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THE SELLER'S GUIDE TO
PROPERTY SALES
Why sell it yourself?
Selling a home yourself, without an expensive real estate broker is easier than most people think.
However, it will take some work on your part. You will be doing a lot of
things that a real estate agent might normally do. Just follow our step-by-step selling guide below, and you'll not only save lots of money, but we'll make the house selling process as effortless as possible
- It's the money! Sellers save thousands of dollars by not paying a 6% or 7% commission. For example, if your home sells for $300,000, you’ll save $18,000 to $21,000 in commissions.
- Sell Your Home Fast. Because you are not paying an outrageous selling commission, you can afford to price your home more aggressively. The lower the price, the more likely it
will sell fast. You will still walk away with thousands in savings, but you'll just be doing it faster.
- It's so easy. Despite what real estate brokers may say, selling a
house is not rocket science. They know that, and soon you will too. Just follow
the simple selling steps below.
8 Easy Steps to Selling a Home Yourself
Step 1. Prepare your home to sell - make it look great
Presentation is everything! Home buyers are attracted to clean, spacious and attractive houses. Your goal is to dazzle buyers.
So brighten-up the house and remove all clutter from counter tops, tables and rooms. Scrub-down your house from top to bottom. Make it sparkle. Simple aesthetic improvements such as trimming trees, planting flowers, fixing squeaking steps, broken tiles, shampooing rugs and even re-painting a faded bedroom will greatly enhance the appeal of your house. Also, make sure your house smells good. That's right, clean out the cat box and light mildly scented candles.
Invite a neighbor over to walk through your house like a buyer would. Get their opinion on how it "shows."
Step 2. Pricing your home effectively
Don't over-price your home. Over-pricing reduces buyer interest, makes competing homes look like better value, and can lead to mortgage rejections once the appraisal is in. Over-pricing when selling a home is the single biggest reason why many home sellers don't sell their homes successfully. Remember, the market dictates the price, not what you think it should be worth.
One of the best ways to correctly price your house when selling is to find out how much other homes similar to your own recently sold for in your neighborhood. Talk to
other home sellers and recent buyers and check out the real estate listings in your local newspaper.
Typically, if you set the price of your home at 5 to 10 percent above the market price, you are likely to end up with an offer close to your home's true value. Also, you
could try calculating the cost per square foot of your home compared to the house selling prices in your area (divide list price by square footage of liveable space). If your house has more features or other desirable qualities, you may want to set a slightly higher house selling price.
Finally, set your house selling price just under a whole number, such as $169,900 rather than $170,000.
Step 3. Get a real estate lawyer
Even though it's an additional expense, it may be wise to hire a lawyer who will protect your interests throughout the entire transaction. An experienced real estate lawyer can help you evaluate complicated offers (those with a variety of conditions), act as an escrow agent to hold the down payment, evaluate complex mortgages and/or leases with options to buy, review contracts and handle your home's closing process. They can also tell you what things, by law, you must disclose to buyers prior to a sale and can also help you avoid inadvertently discriminating against any potential buyers.
In some areas, title companies will handle all aspects of the
transaction and have in-house legal departments that can assist you with legal
issues that may arise.
Unless you're significantly experienced in the home selling process, having a real estate lawyer
will provide peace-of-mind. You know you've got someone looking out for your
interests, not just the buyers.
Step 4. Marketing your home
Exposure, exposure, exposure. That's how sellers sell their home fast.
Property-Seekers provides extensive home exposure because
thousands of unique visitors come to the web site every week (that's
Internet-speak for new people). We spend thousands of dollars to assure that Property-Seekers is prominently placed on
the Internet search engines so buyers can easily find your web page.
If your home is in a market where Property-Seekers or one of its many associate local sites has a mass-distributed magazine, your home's exposure will be even greater because these
magazines can be found at thousands of locations frequented by buyers that include grocery stores, shopping centers, convenience stores and restaurants.
Writing your sales ad
While Property-Seekers allows you a 3,500 letter description of your home, plus a 1,500 character outline description (try to afford that lot in a newspaper ad!!), your advertising copy should
still be thorough yet short, simple and to-the-point. Long, flowery prose will not make your house sound more appealing,
it will simply make it harder for the home buyer to read. Make sure to provide the critical facts buyers are looking for such as the number of bathrooms, a re-modeled kitchen, etc.
Most home buyers scan ads quickly, so it is important that your house stands out. For example, you may want to add a theme-line such as "Priced below market" or "Great schools." Stay away from industry jargon and use language that makes home buyers comfortable. Survey our web site and see how others have written their ads. You will quickly see which are "buyer friendly." Copy their approach for your ad.
Home Photos: Yes, a picture is worth a thousand words
If you are taking a photo of your home, be sure that the home's yard/driveway is uncluttered. Remove bikes, garbage cans and parked cars. The same applies for interior shots. People are looking to buy your house, not your possessions. Think of furniture as props and the room a stage. Move things around if you have to. Also, take lots of house photos.
Digital space is cheap... your home deserves quality. The more you shoot, the better the odds are that you'll get a few really good shots.
(Don't forget that you can include up to THIRTEEN photos with your Property-Seekers web page.
Lawn signs
Lawn signs are one the most important marketing tools for home sellers. They attract attention to your home. Professionally-produced signs (like the ones you
can get at any good sign store) telegraph to home buyers a "quality" image of your house. Directional signs also help drive buyers to your property, especially if you do not live on a busy street.
Home Brochures/Information sheets
It is a good idea to create an information sheet (with a photo) about your home to give potential buyers. Consider printing copies of your ad from Property-Seekers to give to people who visit your home.
You are your home's best salesman
As every salesman knows, to be effective you have to really know your product. And who knows your home better than you? Certainly not a real estate agent who, in all likelihood, has spent only a few moments in your house before showing it to prospective buyers.
Sell your neighborhood as well as your house. Show enthusiasm, but don't get caught-up talking too much about how "your daughter spent the best years of her life in this very room."
Step 5. Negotiating an offer on your home
When a home buyer makes an offer (this is often presented to you directly from the buyer or through their lawyer), you should consult with your attorney.
In may countries, buyers and sellers have an Attorney Review Period, which is usually three days, to cancel or amend the offer. The offer becomes a contract at the end of the Attorney Review Period, and is binding. Many of your home's offers can be complicated and contain special clauses that favor the buyer.
Purchase price isn't everything. Carefully consider the purchase contract's other terms and conditions. Too many contingencies can leave loopholes and cause a deal to collapse. Especially avoid contingencies that favor the house's buyer, such as linking the closing date to the buyer's sale of their current home. If the buyer insists on such terms, include a so-called kick-out clause in the contract that will allow you to consider other offers if the buyer isn't able to sell within a certain period of time.
Assess your buyer's financial qualifications
Is the buyer pre-approved? How much of a loan is the buyer seeking? Unless you are in an active market, lenders tend to shy away from underwriting a deal in which the purchase price is higher than the nearest comparable sale and the buyer is putting less than 10% down. If this is the case, your buyer may not be able to obtain financing.
Know the home selling market
How you judge an offer also can depend on market conditions. If the selling market is slow, you may feel vulnerable, especially if circumstances are pressing you to sell. Make sure any offer you accept does not keep you in escrow longer than 30 days. In a hot market where multiple offers are likely, be wary of countering more than one offer at a time (you could end up in legal trouble if two buyers both accept your counter offer). Also be wary of offers that promise more money but contain poor contract terms (long escrow, multiple contingencies, etc.).
If you feel the home's offer is insufficient, make a counter offer. Rarely is a first offer the buyer's absolute highest price they are willing to pay. Negotiating is part of the home selling process.
Again, your lawyer should review the details of all offers.
Step 6. Home inspections
All standard real estate contracts are going to give the prospective home buyer the right to inspect your property - so be prepared. Under a general inspection you are obligated to make major repairs to appliances, plumbing, septic, electrical and heating systems - or the buyer may cancel the offer. The inspection will also include your property's roof, as well as a termite inspection (in some
countries, house sellers must provide proof that the home is termite free).
If you are concerned about how your home will fare when inspected, you
may want to ask a local inspector (surveyor) to conduct an inspection for you before a potential buyer has one done. This way, you can address the problems before a buyer stumbles upon them.
Once the inspections are complete, the buyer makes an application to a mortgage lender.
Step 7. Buyer appraisals and other details
The mortgage lender will order an appraisal of your home to make sure they are not paying more than the house is worth. They may also order a surveyor to make sure that the property boundaries are properly laid out. They will also order a title search to determine if there are any liens against your property. These tasks are all the responsibility of the buyer and/or their attorney.
At this point too, the mortgage company will issue a commitment. Again, the buyer (and their attorney) must complete all conditions listed on the mortgage commitment.
Prior to closing, you should notify your lender that you will be paying off your mortgage. After a closing date has been agreed to, you should contact your utility providers and advise them of your final billing date.
Step 8. Closing
The day of the closing, the home's buyer will do a "walk through" of the property to make sure all agreed repairs are completed and that the home is in the same condition as when the buyer made their offer. If problems arise at this point, the closing can still take place with funds held in escrow to remedy the problem.
Closings usually occur 30 - 45 days after you have signed the sales contract. Depending on what
country you reside in, you may close with an attorney, or with a title company. At the closing, all monies will be collected, any existing loans or liens will be paid, the deed will be transferred, and insurance will be issued insuring a free and clear title. The home seller
should receive the proceeds of their home in one to two business days after the closing.
Conclusion
This step-by-step home selling guide is a general overview of the process when selling a home. Each
country, region and state has slightly different laws and customs as they relate to the transaction process.
Selling a home yourself can be time consuming, but the financial rewards can be tremendous. With help from Property-Seekers, we try to make the process of home selling on your own as easy as possible.
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