Selling Your Home Yourself

The rates realtors charge for selling a house are exorbitant, and on average, realtor rates are between 6 and 7% of the selling price of the house. If your home sells for $150,000, at a rate of 7%, you will have to pay the realtor a whooping $10,500. That’s a huge chunk of change! Just think of all you could do with that amount of money!

Advertising is expensive, but if your house sells for $150,000, does the realty company really deserve to earn $10,500 of your hard earned money? Even when considering the cost of advertising and the work involved in showing a home, most people would agree that a realty company doesn’t deserve to earn more than ten thousand dollars for selling a $150,000 home.

Many people decide to try selling their homes themselves, and although selling a home yourself has its downfalls, if you’re successful you’re sure to save a lot of money in the process. Keep in mind that selling a house yourself involves much more than simply placing a for-sale sign in your front yard. Selling a home yourself involves marketing, showing the house, and knowing how to handle offers.

First Things First

Before putting your home on the market in an attempt to sell it yourself, contact an attorney that specializes in real estate transactions. Believe it or not, selling a home yourself with the assistance of an attorney will cost less than going through a real estate company. The attorney can advise you regarding your legal obligations and the legal obligations of perspective buyers.

Before attempting to sell your house yourself, order an appraisal from a reputable appraisal company. A professional appraisal is required by lenders when purchasing a home, and having the appraisal in hand when considering an offer is a plus. Not only that, you’ll have a better idea of how much to ask for your home.

Along with the figure set by the appraiser, when determining the asking price for your house, research recent sales of similar homes at your county recorder’s office. Since you won’t be paying a realtor, you will be able to set the price of the house considerably lower, and this could result in a fast sale.

Advertising

Design eye-catching colorful flyers that include photos and details regarding your home. List room sizes, square footage, amenities, and anything else you would want to know about the house if you were a potential buyer. You might also go so far as to include the history of the house, utility rates, area attractions, school information, and other local interests. Since you are in charge of the advertising, you are free to include any information you desire. When working with a realtor you certainly don’t have this type of power over advertising.

Consider placing a mailbox next to your “For-Sale By Owner” sign, and be sure to print “Please Take a Flyer” on the box. The mailbox will keep the flyers dry and protected, and the cost of the box is a small price to pay compared to giving a large portion of your profit to a realtor.

Take advantage of any and all free advertising. Look for public bulletin boards at banks, grocery stores, discount stores, and anywhere else that allows flyers. Check back often to replace missing flyers, and continue to search for free places to post flyers and gain perspective buyers.

Although free advertising is nice, be prepared to place ads in newspapers as well. Newspaper ads can be quite expensive, but considering realtor fees, newspaper ads are the cheaper option. Weekends are when real estate companies advertise, and there is a reason for this. People are more likely to see the ads on the weekend when they have time to read the paper.

Showing Your Home

Showings should be by appointment only, and for safety reasons, never show your home without a companion. If family members can’t be present, arrange for a friend to come over. You can’t be too careful when opening your home to strangers.

Consider hosting an open house. Sunday is the most common day to host an open house, and an open house is a great way to bring in potential buyers. Have a stack of flyers ready, and make sure you house is clean and tidy.

While showing your home, give visitors the green light to open closets and cabinets. Allow potential buyers a little space and privacy so they can discuss options and concerns. Nobody likes a pushy salesman, so don’t become overzealous. Mention features of the home potential buyers might overlook, but don’t point out obvious inclusions.

Taking Offers

In advance of showing your home, obtain purchase agreements from your lawyer. That way you’ll be ready if someone wants to make an offer. Don’t discuss offers verbally or haggle the price. All offers, including counteroffers, should be made in writing on the appropriate forms.

Upon acceptance of an offer, insist on a preapproval provided by a mortgage company, bank, or credit union. Offers should also include earnest money. Anyone making a serious offer won’t hesitate to show good faith by including a check with their offer. Earnest money should be held by the lawyer until the closing.

When you finally close the deal, you’ll have the satisfaction of knowing you were able to sell your home yourself, and your bank account will reflect your efforts. Don’t give your equity to a real estate agent. You can sell your home yourself!