Introduction Welcome to the world of For Sale by Owners! As with most individuals you are looking to save money, get top dollar for your home and get it sold as easily as possible. You came to the right place! This workbook will help you in accomplishing all of the above! A simple systematic solution and the resources needed to accomplish it! I hope you find it helpful and are able to get it SOLD! Before we get into the first step in the process of selling your home... there are several questions you need ask in order to determine if selling on your own is the way to go for and your family. All of the questions below require a simple “yes or no” response... and please save yourself a lot of time and hassle by answering them honestly right now. Are you comfortable letting strangers into your home at night... on weekends or at a moment’s notice? Are you a risk taker? Are you willing to learn how to do different things? Are you absolutely determined to save money on the sale of your home? Do you want to sell in the next 30 days? Are you willing to handle the paperwork yourself or do you need help? Are you willing to negotiate face-to face with an intimidating type of buyer? Are you a patient person? The point of these questions is help you determine right now if you have the time, patience, expertise, motivation, insight and will to sell your home on your own. If you cannot answer “yes” to all of these requirements – it is better to stop now and let a professional real estate agent handle the transaction for you. However, if you did pass the above test... then keep reading and let us get into how to successfully sell your home – on your own – in the next 30 days... and for top dollar! The next few items will assist in getting your home ready for marketing to buyers, scheduling showings, having open houses and more. We are here to help as best we can but this will at least give you a good guideline to get started!
Pricing your Home- The estimates on Zillow and Trulia do not compare to your LOCAL market and should not be used as a comparable. Do the research based on the homes in your neighborhood, how much they are selling for, what updates/additions were made to them, and how long it has been on the market. A good indicator that a home is overpriced will be the length of time it sits on the market. As always, the number one thing in real estate remains the same! LOCATION, LOCATION, LOCATION! Therefore, if you have put in $30,000 of improvements to your home but the neighborhood values do not support it, you will more than likely not be getting what you expect. Overpricing VS. Underpricing – Sellers typically see the most activity in the first month of listing the home for sale. This is where pricing too much or too little can hurt your overall potential of money in your pocket. Buyers’ interest will be at the highest in the beginning and they will have done their homework to know average price points for your area. Underpricing can be a costly mistake as well. Buyers looking at a higher price point might overlook it due to the low price tag assuming it will not meet their needs. Keep in mind the bottom dollar and how much you can walk away with after all the closing costs and credits for your buyers. In fact, know what that number is a head of time so you know which deals are worth negotiating and which ones would be a waste of time. Simple steps to pricing your home: 1. Review your county appraisal information on square footage and latest appraisal information provided by the county for your neighborhood. 2. Get a minimum of 3 comparable of homes for sale in your neighborhood by looking at the price point, square footage, price per sq. foot, updates, and the ones that have sold recently. 3. Take note of the differences in yours and the others pros and cons of each from a buyers perspective. Go to the open houses so you can get an accurate idea of what they look like and have to offer compared to yours. 4. Set your pricing either slightly higher or lower to the other homes in the area after your comparisons. Remember each neighborhood has an average price per sq. ft. and that is typically the sweet spot the homes sell the quickest at. Rule of thumb is more sq. footage = less $ per sq. ft. and less sq. footage = more $ per sq. ft.
HOW MUCH CAN YOU SAVE? The savings you can expect by selling on your own are broken down below. You will multiply the normal commission for the sale of a home in your area by the dollar amount of your asking price. The example below is based on a $100,000 sales price. $100,000 sales price x 6% commission $6,000 in savings to the seller. Even if you were to sell to a buyer represented by a Realtor, you would still only pay 3% at $3000, which leaves the other $3000 in your pocket book! Subtracting your closing costs, which at this price point will be an average of $4000 to $7000 depending on taxes, insurance and title fees or loan balance of the home. Your net could be as high as $90,000! Remember that real estate commissions are negotiable... and the more knowledge you have... the more money you will save. Now figure out how much you will save by selling your home on your own: $ __________ (your approximate home value) x (6%) (Average commission rate across the country) $___________ (YOUR APPROXIMATE DOLLAR SAVINGS) after making the above calculation, it is easy to see why you would try to sell on your own. $___________ (your payoff amount ytd subtracted from net) this is given by your mortgage lender and you will need to contact them to get ytd payoff amount for exact figures. You will get a new number as you get closer to closing date. $___________ (past due taxes subtracted from net) If you have not paid your taxes to be current they will be subtracted from you net at closing. $___________(closing fees and costs subtracted from net) These fees will vary according to the title company and any credits given to the buyer such as home warranties or help with closing costs. $___________TOTAL IN YOUR POCKET after all closing costs, loan balances and buyer credits. Happy with this number? Then it is time to sell your house! Not what you expected? Get a second opinion on the list price from a Realtor they are happy to assist in making sure it is a reasonable price. Your price affects the market comps so it is important to them as well that it be listed accurately for their sellers in the area! Now you have done the research and put in the time to get it listed correctly so time to put the gloves on and get it ready to sell!
PAINT: Use a fresh coat of paint in the main living areas with neutral colors. Pinterest has great palette ideas and will even have latest trends in painting if you are willing to take that risk. However, neutral sells for more dollars! UPDATE: Update cabinetry by removing old handles and spray painting with newer colors that buyers are more interested in like satin silver or bronze. You can even paint your old light fixtures and give the whole house a new look it just takes a little long taking down fans, light covers etc. then spray painting but it is so much cheaper to give it a new look that will get you more offers! Keep your receipts on all improvements/repairs! These items will be asked about and some lenders will require proof of repairs done at closing. FLOORING: If it is in your budget to update flooring do it! This is one of the most important items on a buyers list when home shopping. There are always clearance sales at home improvement stores that are perfect to redo small areas like entrance or hallway. Otherwise, dress it up with new rugs or have it professionally cleaned at a minimum. CLEAN: Power wash the exterior. You can purchase a power wash connector at any home improvement store. Wash from top to bottom paying special attention to windows, front brick and any patios or decks. Clean all baseboards and walls with hot water and rag or dry clean eraser pad to get rid of any scuffmarks, fingerprints, or dirty areas where the kiddos have been playing. COUNTERS: Countertops with epoxy or do it yourself countertop paint kits. They are inexpensive and can transform your kitchen and bathrooms to look like you have spend thousands of dollars on updates while only spending a couple hundred.
Preparing your Home- Knowing what those needs are it is important to cover all bases! * * *
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Make the entrance welcoming and clean to give a great first impression. Welcome mats, colorful pots or sitting benches make a home inviting. Think HGTV! Remove unnecessary items in every room and make sure to de-clutter in every space. Do not use overwhelming fragrances throughout. Stick with simple, clean and mild. Many people are allergic to certain smells and might not like pumpkin spice or vanilla. Clean linen scents work best. Hire a professional to do the deep cleaning of the home! Baseboards, carpets, etc. need to be in the best condition for photographs and initial showings. Hire a professional staging company or go online to get decorating ideas of the latest trends. Keep the beds made, dishes out of the sink, laundry off the floor and bathrooms sparkling! Mow the grass and make sure that the landscaping done before you put the sign out or host any open houses. Highlight the best features in the home by making them the focal point of each room. Have a fluid theme throughout the entire home like red and black with white accents or blue and yellow with polka dot accents. Do not make the home a Disneyland it will distract your buyers from looking at the home itself and not your dĂŠcor! Make sure your pets items are in a place that does not take away from appearance and have a plan of action on what to do with them while you are showing. Keep kids rooms clean by giving them a plastic tub to throw their daily used items in and storing under the bed when showing to buyers or during open houses. Clean windows right before taking photos to eliminate chances of fingerprints! Rent a storage unit to store excess furniture, toys, books or other items that take up room.
While these are just a few of the items you will need to be sure and get done before listing, the important thing to remember is at the end of the day buyers are picky and any little thing can make or break the sale so don’t give them any reason to break it.
Marketing Your Home! This will be a difficult process if you are not technologically perceptive or good at writing descriptive ads. There are on average a minimum of 1000 homes on the market and it is very difficult to get your home in front of buyers. Here are some tips and tricks to get you started. Remember safety first in everything you do including your open houses! The first week your home hits the market is when you will be getting the most exposure so blast it everywhere! Here are some valuable tips to help you get the most money out of your offers. These are a few of the online resources available to you and strategies we have learned along the very‌happy selling! 1. Printed materials such as flyers, pamphlets, postcards, etc. that buyers can take home (be
sure to include photos and list major selling points)
2. Professional quality photographs and/or virtual tour of your home on the Internet 3. Featured listing on numerous websites such as Zillow, and your property website along
with social media listing groups.
4. Yard sign that is easy to read and has some of the property information on it. 5. Open house signs for week before an open house. 6. Newspaper ads for open houses still work unbelievably! 7. Facebook marketplace has areas you can sell anything including your home! Look for your
local marketplace center online and post away!
8. Garage sales going on in the area? Collaborate up with them to advertise both events! 9. Be realtor friendly! They might have your buyer right now. Most agents will accept the 3%
buyer commission if they know they have a serious buyer and you are not willing to list it.
10. Have an attorney to review your paperwork or hire a local realtor to assist. Most will
provide paperwork services for a flat fee.
Free Online Advertising Resources craigslist.com forsalebyowner.com (Some cost) zillow.com (use “make me move” feature) WWW.CRAIGSLIST.COM WWW.FORSALEBYOWNER.COM trulia.com allthelistings.com
WWW.ZILLOW.COM WWW.FSBO-HOME.COM WWW.HOTPADS.COM WWW.FSBOADS.COM WWW.HOMESBYOWNER.COM WWW.VIRTUALFSBO.COM WWW.MIADOMO.COM WWW.FORSALEBYOWNERCENTER.COM WWW.OWNERS.COM WWW.HOMESALEWIZARD.COM
Let us get ready to sell this place! Open houses are usually held on Sunday afternoons from 2 to 4. You can run an ad in your local newspaper every week to get more traffic to it as well. Remember safety first! You can have a sign in sheet for visitors at the front and be sure to hide all small valuables in a safe place. Always let your neighbors know there will be cars parking in the area and times so they can watch for suspicious characters. Tell someone to help you with the traffic if you do not feel comfortable hosting it alone. Have plenty of flyers that have price, square footage, special features, any improvements or additions and the basics. Number of bedrooms, bathrooms, garage type and stall numbers. Is there a bonus room? Are you leaving the sound system? Highlight the extras that might get buyers attention and interest! Do not forget to promote it on your social media! Facebook will let you even create special event announcements so you can get a bigger audience! Reach out to a local lender and see if they have programs, you can refer buyers to. You always want a pre-approved buyer when discussing the sale of your home. That shows they are serious and not just window-shopping. Good luck and happy selling you are almost to the end of the road, or rainbow depending on how much you make!
It is time for the dreaded contract! Ugh! This part can be extremely overwhelming and the smallest mistake can literally cost you a ton of money so pay close attention to the details and when in doubt ask your Realtor or attorney for clarification. The following is a list of sections found in any common real estate contract but is for guideline purposes only and does not include all aspects of entire contract agreement... review them now.
Parties – The legal name(s) under which the buyer wishes to take title & legal name of seller.
Property – The legal description is the technical information from the government regarding plat location, section, etc. The street address is the name by which the property is referred (i.e., 123 Maple Street, Any town USA). You can find this on your local county property website via address or homeowner name.
Special Provisions – Factual statements of details applicable to sale of property.
Settlement & Other Expenses – Expenses payable by seller and buyer to be paid at or prior to closing. This would be like seller giving buyer closing cost or repairs credit.
Notices – Notices from one party to another that must be in writing and are effective when mailed to, hand delivered to, or transmitted via fax, or electronic transmissions. Buyer/Seller phone, fax & email.
Agreement of Parties- Additional addenda items that may or may not be considered as part of the contract. Possibly lease agreement between seller and buyer until day of closing.
Termination Option- Normal consideration of option period for process of termination from the buyers and the amount necessary to allow for requested time from buyer. Note there could be extension of option period if needed to allow more time for inspections and/or repairs. However, that MUST be documented!
Executed Contract- Date of final acceptance between both parties. When both parties have actually signed the contract.
Signatures – In most states, an offer and acceptance must be in writing or verified by secure electronic signature system. However, the best option is to have original documents personally signed by both parties and witnessed by notary.
Broker Information- Broker information to show any representation for either side of buyer or seller in addition to the option money fee receipt and contract and earnest money receipt. Contract & earnest money receipt is to be filled out by escrow agent at the title company.
Addendum-Any additional requirements, changes, etc . . . . required by either buyer or seller that is to be considered as additional part of the contract.
FOR SALE BY OWNER DISCLOSURES:
Federal and state law mandates certain disclosures and material facts. You must give the buyer a copy of all required disclosures. Have your buyer sign a receipt indicating that you provided these things. The seller’s disclosure is the most common form to provide along with additional information about the home such as last claims on insurance, new roof or updates throughout the home.
Providing receipts of any work done to the home for repairs and/or improvements will help eliminate any future questions when negotiating for repairs. Remember most people want professionals to be the ones that have done work and buyers may request for contact information about the repair providers. If your uncle Bob owns a plumbing company and he did the repairs be sure to disclose that!
In many parts of the country, buyers ask for pest (termite) reports from the seller. The cost is negotiable, but many areas have traditions that dictate what people expect to pay for, and what they expect you to pay for. Most buyers are willing to pay for it themselves.
If you live in a community, co-op or condominium with a homeowners association (HOA), your buyers and their mortgage lenders will want copies of the covenants, conditions and restrictions (CC&Rs). That is a set of rules homeowners must abide by.
If you live in a community that is a PID, property improvement district, be sure to provide any documentation or information you have on it for buyers.
Should you live in a flood zone or have an older home that has additional insurance requirements be sure to disclose those items too.
What happens at your real estate closing?
Know if your community is FHA, Fannie Mae, Freddie Mac, VA or USDA-approved. You can then advertise this fact to potential buyers.
The buyer will likely obtain title insurance, which again is a negotiable expense between the parties. You should order a preliminary title report before selling, so you will know if there are issues you need to address. For instance, things like tax liens that might be on your title by mistake.
Smart sellers often offer to provide a home warranty. That costs a few hundred dollars for a year of coverage. In addition, the buyer will not be blaming you for every little thing that goes wrong after the sale, or call wanting you to fix anything. Most warranty companies will allow you to also transfer your warranty to the new homeowner.
Sellers typically provide the buyer with a survey from previous sale through the title company. For those that do not have a copy of one they order one through the title company and pay for it as credit through the sale. Those can run up to several hundred dollars depending on the area. So be sure to know ahead of time and disclose if you have one or will be purchasing one.
Typically, buyers are able to review these disclosures during option. Once that deadline passes, they do not have the right to kill the deal because of anything on the forms. If your contract is set up correctly, you should be able to keep their earnest money if they back out at that point. Make sure you know that date!
HOME APPRAISALS 101:
Appraisal amount- The appraisal of your home is based on location, age, market comparable in the area, and updates/improvements. However, it is an objective opinion of value. It is not an exact science and every appraiser is different. If you are listing your home for much higher price per sq. ft. than homes in your area, it might be a good investment to purchase appraisal before selling.
Lender requirements- Most lenders are focused on the market value and the loan is subject to appraisal contingency. If you have, your home sold for $100,000 and appraisal comes in at $98,000 the lender will only cover the $98,000 and the difference will be negotiated between you and buyer. Lenders typically base buyer’s loan approval on amount of appraisal and buyers financial strength.
Consider these areas- Clean house, fresh paint, safety or health issues, proper permits for additions, repair of damages, roof repairs, code violations, pools functional and any exterior foundation repairs needed.
Emotional attachment- Remember that all inspections are objective and try not to take it personally. The purpose of reports is to inform your buyer. The biggest reason contracts fail is the emotional attachment that sellers have in their home and allowing that to determine your negotiations. You will have to meet in the middle so be prepared beforehand with knowing lowest amount you have to net in order to sell.
Market Indicators- The best indicator of market value is found by the current market sales comparable in your neighborhood and area.
1. Lawn cut and edged with shrubs, trees and limbs trimmed. 2. Add a touch of color to your porch with hanging pots, large entrance pottery and flowers
or benches.
3. Repair any areas of fence, deck or patio that are broken and make sure they are in good
shape and cleaned up.
4. Arrange outdoor furniture neatly and store any equipment, toys, bikes or lawn items. 5. Check exterior features like windows, shutters, trim or siding. Make sure they are clean
and painted if needed especially in the front.
6. Clean gutters of debris and re-align if they are crooked. 7. Inspect roof for flashing or shingles that need repaired. 8. Repair any broken windows, doors, screens or locks that are not in working condition.
Make sure they are clean and do not jam or look old.
9. Spray wash exterior including driveways, sidewalks, windows, patios and walkways. 10. Touch up house numbers, mailbox, doorbell and front door screens. 11. Repair any sprinklers that are loose or malfunctioning. 12. Make sure any windows facing the front of the house have proper coverage like blinds,
drapes or professional window coverings. No kiddie stickers etc.
13. Let neighbors know you are selling and offer to help with the yards surrounding your
property if needed.
14. Power wash outside of garage doors and repair any broken windows, handles or pull
cords.
15. Take photos of exterior early in the morning or late evening when sun is sitting in perfect
spot for best lighting.
1. Entry should be inviting and spotless! Create a roomy open area. 2. Clean carpet and flooring professionally before photos or listing. 3. Consider moving large and unnecessary furniture items into storage to make major
rooms larger and less cluttered.
4. Use clean smelling candles like cotton or linen and eliminate any cooking odors before
showing. Keep in mind people have allergies and not everyone will like pumpkin spice or apple. Candle wax warmers are the best option for both dĂŠcor and fragrance in every room.
5. Stick to neutral colors when re-painting interiors. If you just have to do colors make sure
they are the trending home interior colors for that season? Do not spend a lot of time and money on this if you already have a neutral theme throughout the home.
6. Check all light fixtures and make sure they work. When photographing your rooms the
best light is natural by opening blinds and curtains. Keep lamplights and room lights on to showcase the rooms.
7. Check and clean all fans and light fixtures on the ceiling! This is the most overlooked
part of the house when cleaning and dust bunnies on a ceiling fan can make a buyer cringe.
8. Pack all items you do not need until after the move keeping only essentials in all rooms.
De-clutter in every single room and make sure to keep it very simple and consistent throughout the entire house.
9. Clean and organize closet space the best you can. Remove season clothing to make
closets appear larger and place baking soda boxes or fragrance beads in them to eliminate shoe odors.
10. Clean fireplace and brick area on mantle. Make sure it is clear of debris. 11. If you have to ask if you should keep it, you can probably put it up in storage. The less
items in rooms the better! You want them to picture their belongings in the house not yours.
o Newspaper Ad __________________________________________________ o Zillow placement _________________________________________________ o Facebook placement _____________________________________________ o Property Flyers __________________________________________________ o Open House signs _______________________________________________ o Open house directional signs _______________________________________ o Open house flyers ________________________________________________ o Open House Event (fb) ____________________________________________ o Notify neighbors __________________________________________________ o Sign in sheet ____________________________________________________ o Music on T.V. ___________________________________________________ o All lights on _____________________________________________________ o Security system in place ___________________________________________ o Utility bill costs and mortgage payment info ____________________________ o Welcome sign and smile _______ ___________________________________
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Home Address: __________________________________________________________ Bedroom Count: _________________ Bathroom Count: __________________________ Square Footage: _________________ Addtnl Sq. Ft: _____________________________ List Price: $ _________________________ Price per sq. ft.: $ ______________________ Garage or Carport Info: _____________________________________________________ Comparable 1: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Comparable 2: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Comparable 3: _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Additional Home Features/Extras : _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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