So, You Want to Sell by Owner?


What are the Three Benefits of selling by owner?

• Save commission - do not pay 6% commission and you save thousands of dollars.
• Save time - you may sell faster as a by owner.
• You Remain in control of the sale.

In the past it was a struggle to sell by owner. There was little or no information to help you. Brokers held fast to charging six or seven percent commission.

Not so today, there’s a wealth of information available and there are a variety of FSBO services designed to help you save money.
Before you start, learn how to sell by owner. Prepare yourself.
Here are the steps you need to take:

1. Preparation - Look at the house with the critical eye of a buyer. What’s the condition of the property?
The condition of a property not only determines whether a buyer will buy; it absolutely determines the price they will pay.
You are trying to create a powerful first impression for the buyer, one that invites them to buy. You want the yard, the driveway, the windows, the garage everything to sparkle.
You never get a second chance to make a good first impression. Ask yourself:
"Would I buy my property today -- at the price I am asking -- in its present condition?"

This is a tough question because as owners we’ve learned to live with the grease spot on the garage floor, the drip the toilet, the light bulb that needs replacing, and so forth.
Now that you’re getting the property ready for the market, you’ll need to make a list of everything that needs repair.

2. Pricing - Pricing is the key. Why do some properties sit on the market and become market worn while others sell almost immediately? The main reason a house doesn’t sell is because it is not priced right. Conversely, the reason a house sells quickly is because it is priced right.
Any property will sell if the buyer and seller agree to the price. A well-priced property is one where the seller agrees to sell and the buyer agrees to buy at a given price. This may sound like gibberish, but it’is the truth; price determines wether a property sells or it doesn’t.
Said one more way:
The only reason a house sells is the price.
The only reason a house doesn’t sell is the price.
An old real estate proverb gives three reasons a property sells: location -- location -- location. The true reasons are price -- condition -- terms.

3. Financing - Interview two lenders, ask them for financing plans. Most lenders will be happy to prepare flyers for you to give to your buyers. They should include several different financing options.
Find out who you’re most comfortable with, then give the buyer their information along with your property flyer.

4. What to do about brokers - Brokers can provide you with a free market evaluation that shows sales activity for your area. A recorded sale is the only data that really matters; an asking price is only an asking price; whereas, a sale is a fact.
FSBOS avoid brokers because they’re afraid the broker will force them into signing a listing agreement. Brokers have information you need, and most of them are willing to share it with you for free. Ask for market evaluation, and if you do decide to list your property, use the broker who has been courteous and helpful to you.
When you put a sign is in the yard, when your ad is running, and your neighbors have been over to ask why you’re moving, The Brokers will Come.
The minute the sign goes in the yard ,you’ll start getting calls from brokers. They are in the business of listing houses and to them a "For Sale by Owner" sign says, "I have a house for sale! Help me."
Decide is you’re willing to coop if they have a buyer.

5. Title cost - The seller pays for title insurance. Find out what your cost will be. Any title company will provide you with closing cost estimates and a free property profile. A property profile may be called something else in your area. You want:
• The legal description of your property. A legal description is not the same as your address.
• Information on covenants, conditions and restrictions.
• Current taxes.
• Any liens on the property.
• Lot size, square footage or acreage.
• Square footage of the house.
Usually, there is no charge. In some areas there may be a minimal charge. Use the title company that provides you with information for your closing.

6. Flyers - You will need a house feature flyer with a floor plan and financing flyers

7. Home inspection Get a home inspection and repair items that need repair. Give this information to buyers along with receipts for repairs.

8. Advertising - Learn how to write an ad. Advertise on the web, in local magazines and newspaper. Prepare flyers for your sign box.

9. Gather the team - After you’ve done your homework use the people who gave you free information. Recommend the people who helped you. Your team should consist of:
• Title
• Lender
• Home inspector
• Broker
It is also nice to provide the buyer with a list for service hook ups. Include phone numbers.
Provide your buyer with numbers of services that you’ve used such as: Repairmen, lawn services, painters, house cleaners etc.

Brokers will come. Know what you’re going to do with them. Are you willing to coop at 2.5 - 3% commission? Let them know. If not, stay firm
Do your homework.
Get it right — Sell fast and get top dollar
Put the sign in the yard . . . Let the games begin.

Copyright© Wee Dilts 2009

Author's Bio: 

Wee Dilts is the originator of Flat Fee MLS. In business since 1983. She has helped thousands of FSBOS save commission dollars. Get the information you need to effectively sell without a broker. Register in Colorado for Flat Fee MLS. Read Free articles or buy her “How to Sell Real Estate by Owner” Ebook, visit: