TIPS ON HOW TO SELL YOUR HOME
WHEN YOU ARE SELLING "FOR SALE BY OWNER"

Place an ad in your local newspaper. Always include the area of town, the price, number of bedrooms and bathrooms. These are the most important considerations for a buyer. Consider an ad in local publications.

Design a flyer or brochure for your property. A photo and description of the home is important.

Know your current annual property taxes and homeowner insurance premium amounts. Know if they are paid from an escrow account or by some other method.

Know at least three different methods available to finance the sale of your home. Assumable loan, seller financing, adjustable rate loan, FHA loan, VA loan and fixed rate loan are good examples. Buyers want to know the total cash down payment, closing costs and monthly payment.

What are the current interest rates and fees on fixed rate and adjustable rate loans?

Consider having an appraisal done on your home to determine the current market value. Buyers typically will offer less than you are asking because they know a savings of the commission is often built into the price. You are trying to save the commission and so are they.

When a prospective buyer visits your home, follow these guidelines:

Have all buyers pre-approved for financing before signing a contract.

Set appointments at their convenience.

Always prepare the home before it is shown, even if you have to leave work to be ready for their visit.

Have your property brochures and flyers available.

Introduce yourself at the front door.

Let buyers tour the home with as much privacy as possible. Buyers feel
uncomfortable making comments in your presence. When they complete the tour of your home, ask them if they would like to go back for a second look.

Be prepared. Most people may not be that interested in your home. Buyers shop by comparison and there are usually a great number of homes for them to consider.

In the event you receive an offer from a buyer, have them put it in writing, including an earnest money deposit. Be prepared to pay a real estate attorney to review the legalities of such a contract.

Tips on How to Price Your Home

Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?

Consider competition. How many other houses are for sale in your area? Are you competing against new homes?

Consider your contingencies. Do you have special concerns that would affect the price you'll receive? For example, do you want to be able to move in four months?

Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home's value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute (www.appraisalinstitute.org) or ask a REALTOR for some recommendations.

Ask a lender. Since most buyers will need a mortgage, it's important that a home's sale price be in line with a lender's estimate of its value.

Be accurate. Studies show that homes priced higher than 3 percent over the correct price take longer to sell.

Know what you'll accept. It's critical to know what price you'll accept before beginning a negotiation with a buyer.

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