Considering Selling Your Home Without a Real Estate Agent? Understand Your Legal Needs!

As real estate has changed over the past few years many people are trying to sell their homes without a real estate agent in order to avoid paying a commission. In the United States you typically pay an agent 6 percent of the sale price in commission. With the price of homes today this number is significant. Especially since so many homes in the US have lost value and many homeowners have found they own a home that is not worth what they originally paid for it.

When not using an agent many residents will seek out the help of FSBO (for sale by owner) organizations and websites. These marketing tools still require a fee but the most it would be is 3 percent of the sale price and many are considerably less.

Real estate agents would also point out that by paying them a fee you are also gaining access to a number of resources that they have available to them. When selling a property agents will also invest in advertising to aid in selling the home.

Many people believe the commission paid to an agent is well worth it. However if you do decide to try and sell your home alone it is important to contact a real estate attorney who can help you navigate the legal aspects selling property.

The legal needs of a home sale include:

Purchase and Sale Agreement: This document is one of the many legal aspects involved when buying and selling property that will require an attorney.

Title Search and Clearing: Before finalizing a real estate agreement you want to be sure the title is clear. A lawyer will do the required title search and make sure the title is clear and the property is ready to be sold.

Litigation: There are instances where property ownership issues arise at the time of a sale. This could be a boundary dispute or eminent domain issue. You will want a qualified attorney working with you if you run into one of these problems.

Condo Development: Condominiums require legal documentation that is unlike any other property. Real estate attorneys are well versed in the legal requirements of condominiums and can help ensure the process moves smoothly.

Document Preparation and Review: If you are buying or selling a home you want to make sure all the documentation is complete and done correctly. It is the job of your real estate attorney to review all deeds, notes and any other documentation that is involved in a home sale.

The investment in a real estate attorney is an important addition to any home selling strategy. Buying or selling something as valuable as a home is a daunting prospect. If you plan to try and do it alone make sure you hire a real estate attorney to help supplement your sale strategy. The legal fees are a small price to pay to avoid a commission.

Selling Your Home Privately

When you think about selling your house privately one thing to consider is to decide where to place all of your furniture and anything else in your house. Well this is quite right but selling a house means also to get rid of all the debris, to fix all the damage in the home, to determine the price of your house, and also to make an advertisement in the newspaper.

Selling a house requires long planning and you need to do it before you choose to sell. You need to dispose of your feelings with your house and consider it as a valuable investment. When selling your house the people who would like to purchase it should think of it as their potential new house not as your old house.

Next what you must do when selling your house is dispose of all the clutter in your house. Maybe you are emotionally connected to some of this clutter and I remind you once again you need to get rid of your feelings. Look at all clutter in the closets, garage, attic, and basement. You do not want the purchaser to come to see the clutter in these places.

And then you really need to fix all the damage before you attempt to sell. But let me inform you, fixing the damages when selling a house does not mean you need to do something expensive for example renovating your property. You have to save your cash to purchase your new house or to get a new loan. Checking the light, water, closet and bathroom is an excellent thing to do before selling your house privately. Check the flooring, walls, ceilings, doors and windows before you sell.

Maybe the hard thing to do when selling your house privately is to determine the price of your house. Do not set your selling price too high when selling your house privately because it might be tough to find a buyer. And if you lower your price later it may be too late. Selling a house in about six months is a long time and if no one buys your house in this time period the other buyers might think that you will be eager and they will make a cheaper offer. So selling your home requires wise thinking and deep consideration to set the price of your home.

Next thing would be to create an advertisement about your house inside the classifieds. You need to make an interesting but not exaggerating one because folks may think it does not make sense if you made an advertisement like that. And after you advertise your house and there is somebody who is interested in purchasing your house you need to show your house to them. Try not to be home when they arrive to see your house. Keep your home neat and dispose of your kitchen trash. And in the end your house might be sold for the price that you desired.

Tips for Selling Your Home By Owner

You can be successful at selling your home without a real estate agent if you do your research and put in a little work, you’ll be selling your home in no time, without pricey real estate agent fees.

Prepare your Home For Sale

Any potential buyer will be hiring a home inspector to find problems with the house before closing. Prevent buyers from unexpected delays, backing out the sale, or negotiating for a lower price by hiring your own inspector at the beginning of the process. Knowing what to expect going in will give you a chance to fix problems now, offer full disclosure to buyers, and strengthen your negotiating position.

Pricing Research

Pricing your home too high will make it difficult to sell, while pricing too low means less money in your pocket. Compare your home to others already on the market and with recent sales in your neighborhood. Take into account special features your home has. You may want to consider getting your home professionally appraised ahead of time to remove uncertainty and give you a stronger negotiating position.

Don’t Leave A Mess

Keep your home clean and organized when preparing to show it to buyers. If you’ve accumulated a lot of clutter over the years, now’s the time to clear it out. Having less furniture and clutter will make your home look larger, which is a big plus to potential buyers.

Market Your Home On The Internet

The National Association of Realtors reports that 93% of buyers begin the house hunting process on the internet. There are many different real estate listing sites available online. Doing a simple search of “for sale by owner” is a good way to find the websites online where you can list the details of your home. Popular online classified sites such as Craigslist are updated minute by minute with new listings. Getting on all these sites will get your house ‘found’ by buyers looking on the internet. Take a good amount of high quality photos that show off your home’s best features and list as many details as possible. Buyers are much more likely to consider a home with precise descriptions and plentiful pictures.

Hire a Real Estate Attorney

Real estate contract law is complex and should be handled by a professional to ensure everything is legal and binding. You want to make sure all the paperwork is in order and that your closing goes smoothly.

Don’t Get Impatient or Give Up

I can hear you now. “But I want to sell my house fast.” The fact is, selling a home by owner can take a little longer, but the good news is, you’ll be able to save some money. You may however, need to lower your asking price, make changes to your marketing strategy or make some repairs. If your home has significant damage or needs to be sold quickly, try a we buy houses company. This may mean that you don’t get as much as you had hoped for your home, but will get your house sold faster.

Mistakes To Avoid When Selling Your Own Home

Selling a home by the owner has become quite popular these days. However, there are some common mistakes that first-time sellers tend to make. To maximize the benefits of a property deal without an agent, it is best to avoid these mistakes.

1. Don’t get emotionally attached to the home:

It is beneficial to detach yourself from your home. Being detached helps you look at the deal from a financial perspective rather than an emotional one. It is also a good idea to put yourself in the buyer’s shoes. If you think of your house as a dream rather than a piece of property, you will stage your home better.

2. Don’t set an unrealistic price:

Most owners tend to price their houses on the higher side. This discourages buyers. However, an accurate price can be set by analyzing the market. Sometimes setting a low price does help in attracting buyers.

3. Not uploading good pictures:

Buyers judge a house based on the photographs they see on the property listing websites. There you should upload high-quality pictures and videos to attract buyers to your home.

4. Not preparing the home for viewings:

Since approval of the home is based on its appearance, it should be given due attention. It is a good idea to hire a professional home staging company for preparing the home. Though it involves an expense, it may help you fetch a better price for your home.

5. Hiding facts about the home:

There is no point hiding any major problems or defects. This is because they will be revealed once the buyer inspects the house. You have two courses of action that you can take. You can either get everything repaired or you can reduce the price according to the defects.

6. Being rigid about timings with buyers:

It is beneficial to be flexible with your timings when you are dealing with buyers. You should try to make yourself available when the buyer wants to view your home or meet you.

7. Being rigid about the price:

Any buyer will look to negotiate and buy the property for a price lower than the quoted price. If you are rigid about your price, it will be difficult for you to sell. It is a good strategy to price it such that there is a margin to bargain.

If you avoid these simple errors, you will be successful in selling your home yourself.

Home Sellers! Are You Guilty of the 7 Sins of Home Selling?

Greed: This one is a biggie. It was easy in a seller’s market to get in touch with your greedy side. Feeling like Midas, anything you asked for from a buyer turned to gold in your hands. Drunk with that kind of power, buyers were often left feeling helpless to comply if they wanted your home. In a balanced market, or even in a buyer’s market, many sellers have not kicked the greed habit. Ironically, greed is costing those sellers money. Ask any real estate agent and they will tell you stories of deals that were blown because of a $300.00 item that could not be agreed upon. No longer with the advantage, many sellers are refusing to make any concessions if it means less money in their pockets, but now the buyer’s are free to move along to the next house on their list. A seller may balk at fixing a $500.00 item in the house, or providing an inexpensive home warranty, but when the buyer moves along to an accommodating seller, the greedy seller is left to wait for another buyer – all the while making mortgage payments on the house they can’t sell. Bad move.

Unrealistic Expectations: Anyone who has sold a home in a seller’s market is going to have a hard time grasping a buyer’s market. If you want to sell your house, you have to forget everything you remember about selling your house in the past. Odds are that your home will not sell in a week, nor will you receive multiple offers. Unrealistic expectations are the foundation of blame and resentment, and they keep you from selling your home. The first few weeks of having your home on the market is filled with hope, anxiety, and irrational exuberance. It’s completely normal to believe that your home is somehow more special than the others on the market, and yours will be the exception to the tough market. Once it becomes clear that the bidding war has not materialized, and your home still sits along with the others, a home seller with unrealistic expectations is crushed. Stay positive about your home, but don’t blind yourself to what selling it will entail. A home seller with a realistic view of what it takes to sell a house in a balanced or buyer’s market, can easily adapt to changing market conditions, use constructive feedback to improve their home, and in return sell their home faster.

Pride: If you really want to sell your home, make the promise right now that you will never utter the following phrase: “I’m going to send that buyer a message.” If you enjoy sending messages, then perhaps you could raise carrier pigeons. If you want to sell your home, drop that phrase from your vocabulary. The message that sellers send, when they respond to buyers that way is “I don’t want to sell my house to you. You have insulted me.” In the end, all you are left with is your pride, and that house that just will not sell. As an active Ebayer, I have never witnessed a transaction in which the seller of an item got indignant at the lowest bidder. It’s all business. Divorce your emotions from the home selling process, and you have an advantage over the angry sellers in your area, because the buyers that they turn way with their “messages”, are going to buy a home – just not theirs! The message to send to a buyer should be in the form of a counter-offer. Nothing more. Nothing less.

Impatience: You want this home sold. Now! The impatient seller can’t understand why their home hasn’t sold in the first week. By the third week on the market, the impatient home seller is fuming, and wondering how to get out of the listing agreement. Are you an impatient home seller? If you’ve chosen your real estate agent carefully, and believed when you signed the listing agreement that they are up to the job, then sit back and let the market work. The impatient seller calls their agent more than once a day for updates, even if there has been no activity on the house. The question, “why isn’t it selling?” is regularly pleaded over the phone. Are you, the impatient seller, doing everything you need to do to get your home sold? Have you done the things your agent suggested to get your home in selling condition? Did you really listen to the comparable pricing data your agent provided you? Or did you have a set price in your mind and refused to move from it when listing the home? The impatient seller can create an enormous amount of stress for everyone involved in selling the home, and it’s totally avoidable. In the end, the timing of the sale of your home will be a combination of price, condition, and luck. No amount of impatience is going to change that.

Ignoring the market: Ignorance is not bliss. Ignorance is disaster for a home seller. Yes, we know that your neighbor sold their home for the same price you want for your home, but that was four months ago. The residential real estate market is more fluid than ever now. Educate yourself about current market conditions, not last year’s market, not even last month’s market. A home seller who ignores the market will interview a few real estate agents, read the data provided by the agent, then ignore the data and list with the agent that gives them the least argument about pricing their home unrealistically. Real estate agents do not price homes, sellers do. The agents will provide valuable information and input to help a seller choose a price. Some agents will refuse to take a listing if they feel the seller is unrealistic about pricing, but many others will take the listing with the caveat that the seller be open to reducing the price later. With so many other properties on the market, an overpriced home will sit there like a deli tray at a gathering of vegetarians. Then, the seller will be chasing the market by lowering the price after watching the prices around them fall. Eventually, the house may sell, but the price will be determined by the market, as it always is. If you are guilty of ignoring the market, you can save yourself a lot of time and headache by scheduling a meeting with your real estate agent to go over the current sales data for your home, and setting a realistic price, now.

Stubbornness: When selling your home it’s best to imagine yourself as a supple tree gently swaying with the wind, instead of a donkey with its heels dug solidly into the dirt resisting all attempts to be budged. Stubbornness can show up in many situations. When you are contacted to schedule a showing, do you leave the house? Though it’s a fact that your home has a better chance of selling if you are not there for the showing, do you refuse to be inconvenienced by having to leave? You may tell yourself that the buyers can work around your schedule. They won’t. The chance for a sale often vanishes because a buyer feels uncomfortable with the homeowner in the house, and cannot freely assess the house. Expect to be inconvenienced when you sell your home. It’s part of the process.

Being Uncooperative: Are you a partner with your real estate agent when it comes to getting your home sold? Do you resist all suggestions by your real estate agent to make changes to your home that will help it sell faster? I’ve had this conversation with home sellers many times. Is it fair that people judge your home based on the things that are not going to be in it when you move out? No, probably not. Do buyers judge your home based on those things? Absolutely. I’ve seen buyers lose their enthusiasm for a home based on a decorating theme that didn’t suit them. No matter how many times their real estate agent might remind them that they can decorate in their own style, it’s too late. The home is now referred to as the “duck home”, or the “doll home”, or the “pink home.” Every house gets a nickname when buyers are shopping. Don’t let your refusal to cooperate stop your home from being the “perfect home.”

The sale of your home requires the cooperation of countless people, many of whom you’ll never meet. The key word here is “cooperation.” We, as home sellers, expect those that are working to complete our sales transaction to be cooperative. What about you, the home seller? Are you willing to meet the buyer halfway in negations? Are you willing to work within someone else’s schedule to get something signed? Remember, you may be selling a property, but in the end, real estate is about humans. Be a good one.