How to Sell Your Home by Owner

Selling your home without a realtor can save you thousands of dollars. For a home priced at $200,000, a typical 6 percent realtor commission would run $12,000. In addition to saving on a realtor’s commission, you may generally have more control over the transaction.

Getting Started: Price Your House

Pricing your house is one of the most important decisions you will make. If you price it too high then potential buyers may stay away. Compile a list of the prices of comparable homes in your neighborhood that have recently been sold. Compare their square footage, condition and location to your own home.

Prepare Your House for Sale

De-clutter Every Room

You will want potential buyers to see the best of your house, including any unique architectural features. Put knick-knacks and personal items that aren’t used very often into storage. Consider removing some furniture to make a clear path between rooms. A sleek look can make the rooms appear bigger.

Make Every Room Spotless

Clean your home thoroughly, including baseboards, bathroom grout, and all appliances, inside and out. If there are spots or stains on carpeting, you might need to have it steam cleaned or even replaced.

Paint Rooms if Needed

This is a relatively inexpensive way to brighten up the interior of your home. If you decide to paint, choose neutral colors that will appeal to the greatest number of buyers.

Don’t Forget the Exterior

The exterior appearance of your home is the first chance you will have to make an impression on the buyer. Trim the landscaping and cut the grass when needed, and clear any debris from walkways, porches and garage. If your front door is showing some wear, give it a fresh coat of paint and new fixtures to brighten it up or replace it entirely.

Inspection

Before you list your home, you may want to get a pre-listing inspection by a reputable inspector, such as those licensed by the American Society of Home Inspectors. The inspector should discover any problems with the home before you list it. This gives you the opportunity to make repairs if necessary, and also eliminates the possibility of any unpleasant surprises during the buyer’s inspection. A clean inspection shows the buyer that you are serious about the sale.

Marketing Your Home

Without a realtor, you will be the person responsible for marketing your home to potential buyers. Some ways to accomplish this may include:

Preparing an informational brochure about your home that includes recent pictures of the home’s best features, the asking price, the year built, square footage, number of bedrooms and bathrooms, and any special features.

Purchasing a few sturdy signs at your local home improvement store and posting them in your yard and neighborhood (where local regulations permit).

Consider listing your home on the Internet. There are several for sale by owner Web sites that will list your house for a small fee.

Tips for Showing Your Home

Accept showings by appointment but also be readily available to potential buyers. Turning down a showing because it is inconvenient may turn away serious buyers.

Make sure pets are secured, or better yet removed from the home. Some people may be allergic to or uncomfortable around animals.

Before the showing, open all window coverings and turn on all lights to create a bright atmosphere. Keep your home at a comfortable temperature. Do not use heavily scented sprays, as they may be distasteful to some buyers.

Receiving an Offer

Only accept offers in writing. You may only have a short period of time to decide if you want to accept the offer or make a counter-offer.

The offer is a legal contract; if you accept the offer, you have a binding contract. Any changes that you make to the offer (which effectively becomes a “counter-offer”) need approval by all parties.

Require all prospective buyers to have a mortgage pre-qualification letter. That will protect you from having the sale fall through because they don’t qualify for a mortgage.

More on this topic

In some cases, you might receive a low offer. Rather than immediately dismissing it, take time to evaluate the offer. Has the market changed since you listed the house? Have prices dropped in your area? If you have done your research on the value of your home, don’t be afraid to turn a low offer down.

Sales Contract

Once accepted, an offer is frequently contingent on a home inspection. Be prepared to negotiate with the buyer about who will pay for any problems discovered in the inspection.Sales contracts can be purchased at most office supply stores or online at http://www.LegalAgreements.com/.
They generally include:

Description of the property
Selling price
Deposit amount
Closing date and time
What is included/excluded in the sale
Home inspection
Warranties
Property Disclosures

Consider asking an attorney to look over the paperwork before closing to minimize mistakes.

Closing or Settlement

The closing generally takes place at an attorney’s office, title company or escrow agent. You may need to hire an attorney to prepare the deed and coordinate paperwork with the buyer’s attorney or agent; note that this is not required in California and certain other states. You may also want your attorney to attend the closing. Before the closing, review the paperwork. You need to understand the closing fees and how much your equity check will be, to avoid any surprises at settlement. In some areas, the seller attends the closing. In others, only the buyer and his agent are required. Some states do not require either party to attend the closing. At the closing, the title of your house will be taken out of your name and put into the buyer’s name.

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