Everyone has their own personal reasons to sell their real estate "by owner" but we all have one major reason in common: The Real Estate Market absolutely sucks today and it doesn't matter if you are a buyer, seller, investor, agent, or some other real estate professional.
Does this mean you can't sell your home? No. Does this mean you can't find financing to buy a home? No. It does mean that you really need to be savy, informed and be watching out for your best interests at all times. Because real estate professionals are loosing their shirts right now they are much more willing to lend a helping hand at no charge. You should take advantage of this when ever you can.
You don't have to be a rocket scientist to sell your real estate "For Sale By Owner".
- Decide on a selling price. To make sure you don't over price or even worse, under price, you should get an appraisal. Don't trust a real estate agent's market analysis. Agents can and will blow smoke up your skirt and tell you what you want to hear hoping to get your listing. Hire a HUD approved appraiser. The cost varies from state to state but it is well worth your money.
- Understand closing costs and documentation. It is critical you understand how much your closing cost will be based on the type of loan the buyer procures. Your closing cost will be higher if the buyer gets a FHA or VA loan . This will impact your bottom line, cash out the door/in your pocket. If you think you are going to walk away with $10,000 but only get $8,200 I think you would be slightly upset. Go see a Mortgage Broker. He will sit down with you and run through closing costs based on different loan types. He can also explain what real estate documents and disclosures are required in your state and can probably supply you with them. He can also provide you with a sales contract and teach you how to fill it out. If he has a good fsbo program he could also make your home flyer and financing options flyer for potential buyers. Don't be afraid to talk to a broker. He will do all this for free in hopes of finding buyers that need financing.
- Advertise. You need a home flyer and a financing flyer. Be really swift and do it all on one sheet. Home flyer on the front and financing flyer on the back. A yard sign is a must and of course place ads in the newspaper. Your ads will be much more effective if you mention the amount of down payment or mortgage payment amount based on different loan types. ($5,000 down will get you into this affordable 4 bedroom 2 bath home in beautiful Newbury Park.) Again, your mortgage broker can help you with this information.
- List your real estate on the Internet. Wow! This topic makes me crazy. Yes, yes, ... list your home on a for sale by owner web site. BUT DON"T list it on one of those top of the search web sites that charge you a small fortune. You don't need all that stuff. There is so much information I want to give you about this I think I'll make it tomorrows topic. In the mean time, go to fsbobasics.com and list your home free.
See you tomorrow.