Selling your own home

If you’re thinking of skipping the agent and selling your home yourself, you’re in for a challenge. To make sure you do it right, take the time learn the basics of real estate selling. Here’s a quick guide to help you out.

Step 1: Get to know your market. This requires some research and industry know-how. For starters, find out:

• the selling and listing costs of all homes in your area within the past 6 months;
• the listing costs of homes currently up for sale; and
• the listing costs of homes that were for up for sale but were not sold.

The Internet is a good place to start your research. Once you’ve gathered enough leads, try looking up the tax records to see current selling prices in your county.

Step 2: Write down a plan. You can’t just ‘wing it’ when you’re selling your house. Carefully plan out each step and mark all major decisions. Ask yourself the following questions:

• How can you reach real estate agents? Buyers usually hire agents, so this is one step you can’t afford to skip. At the very least, you should try to send sales letters and flyers to agents within 30 miles of your home.
  
  
• How much advertising can you afford? Start by calling your local papers to find out their advertising rates. Dailies and Sunday papers will give you the best response. Some papers offer discounts for multiple placements, so that could be another option. The Internet is also a useful medium, as many buyers begin their search online. Consider putting up a website or adding your home to online directories.
  
  
• Can you make your own sales flyers, or should you have someone else do them? Prospective buyers want to take home fact sheets to help them compare their options. If you don’t provide your details, you’re out of their list.
  
  
• Where are you putting up signage? Besides the usual front yard sign, try putting up posters along major roads leading to your neighborhood. Ask local officials where it would be appropriate to put up signs.
  
  
• Who will handle your calls and appointments? If you can’t answer inquiry calls all day, make sure there’s someone who can fill in. Keep an organizer to help you arrange viewing schedules. As much as possible, make it so that buyers can drive over for viewing on the same day.

Step 3: Check out potential buyers. Choosing a buyer is just like shopping for an agent—it requires some background research and careful selection. A good seller should pre-qualify potential buyers before even showing them the house. Make sure that:

• the buyer has been pre-approved for mortgage;
• if they’re paying with cash, that they have the means to do so; and
• if they’re selling their house, that it’s actually on the market and how long it’s been there.

Step 4: Plan the sale itself. This is often the trickiest part of the sale, so if you can afford legal advice, go ahead and get it. Some things to consider:

• Are you willing to negotiate your terms? If so, what are your limits?
• Are you familiar with your legal responsibilities as a seller?
• Will you need help writing the contract? How much will legal assistance cost? Note that besides the contract, you’ll also have to draft a Lead Based Paint Disclosure and Seller’s Disclosure.