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Some people try to sell their home on their own to try to save on commissions. This can get tricky if you don't have the experience, in fact, most For-Sale-By-Owner (FSBO) homes end up listed with a licensed Realtor, a person who knows the market and does this every day.
According to the National Association of Realtors although FSBO may work for some people, on average FSBO homes get a lower net return than those homes sold through the MLS.
Before you consider selling your house on your own, be sure to ask yourself if you are going to have the time, the knowledge and the resources needed to make it a worthwhile experience.
If you still decide to give it a try, here are a few tips that may help you:
The Home
Disclosures - A Seller’s Property Disclosure form is required by SC law. If your home was built prior to 1978, you will also need a Lead-Based Paint Disclosure.
Termites - A Termite inspection (called the CL-100 Certificate) that shows that your home has no termite infestation or damage due to termites or moisture (i.e. most lenders will insist that the CL-100 be clear before closing). If active termites exist, or damage is identified, it would be smart to have a licensed contractor repair all the damage, and a specialized pest control firm treat the home and issue a “termite bond” to guarantee no future infestation.
Repairs - fix all “deferred maintenance” items (all those items on your “to do” list that you never got around to doing). Including plumbing leaks, broken outlets, loose hose bibs, etc. If you don’t do it, there is a good chance that a) Most buyers will not be interested in your home; or b) Any interested buyer will ask for those repairs once they do their inspections.
Spruce It Up – With so many homes on the market, buyers are getting very picky! Only those homes that shine will be looked at! That includes interior and exterior paint, carpets, decoration, staging etc. If you really want to sell, get professional advice to stage your home. Staged homes sell quicker! Remember, this is now a “model home” not your living quarters anymore. No more dirty dishes in the sink, dirty clothes on the floor or dog poop in the yard!
Valuables & Personal Items – Hide all valuable items like jewelry and personal items that would be hard to replace. Lock all weapons away. Store most items that would be “too personal” in nature to prevent a buyer from picturing him/herself as the owner of the home.
The Market
You need to understand where the market is in your particular city, community and neighborhood before you price your home. This means getting access to up-to-date research about:
- Recent comparable sales in the last 6 months (the absorption or demand)
- The Competition (available inventory of comparable homes, their list prices and condition, their history on the market) (NOTE: For Belle Hall, you can look at MyBelleHall.com)
- The list of homes that were on the market but did not sell (expired and withdrawn)
- Interest rates & other economic indicators for your area that may tell a story about where the market is going.
Tip: You can do research on the Internet, starting with the county tax records to view the sales, Realtor’s websites to view the MLS listings, and driving around the neighborhood.
How Are You Going to Sell Your Home?
If you are really willing to put in the time and effort to sell your home, you can be smart about it: 80% of the potential buyers are researching their future purchases on the Internet. And more than 40% get the MLS listings through their Realtor. So you would be wise to focus on these two segments to maximize your efforts and get “bang for the buck”:
- Send information about your home to all active Realtors in the area (make sure you offer full commission to the Buyer’s Agent who brings you a buyer – remember that Realtors operate on commission only!
- Take advantage of popular times for Open Houses in your neighborhood and open your home at the same time – make sure you have adequate signage.
- Always keep up to date flyers in the flyer box on your yard. ALWAYS have a phone number where someone answers the questions a buyer may have. You do not want to lose opportunities by not being available.
- Place your house on a website and make sure it is easily accessible for everyone, including Realtors
- Be as flexible as you can with showing times. The more flexible you are, the better chances you have.
- Place pets in the garage, in cages or in the backyard. Some people do not like dogs/cats, even if they seem part of your family to you!
Tip: You need to be careful about letting unknown people into your home. When people come with a Realtor, at least the Realtor is a known entity (licensed, registered, with background check, etc.). Make sure you get their business card and ask which office they work for. You can also ask to see their Realtor license if you are not sure of their background. It is advisable to have someone with you at all times, and carry your cell phone with a police number on quick dial just in case. Always follow people, never go first. Try to keep multiple people parties together to avoid theft. Have escape plans ready in your mind. Alert neighbors when you are showing your home – so that they keep an eye out for you.
How Solid is The Buyer?
After the sub-prime loan meltdown, there are a lot of “wishful thinking” buyers around for whom it may be almost impossible to get a loan. Ask questions, just as a listing Realtor would:
- Are they buying the home cash – or do they need a loan? If they are buying cash – where do they have the money? Is it readily available?
- If they need a loan, are they pre-qualified, or pre-approved for a loan? What percentage of the value do they need to borrow?
- Do they need to sell their home elsewhere before they buy yours? If their purchase must be contingent on the sale of their own home, is the home on the market now? How long has it been on the market? What’s the market like where they are selling? Would the buyers consider a contract with a kick-out clause to eliminate this contingency if you find another buyer who does not need it?
Negotiations, and Contract-to-Closing
- Are you prepared to negotiate the terms of the contract?
- Do you know what the legal responsibilities of the seller are in SC?
- Who will write the contract? What form will you use? Which attorney will close the agreement? Who is going to pay for the closing costs? When are the Buyers doing their inspections?
Tip: It is best to think about these things before you start negotiating. Detemine what your ultimate “bottom line” must be, and have a friendly attorney ready to give you legal advice if needed.
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