FSBO
For sale by owner is a challenging endeavor that you shouldn't managealone. Click on the links below for important information about sellingyour home and then contact me regarding advertising your home today.
Tips for Pricing Your Home
- Consider
comparables. What have other homes in your neighborhood sold
forrecently? How do they compare to yours in terms of size, up keep,
andamenities?
- Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
- Consideryour
contingencies. Do you have special concerns that would affect theprice
you'll receive? For example, do you want to be able to move infour
months?
- Get anappraisal. For
a few hundred dollars, a qualified appraiser can giveyou an estimate of
your home's value. Be sure to ask for a market-valueappraisal. To
locate appraisers in your area, contact The AppraisalInstitute (www.appraisalinstitute.org) or ask me for a recommendation.
- Aska
lender. Since most buyers will need a mortgage, it's important that
ahome's sale price be in line with a lender's estimate of its value.
- Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.
- Know what you'll take. It's critical to know what price you'll accept before beginning a negotiation with a buyer.
10 Ways to Make Your House More Sellable
- Getrid
of clutter. Throw out or file stacks of newspapers and magazines.Pack
away most of your small decorative items. Store out-of-seasonclothing
to make closets seem roomier. Clean out the garage.
- Wash your windows and screens to let more light into the interior.
- Keepeverything
extra clean. Wash fingerprints from light switch plates. Mopand wax
floors. Clean the stove and refrigerator. A clean house makes abetter
first impression and convinces buyers that the home has beenwell cared
for.
- Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.
- Puthigher
wattage bulbs in light sockets to make rooms seem brighter,especially
basements and other dark rooms. Replace any burnt-out bulbs.
- Make
minor repairs that cancreate a bad impression. Small problems such as
sticky doors, tornscreens, cracked caulking, or a dripping faucet may
seem trivial, butthey'll give buyers the impression that the house
isn't wellmaintained.
- Tidy
your yard.Cut the grass, rake the leaves, trim the bushes, and edge the
walks.Put a pot or two of bright flowers near the entryway.
- Patch holes in your driveway and reapply sealant, if applicable.
- Clean your gutters.
- Polish your front doorknob and door numbers.
Is Your Buyer Qualified?
Unless the buyer who makes an offer on your home has the resources toqualify for a mortgage, you may not really have a sale. If possible,try to determine a buyer's financial status before signing thecontract. Ask:
- Ifthe
buyer has been pre-qualified or pre-approved (better) for amortgage.
Such buyers will be in a much better position to obtain amortgage
promptly.
- Does thebuyer have
enough money to make a down payment and cover closing costs?Ideally, a
buyer should have 20 percent of the home's price as a downpayment and
between 2 and 7 percent of the price to cover closing costs.
- Isthe
buyer's income sufficient to afford your home? Ideally, buyersshould
spend no more than 28 percent of total income to cover PITI(principal,
interest, taxes, and insurance).
- Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report.
- Doesthe buyer have too much debt? If a buyer owes a great deal on carpayments, credit cards, etc., he or she may not qualify for a mortgage.
Allreports reprinted from REALTOR Magazine Online by permission of theNATIONAL ASSOCIATION OF REALTORS. Copyright 2003. All rights reserved. www.REALTOR.org/realtormag
