8 Steps to Selling a Property “For Sale By Owner”

Step 1. Preparing your home to sell

Presentation is everything! Home buyers are attracted to clean, spacious and attractive houses. Brighten-up the property and remove all clutter. Scrub-down the property from top to bottom. Simple aesthetic improvements such as trimming trees, planting flowers, cutting grass, 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, pet odors and smoke do not help sell properties.

Invite a neighbor or friend over to walk through your house like a buyer would. Get their opinion on how it "shows." The collection of medieval torture devices or squirrel taxidermy in the family room may have to go into storage for a while.

Step 2. Pricing your home

Do not over price your home. Over-pricing when you sell a home reduces buyer interest, makes competing homes look like better values, and can lead to mortgage rejections once the appraisal is in. Over-pricing when selling a home is the single biggest reason why many “For Sale By Owner” home sellers don't sell their homes successfully. Remember: the home selling market dictates the price (not what you think it should be worth).

The easiest way to accurately price your home is to contact a local home appraiser.

One way to correctly price your house is to find out what other homes, similar to your own, recently sold for in your neighborhood. Talk to other home sellers, check out the real estate listings in your local newspaper and the internet, and search the Volusia county property appraiser’s web site for recent sales in your neighborhood.

You may 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 livable space). If your house has more features or other desirable qualities, you may want to set a slightly higher house selling price.

Set your house selling price just under a whole number, such as $259,900 rather than $260,000.

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, 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.

Having a real estate lawyer at your side provides peace-of-mind. You know you've got someone looking out for your interests. To locate a lawyer in your area, click here

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. To locate a title company in your area, click here.

Step 4. Marketing your home

FSBOVolusia.com provides extensive exposure because of unique visitors coming to the web site each day (that's Internet-speak for new people).  FSBOVolusia.com will market your property not only locally but nationally and internationally twenty four hours a day, seven days a week.  FSBOVolusia.com will be on the largest search engines so that buyers will be able to find your property. The yard sign will have your phone number and web id number.  This will allow drive bys to contact you directly and find out more information about your property on the website. 
Writing your sales ad

Your advertising copy should be thorough, truthful, and to-the-point. Long, flowery prose will not make your house sound more appealing. It will simply make it harder for the property buyer to read. Make sure to provide the critical facts buyers are looking for.

Most home buyers quickly scan ads, 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." Survey our web site and see how others have written their ads. You will quickly see which is "buyer friendly."

Home Photos: 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.  Sometimes renting a storage unit and removing clutter is a good idea.

Lawn signs

Lawn signs are one the most important marketing tools for home sellers. They attract attention to your home. Directional signs also help drive buyers to your property, especially if you do not live on a busy street.

Open houses

Open houses are sometimes a good way to attract buyers to your home. Typically, real estate agents conduct open houses for two reasons; 1. Clients expect them to conduct open houses 2. They are a good way to attract buyers, not just for the open house but for all houses for sale in the Real Estate Agent's area (yes, your competition).  If there are other open houses in your neighborhood you can get some of the drive bys to see your home if you also run an open house.

Home Information sheets

It is a good idea to create an information sheet (with a photo) about your home to give potential buyers. Print copies of your ad from FSBOVolusia.com to give to buyers who visit your home.

You are your home's best salesman

Who knows your home better than you?  Buyers will be able to ask the seller questions and get the answers they need.  You, as the seller will control when and how you show your property.  

Step 5. Negotiating an offer on your home

When a buyer makes an offer (this is often presented to you directly from the buyer or through their lawyer), you should consult with your attorney. Many offers can be complicated and contain special clauses that favor one party over another.  Purchase price isn't everything. Carefully consider the purchase contract's other terms and conditions.

Assess your buyer's financial qualifications

Is the buyer pre-approved? How much of a loan is the buyer seeking? 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 down very little money. If this is the case, your buyer may not be able to obtain financing.

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.

If you are concerned about how your home will fair when inspected, you may want to visit your local inspector. They can 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 and you can show the inspection reports to potential buyers if you desire.

Step 7. Buyer appraisals and other details

If there is a loan involved the mortgage lender will order an appraisal of your home. They may also order a surveyor to make sure that the property boundaries are properly laid out. They will also order a title search. These tasks are all the responsibility of the buyer and/or their attorney.

Prior to closing, if you have a mortgage, 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 property's buyer will do a "walk through" to make sure all agreed repairs are completed and that the home is in the same condition as when the buyer made their offer.

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.

Conclusion

This step-by-step home selling guide is a general overview of the process when selling a home, it may not include all the steps required based on your specific situation.  Most sellers are more than capable of selling their own homes.  Many of the steps outlined will be done by the sellers and buyers whether there is a real estate agent involved or not.