Sell A Home Without A Realtor

When choosing to sell their home many of todays home owners are selling without a Realtor. Selling a home without a Realtor has many advantages as well as disadvantages. but if done correctly can be a very rewarding and money saving experience. By knowing what a Realtor does to sell your home and what you need to sell your home on your own will help you make an informed decision when you are ready to list!

Lets begin and examine what a Realtor actually does for a home seller. The Realtor will begin by performing a CMA or Comparative Property Analysis and accurately listing the property at its highest marketable value. The Realtor will also advertise the property on their company website, get the property listed on the MLS website and pay all the marketing costs associated with the property. The Realtor will also have the opportunity to market the home to other realtor's in their organization which will effectively expose your home to more potential borrowers. The realtor's brokerage will also charge you 4-7% of the selling price for these services, a cost that generally far exceeds what it costs to effectively market a home.

When you choose to sell your home with no Realtor the first step is to find a good property appraiser. The property appraiser will come out and give you a very accurate value for around $300 for a single family home. This value will be based off of comparable sales that occurred in your area within the last 12 months, comps are usually within 1 mile unless you have a rural property. Many home owners will use this appraised value as the starting sales price which is a smart policy because a bank will not lend more then a property is worth to a potential buyer.

You should find a good For Sale By Owner company in your area, FSBO companies will get your house listed on the MLS and many offer for sale by owner kits that will help you with the legal documents needed to sell your home without a Realtor. Many FSBO companies also offer title services or are affiliated with a title company that will assist you with the closing. When Using a FSBO company you should get exposure on their website as well as the MLS websites. Exposure on these websites alone will not bring in a steady stream of potential buyers and you will have to use other avenues of marketing. One great system to use is the services of a mortgage broker to screen the phone calls about your property. This is a free service offered by many mortgage brokers, the mortgage broker is hoping to generate a loan out of the calls he receives about your property. Nothing is more comforting then knowing the person looking at your home can qualify for mortgage financing to buy it. Mortgage brokers also speak daily to people looking to be pre qualified to purchase their first home and can direct people to your listing.

To reach a broader market you will want to place classified ads in the newspapers and 1 or 2 home magazines every month. These are the place many buyers go to begin there searching for a new home. Ads in these publications will cost you over $200 a month but is still small change when compared to losing 6% of the sale price to a Realtor. And do not forget the old stand by For Sale By Owner Sign in the front yard. If you live on a high traffic street this $10 sign may be all you need to sell your house fast without a Realtor.

http://www.mkemortgage.net/content/blog.htm

Article Source: http://EzineArticles.com/?expert=Darin_Sewell

For Sale by Owner - How to Sell a House Without an Agent

For Sale by Owner is money saving alternative to selling a house with an agent, and it is not so intimidating and difficult as it looks to many.

Property owners are motivated to take selling into own hands by three main reasons:

1. Saving money on commission seems to be the most important factor, and independent sellers can save more the more expensive their house is. For example, $200,000 house sells for $10,000 commission of 5%. Commission from selling $600,000 house jumps to $30,000 - 3 times as much.
2. Others may have even more compelling reason to sell privately if they accumulated little equity in their home. Let's assume you sell a house priced at $200,000 in which you have 20% equity of $40,000. Commission of 5% charged by an agent would be $10,000. That is 25% of what you actually own in the house.
3. A house is likely to sell for about the same whether sold privately or through an agent, since it is the market which determines value. Private sale becomes more tempting in seller's market where many people search for homes and finding a qualified buyer is much easier.

Think ahead of your FSBO strategy. Decide what you can do yourself and in what areas you need professional help. You should also have a contingency plan in case your house does not sell within reasonable time.

There are number of issues you should consider of when selling on your own :

• Price
  Adequate pricing is critical to smooth sale. Have your house appraised, so you know the right market price you can ask for.

• Renovation

1. Light renovations like painting or floor upgrades will pay you off well. They are inexpensive and effective ways to entice buyers. Other good investments (but more expensive though) are renovations of kitchens and bathrooms. These areas attract a lot of attention and can influence buyer's decision. When you renew them you will improve your chance of selling well and can get a decent return.
2. It is important not to increase the value of your home beyond that of other homes in your area. Otherwise, you may price yourself out of the market. Big ticket improvements may be necessary if the home could not sell without them. When small living room or lack of extra bathroom discourages potential buyers you may have no other choice but to undertake major renovation.

• Advertising

1. For Sale by Owner sign placed in front of a house can be very effective provided it looks professional. Avoid pre-printed signs sold in hardware stores since they look cheap and amateurish. Order or make your own sign looking similar to those used by agents. Provide basic information - for sale by owner, number of bedrooms and bathrooms, special features, by appointment, phone number. Make the sign double sided so that people driving by in both directions can easily notice it.
2. Local newspaper ad can attract many buyers. You can refrain from large size expensive advertisements. Small ads containing a photo and listing basic features can be very effective.
   
3. Do not forget traditional word of mouth either. Inform your family members, co-workers, friends and neighbours that you want to sell.
   For better exposure (to reach people who want to relocate) you can turn to the internet FSBO websites. They offer variety of packages at different prices. Some of them will take house photos, prepare sale signs and provide professional support. Visit a number of FSBO sites to compare prices and services before you sign up.

• Lawyer's Assistance

Legalities of real estate transaction and paperwork pose the biggest challenge
for most people. Hire a lawyer to have a professional who will see to all
documents and protect your interest. A lawyer will also increase your
credibility since a buyer will feel more confident to make a deposit into your
lawyer's trust account. Search for a good lawyer ahead of time and budget for
this expense.

• House Presentation

Show your home by appointment only. Scheduling visitors will give you time to
get prepared. Receive a reasonable number of buyers at the same time to
induce competition of offers. Schedule additional presentation dates if you
have to accommodate more buyers. Remove all valuable items and let your
buyers roam freely around the house. Once they take a look make sure to show
them anything special about your property they might have missed, and answer
all questions they may have.

• Buyer's Agent
  

  Private sale does not guarantee that you can sell your house without paying
  commission. Actually, your odds of not paying any commission at all are low.
  Most buyers have an agent because it is convenient and efficient, and it does
  not cost them anything. Since commission is usually split 50/50 between buyer's and seller's agent you can claim a half of commission rate for yourself, or even more if you are tough negotiator and market conditions are in your favour.

• Real Estate Broker
  

  Remember that selling a house is your top priority. If you cannot sell within
  reasonable time, consider hiring a discount broker who delivers selected
  services for reduced commission or flat fee. Discount broker can market your
  property on Multiple Listing Service (MLS). This database, which other agents
  are using to find homes for sale, is the most powerful selling tool in the real
  estate market.

FSBO can save you money, but you will have to work for it. Therefore, it is not for everyone. When you decide to sell by yourself you will have to become your own agent. That means you will have to learn the basics of real estate and devote your time to marketing the house. If you cannot make a commitment required by FSBO you may be better off by finding a good agent and selling your house the old-fashioned way.

Greg Gralak is the editor of http://www.housepages.ca/ - Canadian Real Estate Guide and Directory

Article Source: http://EzineArticles.com/?expert=Greg_Gralak