10 Steps to Selling FSBO Successfully

Many homeowner’s rush to hire a real estate agent because selling a home can seem overwhelming. However, regardless of whether you hire an agent or not, there is still effort on your part in the sales process. Selling your home yourself not only saves you money, but you are in complete control of the process. As shown under Why Sell FSBO, by using FSBOGreaterPortland.com and cutting out real estate agents, property owners can save thousands of dollars of their equity! Here are easy steps to prepare you for selling your property the FSBO way.

1. Pricing Your Home: The price you ask for your home will depend on a number of factors, including how long you have to sell. If you want to sell quickly, you will need to price your home lower than if you have flexibility with how fast it sells. Don’t fall into the trap of pricing your home too high simply because you have fond memories of the house and are sentimentally attached. A house that is priced too high will scare off buyers. There are a several ways to determine your asking price. You can examine your property tax bill for data on the assessed value that the city has given your property. However, keep in mind that the assessed value is not the same as the fair market value of your property.

Explore recent property sales in your area. In many towns, the assessor’s office provides an on-line data base of property information on their web site. Look for houses similar in square footage, bedrooms, bathrooms, garage, etc. We have provided a link to many local Tax Assessor’s Office’s web sites under Resource Links.

You could also hire a professional property appraiser. For a small fee (usually between $200 and $400), an appraiser will estimate the value of your property. An appraisers finding will give you solid support that your asking price is fair. We have listed local area appraisers under Seller Resources. (Note: Business listings are not paid endorsements. Always ask for references.)

Also, keep in mind that by selling your home yourself, you are saving the real estate commission, and thus can price your house lower. Buyers choose the FSBO method, because they know they will save money on the home.

2. Working with Professionals: Just because you are selling your home without a real estate agent, doesn’t mean you need to do all the work yourself. Using professionals such as lawyers and appraisers will save you time, and since you are not using a real estate agent, you will save money too! An attorney will be your most important resource when selling your home, and is the primary reason why you don’t need to hire a real estate agent. Lawyers typically charge a fraction of what an agent’s fee would be. A lawyer will assist you with filling out real estate forms correctly, with issues such as escrow and title, and attend the closing with you. Hiring an appraiser is recommended if you are having difficulty pricing your home. An appraiser can provide you with an estimate of the value of your property.

3. Advertise Your Home: First and foremost you want to get your house exposure. The internet is the most cost effective way for you to advertise “For Sale by Owner.” By posting on FSBOGreaterPortland.com you are allowed space for 6 pictures of your property, and a full property description. Keep in mind that you’ll want to include both outdoor and indoor photos of your property, and you’ll want the description of your home to be as accurate as possible. For the term of your listing, you will also be given a professional yard sign to advertise your home to everyone who walks or drives by your property. Determine the best location for your sign by looking for a spot that can be easily seen from the road as cars drive by. Attached to your sign will also be an information box. The use of this box is up to you, but it is a nice feature to provide prospective buyers with an information sheet highlighting the details of your property. Your FSBO Greater Portland listing will automatically generate a flyer based on the information you provide about your home, which you can then print off to put in your information box. You might also want to consider advertising in your local newspaper. You could choose to run a standard real estate for sale ad, or you might choose just to advertise an open house that you are hosting. The Maine Sunday Telegram dedicates a specific space for open house listings.

4. Prepare Your Home: You will want your home to look as good as it can for all prospective buyers. It has been proven that well maintained, clean and clutter free homes sell faster and for more money. Curb appeal is very important, as that is the first impression buyers will have of your property. Be sure that the yard is tidy and that there are no obvious defects on the outside of the property (such as a torn screen). You will also want to reduce the amount of clutter in your home. You may find it beneficial to rent space in a neighborhood storage unit for some of your belongings. This will not only make your home feel larger, but it will also give you the opportunity to remove many personal items that might interfere with a prospective buyer’s image of themselves in the home. Cleaning and organizing is important to make a good first impression as well. You’ll want your house to shine for prospective buyers, and don’t forget closets and cupboards; they should be clean and organized too. It is also important to take the time to notice the small imperfections in your home and correct them. For example, touch up chipping paint, fill small cracks, replace broken switch plate covers and burnt out light bulbs, and fix a running toilet. These things may seem minor, but they are all important in making a good first impression. These things are not costly to correct, but they could cost you thousands in reduced offers.

5. Show Your Home:Showing your home can include both individual appointments and open houses. Showing your home is not difficult, in fact once you have prepared your home to show, the hard work is done. Your home should be clean and clutter free for every showing. Just before a showing, consider lighting a few candles or playing some soft music to make your home more inviting. If you have pets or children, try to make arrangements for them not to be at home during the showing; you want the prospective buyers to have the flexibility to freely walk throughout the home. Have available for all prospective buyers’ information about utility costs for the home. For example, many buyers are interested in knowing what approximate heating expenses will be. You’ll want to give the potential buyer(s) some space to look around, but also be available to answer any questions they may have. Since you are the homeowner, you are the most qualified person to answer their questions. Be sure to answer all questions honestly.

7. Negotiating with a Buyer:Congratulations, you received an offer! You now need to decide whether to accept it, reject it, or negotiate the terms of the offer in the form of a counter offer. FSBO Greater Portland has provided you with the necessary forms under resources. These real estate forms should be used for informational purposes only between you and the buyer and should not be signed until your attorney has had a chance to review them. An attorney can identify any shortcomings in the offer that otherwise could cost you time, money and possibly even litigation. In addition, a lawyer can provide all of the other necessary paperwork to complete the sale of your home.

8. Earnest Money: When you accept an offer you will likely collect earnest money (deposit). The earnest money shows the buyers interest and deters them from backing out of the offer. The deposit can be any amount you agree upon, and the check will be held by either the seller or by your attorney in an escrow account until the closing.

9. Contingencies: Many offers have contingencies, such as home inspections, radon tests, financing, and sale of another property, among others. These contingencies, if not met, can change or cancel the sale agreement.

10. Closing: Usually within 24 hours of the closing, the buyer will do a final walk-through of the home to make sure everything is as it should be. The actual closing involves the formal transfer of the title of the property from the seller to the buyer and the signing of all the final legal documents that execute the sale of the home. The closing typically takes place at the Title Company (to be selected by you or your attorney). Your attorney's role is to represent you at the closing, and make sure you understand the documents you will sign. The closing documents are usually prepared by either the buyer’s or seller’s attorney. Once you've signed your documents, you're free to leave. Once the buyer finishes signing their documents, the closing attorney will file the deed with the Registry of Deeds or the County Recorder’s Office. The sale is then complete, and you will be able to pick up your check. Congratulations! You’ve sold your own home.

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