A Fixed Fee Realtor's Guide for the FSBO Seller.
Selling your own house is not easy, as you are emotionally attached to it. If you do your own selling, keep emotions well in check.
Paul Clitheroe
For this article, I will assume you are considering, or are in the process of selling your own home. Congratulations. This is an exciting time for you to enter the market. If you have never sold a home before, then the purpose of this series of articles is to offer some help in understanding the process and get a better handle on what you will be facing.
We got involved working with FSBO sellers because many of them are discouraged by the rapidly changing real estate rules and legal regulations they face. The seller wants to avoid the high commissions, but they are faced with the knowledge that the old rules don't apply anymore. Read a new real estate sales contract and you'll see what I mean. Also, the average FSBO seller can't keep up with the pricing in a fluctuating market. That is the topic of this first article in the series of "How to Sell Your Own Home."
There are many things to consider before you can start marketing the house, the first of which is setting the price properly. The second, especially for sellers who are going it alone and without access to a list of ready buyers, is patience. I can tell you how to set the price but I can't give advice on patience.
If you have sold a home in the past, remember that the price setting rules for today's economic condition are far different then what they were a couple of years ago. Chances are you're going to set the price too high initially. This might seem like an obviously silly thing to do, but it happens to many people who either cherish their house too much, or are not aware of its value today.
Too high and the home will stay in the market for too long waiting for someone who can afford it. This is costly in more ways then one. But if the price is too low, it may easily sell but with the commissions and closing cost, the owner may end up still owing money on a house they no longer own.
Setting the price properly is a lot harder then people think, but it can be done. First off, disassociate yourself from the home. No matter how much you love your "home," think of it as nothing more then a "house" now.
Stand outside of the house and look at it as a buyer would. Look at the house as a commodity, not as a lot of wonderful memories. Try to remember the amenities that made you buy the home initially. Have you made improvements of significant value, such as the addition of a pool or covered patio? As you examine the home, note the areas that have weathered badly or where paint is peeling or blistering. What does the roof look like? If it needs replacing, consider replacing it now. You will be able to raise the price of the house over double what the new roof cost you.
Now that you have done this, examine the other areas that might increase (or decrease) the value of the house.
Here are the first areas to consider:
a. Location, Location, Location. This is the time-honored rule that you will not ever be able to change. A home in a more desirable area will cost more than in a less desirable area. However, today's market adds a new variable. A home sitting in a desirable neighborhood, where every home on the block has a For Sale sign on the lawn, is now facing competitive pricing.
b. House condition. A well maintained home shows that this home is being looked after and therefore worth examining closer. Examine the overall condition of your home. How are the lawn and garden areas? What about the paint scheme; does it fit with the neighborhood or do the colors stand out like a sore thumb? Are all appliances working?
c. Surroundings. At first, you may confuse this with location, but the two are not the same. For example, what are the schools like in the area? This is a critical requirement for family's that are relocating. Conduct a realistic analysis of them. Are they run down? Is there graffiti everywhere? Do your neighbors have late night parties or loud obnoxious barking dogs in the backyard they never clean? Are there homes vacant and abandoned on the street? These issues will affect the overall home-selling price. The last issue in this category is what other homes are selling for in the area. If you don't have the latest "comparables," your partnering REALTOR ® can get them.
d. Features. In the business of selling, every professional sales rep will tell you that Good Qualities need to translate to Owners Benefits. What are the QUALITIES of your home? Does your home have a pool or an enclosed patio? What would be the owners benefit to having their own pool? A full in-ground lawn watering system? Don't hesitate to consider them when setting the price. Be realistic, though – a dusty, never-used fireplace, no matter how classy, will do nothing to your home value. A full lawn watering system under a dead lawn won't do you much good either.
In conclusion setting the price is not something to be taken haphazardly. There are many areas to consider. Homes don't sell for the price they would have sold for a couple of years back. The price has to be justified or else, even if you get a buyer on your own, the lender, when reviewing the appraisal, will kill the deal if the price is set too high.
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Article Source: http://www.articlesbase.com/diy-articles/selling-your-own-home-selling-hints-from-a-realtors-notebook-3061990.html
About the AuthorAbout the author: Hans Rosielle is an independent realtor and owner of Property Mill Real Estate Group LLC. He is a fixed rate advocate whose often partners with a FSBO home seller. His office is located in Colorado Springs, Colorado - central to a nationwide communications network that he uses for his clients advantage. If you want to learn more about fixed rate real estate sales, or how to sell your home on your own, visit the website at http://PropertyMill.com or you can reach Hans at 719-591-6200 (Office) 719-233-7441 (Cell) or by e-mail at Hans@Rosielle.net. You can also follow him on LinkedIn at http://www.linkedin.com/in/hansrosielle