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Home Selling Tips - Sell Home Yourself in Minneapolis, St Paul
If you ask anyone who has
ever tried to sell their 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 looking to obtain your listing. Obviously the idea of not having
to pay a 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 to.
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 a point where many homeowners become frustrated and consider giving
up their dream of selling their home themselves. However, there are sellers who
accomplish selling their own homes, very well. You can be one of them.
Most Minnesota home
sellers who choose to do everything by themselves retain the service of a
professional realtor or real estate agent to help with the paperwork and provide
sound advice.
Talk with one of We Team realtors or real estate agents at: 612-978-4464
Sell Home by Yourself
This industry report has
been especially prepared to assist homesellers, such as yourself, understand the
elements involved so you, on your own, can sell your home quickly and for the
most amount of profit. To help you prepare, here are
10 insider's tips that you should be aware
of before you make the decision as to whether or not this is the right approach
for you.
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
both your neighborhood and other similar ones 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.
Prepare Your Home for Sale. First impression is 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.
Prepare Yourself With All Necessary Legal Documentation.
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: Mortgage Payoff Loan Application Deposit Receipt Property Profile Fact
Sheet Buyer's Cost Sheet Closing & Settlement Personal Property Exclusion List
Property Survey Sellers Statement /Plot Plan of Representation
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 Realtor ® . 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-of town buyers
are also an important target, you should create a strategy to reach these people
as well. Above all, you should be very service minded and make it easy for
pre-qualified 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.
Remain Objective During a 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 than becoming defensive.
Pre-Qualify Your Prospects. Don't waste your time entertaining buyers who could never afford your
home. Research their financial steadiness with respect to job security.
Negotiate Effectively & Knowledgeably. There will be many
details to resolve before a sale can be considered final: 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 Your Buyer. Your objective during negotiations is to control the pace and set the
duration. Try to determine what your buyer's motivation is. Does he or she need
to move quickly? Do they have enough money to pay your asking price? 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.
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, 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.
Know Why You're Selling and 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, (see inset box below). 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.
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 this service (i.e. the seller pays the agent's
fee). Be cautious as buyers, investors and speculators who seek out For Sale by
Owners 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 contracts?
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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