For Sale by Owner Handbook EnglishPresentation Transcript
For Sale by Owner Handbook
Helpful Tips on Selling Your Home
Place an ad in your local newspaper. Always include the area of town, the price, number of bedrooms and bathrooms. These are the most important considerations for a buyer.
Consider placing an ad in local publications.
Design a flyer or brochure for your property. A photo and description of the home is important.
Know your current annual property taxes and homeowner insurance premium amounts. Know if they are paid from an escrow account or by some other method.
Know at least three different methods available to finance the sale of your home. Assumable loan, seller financing, adjustable rate loan, FHA loan, VA loan and fixed rate loan are good examples. Buyers want to know the total cash down payment, closing costs and monthly payment.
Ask yourself if your asking price and terms are appealing to most buyers in this price range?
Do you know what other houses similar to your house are being offered for sale? What are their asking prices and location?
Consider having an appraisal done on your home to determine the current market value. Buyers typically will offer less than you are asking because they know a savings of the commission is often built into the price. You are trying to save the commission and so are they.
When a prospective buyer visits your home, follow these guidelines:
Have all buyers pre-approved for financing at one of the corresponded Lenders before signing a contract.
Set appointments at their convenience.
Always prepare the home before it is shown, even if you have to leave work to be ready for their visit.
Have your property brochures and flyers available.
Introduce yourself at the front door.
Let buyers tour the home with as much privacy as possible. Buyers feel uncomfortable making comments in your presence. When they complete the tour of your home, ask them if they would like to go back for a second look.
Be prepared for disappointment. Some people may not be that interested in your home. Buyers shop by comparison and there are usually a number of homes for them to consider.
In the event you receive an offer from a buyer, have them put it in writing, including an earnest money deposit. Be prepared to pay a real estate attorney to review the legalities of such a contract.
Helpful Tips on Presenting Your Home
What is the first impression of the home’s exterior?
Does the lawn need re-sodding? Is the landscaping in top shape?
Does the house or any part of the house need painting?
What about the door mats? Do they need to be replaced?
What about the screens? Any holes?
What about the windows? Do they work well or do they need attention?
What is the buyer’s first impression as they step inside the house?
Are pets under control at all times?
Does the carpet need cleaning or replacing?
Are all appliances in good working order?
Are the cabinets too cluttered? Should items be removed to give a more spacious appearance? Is there any furniture that can be stored to make rooms look larger? Since all buyers want to look in closets, should some clothes be removed in order to make them look roomier? Are the garage and storage areas as clean and neat as they should be? Should prospective buyers be allowed to roam the house unescorted?
ARE YOU PREPARED FOR SETTLEMENT QUESTIONS? Are you sure of the property’s legal description? Will a title policy or abstract of title be used? Who will record post-closing documents such as deeds and title changes? Who will make sure that the new deed and title documents get mailed to the buyer? What closing company or real estate attorney will be used? Do you have your existing property insurance policy? Should you assign the policy to the buyers or should they get a new policy? Is a survey required or necessary? Who orders the survey and how do you find a qualified surveyor? Who pays for the survey and can it be obtained in time for the closing? How can encroachments or easements be cleared up? Will this cloud the title? How do you prorate escrows for homeowners’ association dues, taxes, insurance and interest adjustments? Who pays the difference if escrow comes up short? If new financing is obtained, who gets the present escrow?
Should there be one attorney, or should the buyer and seller each have their own representation? Who pays for the attorney?
What are closing costs? Who pays for them? How much are they and how are they computed? Most important, who coordinates all of this for you?
Who takes care of recording the necessary documents after closing, such as the warranty deed and mortgage documents? Who will transfer the loan documents, assign the insurance and secure the necessary title policies?
Who will see to it that contingencies and concessions are scheduled, coordinated and cleared before closing? Who will ensure that contingencies are written into the contract? What happens if contingencies are not fulfilled or removed?
How do you coordinate the possession date? What happens if the seller moves and the deal falls through? Who will advise the buyers of their responsibilities, such as bringing a certified check in the proper amount to the closing?