Putting Money in Your Pocket When Selling a Home
Selling Your Own Home May Be a Move That Will Save You Thousands
© Gia Gee
Dec 30, 2008
Considering selling a home without the services of a realtor? Before taking the leap, here are a few basic things to expect.
- Selling a home requires patience; a lot of patience.
- Selling a home is often a lengthy process. Few homes sell within a short period of time. Check the local statistics in the area to determine the average length of time a home is on the market for sale before the home is sold.
- Selling a home can be inconvenient and may interrupt established schedules. Showing a home to potential buyers must always be pre-arranged by appointment only.
- Consider staging the home. Staging is all the rage and it is a tool that can shorten the time the home is on the market for sale. Less is more in the interior design craze. Less makes every room appear bigger; less furniture, fewer wall hangings, and less clutter. Focus on detail, small details which have a big impact on the buyer. The potential buyer must want to see this as their new home.
So, you ask, how much can I really save by going to all this trouble? If the seller is comfortable in a sales role and can step away from the attachment of the home as an owner, selling a home as an owner could save $10,500 in realestate commissions on a sale price of $150,000, at 7% commission rate. When considering this approach, there are a few simple steps that can be taken to build confidence and knowledge within a matter of days.
First and foremost, no one knows more about the home than you do, its unique and positive characteristics. That's an immediate boost of self confidence. Many sellers are afraid of not knowing how to fill out the paperwork. Consult with a local attorney who is qualified in real estate property and land transfers. Have the attorney provide an outline of the process for your state including state-approved sales agreement forms that you need to have executed and returned. If you have a potential buyer who is willing to execute a sales agreement and provide you with a reasonable down payment, acquire all the lending information from the buyer, including the loan officer’s name and telephone number.
The home owner’s new role as sales agent is to find a qualified buyer and to get an executed sales agreement, as well as a reasonable down payment from the buyer. To get buyers you need interest in your home and that begins with curb appeal. This will become your primary marketing tool for attracting potential buyers, so spend time assessing your home from the curb. Would you want to look inside?
Take that information to your attorney to begin the process and to have the down payment deposited properly according to state laws. Don’t waste time on buyers who are not willing to provide you with a reasonable down payment. This usually ranges from $1,000 to several thousands of dollars depending on the selling price of a home and in some states may not be refundable to the buyer should the buyer breach the contract.
After reviewing the list of what to expect when acting as the sales agent and consulting with a qualified attorney, you are ready to save thousands of dollars in commissions. Remember, no one knows your home like you do and if you properly stage your home, placing a sold sign in the front yard will happen sooner than you think.
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