For Sale By Owner

Be ready for it.

As soon as the For Sale By Owner sign goes up in your yard, expect the phone calls from real estate agents offering to list your home for sale.

They mean well. But they don’t understand that you’ve already made a conscious decision to sell your home By Owner instead. Whether you’ve sold a home before and feel you know your way around the transaction, or the finances are dictating that you need to sell on your own, your decision is valid.

The key is to be prepared. While it’s true that many For Sale By Owner sellers eventually give up or list with an agent, there are countless success stories from sellers who did it themselves. You can be one of them.

Here are some tips to guide your decision-making:

1. Price it right. Buyers who shop For Sale By Owner sellers know you won’t be paying a commission, so they’re more likely to want to bargain. Know your numbers – prepare a worksheet with all of your closing costs included.
2. Prepare your home for sale. You only get one chance to make a first impression. Make any necessary repairs, replacements, paint touch-ups, etc, before putting the sign in the yard.
3. Prepare yourself with all the necessary legal documentation. Do you have the Seller Property Condition Disclosure Statement? The lead-based paint addendum? Do you know what your mortgage payoff is? Make sure you’ve got your paperwork in order.
4. Pre-qualify your prospects. Are the buyers financially able to buy, or are they kicking tires? Research their financial steadiness with respect to jobs, salary, debts, liabilities and credit standing.
5. Negotiate effectively and knowledgeably. As a For Sale By Owner seller, you’re the negotiator. Make sure you fully understand the contract and all the ramifications of what you’re signing. Some things to keep in mind: the amount of earnest money, closing and possession date, inspections and repairs, and closing costs.
6. Know why you’re selling and keep it to yourself. Your motivation will help you determine what’s most important to you: the amount of money you walk away with, the length of time your house is on the market, or both. Whatever your reasons, keep them to yourself, or risk giving the buyer an advantage in the negotiations.
7. Know what you’ll do if the buyer brings a real estate agent. Most buyers like to use an agent because the service doesn’t cost them anything (the fee is usually paid by the seller). Buyers and investors who seek out For Sale By Owner sellers are typically in search of a bargain. What price will a buyer offer you as a For Sale By Owner seller once you include the closing costs? Will you net more money in the end?

Many homeowners are able to sell as a For Sale By Owner, but the key is preparation and knowledge!