Many homeowners wonder if it is necessary for them to employ the services of a real estate agent when they desire to sell their home. And while the short answer is no, it is important to understand the complexities involved with selling a home on your own.
This does not mean you will not be able to complete the sale on your own but there are some things you must know first. Being able to sell a home on your own will save you thousands of dollars in real estate commissions, but it's a lot of work!
The process. There is a lot of work to be done before an FSBO real estate transaction can be completed. The first step in the process is to prepare the home for sale. This means decluttering and giving the home a thorough cleaning. You should also make any minor repairs that will improve the appeal of the home to potential buyers. The next steps in the process are deciding on a sale price and gathering the information necessary to list your home. Listing info will include home data, photos, and a brief description. Once this is done, you will need to alert potential customers the home is for sale. A sign in the yard is a start but you also need to advertise on and offline. Other steps in the process include staging open houses, fielding and negotiating offers, and completing the legal paperwork necessary to render the sale official.
Benefits of FSBO. Homeowners who choose to sell their homes without the help of a realtor do so because there are a number of positive benefits. For one, you do not have to pay a commission to a realtor. Real estate agents work on commission so depending on the price of your home, not paying a fee to an agent could mean thousands of additional dollars in your pocket. A second benefit is you have complete control over the sales process. You choose how the home is marketed, the price tag you attach to the home, and how you negotiate the offers you receive. A final benefit is you will only have one home to sell. If you hire a real estate agent, he or she will have a number of homes they are trying to sell at once. An agent will not be able to pay the same level of attention to selling your home as you can.
Pricing A Home. The key to this step in the process is maintaining your objectivity. FSBO sellers often allow their emotions to cloud their judgment during this stage in the home selling process. To get a sense of the market value of your home, you should research the price of similar homes sold recently in your area. Concentrate on homes with the same number of bedrooms and similar square footage. Once you have the results of your market research in hand, set a price for your home that is in line with your home selling objectives.
Staging tips. Home staging is done with the intent to show the home to potential buyers in the best light possible. The house should be thoroughly cleaned and free of clutter before a showing is scheduled. Buyers like homes that are bright and spacious. Open the curtains and allow the natural sunlight into the home. Remove obstructions like tree limbs or bushes that block the sun from illuminating the home. You should present the home in a way that causes potential buyers to think of the home as their own. This means you should put personal items like family portraits and trophies away during the staging.
Handling legal paperwork. Any real estate transaction that takes place in the United States will be governed by both state and federal guidelines. In most jurisdictions, a standard real estate contract is available for buyers and sellers to use. This contract can be found online at little to no cost but it is probably a good idea to allow a lawyer to look at the signed contract before submitting it to the courts. You should use an escrow agent or real estate attorney to make sure all documents needed for closing on the sale are in order. A problem with any of these documents will result in the sale being delayed.