FOR SALE BY
OWNER
How to Separate the
LOOKERS FROM THE
BUYERS
FOR SALE
BY
OWNER
10 Inside Tips To Understanding How To Sell Your Own Home! If you ask anyone who has ever tried to sell their own home themselves they’ll tell you that from the moment the “For Sale By Owner” sign goes up, the phone begins to ring. Unfortunately, many of those calls will not be from prospective buyers, but rather from real estate agents trying to obtain your listing. Obviously, the idea of not having to pay commission to a real estate agent is attractive to any home-seller. But because of all the issues involved in the process, selling a home on one’s own can be challenging, as many home-sellers will attest.
The Key Is To Be Properly Prepared RE/MAX Legends / Phil Lande’s Atlas Group
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Be Properly Prepared The key is to be properly prepared. If you are not, your home could remain on the market longer than you expect because you are not attracting and getting offers from qualified buyers. This can be the point where many homeowners become frustrated and consider giving up their dream of selling their home themselves. However, there are sellers who successfully accomplish selling their own homes. You can be one of them! This industry report has been especially prepared to assist home-sellers such as yourself in understanding the elements involved so that you, on your own, can sell your home quickly and for the most amount of profit. To help you prepare, here are 10 inside tips that you should be aware of before making the decision to sell your home by yourself.
With These Goals Addressed You’re Ready To Begin The Sale Process RE/MAX Legends / Phil Lande’s Atlas Group
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Step 1 – Price It Right Correctly setting your asking price is critical. Setting your price too high can be as costly as setting it too low. Home prices are determined by fluctuations in the marketplace, not by your emotional attachment or by what you feel your home is worth. In order to establish a realistic price for your home, objectively compare the price, features and condition of all similar homes in your neighborhood and, in particular, to other similar homes which have sold in recent months. It is also important for you to be familiar with the terms of each potential sale. Terms are often as important as price in today’s market. Carefully budget your selling costs and prepare a net proceeds sheet to calculate your best estimate of what you will take away from your home sale. Prospective buyers may also request this kind of analysis of buying costs.
The Vast Majority Of Private Sellers Don’t Have Accurate Data To Price A Home RE/MAX Legends / Phil Lande’s Atlas Group
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Step 2- Prepare Your Home For Sale First impressions are crucial. Make sure your home makes a positive statement by carefully inspecting all details and viewing it through the objective eyes of a buyer. Don’t gloss over needed repairs and fix-ups, as your prospective buyers won’t. Your job is to ensure that your home stands out favorably from the competition. You may find that “Staging” is something you want to consider. Phil Lande has stagers as well as a variety of contractors available to get your home in shape for the sale.
On Average, A Properly-Staged Home Sells For 3% More Money RE/MAX Legends / Phil Lande’s Atlas Group
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Step 3 – Prepare Yourself with All Necessary Legal Documents Not surprisingly, there are many important legal contracts and documents which you must assemble, complete and understand. A partial checklist of forms that you will require for prospective buyers and for legal documentation is as follows:
Seller Disclosure Mortgage Payoff Deposit Receipt Buyer’s Cost Sheet Personal Property Property Survey/Plot Plan Purchase Contract
Loan Application Property Profile Fact Sheets Closing & Settlement Documents Exclusion List Seller’s Statement of Representation
It Is Very Important To Have The Legal Documents You Need RE/MAX Legends / Phil Lande’s Atlas Group
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Step 4 – Market Your Home Effectively Beyond the sign you will put on your lawn, you should find effective ways to spread the word about your home. Local buyers can be reached through the newspaper, but this is only a small part of the market you are after. Be sure you include the many buyers who could already be working with a real estate agent. To locate them, target as many top agents as possible in your market to see if the criteria of their buyers matches that of your home’s. Because out-oftown buyers are also an important target, you should create a strategy to reach them as well. Above all, you should be very service-minded and make it easy for prequalified buyers to view your home. Ensure there is always someone available to answer the phone, pick up messages promptly, and be ready to give qualified prospects a tour of your home as soon as possible.
Effective Marketing Will Drive Qualified Buyers To Your Home RE/MAX Legends / Phil Lande’s Atlas Group
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Step 5 – Remain Objective During the Showing of Your Home Keep emotion out of the sale of your home, and the best way to do this during a showing is to remain physically in the background. If a prospective buyer says something negative about your home, it is better to counter-balance this point of view by illustrating the positives rather that becoming defensive.
Keeping Emotions Neutral Will Net You More Money On The Sale Of Your Home RE/MAX Legends / Phil Lande’s Atlas Group
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Step 6 – Pre-Qualify Your Prospects Don’t waste your time entertaining buyers who could never afford your home. It is a big time-waster, and the experience of showing your home to unqualified buyers can be very frustrating. Research their financial steadiness with respect to job security, salary, debts, liabilities and credit standing. Prequalify buyers before you spend time showing your home to any of them.
Separate The Real Buyers From The Tire Kickers RE/MAX Legends / Phil Lande’s Atlas Group
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Step 7 – Negotiate Effectively & Knowledgeably There will be many details to resolve before a sale can be considered final, such as price, terms, inspections, possession date, buyer concerns and objections. Make sure you fully understand the contract you have drawn up so you can, in turn, explain details and ramifications to the buyer and make any amendments to the sale that are necessary. The contract you use should be thoroughly examined by your real estate attorney. Some real estate brokers may be willing to help you do this. While this is going on, manage the buyer’s interest in your home so that it doesn’t wane during negotiations.
Know The Details Of The Contract You Will Use In The Sale Of Your Home RE/MAX Legends / Phil Lande’s Atlas Group
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Step 8 – Know Your Buyer Your objective during negotiations is to control the pace and set the duration. Try to determine your buyer’s motivation.
• Does he or she need to move quickly? • Do they have enough money to pay your asking price? • Do they have an agent helping them with the purchase?
Knowing this information will give you the advantage in the negotiation because you will know up front what you will need to do in order to get what you want.
If The Buyer Is Guided By A Real Estate Agent It May Put You At A Disadvantage
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Step 9 – Don’t Move Out Before You Sell Studies have shown that it is more difficult to sell a home that is vacant. It looks forlorn, forgotten, and simply not appealing. It could even cost you money. If you move, you’re also telling buyers that you have a new home and are motivated to sell fast - which can, of course, give them an advantage at the negotiating table.
Vacant Homes Are More Difficult To Sell Than Occupied Homes
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Step 10 – Know Why You’re Selling & Keep it to Yourself The flip side of “understanding your buyer” is to “understand yourself.” Your reasons for selling will affect everything from your list price to how much time and money you will invest in getting your home ready for sale. Your motivation will help you determine what is more important to you: the money you walk away with, the length of time your property is on the market, or both. Different goals will dictate different strategies. As someone who wants to sell without a real estate agent in an effort to save the commission, it is likely that money is one of your primary considerations. Whatever your reasons, however, it is very important to keep them to yourself so as not to place yourself at a disadvantage at the negotiation table. When asked, simply say your housing needs have changed.
Keep Your Reasons For Selling Private RE/MAX Legends / Phil Lande’s Atlas Group
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Buyer Facts to Remember Private Facts That Sellers Absolutely Must Know! #1 First-Time Buyers Their inexperience necessitates the services of an agent to assist them with the home buying process, financing obligations, offers and contract-to-purchase agreements, and closing procedures.
#2 Corporate Relocation Buyers Most are unaware of the area, have limited time to buy, and are often contractually obligated to use a certain real estate company.
#3 “No Money Down” Buyers Agents do not work with these TV dreamers. Unfortunately, most approach private sellers hoping to find one who is ‘desperate’ to sell at any price.
Buyer Types And Their Identities Determine Their Ability To Buy RE/MAX Legends / Phil Lande’s Atlas Group
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Buyer Facts to Remember Private Facts That Sellers Absolutely Must Know! #4 Move-Up Buyers (The Best) Up to 97% of these buyers are actually sellers whose homes are currently listed on the MLS. They are working with an agent for the purpose of selling their existing homes. After they sell, they become a move-up buyer and use the same agent to find their next home.
#5 Bargain-Hunter Buyers They know private sellers are trying to save the real estate commission, so they demand a price reduction equal to the commission. The private seller nets the same amount of money as if he had listed with an agent. The private seller is no better off financially, plus they took all the risk and did all the work.
Potentially Negative Buyer Facts! RE/MAX Legends / Phil Lande’s Atlas Group
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How to Assess Your Net Gain To analyze whether or not you will end up ahead by choosing to sell on your own, consider the fact that most buyers do use a real estate agent because it doesn’t cost them anything for the service (i.e. the seller pays the agent’s fee). Be cautious - as buyers, investors and speculators who seek out “For Sale by Owner” properties are typically those in search of a bargain. The low-ball offers from these types of buyers will often net you much lower in the long run. What you will have to judge for yourself is the following: 1.
Be as prepared as possible with your marketing, negotiations, evaluations, showings and all legalities.
2.
Consider what it will cost you to effectively market your home and assemble all necessary materials - from the “For Sale” sign, to any ads you will run, to the legal contract.
3.
What price will a buyer offer you as a “For Sale by Owner,” minus the costs identified in point 2 above? Is this net price higher than the price an experienced agent could net for you minus his/her commission?
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HOME WARRANTY Buying or selling your home can be stressful, especially if one of your home's systems or appliances breaks down unexpectedly. A home warranty covers costly home repairs and replacements due to normal wear and tear. It's not your homeowner's insurance policy; a home warranty is a separate contract covering repairs and replacements on systems in your home, usually for a period of one year. Home warranties cover many, but not all, of your home's appliances and systems. Contract costs and coverage can vary widely, so always compare before purchasing. Home warranties cover many of your home's crucial systems and appliances, but they must be in working order before the contract is entered into with the warranty company. Make sure you have reviewed your contract and coverage before you need it to understand what is covered and what is not. When you buy a home warranty, consider premium and optional coverage to customize the plan to fit your needs. When a home warranty is understood and utilized for its intended purposes, it can be the easiest way to save on home repairs and reduce the extra stress that comes with buying or selling a home. RE/MAX Legends / Phil Lande’s Atlas Group
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What is the difference between home insurance and a home warranty? Home insurance and home warranties are both designed to help you in the event that you experience loss or damage to your home and/or your belongings. A typical home insurance policy covers many things including the structure of your home, personal belongings, and other structures on your property if damage or loss is caused by a covered peril. A home warranty, on the other hand, offers repairs and replacements for your covered home appliances and systems only that fail due to normal wear and tear - which a homeowner's insurance policy does not. A home warranty is a contract, not a policy. If you would like to offer your potential buyers a Home Warranty, just call Phil Lande 317-863-2356, and he will provide you with different options.
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Some examples of the items covered?
Here
are
some
There are a variety of different Home Warranty Companies:
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PRE-SALE HOME INSPECTION Why Home Inspections are Important A home inspection isn’t just a good idea; it’s a necessity. When buyers are looking to invest in something as expensive as a home, it’s important to them to know what they’re getting into before taking ownership. For you as the seller, getting a comprehensive assessment of your house may end up saving you time and money. You really do not want to have to negotiate with the buyer twice. Knowledge is Gold!
Reasons to schedule a residential inspection:
Contingency – If an inspection uncovers any issues with a home, the buyer can then negotiate repairs with the seller.
Safety – Inspections can check for certain issues that may pose a safety hazard to you and your family, like improperly installed wiring or even elevated radon levels.
Protection – As your most valuable asset, a home should be well maintained to ensure its value remains intact. Home inspectors have knowledgeable advice to help keep a house in pristine condition.
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UNDERSTANDING THE PROCESS
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88 Possible Types Of Turbulence Or Stunts We Could Encounter… Buying or Selling a home is like taking an airline flight across the country. When you start on your trip, you have no idea how the trip will go. Neither does the pilot. You could run into 88 different types of turbulence, or other passengers on the trip could pull stunts on you. Ideally, you should have a smooth flight and land on time. Certainly the pilot will try to use his or her experience to navigate around the storms and go for the smoothest flight plan, but if they’re honest, they can’t promise a turbulent-free trip. Their job is to get you to your destination in the least time and with the least aggravation, while keeping you informed throughout the trip. Attached is a somewhat humorous list of the 88 different types of turbulence, or stunts we might run into. This list is not all encompassing, but it catches most of the common issues we might run into. While some of the items are "picky" to some, they are very real and fearful to others. Please take a few minutes to review the list. As your REALTOR, I see myself as the pilot of your plane. My job is to assist you in getting your home purchased on time and with the fewest aggravations. I can’t promise you no turbulence, or that other parties to the transaction won’t try and pull a few stunts, but I can promise you that I’ll utilize my experience and expertise to take you on the smoothest flight that I can. And if we do hit turbulence, I won’t bail out on you. I’ll be your teammate throughout the flight, until we get you safely to your destination. Rest assured your advocacy is my number one goal, and that means you must be delighted with the product and service we deliver beyond your expectations during the process. As always, should you have any questions or concerns, please don’t hesitate to call me. Your Realtor,
Phil Phil Lande, ABR, ASP, CDPE, CRS Your Real Estate Consultant For Life! Email: plande@atlasrealty.com Web: www.remax-atlasgroup.com
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88 Possible Types Of Turbulence Or Stunts You Could Encounter‌ The Buyer/Borrower: 1. Does not tell the truth on the loan application. 2. Submits incorrect information to the lender. 3. Has recent late payments on credit report. 4. Found out about additional debt after loan application. 5. Borrower loses job. 6. Co-borrower loses job. 7. Income verification lower than what was stated on loan application. 8. Overtime income not allowed by underwriter for qualifying. 9. Applicant makes large purchase on credit before closing. 10. Illness, injury, divorce or other financial setback during escrow. 11. Lacks motivation. 12. Gift donor changes mind. 13. Cannot locate divorce decree. 14. Cannot locate petition or discharge of bankruptcy. 15. Cannot locate tax returns. 16. Cannot locate bank statements. 17. Difficulty in obtaining verification of rent. 18. Interest rate increases and borrower no longer qualifies. 19. Loan program changes with higher rates, points and fees. 20. Child support not disclosed on application. 21. Borrower is a foreign national. 22. Bankruptcy within the last 2 years. 23. Mortgage payment is double the previous housing payment. 24. Borrower/co-borrower does not have steady 2-year employment history. 25. Borrower brings in handwritten pay stubs. 26. Borrower switches to job requiring probation period just before closing. 27. Borrower switches to job from salary to 100% commission income. 28. Borrower/co-borrower/seller dies. 29. Family members or friends do not like the home buyer chooses. 30. Buyer is too picky about property in price range they can afford. 31. Buyer feels the house is misrepresented. 32. Veterans DD214 form not available. 33. Buyer has spent money needed for down payment and closing costs and comes up short at closing.
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34. Buyer does not properly "paper trail" additional money that comes from gifts, loans, etc. 35. Does not bring cashier’s check to title company for closing costs and down payment.
The Seller: 36. Loses motivation to sell (job transfer does not go through, reconciles marriage, etc.) 37. Cannot find a suitable replacement property. 38. Will not allow appraiser inside home. 39. Will not allow inspectors inside home in a timely manner. 40. Removes property from the premises the buyer believed was included. 41. Is unable to clear up liens against their property – short on cash to close. 42. Did not own 100% of property as previously disclosed. 43. Thought getting partners signatures were "no problem," but they were. 44. Leaves town without giving anyone Power of Attorney. 45. Delays the projected move-out date. 46. Did not complete the repairs agreed to in contract. 47. Seller’s home goes into foreclosure during escrow. 48. Misrepresents information about home & neighborhood to the buyer. 49. Does not disclose all hidden or unknown defects and they are subsequently discovered. 50. Builder miscalculates completion date of new home. 51. Builder has too many cost overruns. 52. Final inspection on new home does not pass. 53. Seller does not appear for closing and won’t sign papers. The OTHER Realtor(s): 54. Have no client control over clients. 55. Delays access to property for inspection and appraisals. 56. Unfamiliar with their client’s financial position – do they have enough equity to sell 57. Does not get completed paperwork to the lender in time. 58. Inexperienced in this type of property transaction. 59. Takes unexpected time off during transaction and can’t be reached. 60. Jerks around other parties to the transaction – has huge ego. 61. Does not do sufficient homework on their clients or the property and wastes everyone’s time.
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62. Engineer will not approve septic system or well. 63. Inspection report reveals substantial damage and seller is not willing to fix or repair. 64. Home was misrepresented as to size and condition. 65. Home is destroyed prior to closing. 66. Home not structurally sound. 67. Home is uninsurable for homeowners insurance. 68. Property incorrectly zoned. 69. Portion of home sits on neighbors’ property. 70. Unique home and comparable properties for appraisal difficult to find. The Escrow/Title Company: 71. Fails to notify lender/agents of unsigned or unreturned documents. 72. Fails to obtain information from beneficiaries, lien holders, and insurance companies, or lenders in a timely manner. 73. Lets principals leave town without getting all necessary signatures. 74. Loses or incorrectly prepares paperwork. 75. Does not pass on valuable information quickly enough. 76. Does not coordinate well, so that many items can be done simultaneously. 77. Does not bend the rules on small problems. 78. Does not find liens or any title problems until the last minute. The Appraiser: 79. Is not local and misunderstands the market. 80. Is too busy to complete the appraisal on schedule. 81. No comparable sales are available. 82. Is not on the lender’s "approved list." 83. Makes important mistakes on appraisal and brings in value too low. 84. Lender requires a second or "review" appraisal. Inspectors: 85. Too “picky” with conditions and “scares” the buyer. 86. Infuriates the seller. 87. Home inspector not available when needed. 88. Inspection reports alarm buyer and sale is cancelled.
If you want smooth sailing during your real estate transaction, and a pilot who can bring you in for a safe, smooth landing, trust… RE/MAX Legends / Phil Lande’s Atlas Group
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317-863-2356
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YOU DO NOT HAVE TO DO IT ALL ALONE Phil Lande’s Atlas Group will be happy to provide you with Closing Services for a Flat Fee. We will take the transaction from the point the negotiation is complete all the way through the transfer of title, and final funding dispersed. If you would like to know more about this service, please contact Phil at 317-863-2356.
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Resume Phillip H. Lande Experience: Licensed Broker 1979 Atlas Realty Co. 1979-2000 RE/MAX Preferred 2000-2006 RE/MAX Legends Group 2006-Present Designations: Accredited Buyer's Representative (ABR) Certified Residential Specialists (CRS) Certified Depressed Property Expert (CDPE) Accredited Staging Professional (ASP) Consumer-Certified Real Estate Professional (CCREP) Education: North Central High School Indiana University – Bloomington ~ BA RE/MAX University ASP - Staging Awards: RE/MAX Executive Club RE/MAX 100% Club RE/MAX Hall of Fame Certified Residential Specialist of the Year
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Community: Indianapolis Children's Museum - Former Docent Children's Miracle Network Congregation Shaarey Tefilla Jewish Community Relations Council Bureau of Jewish Education Speaker’s Bureau Personal: Lifelong Indianapolis Resident Avid Boater, Photography Enthusiast Husband to Cheryl and Father to Jeremy [Samantha], Daniel, & Marty. Grandpa to Jack & Julian!!!
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Client-First Phil~osophy There are many qualities and skills that go into being an excellent real estate professional - integrity, in-depth community and market knowledge, marketing savvy, effective negotiation skills and a high-quality professional network all of which are hallmarks of how I work. That said, in my experience as an Indianapolis Real Estate Professional, I've also found that providing the very best service is essentially about putting my clients first. This means keeping myself accessible, being a good listener as well as a good communicator, and responding quickly to your needs. This "client-first" philosophy has always been my approach and it requires me to continually improve my skills and ways of doing business. In addition, I've found that the latest technologies are enabling me to do everything I've always done, only much more quickly and efficiently. They've also helped me to extend the range of services I provide to my clients.
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