Sell It Yourself: Can You Do It?

I understand that you’d like to save money by trying to sell your home yourself. It just makes sense; you’ve worked hard to build equity in your home and you’d like to keep as much of it as you can. Keep in mind that selling your home is a complicated, legal process with strict rules and regulations. And since it involves a legally binding contract you must be sure you do it correctly or it could end up costing you more money to sell your property yourself.

To help you in your endeavor, I’ve written this article to explain as much of the process as possible and provided some resources too. This is not a substitute for expert representation but rather a general guideline as to what to expect. If at any time you feel overwhelmed by the procedure, contact me for some additional assistance, or if you decide it is time to list your home, I’d be happy to share with you what I am able to do for my clients.. I’m simply a phone call or email away.

1. Pricing your home: An important consideration

First, and most importantly, you will need to set a price for your home. 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, and probably accepting a price less than you could have received earlier.

Buyers become suspicious of a home that has been on the market for awhile. Obviously, if you underprice 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. For a general idea of what the price trends are in your zip code, request my free monthly Market Tracker report.

Coach Tip: Today’s market can be brutal for sellers. Don’t get caught chasing the price down!

· Compare. What have other homes like yours in the neighborhood sold for recently? How do they compare to yours in terms of size and amenities? To get this information, request my free Property Investment Portfolio. If you want, I’ll even set it up so you receive an update to the Property Investment Portfolio every two weeks, or even every week!

· Coach Tip: How big is your neighborhood? Think like a buyer? How far away would you buy a house…that’s the size of your ‘neighborhood’!

· Compete. What’s the market like? How many other houses are for sale in your area? Are you competing against new homes? How long is the average time on market? To get this information, request my free Property Preview report. It will notify you daily of new homes coming on the market that compete with you, and even price adjustments of those homes!

Coach Tip: If there are ‘Pending Sales’ in your area, that means there are buyers in the market and it should not take long to get an offer, two to three weeks at most! Remember, during the first ten days the current buyers should become aware of your home; after that you are waiting for new buyers to enter the market!

· Contingencies. Do you have special conditions that would affect the price you’ll receive? For example, do you have to find another house before you can vacate this one? Do you live on a very busy street? Think about what would cause you to be cautious about buying a particular home you visited as a buyer.

· Appraisal. For a few hundred dollars, a qualified appraiser can give you a good idea of your home’s value. The appraiser will analyze your property in depth, and should use a broad base for the valuation. To locate appraisers in your area, contact The Appraisal Institute (http://www.appraisalinstitute.org/).

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. Oregon law requires the seller to provide the buyer with a disclosure form for most home sales, whether a real estate agent is used or not. This form requires you to reveal all known defects to your property. Click here to see what is required in the disclosure.

· Sales Contract. The agreement between you and the seller on terms and conditions of sale. There are a lot of these available and many do not do much to protect your interests. Be very careful and make sure you read the one you are going to use carefully before you get into negotiations with a buyer. The buyer may even just bring you one on a single sheet.

· Coach Tip: This is a good time to spend some of the money you will save by selling your home yourself; get guidance from a real estate attorney.

· 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 the home is vacant or 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. This may or may not be included in your sales contract, and is important to add by addendum if not there

· 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. A link to the pamphlet is available for free on my website.

2. Who Can Help Me?

· Appraiser

· Home inspector

· Mortgage loan officer

· Environmental specialist

· Lead paint inspector

· Radon inspector

· Tax adviser

· Sanitary systems expert

· Survey company

· Flood plain inspector

· Termite inspector

· Title company

· Insurance consultant

· Moving company

3. Are You Ready to Open Your Home to the World?

Now it’s time to open your home up to potential buyers. There's a difference between people who want to see your home and potential buyers.  Think about how you are going to screen people to make sure whoever is coming could actually buy, and also the security you want in place to protect yourself.  Remember, almost 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. Read about ways to prepare your home for optimal appeal with “ Creating Curb Appeal.”

4. Marketing 101

Once your home is in shape, you’re ready to actively market your home. The first step is the open house. Essential for providing potential buyers a look inside your home, the open house is a great 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 and ask permission of the people who live where you want to place a directional sign.  It's the polite thing to do and gives you a chance to market your home to 'someone who might know someone'.

· 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, I’d be happy to help you sell your home. I have the knowledge, experience and proven track record to get your home sold quickly for the best price by effectively marketing your home and maximizing its exposure.