Tips for FSBOs

Palm Springs Desert Area Homes, Condos & Real Estate

Is it worth it?

You can save a good deal of money by selling your house without an agent and it's not that difficult. Depending on the value of your house, you can save anywhere from $2,000 to $20,000 or more in real estate commissions? What are you prepared to do to make these savings? How long would it take you to earn these savings in your regular job? The point is that you should look at the sale of your home as a business transaction worthy of your time and attention. Be determined to educate yourself enough to see it through to the end.

Setting the Price

If you want to eliminate some of the guess-work in determining the price, you can call just about any bank or mortgage company to order an appraisal. However, you will usually be charged about $350 up front and sometimes more, so be sure to verify the cost ahead of time. A certified appraisal can be expensive, but it is one of the safest ways to be sure that you are not under-pricing your home. However, remember that our investors will want their own appraisal - but the Buyer can usually be made responsible for this cost.

A very good way to get a ball-park feel for value is go to a title company. Explain that you are a FSBO and request information on their services. At the same time, request a "Property Profile" on the home you are selling. This will give you information on actual sales of similar properties in your neighborhood. It should also give you relevant demographic data for the area. This information will help you arrive at price and will be valuable to you when you talk to buyers.

Preparing Your Home

Whether or not you should expend some effort, no effort, or a lot of effort fixing up your home to sell depends on the market when you sell ; the condition of your home; and your level of energy.

Many sellers fall into the trap of thinking that by doing a lot of fix-up work to their house they can make even more money on the sale. In most cases, that just isn't so. However, at the very least, do a minimal amount of fix-up.. the cosmetic things. You certainly do not want to turn prospective buyers off.

Remove clutter: Get rid of whatever you won't be using. Visitors will find the house feels more roomy with fewer things around. Be ruthless and clear out all of the rooms of everything but the basics. Store what you must keep.

Clean Up:

The yard. Keep the lawns mowed, trim the shrubs, paint the fence. A house glows with 'curb appeal.'
The front door. Repaint it. It only takes a few minutes. Remember about first impressions?
Carpets. Clean carpets but don't replace them.
Smudges or spots on the walls. Most can be easily wiped off with sponge.
The kitchen. Never, never leave dirty dishes out when showing a house. Nothing turns a buyer off more than this except maybe dirty laundry.
Windows. Buyers like to check their view so be sure windows are clean.
Lights. Replace dim bulbs with a higher wattage. Brighten the place up.
Minor repairs. Fix leaking taps or squeaky doors. If you repaint use off-white. It lightens the room and makes it look more open.
Store any pictures or accessories that might be distracting.
Ask a friend or relative to walk around and give their honest opinion.

Your Team

The Escrow Company, and the Title Company all have professionals who will leap into action and work together for a successful close (completion of the transaction). These professionals are usually willing to meet with you and explain the process to you in lay persons' terms. They will answer your questions, estimate and explain the "closing costs" that will be involved, and, in some cases they will prepare (or at least help you refine) the basic contract or agreement that you and your buyer initially proposed.

Marketing

Make sure your neighbors are the first to know. Neighbors often have a friend or relative eager to move nearby (use a flyer and an "Invitation Postcard" to your Open House).
You must put a "For Sale By Owner" sign in front of the house. It should indicate "Owner Will Carry."
Use the Grapevine. Pass the word that you are a FSBO. This means 'savings' to them.
Write up an INFORMATIONAL FACT SHEET on the home for sale. Use attention grabbing headline; assemble the basic data i.e. location, size of property, age, costs of heating, electricity and taxes, description of rooms, etc.; emphasize the strong points and note anything special; be creative and make it appealing to read; run off 100 copies and distribute them far and wide.
Post an index card on bulletin boards at work, Laundromat, office buildings, health clubs, shopping centers, and information centers of condos. It's free advertising.

Advertising

Put an ad in your local paper and keep it running. OK, it costs money but remember what you save by not using a realtor. Here are the essential items to include in a FSBO ad:

Indicate "Easy Qualify, Owner Financing" (via our Simultaneous Note Purchase Program).
Indicate you are selling by owner.
Give the style of the home and the neighborhood location (not the address).
Give the price.
Give the number of bedrooms and baths in the house and any special features.
Give your phone number. You must have an answering machine or voice mail.
Advertise on the Internet. You get wide exposure for a very low price.

Negotiating the Sale

Because you offer Owner Financing, you are able to demand the highest price. Don't budge unless there is a good reason. You will undoubtedly have prospective buyers with conventional financing. Just listen to what they have to say.

Closing the Transaction

There is no doubt that having a lawyer supervise the process is the safest way to go. However, consider paying a fee to an experienced realtor in return for his/her review of the paperwork and supervision of the transaction. They do this all the time. In many states, especially California, there are disclosure requirements on Sellers. Your realtor will be familiar with these and will help you comply.

E-Mail Tony

Home Page

Sellers Select Realty Services

23225 Tamyram Rd

Sky Valley

CA 92241

Tel: 760-329-3650

Fax:760-329-1265

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