To Sell Your House Without an Agent may be very tempting. Why should I pay an agent a commission. I could save the money by selling it myself. Before you do, call (951) 901-8153. Let us see if we can help you first. We can help you navigate the waters. Here is some areas to consider:
- How much is your home really worth. This is an emotional decision if you are not a real estate investor in the business of buying and selling for profit. Today’s explanation is better known as “Fix ‘n’ Flip.” To investors it is all about the bottom line profitability. You can’t let all of the memories cloud the real value. . . a buyer only sees your home through their eyes. Suggestion: Call a few local real estate professionals and request a Property Market Analysis. (951) 901-8153.
- Determine the best time to list your home. Certain times of the year may be more profitable than others, although this will also be dependent on where you’re located and relevant events in your area. Selling a family-sized home once school has started or to sell it at an ideal price may tough and traumatic for families with children changing school mid-semester.
- Consider the weather. Take into consideration the weather. Depending on your geographic location you may have excessive cold and/or snow to deal with. How does your yard look with two feet of snow? Would your home be better to show in the spring, when your yard and beautiful landscaping can be at their most appealing to buyers? Do you live in an area where seasonal heavy rains would create difficulty of viewing the interior of your home without tracking mud, etc. in the house.
- Inform your “visitors” with a fact sheet about the property. Indicate the “List Price” and the “Terms of Sale.” You might also include a list of all exclusions or items that may be subject to negotiation. Have information on hand about commuting, schools, and your town or community. The buyers may be from out of the area and not be familiar with roads, schools or local transportation. Be prepared to answer questions about why you are moving.
Preparing to Sell Your House Without an Agent.
- De-clutter. You are intending to move, start getting rid of unneeded, not essential items. However, remember you may still need to sleep, eat, and live in this home in the short term. You are not taking it with you? Then give it away, donate or trash it. Extra furniture can make homes look smaller, giving the impression there is less room available. Children toys can be rotated with the extras stored out of sight.
- De-personalize. The idea: let the buyers picture the home as theirs, without any distractions of your own preferences, beliefs, styles, etc.
- Consider curb appeal. First impressions can do a lot. Prepare the outside of the property:
Make sure walks and stairs are cleared and safe to walk on. Make sure there is access to the backyard and detached garages also.
Consider refreshing the home with paint of power washing the exterior. Plant flowers in flowerbeds and/or use pots for part of your staging to make the home more inviting.
- Safety first. Do you live alone? Be smart. Make sure you have someone “keeping you company” when the house is open for inspection. Not everyone may be coming just to buy or look. Put away valuables–safely and securely locked up. You don’t want to follow potential buyers.
Informing your Buyers: Paperwork and Handouts to Sell Your House Without an Agent.
- Make acceptance of the offer and closing contingent on approval of the paperwork by your attorney or title company. Have the paperwork checked immediately. Be sure that the mortgage papers and the deed are prepared properly for your protection. You will be signing over your rights, including the title and deed to the other parties, so it has to be done correctly. You can contact a Title Company to assist with this part of the transaction.
- Require your buyer to buy a buyer’s title insurance policy. If there were any problem with the title or any cloud on the title found after the closing, then the title insurance will be responsible for making it right, not you.
- Are there any disclosures you need to make. Some disclosures aren’t mandatory when selling your house without an agent, but having the information available can answer many buyer questions about your home. Lead paint disclosure is mandatory. Make sure you have one for your home, particularly if it were built before 1978. Disclosure forms are generally available online.
- Exposure. It is all about exposure. Balance the costs as they can add up quickly. Calculate what you are willing to spend and spend wisely: newspaper advertising, flyers, property information sheets. Make sure you post a For Sale sign and the best number to contact you.
I Did It. Sold My House Without an Agent. Now What to Expect.
- Negotiate the contract. Someone who would like to make you an offer. Congratulations, now for the hard part. How to accept an offer. Only accept written offers! You need a contract for the buyer to use. One may be found on line, or ask your real estate attorney for one. The buyer is buying directly from you to save the commission. Don’t be surprised, if the offer is lower than you planned. Be prepared defend your price. If you are able to agree on a price, terms and conditions, read the offer, making it contingent upon approval by the attorney. The buyer should be furnish a mortgage pre-approval letter from a qualified lender, as well as an initial deposit check. Was the buyer represented by an agent? As seller you will be paying this agent at the closing. This individual is not representing you and is actively working against you getting the best price available. The agent is more concerned with the buyer than with your needs during contract negotiation, inspection issues and bank appraisal. If something they say sounds off, it would be worth it to talk with an attorney or discuss with realty agents to see about getting yourself a selling agent. Saving money by selling your house without an agent is great, it’s not worth it, if the buyer’s agent loses you thousands of dollars. Are you tempted to accept a contingency offer? The purchase of your property is not a done deal. If anything goes wrong on their end, you lose your contract and are back to square one without any remedies available to you.
- Home Inspection. It has become common practice for the buyer to request a home inspection. During inspection, anything the inspector points out is of concern (especially to a first time buyer). Inspection issues are the biggest reason contracts fall apart. Ultimately, it always comes down to how much you want to sell and how much they like your home. “Certificate of Occupancy” or “Fire and Safety Inspection”. You will need to check with your governing agencies to find out if there are regulations with which you must comply. Find out the requirements for the smoke detector, fire extinguisher and carbon monoxide detector so that when the inspector comes there will be no issues.
- The bank appraisal. The bank giving the loan will need to appraise your property. Banks are not being generous with appraisals. You will have to rely on the appraiser to pick the right comps. If the buyer is obtaining a conventional loan, putting down 20 percent or less, they cannot get the loan, if the home does not appraise for the amount offered. An FHA loan, you will bind you with the appraisal given for six months, even if there is a different buyer. If your home does not appraise you may need to lower your price to the bank appraisal amount if you really want to sell.
- Other reasons for the deal to fail. Bank regulations keep changing, making it more difficult for a buyer to qualify. If the buyer chooses to use a non-bank or large, well-known reputable lender, the processing of the loan may be held up for days, weeks or months, even when there are no real issues. Circumstances change. The buyer may no longer qualify and can’t get the loan. Therefore they cannot buy the house.
If the contract is canceled for any reason, (failure to appraise, inspection issues, buyer failing to qualify for the loan), the buyer will probably get their monies back. This can be costly to you, as not only is your home now “older inventory” but the new buyers may be concerned that there are inspection issues that they cannot see. In a declining market, the price you need to set when you go back on the market may be lower than your original offer.
Now if you don’t want to encounter this experience, All Counties Real Estate Solutions might be able to help. Call (951) 901-8153.