So, you have decided to sell your home by yourself! You can save many thousands of dollars if you are successful. I have written this guide to assist you. I have seen many FSBOs have unrealistic expectations, and make mistakes along the way that ultimately prevent safety deposit boxes for sale them from being successful. Did you know that 80% of FSBOs ultimately list their home with a Realtor? I hope these ideas will help put you in the other 20%.
Am I trying to put myself out of business? No. Do I think everyone has the right to sell their home however they see fit? Yes. If your circumstances change, and you decide you want a professional to sell your home for you, please call Gold Valley Realty. We are a full service brokerage firm with a flexible commission structure that is hard to beat.
Tip 1 * Plan Your Strategy
First of all, by when must your home be sold? Is nine months from now OK? Or will you not be able to close on your new home if your current home isn’t sold in nine weeks? What are the consequences and financial impacts if your deadline is not met? Time is a FSBO’s friend.
As of October 2008, the average marketing time for an average priced home listed by a Realtor in the Tucson MLS (Multiple Listing Service) was 78 days. This time varies considerably by location and price range. Ask Gold Valley Realty what the average is for your neighborhood. As a general rule, it normally takes a FSBO about twice as long to sell their home as it does a Realtor with MLS access. In either case, add to that the normal 30 day period from contract negotiation and acceptance until the final closing of the deal.
The name of the game in selling a home is getting as many qualified buyers through the door as possible. Who is a qualified buyer? One who can afford your home! One who verifiably has either the cash or financing available to buy your home. Realtors quickly learn to qualify their buyers before spending a lot of time working for them. You should too.
Speaking of Realtors, are you going to “cooperate” with them? That is, if they bring the buyer that ultimately buys your home, are you willing to pay them? If so, how much? The vast majority of homes listed in the MLS offer compensation of three percent of the sales price to the buyer’s agent. In my experience, around 90% of FSBOs offer compensation to buyer’s agents.
How do you plan on getting qualified buyers through YOUR front door? Various methods are discussed in detail below.
What is your marketing budget? When and on what are you going to spend it?
Who is going to negotiate and prepare the contract for the sale of your home? Who is going to monitor escrow to quickly identify and resolve any potential deal breakers?
Tip 2 * Price your home correctly.
This obvious step will have the single biggest impact on the success or failure of your temporary career as a FSBO (For Sale By Owner). Yet for most FSBOs this can also be one of the most challenging actions.
The market value of your home is what a ready, willing, and able buyer is willing to pay you for it.
How much a buyer is willing to pay for your home is dependent upon his personal circumstances and motivation; available competing properties in your area; and the prices of recently sold comparable homes in your neighborhood. Information on competing properties and recently sold “comps” is available through several sources. We highly recommend getting a professional appraisal of your home. That will cost you around $300. Having an objective appraisal in hand has several advantages, safety deposit boxes for sale not the least of which is being able to provide your buyer with a solidly defensible price established by an independent expert.
There are situations in which it may be more important for you to sell your home quickly rather than getting every last dollar out of your home. In this case, you may wish to price your home a few percent below the appraised value. However, your best bet if time is a serious consideration for you is to list your home with a Realtor. One of the extra benefits of listing with Gold Valley Realty is that we reimburse you for the appraisal at closing! Even if you had the appraisal done while FSBO.
Tip 3 * Marketing Materials
The single most effective marketing tool, by far, is the yard sign! Make yours professional looking. Look for a sign company in your city. Buy one of the information tubes that hang below your yard sign, and stuff it with flyers.
Your flyer should include at least one color photograph, and highlight the facts about your home, especially the asking price, number of bedrooms, square footage, special features, and schools.
Ask if you can post your flyers at nearby grocery stores, churches, schools, apartments, health clubs, country clubs, golf courses, travel agencies, insurance agencies, beauty salons, title companies, mortgage companies! Give some to your friends and neighbors too.
Publish your home information on the world wide web. An increasing number of homebuyers use the internet as a valuable information source.
Newspaper ads can be somewhat useful, more so if used in conjunction with open houses.
Tip 4 * Staging Your Home for Showing
As the old saying goes, you only have one chance to make a first impression! Make sure it is a good one. Make sure your front yard is looking good. Is the handle on your front door showing its age? Replace it. Make sure your home is clean and tidy. Open all drapes, blinds, and shutters. Turn on every light in the house, day or night. A sparsely furnished room shows better than a cluttered room. If you have accumulated a lot of extra stuff over the years, put it in storage! You are moving soon anyway. Does your home pass the sniff test? If you have pets, or are a smoker, it might not. In that case, either replace or professionally deodorize your carpets. If you are having an open house, bake some bread or cookies to make your home smell great.
Tip 5 * Security & Showing Your Home
You can show your home either by appointment or by holding an open house. Setting appointments can be difficult if you are not usually available to answer the phone number on your ads and flyers. You might consider using a voice mail or a live answering service (starting at about $35 per month) to field your ad calls rather than using your home telephone. This offers some security benefits as well.
It is unlikely, though unfortunately not impossible, that criminals will use this opportunity to steal your possessions or hurt your family. A little preparation can go a long way to minimize that possibility.