How To Sell Your House Yourself

Do you know how to sell your house yourself? Have you ever considered it?

for sale by owner real estate sign and beautiful house.

When you think of selling your home what’s the first thing that comes to mind? For most it’s where to find a realtor. How do I find the right Realtor? Many will go to their friends for referrals. Some will google and end up with a service that promises to find them the “best” Realtor.

The truth of the matter is the first thought should be can I do this myself? If you don’t think so then by all means you should hire a Realtor, but think about that commission. It might be worth learning how to do it yourself.

It’s really not that difficult. With some instruction it’s very possible. I’ve taught many new agents the art of listing and selling a home. Brand new agents with no more experience than you have. So why not pay yourself instead of an agent.

Take the money you save and put it down on your next house to lower the mortgage payments. Maybe you can finally afford that vacation you’ve been dreaming about. Or buy a new car. It’s your money. You should keep it.

The Basics

Here’s basically what you need to know to sell your house yourself and save thousands of dollars:

Price your house right!

Many for sale by owners (FSBO) fail and realtors love to point that fact out. The only reason a house doesn’t sell is because of price and everything is relative to price. Homes in the neighborhood may be selling in a certain price range and you think that’s what your’s should sell for. That may be the case but a few things to consider;

Is your home the same size? If the neighbors house is 2400 sq ft and yours is 1900 sq ft the neighbors house will be more.
Is your house in similar or better condition? The condition of a house factors into price.
Does your house need updating? If a home is stuck in the 80’s it will have an effect on price.

You can use the online real estate portals such as Zillow to find comparables when pricing your house.

Realtors that stalk FSBO’s that have been on the market awhile know that the price is to high and they have a strategy. When meeting with the seller they’ll brag about their record, go over marketing plans and convince you they can sell it knowing full well in a couple weeks they’ll be asking you for a price reduction. And you’ll agree. I’ve seen it happen time and again. Now you’re selling the house for what it should have been to begin with but you’re stuck paying those expensive real estate commissions.

Get Your House In Order.

Yes, clean your house. Upside down and inside out. Clean is a big deal when getting your house ready to sell.

Do an inventory of what needs to be repaired, improved upon or replaced. Consider;

Painting inside and out where needed.
Clean windows inside and out.
Insure the roof is in good condition.
Test all electrical, plumbing and appliances. repair or replace as needed.
Declutter by renting a POD or storage unit.
Powerwash the front porch area. Entire house if it needs it.
Mow often and maintain landscaping.
Clean or replace carpeting if needed.

It has been my experience that home buyers are always on the lookout for what’s wrong with a house, looking for negotiating points. If the carpet needs cleaning to a buyer that’s $5000 for new carpet. In reality it may cost $300 to have it cleaned. A dripping faucet means the plumbing needs to be replaced when the faucet just needs a new washer. You get the picture.

Remember, buyers want to move in and start living. They’ll look for a house that will let them do that.

Marketing Your Home

In this day of the internet, marketing your home is really quite simple. That’s the big difference between pre internet real estate and real estate now. Before the internet, and sites like Zillow, the real estate industry held all the information. You needed a real estate agent to market your home. A real estate agent was also needed to research and visit homes.

Not anymore. Now consumers have all that information at their fingertips.

To effectively market your FSBO;

Put a for sale sign in your yard. You want all your neighbors to know there is a house for sale in the area.

2. Advertise your house online everywhere you can. This can mostly be done for free. Sites like Zillow posts FSBO’s. Craigslist is another popular place that home buyers search.

3. Host an open house. It’s best to hold your house open on the weekend. Find out when realtors do it your area. Start advertising in the online real estate portals where you listed at least a full week before the event.

Sell It

So now that you have priced your home right and prepared it for market your ready to start showing. Potential buyers will call you and ask to see it. If you’ve done everything right someone, or several someones, will make an offer.

A full price cash offer with no concessions is the best. If you don’t get that perfect offer right away but a lesser one you can counter offer. This will go on until you come to an agreement and then you put it in writing.

Ask your potential buyer for a pre approval letter from his/her lender. You’ll want to make sure it is a reputable bank or mortgage company. If you have any doubts research the firm and it’s OK to call.

Every state has a different contract and different rules and disclosures. There are also federal disclosures. You can find paperwork for your real estate transaction online. Search for it. Many title companies have contracts you can use. Make sure you do your research and have all the paperwork in order. Make sure everything is included in the contract. Any concessions or contingencies, such as inspections or paid closing costs, must be included.

It may be that you get get a low offer. What we call a lowball. If that happens do not get emotional. Keep your cool and either say no thank you or give a counter. Some buyers will test the water by making a low offer. They may very well be willing to pay what you want but you’ll never know if you you don’t give them a chance.

Closing

Arrange who will be handling the closing ahead of time be it an attorney or a tile company. This can also be a valuable source of information throughout the process. Keep the closing agent in the loop while you’re in contract.

Once you have a contract most of the hard work is done. The buyers lender and the title agent do most of the work from here on. Just be ready to answer any questions or provide any requested documents.

That’s It

It’s not always easy and sometimes there are complications but that happens with or without a real estate agent. The money you’ll save is well worth the effort.

High Fees and Costs Are Hurting The Housing Market

by Joel Weihe

The housing market is very low on inventory all across the country. While there are still plenty of buyers looking for homes the housing market itself is slowing. More people, especially millennial’s, are forgoing home ownership for now. Part of that is because of high fees and costs that are hurting the housing market. Some of that decline is simply because of the inventory. There are not enough homes to go around. Some of that decline is due to the high cost of buying a home.

According to I nvestopedia Millennial’s aren’t buying homes at the rate of previous generations. Millennial’s compose the largest segment of the U.S. population, nearly one forth, and if they’re not buying homes that could create a problem for the housing market.

Affordability is a big issue. There has been a considerable rise in housing prices the last few years. That increase has put home ownership out of reach for many when you include the high cost of buying and selling a house.

Transaction Fees When Selling A House

The Cost of Selling a House with a real Estate agent can be expensive. If a brokerage charges 6% of the contract price when listing a home that is a substantial cut into profits for the home seller. For example for a $250,000 price tag the home seller loses a full $15000.

Think of what you could do with $15000.

Some potential home sellers simply can’t afford to sell their house. People are staying put for longer periods of time which means less people selling and moving. Many homeowners would like to move up, or downsize or move to a different area. High transaction fees often prevent that from happening.

Closing Costs When Buying A House

High Fees and Costs Are Hurting The Housing Market through the buyer too. Closing costs and prepaid are expensive and the responsibility of the buyer to pay. These costs cannot be rolled into the financing and have to be paid out of pocket.

After saving for a down-payment a buyer also needs to have thousands more on top of that to cover closing costs and prepaids.

What are closing costs? Closing costs are all of the banks and government fees and taxes. Closing costs can include, but not limited to:

Loan origination fee
credit report
Appraisal fee
Title insurance
Closing fee paid to closer company. Could be a title company or a bank.
Recording fees
Underwriting fee
Food certification

Prepaids are taxes and insurance. A mortgage payment consist of principle & interest (the money you borrow and what you pay the bank to do so) taxes and insurance. When a real estate transaction closes there is a certain amount of money that needs to be escrowed for those taxes and insurance. That comes out of the buyers pocket.

All Together

All together the radical increase in housing prices the last few years, the shortage of inventory and the high fees and costs are hurting the housing market. The American Dream of home-ownership seems to be slipping from the grasp of a lot of Americans.

You as a home seller have the power to help fix that. One solution to this national problem is for home sellers to forego the huge transaction costs, real estate commissions, and sell their homes themselves.

Why You Should Sell Your House Yourself

by Joel Weihe

It’s pretty obvious why you should sell your house yourself. To save lots of money! A really lot! And who doesn’t want to do that?

The real question is why don’t more people do it? It used to be, before the internet, remember waaaayyyy back then, you really did need a real estate agent to help you. Mostly because there was no way to market your house other than the classifieds in the newspaper. Again, remember those? Newspapers?

It required a real estate agent to post your “listing” in the real estate books that only other real estate agents had access to. So you would you need to list your home with an agent so they could show it to other agents who would show to their client. Did you follow that?

The only way to get your house shown was to hire an agent to show it to other agents. The real estate industry held all the information so they held all of the control.

Why You Can Sell Your Home Yourself

And then came Zillow. There were other sites before but Zillow was the 800 pound gorilla that changed everything. Zillow and other modern websites post online all the information that used to be held close by the real estate industry. Today all that information is available for free to the public.

That’s where the buyers are. Their online looking at homes for sale. They can see what the home sold for in the past. They can see what the real value is. They can see pictures and descriptions. They can contact the homes owner directly when a for sale by owner.

Many of these buyers have their own agents but the point is your house can be found. You really don’t need to pay someone to list it for you.

So do it yourself and save thousands of dollars.

That’s why you should sell your house yourself.

Why a Pre-Inspection is a Good Idea

by Joel Weihe

When I list homes for people they often ask me about the inspection process. I always tell them why pre-inspection is a good idea.

Picture of home inspector standing in front of house inspecting. — Home inspector in front of a house

Most real estate contracts include a clause making the contract contingent on home inspections. Contingent is defined as “occurring or existing only if (certain circumstances) are the case; dependent on”. The buyer has the right to have the home inspected. When major problems are uncovered during inspections there’s a good possibility a contract can fall apart. Every state has different contracts.

For instance in Kansas, as well as most other states, after the inspection the buyer can ask the seller to do repairs. Most contracts are specific as to serious defects. This prevents buyers asking for frivolous or cosmetic repairs. If the buyer and seller can’t come to an agreement on those requested repairs the buyer can terminate the contract and have his earnest money returned.

That’s why having a pre-inspection is a good idea. Having an inspection before you put your house up for sale can head off any potential problems.

When a buyer asks for repairs often they ask for their own contractors or for licensed contractors to do simple jobs. Simple jobs you could easily do yourself. Repairing defects before the home goes up for sale can save money.

Sometimes selling your house “as is” in a strong sellers market is a good idea. That way no surprises and no stress over inspections. If you have already had a pre-inspection you’ll know what to expect. If you have completed repairs before putting the house on the market you’ll have a smother transaction.

The inspection process is where I notice the most stress from sellers. It can get very emotional when repair requests are submitted. personally i dislike the process. I’ve seen deals fall apart over pure pride.

Getting Something

Sometimes buyers, or their agents, will use the inspection process to get something. I’ve had them give a list of repairs and then actually demand money in lieu of or in place of doing the repairs. The repairs are often minor defects sometimes not even real defects at all.

The deal could be held hostage by a buyer, or their agent, threatening to back out if their demands are not met. Yes, it sounds like a crappy thing to do, but it happens.

Buyers could have the mentality that they “want” something in return for the money they spent on the inspector. Even if the house is in perfect condition they may want something done to make themselves feel better.

This is what you avoid by doing a pre-inspection. Know the condition of your house. Take care of any problems before you put it up for sale.

Make it a smooth transaction.

Joel

Getting Your Home Ready to Sell In A Sellers Market

by Joel Weihe

Getting your home ready to sell in a sellers market is where you make the big money. The nation is experiencing a sellers market which tempts sellers to put their house on the market before it’s ready. If priced right it will sell. But…

By putting forth some effort and minimal expense you can possibly earn thousands more dollars. Properly preparing your home for market gets you more money, period!

Start with curb appeal to get potential buyers inside. Start off on the right foot by getting buyers excited about a house as they approach. People are forming opinions as they walk up to the front door. These first opinions are crucial.

Keep grass cut, trimmed and looking good at all times.
Trim bushes and hedges to keep them neat and from blocking windows.
Add some potted plants during spring and summer to the front porch.
Powerwash the house but especially the front porch area.
Check the exterior caulk and paint and improve as needed.
Check the front door hardware to make sure it functions smoothly and is in good condition.

By now the your buyers have a really good feeling as they enter the house. Keep that good feeling going throughout the rest of the tour by ensuring the house is clean, really clean.

The small defects may be overlooked by buyers because there aren’t enough homes on the market but you still want the house to be clean. Carpets and floors should still be clean. Paint walls if needed or a least make sure they’re mark free.

More than likely unless the house is drastically overpriced you’ll get showings and offers. Just as in any market the better the house looks, and “feels”, the more excited buyers will be. The more excited buyers are the more money they’re willing to offer you.

Get More Money

While there may be a shortage of homes in a sellers market that doesn’t mean a seller should slack off. Buyers may be desperate but they will still pay more for a house that is in excellent condition. The more impressive a house is the more people will want it. That means more people making offers, big offers.

When getting your home ready to sell little things like sprucing up the kitchen by clearing everything off the counters make a big difference. Polish all the appliances and clear the refrigerator of notes, pictures, calendars and anything else. Make sure the cabinets are all clean and in good working order. The kitchen is a big deal.

The rest of the house, like the living room, dining room, bathrooms and bedrooms should all be, yes, clean, clutter free and in good repair.

Make sure all doors are working smoothly.
Repair any holes in the walls.
Closets should not be crowded.
All the toilets should flush properly and be clean.
Check all plumbing under sinks for leaks.
Pack up as much stuff as you can before the sale.

The big take away is don’t be tempted to take the easy way out by simply throwing your house on the market. Take the time to get it ready. Make more money. After all, that’s the reason you’re selling your home yourself. To save money. Might as well make some while you’re at it.

Joel