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For Sale by Owner: More than Meets the Eye

For Sale By OwnerHomeowners obviously know their homes better than anyone, but that doesn’t mean they’re the best salespersons for their properties. Some sellers are tempted to try a For Sale by Owner (FSBO) transaction because their local community is in the midst of a sellers’ market and they think they can sell easily without help. Others try the FSBO route because they want to maximize their profits and avoid paying a commission to a Realtor®.
Before you consider selling your home by yourself, be sure that you are going to have the time and know-how needed – even if you just cover the basics:
 
The Basics

Complete an extensive research of local market conditions, including:
  • the listing and selling price of all houses in your area for the last six months;
  • the listing price of houses currently on the market; and
  • the listing prices of houses that were on the market but did not sell.
Tips: Begin your research on the Internet. Follow-up by visiting the county tax records office to determine the selling prices of houses.

Put together a marketing plan:
  • How will you market your house to real estate agents? Most buyers use a real estate agent, so marketing to real estate agents is essential. At a minimum, you'll want to send a letter and sales flyer to all real estate agents within a 30 mile radius.
  • How much money can you afford to devote to advertising? Call the local newspapers to determine how much it will cost for daily and Sunday advertisements.
  • Who will create your sales flyers? Buyers expect fact sheets to take with them when they drive-by or tour a house for sale.
  • Where will you place signage? In addition to your front yard, are there areas leading into your neighborhood where signage would be appropriate?
  • How will potential buyers find information about your house on the Internet? You'll want potential buyers who begin their house shopping on the Internet to find your house. Be sure to build a website to help sell your house, promote widely on social media platforms, etc.
  • Who will take inquiry calls and schedule appointments? You'll want someone to be available to answer inquiry calls and schedule appointments. Be sure to schedule showings as quickly as possible - even the same day.
Tips: Ask newspapers for a discounted advertising rate for multiple placements. Be sure to check with local officials to determine if there are any restrictions on where you place signs.

"Pre-qualify" buyers before showing your home:
  • Confirm that the potential buyer has pre-qualified for a mortgage loan.
  • If the buyer is buying with cash, confirm that they have the necessary resources.
  • If the purchase is contingent on the buyer selling their own house, confirm that the buyer's house is on the market. (You may also want to determine how long the buyer's house has been on the market.)
Negotiations, Contracts and Closings
  • Are you prepared to negotiate the contract?
  • Do you know what the legal responsibilities of the seller are in your area?
  • Who will write the contract? Will you need to hire an attorney? If so, what will be the attorney's fees?
Tips: In addition to the sales contract, you'll need to complete a Seller's Disclosure and a Lead Based Paint Disclosure.

 
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Brian Howell
Brian Howell

HomeSmart Fine Homes and Land
140 N. Montezuma Street
Suite 201
Prescott, AZ 86301
Cell: (928) 308-5086

Why Choose HomeSmart?

Why Choose HomeSmart?

Timely Tip

Autumn is the second busiest season in the real estate market. If you're looking to buy a home, here are 3 valuable pieces of info:

  • The busy part of the season is from mid-September to mid-November. Most people like to be in their new home by the holidays, so this 2-month span has the most activity. 
  • Make sure you're pre-approved.  Since this busy season is so short, you'll need to move quickly. Getting pre-qualified for a loan is essential to closing on your dream home. 
  • Guess what? Your dream home is someone else's, too. Be prepared to make an aggressive offer to give you the advantage over other potential buyers.