For Sale By Owner Tips

It's a good idea to place your home on the market as far in advance as possible of purchasing a new one. If you find a new home first and then try to sell your present home, you may wind up with two mortgages. If this does happen, ask your real estate agent or banker about a bridge loan to help you make the double payments. Lenders use the same criteria for offering bridge loans as they use for mortgages. Should you qualify for a bridge loan, beware of the expense; during the term of the loan you must continue to pay both mortgages. Shop around for the best terms.

Keep in mind that when people move, sell and buy, there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to comply.

How To Get The Best Possible Price
To you, your home is filled with memories and emotional attachments. But to anybody else, it's just another piece of merchandise up for sale. That's why the most important thing in selling a home is to set the "right" price. Set the price too HIGH and you may NEVER find a buyer. Set the price too LOW and you'll be cheating yourself.

Keep in mind that the value of your home and the willingness of a buyer to pay that price isn't based on the cost of construction or the amount you paid for it. Instead, it's determined by the market conditions in your neighborhood at the time you want to sell.

How Do Most Owners Price Their Home?
Most owners use neighborhood open houses or other brokers' listings to determine their price. But this can be disastrous because these properties have not SOLD!

What is Market Value?
Market value is defined by the courts as the highest price which a property will bring if offered for sale on the open market, allowing a reasonable time to find a buyer who buys with full knowledge of all the uses of the property. It is frequently referred to as the price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure.

How is Market Value Determined?
To arrive at a realistic asking price for your home, most real estate agents will prepare a Comparative Market Analysis Report for your home. It takes into consideration current market conditions, neighborhood influences and specific selling factors of your home to determine a suggested Fair Market Value.

The method used for residential real estate is called MARKET APPROACH. It is based on the premise that a prudent person will pay no more for a property than it would cost to purchase a comparable substitute. The use of this approach involves the comparison of your property with others of similar design and use which have recently sold or are currently for sale.

Dangers of Overpricing Your Home.
It will take longer to sell. Buyers aware of this long period of exposure are hesitant to buy, fearful that there is something wrong with the home.
You will have fewer showings. Buyers buy by comparison, so homes not comparing favorably with those the buyers have inspected do NOT sell.
You will receive lower offers. A buyer is more likely to make a full price offer on a home that is priced right before making a low offer on a home that is priced TOO high.

Your property will help sell other properties. Overpricing tends to force buyers who could buy in your area to look elsewhere, or to buy something lower priced before those lower-priced homes are bought by someone else.

It's very important to keep a list of the people who call on your ad and those who actually come out and tour your home. Make a list of them, it will help you with your follow-up.

Buyer Name _________________
Address ___________________
City __________ Phone____________
Called__________ Toured ____________ Date _______
Why moving?______________Pre-qualified?_____Pre-approved?_____

Trying to sell your home yourself to save the real estate commission?
This may work for you if you are prepared to place your own ads, answer phone calls, schedule appointments to show your home to strangers, have strangers show up at your door when you least expect it, negotiate with potential buyers, comply with all the disclosures required by law, schedule required inspections, and secure necessary title services to close the transaction. If you choose not to use a professional Real Estate Agent, representation by an attorney is strongly suggested. The transfer of ownership of a home is a major transaction for both buyers and sellers and legal and tax implications should be thoroughly checked.

For Sale By Owners
If you are convinced that you can do it yourself, are willing to put forth the effort, then you have a reason to try For Sale By Owner for at least 30-45 days. I will not attempt to talk you out of it, but I will actually assist you.

One of three things will usually happen:
1- If I do help you, and you are successful in selling, then you will keep me in mind when you hear of someone else selling or buying a home in the future. That is one way I generate referrals.

2 - Since less than 20% of the people trying to sell their own home are actually successful, if you do indeed get fed up, or you decide to go ahead and hire a Real Estate Agent, then hopefully you will remember me and call me for a free consultation.

3 - If you do sell your home on your own, and you're staying in the area, you may work with me in buying your new home and let me work for you as your buyer agent.