Selling Your Home For Sale By Owner--Forms, Disclosures, And What It Takes To Succeed!
Selling Your Home For Sale By Owner--Forms, Disclosures, AndWhat It Takes To Succeed!Selling a home on your own can be exciting. It can also be terrifying. So, dont under estimate theimportance of key factors that could make the difference between your real estate experience being adream or a nightmare. To masterfully execute a successful home sale it is important to do threethings: 1.) Deliver the appropriate forms and property disclosures to the Buyer, 2.) Give your homemaximum exposure, and 3.) Communicate effectively when you receive an offer, and especially oncea transaction is in escrow. Strong communication is essential in keeping the transaction movingforward. Neglecting any of these three critical areas can cause your home sale to stall--or worse, selfdestruct.Providing the Necessary Forms and DisclosuresOften Buyers interested in purchasing a home from a For Sale By Owner (FSBO) will rely upon theSeller to provide the purchase contract. It is always a good idea for a Seller to have PurchaseContracts, and other forms, on-hand when placing a home on the market. Also be aware that in realproperty transactions, a Seller must complete all of the necessary property disclosures prior toconsummating the transaction. What disclosures are necessary will vary from state to state, however,it is the Sellers legal obligation to disclose any known defects about the property. For most states, aSeller should be able to find a list of the required disclosures by visiting the states real estatecommission website. To get a full picture of what disclosures you will need to make, take into accountthat your city and/or county may have disclosure requirements of their own. At your open house,consider creating and displaying a binder which contains all of your homes disclosures for Buyers toreview. While disclosing information is important to a successful sale so is getting your home in frontof Buyers.Giving Your Home Maximum ExposureExposure is critical to a successful home sale, particularly in todays competitive real estate market.While signs and newspapers are great, according to the 2006 Internet Versus Traditional BuyerSurvey produced by the California Association of Realtors, California homebuyers searching for ahome on the internet rose to 70% in 2006. So if you are trying to determine where to focus yourmarketing efforts, realize that the internet is a good place to start. Also important in terms ofmarketing your home to Buyers, is knowing your competition. If you are selling your home on yourown, it is important that you take time to visit open houses in your area, in addition to holding yourown open houses. When Buyers stop by, ask them what their thoughts are about the other homesthey have visited and use the answers they give as a springboard to highlight your homes keyfeatures. Doing this will give you an opportunity to practice communicating with Buyers.Communicating and Negotiating with Potential BuyersAs a FSBO you will find that negotiating with Buyers is more a matter of diplomacy than anythingelse. Remember, todays market is not the market in which to play hardball and the key sticking pointwith Buyers will almost always be the price of your home. Most people choose to sell their home on
their own in an effort to avoid having to pay a commission, however, according to the NationalAssociation of Realtors, in 2006 homes sold "For Sale By Owner," sold for 32% less than homes soldby a licensed real estate professional. One of the main challenges that FSBOs face is negotiatingwith Buyers. Often Buyers specifically select a FSBO property in an effort to "get a deal" just asSellers are hoping to pocket more money by not using a real estate agent and therefore not paying acommission. Know this ahead of time, and think about the ways in which you can respond to any"below market offers" you may receive. Also, maintain a general attitude of cooperation by beingwilling to demonstrate flexibility and an overall desire for a win-win situation for both Buyer and Seller.real estate sherman oaks