You may have seen a “For Sale By Owner” sign posted in front of a house or listed in a newspaper before. FSBO sales aren’t as common as selling with real estate agents. But they’re certainly not unheard of.
And for many homeowners, FSBO sales are a more viable and lucrative alternative.
If you’re wondering how to sell your own home, this article is for you! We’ll cover everything you need to know about FSBO’s. And we’ll also help you decide whether selling your home on your own is right for you.
Let’s get started!
Decide If You’re Ready for the Responsibility
Selling your own home comes with its perks.
You don’t have to pay a real estate commission. This means there is potential to profit and pay yourself after expenses. You also have complete control over the sale and can negotiate for the best price as you please.
But selling with the help of a real estate agent has its own set of perks. For one thing, real estate agents have a wider network of home buyers to work with. Their knowledge of the market and how it works is also unparalleled.
Marketing & Selling a Home Is Not as Easy as It Seems
The marketing aspect of selling your own home is not easy. But you may have dealt with real estate agents who continually downplay the true value of your home. So, the next best option is to sell your home on your own terms.
Do you believe your home is worth more than what you’re getting with a real estate agent? Are you confident in your abilities and have the time to carry them out?
If so, selling your home on your own is not only the best option. It may be the smart thing to do from a monetary perspective.
Price Your Home to Sell
You’re ready to sell your home on your own. So, the first order of business is deciding how much to price it for.
You may be thinking, “If I’m selling on my own, I’m able to price it however I want.”
But not so fast! You have to price it for your home for the true value that it’s worth. And there are a few things you can do to figure out the best selling price.
Get a Home Appraisal & Research the Market
Getting a home appraisal is something you have to do whether or not you’re selling your home on your own.
A home appraisal is an impartial estimate of the true market value of your property. The unbiased estimate comes from a licensed or certified appraiser. They assess the home’s value based on several factors. These include:
- The value of similar properties
- The current condition of the property
- Location and the local real estate market
- How the neighbourhood affects the property value
If you’re selling on your own, you can hire a professional appraiser. You can also make use of an online appraisal service.
You should research the local market and watch for the current real estate trends. Check out newspaper ads, as well as online real estate listings. It may also help to attend open houses and speak with real estate agents to get a better feel for local prices.
Make Any Necessary Repairs & Renovations
Could your home use a fresh coat of paint on both the exterior and interior? Are there leaky faucets, squeaky doors, or other repairs you should finally get around to?
Before putting your house up for sale, make sure it’s up to date with all repairs and small renovations.
Buyers will be checking to see what kinds of projects they’re in for once they move in. If there are lots of necessary repairs and renovations, they’ll want to mark down the price. So, by completing them yourself beforehand, you can market your house for a higher price.
Highlight Your Selling Points
New paint jobs and new floors can make great selling points. Energy efficient windows, storm shutters, and impact-resistant roofing are also good selling points.
If your home is older, you may also want to look into the state of the foundation. And if necessary, you may have to invest more in big projects, like asbestos removal or new windows.
The bottom line? If there’s an opportunity to increase the value of your home, it’s worth the time and money you’ll put in now. In the end, you’ll see a bigger return from the sale.
Advertise Your Home
Marketing your house without a real estate agent can get tricky. But it’s not impossible!
You can never go wrong with posting up a “For Sale by Owner” sign in the front yard. You should also make brochures that highlight its selling points and the going price.
There are some costs with advertising your house. But they’re nowhere near as much as a real estate agent’s commission. Next, we’ll explore some ways you can market your house for as cheap as possible.
Take Advantage of Online Resources
It never hurts to advertise your house on Facebook. You never know who in your social circle is looking to buy a home. Plus, if any of your friends and family know someone who is in the market for a house, they can easily share your post.
Still, you want to spread the word about your house as much as possible.
Put ads in the local newspaper and magazines for a small fee. You can also create listings on Craigslist, Trulia, and Zillow. Owners.com is also a great home listing site that specifically caters to FSBO sellers.
Clean & Declutter
Any time you schedule a showing, you’ll want to make sure your home is clean from top to bottom. First impressions are especially important when you’re selling your own home. You won’t have the safety blanket of a realtor, so you want to make sure you nail each showing.
A quick sweep and dust through is not enough. Make sure your home smells fresh and clean the moment you walk in. You’ll also want to get rid of clutter and clear away things that be distracting.
For instance, you may want to take down a framed sports team or movie poster and replace it with a mirror. You want to keep things looking as neutral as possible when showing your home.
Countertops, coffee tables, mudrooms, and front hallways should be clear of clutter. Throw away dried out plants and only display ones that look healthy. Shelves should be neatly organized, as well as cables and cords.
Stage for More Space
After getting rid of clutter and organizing, focus on staging your home. You not only should aim to create more space in every room. You should also stage the furniture around so that there is an open flow throughout the house.
If need be, store away excess furniture that doesn’t have immediate use. For example, if you have two couches in your living room, store away one to create more space.
Donate any items and furniture you no longer need. You could also have a yard sale before putting the house up on the market.
Know How to Negotiate
When it comes to negotiating real estate, the process boils down to contracts. Buyers will submit contracts to sellers, who can then revise and resubmit it. This process continues until both parties sign and agrees to a contract.
Depending on where you live, there may be a specific contract process. In some states, there are purchase agreements both parties may adhere to in the contract.
You should aim to perform your own negotiations. That way, you appear confident to buyers. If you’re uncertain of anything, seek advice from a real estate attorney.
You can certainly learn more about contracts by viewing examples online. But these contracts aren’t unique to your situation. That’s why it’s important to have an attorney review any contracts you compile.
Comply with Local Real Estate Laws
There are local and state laws that pertain to selling and buying real estate.
Some laws are in effect all across the board. For example, sellers can’t discriminate against buyers on gender, race, or religion. This law is in effect nationwide under the Fair Housing Act.
The bottom line? Understand the laws – on the national and local level – you must comply with so you can avoid costly legal troubles.
Understanding How to Sell Your Own Home
Selling a house by owner is not for the faint of heart. It can be an arduous process. But for many homeowners, the hard work can pay off in big ways.
Now that you understand how to sell your own home, you may be wondering where to go from here.
You could certainly begin to get your house ready for sale. You could also start researching the market.
But you could spend months advertising and negotiate for the best price. And if you need to move as soon as possible, you simply may not have the time.
That’s where ASAP Cash Home Buyers comes in. We help homeowners sell their homes faster and for cash prices that are higher than the market value. If you’re selling property in the US, contact us today!