[S293]Selling For Sale By Owner

This Home Selling Guide is written to be easy to read, use, and understand. By eliminating all of the technical jargon, you can get down to the business of selling your home and concentrating on potential buyers. This article will assist homeowners to become an effective seller and will create a comfortable environment for the buyer. There is no long, drawn-out definitions or ambiguities. Just a quick, step-by-step guide to preparing your home and completing the sale.

Step #1 - The For Sale by Owner Sign:

49% of buyers found the house they bought because of the sign. They choose the neighborhood because of the school district, employment, shopping, etc. They will drive around that neighborhood and inquire about the houses they find for sale. You should purchase a two-sided sign complete with a wire stand that includes your contact phone number on it. The sign could be attached to a post for a more professional look (similar to those realtors use) and placed in the ground at the most optimal visual point on the property. A rider is a smaller sign that you can attach to the bottom of the "for sale" sign. Riders are used for displaying pertinent information regarding highlights about the home or creative financing options. Riders can be purchased at large "do-it-yourself" home improvement stores, sign shops or local "Association of Realtors" stores. You can also purchase a mailbox for displaying your flyers at any of these locations.

Step #2 - The Advertising Flyer:

The advertising flyer is your property's "brochure." The purpose of this flyer is to provide quick facts and help buyers remember your property, so it should be clear and brief. Provide all the pertinent facts (address, price, number of bedrooms and bathrooms), highlight special features, provide your contact information and include a picture, if possible. Put flyers in a tube on your For Sale Sign for people to pick up, and always provide them to anyone who views your house.

Step #3 - The Comparative Market Analysis (CMA):

The CMA (or Property Profile) can help you determine a competitive price for your home. This document may be named something different depending on your geographical location. You can order one of these by calling your local Title or Escrow office customer service department. Let them know you are a "FSBO" and they will be happy to help you. Why? Title and Escrow companies would like you to use them to complete the Title or Escrow work on the sale of your home. They will take care of you and look after your best interests. They are actually a disinterested third party and their job is to look after both you and the buyer and to make sure the legal documentation is recorded properly. The CMA contains the public record documentation that has been recorded on the property, information regarding important characteristics of your home and geographical information such as schools, government offices, and medical facilities. It also records recent sales that have occurred in your neighborhood. Use the CMA to assist you with determining your asking price.

Step #4 - Advertising That Works:

We have covered 49% of the sales percentages by introducing you to the statistics on the sign in front of your home. This section addresses the other 51%. Advertising on the Internet is a great tool to draw potential buyers to your home. Your audience is even greater than that of the Multiple Listing Service (MLS) utilized by REALTORS. The following is a list of possible advertising sources, places to present your home to potential buyers:

Your local major newspaper

Local Real Estate newspaper and magazine

Homes for Sale magazines

The Home Trader

Local minority newspapers

Local Military Base newspaper

Cable television Real Estate channel

Major city newspapers

The best ads are short and to the point. They are full of action words and start with a strong opening line. Ads written in this format will draw the curiosity of the reader and leave something for them to call about. You should consider putting your address in the ad in order to alleviate phone calls from people who just want to drive by and look (preferential consideration). The phone calls you will then receive are those people who want to see more than just the outside.

Step #5 - How to Handle Phone Calls:

Due to your successful advertising campaign, you will start receiving phone calls. An important thing to remember is that people are just going through ads and calling any ad that grabs their interest. It is more important to remember that the first impression is everything, even over the phone! You do not want to lose a potential buyer because someone in your household knows nothing about the details of your home. If you are unable to answer the phone at any time, provide an answering machine or voice mail with details about your home. It take about 45 seconds for potential buyers to listen to the message and the messages that you retrieve should be interested parties only! Realtors rarely leave messages. Using the term "competitively prices" places an emphasis on your motivation to sell.

Step #6 - How to Prepare Your Home to Show:

Only do repairs that are necessary to make your home look the best. Do not overspend on repairs like remodeling a room or replacing a vinyl floor. You will not get that money back from the sale of your property because they do not increase the value. It is more efficient to spend time making the problem areas look as good as possible. If the issue is still questionable after your efforts, or the buyer has noticed and has a problem with it, then try to agree to a repair cost and make the appropriate adjustment to the sale price. The repairs may have to be done if they are a condition of the appraisal. Curb appeal is the most important factor when selling your home. You only have one chance to make good first impression. If it appears that the seller pays attention to detail, and the home is pleasing to the eye, chances are very high that the potential buyer will make an appointment to tour the inside. On the inside of your home, determine if it needs a touch up or a complete painting. Consider using white or a light neutral color, which enhances the appearance of the room size. Avoid violet or pink paint colors! In the entryways and exits to and from the house, remove all clutter, old mail, shoes, coats, etc. Mop and wax any vinyl floor until it is as shiny as possible. Vacuum all the carpets and have them cleaned if necessary. Have the drapes and blinds cleaned as well. Wash the fingerprints off of all light switches and wall sockets. Make everything that is white shine, shine, shine! Polish any wood furniture, floors, banister, fireplace mantles, etc. Dust, clean and touch up the heater and air condition vents and ducts, the ceiling fans, and any other fixture that can be seen at eye level and higher. Remove all cobwebs. Replace any burnt light bulbs, and replace any working light bulbs with even brighter ones. Bathroom and hallway light bulbs are notorious for being burnt out and overlooked. Attention to detail costs little in time and money but will drastically increase the visual appearance of your home and will help you to get top dollar for the sale of your property. Never have to apologize for the appearance of your home during this period. Keep it ready to show at all times!

Step # 7 - Secrets to a Successful Open House:

A successful open house is one that gets the results you are looking for - you get a buyer and escrow closes! We have a unique way for you to host your open house that creates great exposure and attendance. You will need to take charge of your neighborhood or geographical area. Contact all of the FSBO's in that area and find out who wants to participate in a "Open House" block party. Everyone will need to agree on a date to schedule open houses. Each homeowner pitches in and pays for a Bold Block Ad in the local newspaper(s). Each participant will pay for a block of space in the large ad (you will need to coordinate this effort and collect the appropriate amount from each person). Be sure to include the days, times, and the sales price, address, and phone number of each home. This will generate a kind of "group dynamics phenomenon". You get an unusually greater response of buyers than you would if you were on your own. Also, when more than one buyer shows up at the same time, it creates competition between buyers. It is a great attention getter and you will be happily surprised with the turnout that you receive. How do you find and get FSBO's to participate with you? You have probably seen some in your neighborhood while driving around everyday. You can make up a flyer asking them to participate and give them a number to contact you. Just drop it on their doorstep and wait for them to call. You can look in the newspaper or on the Internet for other homes in your area. Call the phone numbers that have the same prefix as yours!

Step #8 - How to Complete the Sale:

When an offer to purchase is made, the first thing that needs to be done is verification that the buyer has a mortgage loan in place. The buyer needs to present an approval certificate issued by the lender. If the lender does not issue approval certificates, the buyer will need to speak with their loan representative about getting a letter of approval from the Underwriter. Never take your house off of the market without documented proof that your buyer is approved and Escrow has been opened with the earnest money deposited into an Escrow account! Ask to speak to the buyer's loan representative to verify the approval. If you take it off of the market and then have to put it back on, you will have lost valuable time and potential buyers. Put everything you agree upon in writing. Go down to your nearest office supply or legal forms store and purchase some "Offer to Purchase Real Estate" forms so you can document the agreement. These forms are self-explanatory, or come with instructions for completing them. In addition to the obvious required information, such as address, sales price, earnest money deposit amount, and loan amount, list every other agreement you have made (i.e. appliances that are staying, other items that will remain on the property, blinds, etc). The buyer and the seller should both sign and date the agreement. Call a title office and make an appointment to open Escrow. You and the buyer should then meet with them and solidify the deal. Make sure the buyer brings the earnest money so it can be deposited into an Escrow account. Find out from the lender when the loan can be closed and set a closing date. Now you can take your home off of the market! When the loan is close to completion, an appointment will be made with you to meet with an appraiser. The appraisal is not ordered until the lender is assured that no surprises are going to pop up and kill the deal. The earnest money deposit is "good faith money". Require the buyer to put up a sum of money in an effort to show you how serious they are about buying your home. You determine the amount of earnest money you want deposited. A minimum amount of $500.00 is acceptable, but a typical amount is $1,000 to $2,000. Make sure it is enough money to make you feel confident that your buyer will not back out of the deal. Once the earnest money is in the Escrow account, the buyer will be credited the amount towards the down payment and closing costs when the sale closes. In the event that the deal falls through and does not happen (because of a legitimate reason such as being declined by the lender), both the seller and the buyer must sign a release in order for the buyer to get their money back. Simply changing their mind is not a legitimate reason for returning the money.

The full version of this "Home Selling Guide" can be downloaded for free at:

http://www.virtualfsbo.com/manager/introduction.asp