You’d like to save money by trying to sell your home yourself. That’s understandable; you’ve worked hard to build equity in your home and you’d like to keep as much of it as you can. But keep in mind that selling your home is a complicated process with certain rules and regulations. Since it involves a contract that is legally binding, you must be sure you go about it the right way or it could end up costing you more money to sell your house yourself.
To help you in your endeavor, we’ve written this article to explain as much of the process as possible. This is not a substitute for expert representation, just a general guideline as to what to expect. If at any time you feel overwhelmed by the procedure, we’d be happy to help you sell your home. We’re simply a phone call away or better yet, contact us right now.
Pricing your home, an important consideration
First, and most importantly, you will need to set a price for your home. This isn’t an arbitrary number you pull out of a hat. It is imperative that you price your home correctly the first time. If you overprice it expecting to drop it later, the ramifications include it languishing on the market too long. Buyers become suspicious of a home that has been on the market for some time. Obviously, if you under-price it, you won’t get as much as you could. By following these tips on how to price your home, you should be able to come up with a fair market value for your home in which it should sell within a reasonable amount of time.
- Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities? To get this information, request your New Albany HouseValues Analysis
TM. This Comparative Market Analysis (CMA) is free for the asking. Contact us and we will help you determine the correct price for your home.
- Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
- Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months?
- Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact us.
- Ask a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.
- Be accurate. Studies show that homes priced higher than three percent over the correct price take longer to sell.
- Know what you’ll accept. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.
Gather required documentation
Once you’ve decided on a price, you should gather and prepare the necessary forms so that you will have all the proper documentation ready for selling your home.
- Property Disclosure Form. This form requires you to reveal all known defects to your property. Check with your state government to see if there is a special form required in your state.
- Purchasers Access to Premises Agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move.
- Sales Contract. The agreement between you and the seller on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.
- Sales Contract Contingency Clauses. In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies—such as the buyer’s need to sell a home before purchasing yours.
- Pre- and Post-Occupancy Agreements. Unless you’re planning on moving out and the buyer moving in on the day of closing, you’ll need an agreement on the terms and costs of occupancy once the sale closes.
- Lead-Based Paint Disclosure Pamphlet. If your home was built before 1978, you must provide the pamphlet to all sellers. You also must have buyers sign a statement indicating they received the pamphlet.
Who can help me?
Once you’ve gotten all the required forms together, you should contact a list of service professionals that will be necessary to help you sell your home.
- Real estate attorney
- Appraiser
- Home inspector
- Mortgage loan officer
- Environmental specialist
- Lead paint inspector
- Radon inspector
- Tax adviser
- Sanitary systems expert
- Occupancy permit inspector
- Zoning inspector
- Survey company
- Flood plain inspector
- Termite inspector
- Title company
- Insurance consultant
- Moving company
Ready to open your home to the world?
Now it’s time to open your home up to all potential buyers. (This is where using an experienced Realtor is helpful, we can screen all potential buyers to see if they are qualified to purchase your home before they are allowed to visit).
No one will buy a home sight unseen. So prepare your home for buyers to walk through. This is not an easy process because your home needs to be in tip-top shape and ready to be scrutinized by the most discerning buyers.
Curb appeal – the first impression your home presents – is critical to further investigation of the rest of your home. Make the outside look as desirable as possible so buyers will be more inclined to look inside. Then be sure every room is cleaned thoroughly and extra items are put in storage to create a more spacious appearance. Make sure that you take an objective look at your home, both inside and out, to reveal anything that needs to be cleaned, repaired or replaced. As homeowners, we may overlook fingerprints on the walls and small stains here or there on the carpeting, but believe us, potential buyers won’t.
Once your home is in shape, you’re ready to market your property. This part of the process can be expensive and time-consuming. There are many strategies to be implemented including:
- Buying ads in your local newspaper
- Professional photography
- Building a website. It is estimated 80% of all buyers start looking for their home on the internet.
- Pay ads in the local magazines (Homes & Land)
- Purchase a yard sign
- Develop handouts detailing the features of your home, room sizes, heated square feet. the local area schools, homeowners dues….etc. Make sure the summary sheet is available to all potential qualified buyers.
- Schedule an Open House
Open Houses can be tricky and awkward. Pre-screening prospects who are qualified to purchase your home is important. The Open House is an important marketing tool. Here’s what is necessary for a successful Open House:
- Advertise your open house. Ideally you should advertise both the weekend before, and the weekend of, the open house. Check with your local paper to see when their ad closing deadlines are.
- Create a property summary sheet. This sheet gives prospective buyers an overview of your home. Include dimensions for each room, copies of a property survey, summaries of utility costs and property taxes, and a list of when capital items, such as the roof and furnace, were added.
- Develop a sign-in form for prospects’ addresses. You’ll ideally want both phone numbers and e-mail addresses to follow up with prospective buyers.
- Put up signs. One or two days before the open house, place directional signs at major intersections within three to four blocks of your house. Be sure you check on anti-sign regulations in your area.
- Get your house ready. Remove clutter, clean your house, wash your windows, add flowers, turn on lights, open draperies and blinds, remove valuables and breakables, confine pets, turn on soft music, and set up a table for your property fact sheet near the entrance.
- Develop a follow-up sheet. Getting feedback on your home from prospects who attended your open house will give you a better understanding of how to make your home more appealing to buyers.
Following these bits of advice will help your FSBO sell easier. If you feel overwhelmed by the process and need help, we’d be happy to help you sell your home. We have the knowledge, experience and proven track record to get your home sold quickly for the best price.
Contact us or just give us a call. We’re the New Albany real estate experts.
