By using a few simple FSBO (For Sale by Owner) tips and techniques, the average homeowner can sell their own home without the help of a real estate agent. Just like many others have done in the past. He can sell his own home and save thousands, but it takes work and commitment.
Below you will read some simple strategies that can increase the odds in your favor, greatly increasing your chances of success when selling on your own.
FSBO Tip 1. Understand the real estate market.
Getting a feel for local market conditions makes sense. Just like any other product, having an idea of what’s hot and what’s not can help you make decisions that affect the sale of your home. Consider your neighborhood and the characteristics that set it apart from others. If you feel comfortable, contact a real estate agent to discuss what the current market environment is like.
FSBO Tip 2. Timing is everything.
Timing the decision to sell and evaluating current market conditions could be two of the most important decisions you make. If you need to sell your home quickly, the less flexibility you may have. Conversely, if you’re not in a hurry, you can sit back and wait for the perfect buyer. Just remember that the real estate market is a cyclical environment. If it is a slow period now and you are in a position to wait, then it might be a good idea to wait for the next rally.
FSBO Tip 3. Assemble a team of professionals to help you.
While it’s nice to think you can handle things on your own, selling a home requires specialized knowledge. It’s more than just writing a sales agreement. Depending on which part of the country you are in, you will need to find a real estate attorney or a title/trust company to help you with the legal details. As a general rule of thumb, if you are east of the Mississippi, you are usually a real estate attorney. If you’re west of the Mississippi, it’s a title company. Either way, they will be an indispensable part of your home selling process. Another important partner to consider is a reputable banker/mortgage lender. They can help you pre-qualify potential buyers. We’ll talk more about qualified leads as you read on.
FSBO Tip 4. How to determine the fair market value of your home.
This always seems to be really tricky. For many home sellers, this often proves to be a major point of contention. When trying to decide on a price, guessing or basing your selling price on hearsay or non-traditional methods immediately reduces your bargaining advantage. Basing your price on what the house down the street sold for or what the media perceives to be a higher market value is also not the way to get a legitimate price. There are only two legitimate and well-recognized ways to determine a fair market value. One way is to contact a real estate agent or broker to provide you with a CMA, also known as a comparative market analysis. The best and most accurate way to determine the price comes from a complete appraisal by a professional real estate appraiser.
FSBO Tip 5. You are selling a house, not a home.
While it’s important to detach emotionally, you don’t have to become a robot. After all, this is your house, be objective but don’t be cold. Keep in mind that people will perceive your home differently than you do. Either way, stay positive and ultimately the right person will walk through the door and buy your home.
FSBO Tip 6. Preparing your home for sale.
Today’s real estate market rewards homeowners who place a high value on neatness and cleanliness. Not only does it add value but overall it promotes a faster and more profitable sale. Once again, depersonalizing your home helps your prospect with such an emotional decision. Ordering the interior of a house is also key to its preparation. If necessary, rent a small storage space and store some household items in there. As a side note, having a garage sale is also a great way to get rid of cluttering items around the house. Not only do you get rid of the items, but you also earn a bit of money in the process.
FSBO Tip 7. Start spreading the news.
It should be understood that if you are going to sell your house and do it yourself, the easiest way to spread the word is to put a sign on your yard. This will immediately catch the eye of anyone passing by. Naturally, this is the essence of selling on your own. It is imperative to create a featured sheet to outline the key features of your home. With the readily available use of word processing programs, it’s easy to put together a simple highlight sheet.
FSBO Tip 8. Knowing some negotiation skills will take you a long way.
You don’t have to become the next great diplomat. He should keep in mind that it is necessary to control his emotions and personal feelings regarding the negotiation price of his property. When discussing the sale price, it is important that the calculations and numbers of it are correct. This allows him to have greater flexibility and leverage and he can trade from a position of strength.
FSBO Tip 9. Qualify buyers and stop staring.
So what is a lookie loo? A lookie loo is a person who comes to your house and looks at everything. They look in cabinets, closets and drawers, they check everything but they never make you a serious offer. You need qualified buyers looking for your home or it will get very daunting. One of the best ways to get qualified leads is to have your mortgage broker/lender refer them. You can also take the direct approach. If you’re arranging a visit over the phone, go ahead and ask them if they’re pre-qualified. Don’t be too shy when it comes to your prospects. If you’re hosting an open house and someone expresses an interest in your home, go ahead and ask. Most of the time, if they’re pre-qualified, they’re happy to tell you. So don’t worry about asking, it’s the right thing to do.
FSBO Tip 10. If all else fails, go where the realtors hang out.
If after a while, you are not getting the results you expected, you can always go for the MLS option. This does not mean that you have to quote with a real estate agent or broker. As a private party, you can list your home on your local multiple listing service. This usually costs a fee, but doing so automatically exposes your home to thousands of potential customers across the country. The advantage is that you should be able to sell your house in no time. The obvious downside will be that you will have to cooperatively pay an agent. Only in unique situations would the cost of cooptation be virtually impossible, due to low equity or some other extenuating circumstance.
These FSBO tips should give you a solid foundation to successfully sell your own home. There are many specific ideas and recommendations that are beyond the scope of this article when it comes to pricing, preparing and staging your home, and all of the items described above. You should definitely do your research and prepare for the process of selling your own home. In the long run, it will make things easier and could save you or even earn you thousands of dollars.