Occasionally, a new house for sale by owner shows up around the neighborhood and then sells shortly after. How is this done? It may not be as simple as you may think, and the seller probably left a lot of money on the table.
To help receive the most amount of money possible when selling your property for sale by owner, follow these simple steps that should get you in the right direction on receiving the best offer possible.
1. Learn the For Sale By Owner Selling Process
To begin, lets take a look on the process on selling a house by owner. To see a better picture on how it works, we first will list and advertise the property for sale, find potential buyers, schedule showings, accept an offer, close on the property. Usually this will take place in order and can take around 3-30 days.
We must make sure a professional is involved to look at closing documents, title research, and making sure contracts are correct. Whether an attorney, a realtor, or a title service, a professional is highly recommended if this process is new to you and in fact might be legally required.
Now that we took a look at the process of selling a home by owner lets see what is next in this guide.
2. Set a Price for your Home
Stick with it to, you need to be sure you are confident in the value of your home or property. It is best before listing your home for sale to get a realtor to provide a home value estimate and to provide a full report of recent sales around your property. This will give you a nice estimate level of what you can expect to receive for an offer.
If you are unsure of your value, you may be offered a lot less than you may think your home is worth. We want to get the most money right? Stick with a price at first and if you don’t see any offers or showings in a week or so, then maybe the price is too high and adjust accordingly. The idea is to not price your property too low as you are basically giving it away. Receive the best amount possible by knowing a estimated value of your home or property.
3. Advertise to Gather Potential Buyers
After deciding on a set estimate value of your home, it is time to make your property look good and advertise on as many areas of places possible. Many people are ready to buy a home at any given time, it is up to you to get in front of them. Whether it is from a newspaper, or an ad online, it is important to get your property at least looked at by all potential buyers or investors.
You can check out Zillow/Trulia and Craigslist for a good starting place to advertise your property for sale. Just know any contact information posted is public and probably will be on the internet forever. That is another reason for a realtor to be involved, they can act like a filter so you will not be bothered with spam calls from advertisements, your realtor will be the one to filter actual buyers vs fake buyers and provide only the best qualified buyers for you.
4. Schedule Showings and Accept Offers
Once the process of advertising begins, usually showings, if your property is priced right, will start stacking up. Be available and try to contact them for a showing as quick as possible. Timing is very important in real estate and fsbo’s. They can quickly appear and disappear if you are not fast enough in getting back to the potential buyer. For example, a buyer request a showing; however, you do not call/email back until the next day. By then, they already looked at another property and submitted an offer and unable to back out.
Afterwards another potential buyer might not be interested for many months after. Every buyer needs to be treated very seriously and be contacted back within a timely manner and be available for them. If everything looks good, a buyer will submit an offer to you, whether as email or in person. That contract needs to be in writing to be enforced. Once accepted and signed, it may be difficult for you to back out so make sure you are aware of all the terms and details. The first offer may not always be the best.
5. Close the Deal
So the last part may seem easy, yet a lot of deals can be delayed or even completely void by this time. Be sure that all contracts are signed for and all disclosures are given to make sure the closing take place on time. Have an attorney overlook the process so when closing time happens it might be more likely there will be no delays. A title agent or an attorney closing agent will prepare all escrow services and closing services for you. This will come at a cost but it is necessary for a seamless and smooth transaction for all parties involved during a fsbo.
That is all for now, please be sure comment your thoughts on selling a house by owner and how the process was for you.
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