To a homeowner, the concept of FSBO may make them want to go A.W.O.L! There’s nothing to fear from selling your home yourself. In today’s hot real estate market, homes practically sell themselves. However, doing your research and understanding the legal aspects of the For Sale By Owner concept is vital. Read on to discover the process of selling your home from cutting the grass to signing on the dotted line.
To determine your asking price, evaluate the selling prices of similar homes in your neighborhood and estimate how much cash you will get from the sale after the current mortgage and other bills are paid. If you find that the home values are less than you’d hoped, then ask yourself what improvements are needed to get your asking price. Once you have completed these projects, you may want to consider a Seller’s Home Warranty. This is a form of insurance against damages to your home while it’s up for sale. It’s also a good idea to get a professional inspection done.
The web is the best tool to get the word out to potential buyers. Some FSBO home listings are free, so research what’s available in your region. In your ad, include clear photographs and a written description that focuses on the best selling features. Invest in an attractive lawn sign and put a holder on it filled with handouts containing information about the property and financing possibilities. Compose flyers and recruit your family and friends to help distribute them to neighboring communities and post them on public notice boards. Be sure to include the date and times you plan to hold an open house.
Once you have an interested buyer, obtain a signed contract, give him or her a set of disclosure forms and collect a deposit. Technically, you can sell your home without a lawyer but getting one is recommended. However, he should give you a discounted rate if you prepare your own documents. Get a copy of the Settlement Statement at least a day before the closing. At this point, you’ll have to re-calculate your estimate of how much cash you will get from the sale after the mortgage and other bills are paid. Make sure the “net cash to Seller” is roughly equal to what you estimated.
If you do not want to pay to sell your home by having to shell out costly realtor fees, then FSBO is definitely the way to go. With some research and networking, you can sell your home yourself and still get a great price. Why share the profits when you can take it home yourself?