Stands for For Sale By Owner. Also known as 'fizz-bo'. Are you considering selling a property on your own? Here are some things to consider:
Complete an extensive research of local market conditions, including:
- the listing and selling price of all houses in your area for the last six months,
- the listing price of houses currently on the market, and
- the listing prices of houses that were on the market but did not sell.
TIPS: Begin your research on the Internet. Follow-up by visiting the county tax records office to determine the selling prices of houses.
Put together a marketing plan:
- How will you market your house to real estate agents? Most buyers use a real estate agent, so marketing to real estate agents is essential. At a minimum, you'll want to send a letter and sales flyer to all real estate agents within a 30 mile radius.
- How much money can you afford to devote to advertising? Call the local newspapers to determine how much it will cost for advertisements. You'll want to fun frequent ads.
- Who will create your sales flyers? Buyers expect fact sheets to take with them when they drive-by or tour a house for sale.
- Where will you place signage? In addition to your front yard, are there areas leading in to your neighborhood where signage would be appropriate?
- How will potential buyers find information about your house on the internet? You'll want potential buyers who begin their house shopping on the Internet to find your house. Be sure to build a web site to help sell your house.
- Who will be available to open the house up for showings? You'll want to schedule showings as quickly as possible - even the same day.
TIPS: Ask newspapers for a discounted advertising rate for multiple placements. Be sure to check with local officials to determine if there are any restrictions on where you place signs. Find some way to pre-qualify buyers before letting them into your home.
Confirm the potential buyer has pre-qualified for a mortgage loan:
- If the buyer is paying with cash, confirm they have the necessary resources
- If the purchase is contingent on the buyer selling their own house, confirm that the buyer's house is on the market. (You may also want to determine how long the buyer's house has been on the market.)
- If the buyer is getting a loan, be sure they have applied for the loan and have been approved.
Negotiations, Contracts and Closings:
- Are you prepared to negotiate the contract?
- Are you prepared to monitor the terms of the contract through to closing?
- Do you know what the legal responsibilities of the seller are in your area?
- Who will write the contract? Will you need to hire an attorney? If so, what are those fees?
TIPS: In addition to the sales, you may need to complete a Seller's Disclosure and Lead Based Paint Disclosure.
If you are ready to take this challenge on yourself, please be prepared for the good, bad and the ugly. Consult legal, tax, accounting and state counsel to ensure you have everything needed to complete the sale.
Tina Faust, GRI
RE/MAX Champions
425-374-2728
http://www.tinafaust.com
Tina@TinaFaust.com
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