Published at Saturday, February 16th, 2019 - 15:20:33 PM. House. By .
How To Sell Your House By Yourself: A Short Guide Selling your house is something youll have to do maybe just a few times in your life. And unless you know a local real estate agent who will sell your house for free or a hugely discounted commission... it can be a real pain in the rear and an expensive process for you as well. So... you landed on this page about How to sell your house by yourself because of a few reasons Im guessing... • You have no or very little equity in your house so you cant afford to pay a real estate agents commissions • You have equity but want to try to save money selling the house yourself before you resort to hiring an agent • Youre in foreclosure (or heading that way) and just need to sell fast without incurring thousands in agent commissions • You cant wait the months and months it sometimes takes to sell a house in your area, so you want to try to sell it more quickly Whatever one you land in... there are ways to sell your house yourself in your local real estate market. Since 2013, the housing sector has been experiencing a major recovery. Selling your house at this time will definitely be profitable if you do it right. In most cases, it is about using smart marketing strategies and being realistic about your expectations on what you want to achieve with this sale. This article will provide some guidelines to help you sell your house yourself. How To Sell Your House By Yourself - Lets Dive In Know The Real Estate Market Well The first and most important step is doing a market research on your neighborhood. This step involves visiting various home marketing sites (Zillow, Eppraisal, Redfin, etc), calling a real estate agent or two to see what your home is worth, or reading about the various market pricing techniques. Proper homework on these issues will allow you to come up with a right price for your house and also helps you to avoid making certain selling mistakes. If you dont want to hassle with trying to come up with a home value yourself... contact a local cash home buyer. Theyll be able to give you an honest fair valuation of what your house is worth in its current condition. And most cash homebuyers can make you a fair all-cash offer on your house within 24 hours, to give you that option of selling quickly (most cash homebuyers can close within 14 days). Assess the market This step is almost similar to conducting market research, only that in this case, you are bound to your neighborhood and similar houses. Are there lots of houses for sale in your neighborhood? If so, what is the average that they are listing for? Are there lots of foreclosures in your neighborhood? That may drag your house price down. Assess the house As a seller, your house should be in top condition or shape in order to sell at a good price. Identify certain unique characteristics about it and emphasize them during the marketing. For example, a house with garage parking may be more attractive to buyers compared with one with driveway parking. Also, does your house require repairs? Does it need to be repainted inside or out? How is the condition of the roof? Is the landscaping in good shape? Is the house outdated at all? (you know, those popcorn ceilings. All of these things can make the house more attractive or less attractive depending on the buyer... which changes the price theyre willing to pay. After all of this... come up with an asking price for your home that is fair... isnt so high itll take you 12 months to sell the house... but is attractive so you get a frenzy of buyers who are ready to buy it quickly. Use Photos or Videos Buyers are obsessed with media. Taking walk-through videos of the house and using the videos to advertise will enable you to reach a wider market. In fact, these videos are considered more transparent than taking photos. However, this should not stop you from using the latter option since it is more affordable compared to the video. So take some great pictures. Take a picture of every room in the house that helps show it off. Take a picture of the house from the outside in a few different angles... people want to see the house before they ever show up to see it. So having great pictures of your house online could be the difference between getting the right buyer quickly... and waiting months and months to sell. Get Your House Listed On The Local MLS And Market It You can find no or low fee real estate brokers these days who will charge you a few hundred bucks to put your house on the local MLS. This gets your house in front of all of the real estate agents quickly (so be prepared to pay those buyers agents a 2-3% buyers broker fee if you plan to have their support in helping you find a buyer. Place ads in the local newspaper, signs on the roads, and hold an open house. All Of This Sound Like A Lot Of Work To Sell Your House Yourself? It can be. And in the end, many homeowners think theyre saving money and time by marketing the house themselves... when in the end it costs them more money to go that route. When you sell your own house here are some things you need to consider... • If youre not a good marketer or arent ready to spend a bunch of time marketing your house right... selling it yourself may not be your best bet • If you dont do a good job preparing the house and the marketing materials... and working with buyers to really build the value of your house in their minds... you may actually sell the house for 3-8% less than you may get for the same house an experienced person marketed the house for you • Too many sellers never think about holding costs or opportunity costs... every month that your house doesnt sell means another mortgage payment, tax payment, insurance, utilities, etc. If your mortgage payment is $1,500/mo... and $1,300 of that is interest... if it takes you 7 months to sell your house... that cost you an extra $9,100 (not to mention taxes and insurance you paid during that time). So, if you were able to sell that house more quickly... would it make sense for you to provide a buyer a discounted price today so you can close quickly and move on? Something to think about. A local cash home buying company can give you a fast offer for a fair price.
How To Price A House When Selling A House By Owner :If youre thinking about selling a house by owner, otherwise known as for sale by owner (or FSBO), one of the primary factors that will determine your success is how to price a house. Setting your price too low, will get your house sold quickly but will transfer wealth (in the form of equity) from you, the seller, to your buyer. Set your price too high and you will have too few prospects looking at your home and even fewer offers. Set the price way too high, and many buyers may feel that as the owner, youre set on your price and will be difficult to work with. As a result, they may decide its just better to not even bother with your house. So, if your goal as a seller is to capture as much equity as possible by getting as high a price as possible for your home, then you need to understand the factors that buyers will take into account when determining what is a fair value for your home. There is a normal tendency by homeowners to overestimate the value of their house because its very hard to be impartial to the house. Lets face it, as a homeowner, weve lived in it for many years, made improvements to the house, invested our hard-earned money in it to make it better and more comfortable, and now we feel that its a great home to live in and anyone looking to buy it should see that. And because homeowners have such a stake in the outcome of the sale, its sometimes hard to accept some cold hard truths. The most difficult concept for homeowners to understand when considering how to price a house is the concept of Supply and Demand. When there is high demand for a product, and not a lot of supply, the product is scarce and so people are willing to pay MORE for the product. Because theyre willing to pay more, the product is worth more. When the demand for a product is low, and there is a large quantity of the product up for sale, the price people are willing to pay will be much lower because they can easily get their hands on the product of their desire. The same concept applies to your house. When the number of buyers looking for houses is greater than the number of houses available for sale (or the supply of houses for sale), the demand is greater than the supply and homeowners will be able to get a higher price for their house. When there are more houses for sale than there are buyers, the supply exceeds the demand, so prices will be forced lower. A good way to measure supply and demand of housing in your area is to ask a local realtor about the absorption rate for your area. The absorption rate is a measure of the local areas ability to absorb the supply of houses on the market and is calculated by dividing the number of houses on the market for six months and dividing it by the number of houses that sold during the same period. For example, if there were 1200 homes for sale over the course of a year, and 100 homes sold every month, it will take 12 months to sell all of the homes currently for sale. If the absorption rate indicates that it will take 6 months or less to sell the available supply of houses on the market, the demand is said to be greater than the supply, and it is termed a Sellers Market. Conversely, if absorption rate indicates that it will take more than 6 month to sell all of the houses on the market, then the supply of housing is greater than the demand, and a Buyers Market will be in place. A Buyers Market leads results in homeowners having to accept lower prices for their homes in order to sell them. The second most important factor that buyers consider when looking for a houses is what value they will be getting for the price of YOUR house compared to the value they would get if they bought someone elses house at a similar price. As an example, consider the following question; would you pay $75,000 for a car thats designed and built for just basic transportation - low horsepower, manual features, and a minimalistic interior? The most likely answer is probably not because you can get a luxury brand automobile for that same price, giving you better styling, more horsepower, more room, a more comfortable leather interior, better stereo, and just about better everything (with the possible exception of miles per gallon of gasoline). Similarly, when thinking about how to price a house, you also need to consider the other houses that your house is competing with. These competing properties are called comparable properties, or in realtor terms, Comps. There are two types of Comps - Active Comps, and Sold Comps. Active Comps are other houses that are similar to yours in terms of bedrooms, bathrooms, square footage, style, condition and neighborhood and are also on the market looking for buyers. Active Comps give you a very good idea of what prices other homeowners are asking for. Sold Comps, on the other hand, are other houses that are similar to yours in terms of bedrooms, bathrooms, square footage, style, condition and neighborhood that have sold within the past 3, 6 or 12 months. Its important to look at sold comps because they will tell you what buyers were actually willing to pay for a house that is similar to yours. Look at how the other active comps are being priced. Are their prices similar to the houses that sold, over-priced, or under-priced? When looking at your Active Comps to determine whether they are priced correctly, you will want to look at Days on Market, or DOM. Days on market will show you how long it took for houses listed at a certain price to sell, or how long houses currently listed for sale have been on the market and have not yet sold. A general rule is that a house should sell within 90 days of it being listed. If it takes longer than that, its generally an indication that it may be priced on the upper end of the price scale. In summary, when trying to decide how to price a house because you are selling a house by owner, you will want to have a good understanding of the local supply and demand for houses in your area. This information will tell you whether you have to price aggressively to sell your house, or if you might be getting multiple offers on your property. Next you will want to compare your house to other houses that are similar to yours and have sold recently, and similar houses that are currently listed for sale. Compare the prices of houses currently listed for sale (active comps) with the prices of those houses that actually sold (sold comps) within the past few months, and determine what buyers would be willing to pay you for your house.
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