Lots of folks decide to sell their homes privately by themselves. Why do this? Because when you sell your home privately, you don’t pay anyone a commission. You keep it yourself. But there’s a lot of work that you have to do if you want to sell your home smart and get what it’s worth.
The Benefits Of Selling Your Home Privately
Before we get to the tips, here are some reasons you might want to consider selling your own home. First of all, the realtor commission is usually around 4 to 7 percent of the sale. Do some quick math and you’ll see that it’s a huge amount of money. When you consider the average price of homes in Canada, the average commission is anywhere from $15,000 to $20,000. When you sell yourself, that’s money that you save.
Selling privately, you can also sell it at a lower price. The savings are passed on to your buyer. Because you can sell at a lower price, you can also sell the house much faster. You can to do all of the negotiating yourself and you have total control over your home’s advertising and presentation.
How To Sell Your Own Home
It’s not as tough as some realtors will tell you, but it takes some work and study on your part. First of all, make sure that you completely understand the steps involved in selling your house. Know what needs to be done at each step and the best way to do it. You’ll be handling each of these steps yourself.
When you’re listing your home, set a realistic price that takes into account the house’s condition. Lots of sellers shoot themselves in the foot because they ask for too much for a home that’s not in great shape. Even if the buyer accepts the price, the deal won’t go through because the mortgage lender’s appraisal will push the price back down.
You’ll have to do your own staging. Staging means tweaking your home so that it shows its strengths to potential buyers. Your home should be staged so that it’s clean, clutter-free, open and comfortable. Spend some time working on your home’s presentation. Another really important part of this is curb appeal – how your home looks externally to potential buyers driving by.
When it comes to repairs and maintenance, decide what you can do and what you need to hire help for. Don’t try to tackle it all yourself. Budget for repairs and maintenance, and don’t be afraid to spend a little money here. It will push your house’s price up considerably.
At some point, you’ll have to hire a real estate lawyer. There are legal matters that most folks can’t handle on their own. It is not required that you hire a lawyer, but highly recommended. They’ll handle contracts, tell you what you need to disclose to buyers, act as escrow agent for funds, and perform other tasks.
Then, there’s advertising to consider. Put ads in the paper and online, and spread the news by word of mouth. Word of mouth is still the most powerful advertising strategy in the real estate world. Spend the money necessary to have extra-nice For Sale By Owner signs. Don’t cut corners here because presentation is everything.
Finally, have a Plan B just in case it doesn’t sell as fast as you thought it would. Don’t get discouraged; just create a new plan of attack. It’s not easy to sell your home privately but with what you can save on commissions, lots of sellers think it’s well worth it.
