How To Sell A House By Owner
Confused about how to proceed with a ‘for sale by owner’ approach? Read on to know all the steps involved in selling a house by owner.
It’s all about YOU and YOUR Home
A house is your most significant investment, and selling it is just as big a decision. Therefore, many sellers believe that they should get the highest return on their investment. For this and several other reasons, certain unflinching house owners decide not to involve a listing agent or realtor in the process.
This selling strategy, known as ‘For Sale By Owner’ (FSBO), is one that requires a considerable amount of time, commitment, and ambition. It is essential to understand that selling a house is not an everyday thing, so an FSBO approach is a learning process.
Planning and knowing what to expect can significantly help minimize your stress and maximize your monetary return. This article will discuss the details on how to sell a house by owner.
Pros and Cons of FSBO
Before we dive into the selling process, you need to be aware of the advantages and disadvantages of selling your property without an agent.
No commission fee: By eliminating the agent’s commission – which can be as much as 7% of the property value – you get to keep a more generous chunk of the closing profits.
Greater control: No agent or middleman will be driving the sale, which makes things simpler for you. For instance, you will have complete autonomy over choosing offers and advertising your home.
Needs extra patience and time: The absence of a realtor means that the entire selling process – from prepping your home to negotiating with buyers – is your responsibility.
Greater chances of errors: As we mentioned earlier, you do not sell a house every day, but a professional agent does. Hence, he is less prone to making errors that a novice seller might make.
Now, let us begin with the steps involved in an FSBO sale.
Step 1 – Set a Realistic Price
Every seller thinks that their house is worth top dollar, but overpricing might drive buyers away before they even assess the property. Agent or no agent, setting the right price is perhaps the single-most-important step in the entire selling procedure.
You could look up your house’s approximate value on a property search website. However, beware that such websites do not always show an accurate estimation. They might fail to consider recent sales in the area that involved houses like yours.
Another option is to hire a professional appraiser. You will be paying around $350 to $400 for the services, but at least you will be assured about the validity of the estimates.
Step 2–Prepare Your Home:
You would want your house to make a lasting first impression on any potential purchaser. Here are some ways to achieve that:
- Declutter: Every house contains items with sentimental value. However, while executing a sale, it is important to stay objective and see your home merely as a property up for sale. To make your house appear spacious, get rid of as many personal belongings as you can. Any valuable items can be put away in storage.
- Make it spotlessly clean: From carpets to windows, make sure that every nook and corner of your residence is glittering. Depending upon your budget, you could hire a cleaning crew to get the job done.
- Enhance curb appeal: You might have the perfect interior, but that is not what a potential buyer will notice first. Planting fresh flowers, adding colorful pots, getting any bikes or toys out of sight, and adding a welcome mat, all contribute towards making the perfect first impression.
- Get a professional photographer: The house pictures that you post online need to look professional and sophisticated. Real-estate photographers are available in a range of prices, depending upon your home’s location and size.
- Conduct an open house: Unlike private appointments, an open house session allows buyers to stay under the radar and avoid pressure. A weekend afternoon is a perfect time to schedule an open house. You could also print out sheets that highlight your house’s key details and distribute them to the attendees, along with your contact details.