also order a surveyor to make sure that the property boundaries are properly laid out. They will also order a title search to determine if there are any liens against your property. These tasks are all the responsibility of the buyer and/or their attorney. At this point too, the mortgage company will issue a commitment. Again, the buyer (and their attorney) must complete all conditions listed on the mortgage commitment. Prior to closing, you should notify your lender that you will be paying off your mortgage. After a closing date has been agreed to, you should contact your utility providers and advise them of your final billing date. Preclose Preparation It's important to stay on top of things while the deal moves through escrow. If there is a buyer's agent involved, they will probably see that everything is happening in a timely manner. The escrow company too, will be overseeing things, but it's important that you are timely in providing necessary documentation of repairs you have done, and documents that are required. It's a good idea to have a real estate attorney to help. Unless you are very experienced in the process, it can give you peace of mind to have someone by your side to answer complex questions that may arise. Closing Closings usually occur 30 - 45 days after you have signed the sales contract. You may close with an attorney, or with a title company. At the closing, all monies will be collected, any existing loans or liens will be paid, the deed will be transferred, and insurance will be issued insuring a free and clear title. You will receive the proceeds from your home in one to two business days after the closing, and after the deed has been recorded. At this last juncture it is once again a good idea to make sure you are very detail-oriented and aware of any last-minute items that might need to be completed. And that's it! While it's complicated, it is definitely possible to sell your house by yourself. I hope my (somewhat exhaustive) guide has helped you. If you have any questions I didn't cover, feel free to [contact me]. My mission is to become your real estate agent for life, and I strive to help in any way I can. Please feel free to send anyone that you think might need real estate guidance to my web site. Take care. Sincerely, Eric Zaner |
