For Sale by Owner: Selling Your Own House

You've taken a big step. You've decided to sell your house. This can be a stressful time for anyone. Your house is most likely your biggest asset, so you want to make sure that you make the most of it.

I am a Realtor. Let's get that out up front! However, the focus of this article is not to try to get you to list your house with me, or any other Realtor for that matter. I will say that according to the National Association of Realtors, most houses which are sold by owner sell for an average of 16% lower than those which are sold through Realtors. But in strong markets, sellers often can sell their own homes for great prices. Here are some tips on how to be successful.

Pricing Your House

The first thing that you will want to do when selling For Sale by Owner (or FSBO for short) is to determine correct pricing for your house. A great way to do that is to take a look at local newspapers, or at their websites.

Check the local classifieds and look for houses that are for sale in your local neighborhood. On Long Island, a great source for this is Newsday or The New York Times. Make sure to match the size and condition of your house. Look through the ads. Are there similar houses, with the same number of bedrooms and baths which are for sale? You will also want to check the property size and make sure that is comparable as well.

Keep in mind that these are asking prices, not sold prices. An owner can put any price they want to on their house, but that doesn't mean it is the same as fair market value. Try to be as objective as you can. The more realistic you are with your price, the more buyers who will be interested in buying your house.

Marketing Your House

As a For Sale by Owner, you will want to do some marketing for your house. The first thing you may want to consider is making a fact sheet or brochure. If you have a computer and digital camera, you can probably put one together pretty quickly. Start by taking a photo of the front of your house. You'll want this to be the focus of your flyer. If you have just redone your kitchen, for example, you can include a picture of that too. Make sure to list its major features and updates, the number of bedrooms and baths, lot size, true taxes, etc. Have these ready for buyers who come to see your house.

The next thing you will want to do is set up some advertising. When you checked your local newspapers, did one stand out as having the most listings in your area? If so, you'll probably want to advertise in that one. Check out if they have any package deals. You will most likely have to run several ads, so it may be best to buy in bulk. Also, find out if you can change the ad from week to week and if you can include pictures.

You may also want to take that flyer and get it out around town. You can post it in supermarkets. You can also ask local merchants if they would put it up in their windows or display it somewhere. Shop it around. The more exposure that your house gets, the more money you will get for it.

There are many websites which advertise houses For Sale by Owner. One is ForSaleByOwner.com. You can also do a Google or Yahoo search and see which sites list houses for sale by owner in your area. You may be able to post several pictures as well.

Signs

You should have a For Sale By Owner sign posted on your house, preferably on your front lawn, where it will be seen easily. You can check your local home improvement stores and hardware stores for these. You may also want to look for some signs which can be used to point buyers to open houses on the weekends.

In addition, the For Sale By Owner websites will have materials you can purchase. They may have a good selection of signs at reasonable prices.

Getting an Offer

Once you have gotten an offer to purchase your house, you'll need to evaluate it. Is it near or at fair market value? Should you counter offer? Probably. Most buyers don't open with their highest of best offers, so you will probably have to negotiate. You should be prepared to go a few rounds here.

If you are selling For Sale by Owner, you will also need to evaluate the qualifications of your buyer. Make sure that you have a preapproval for this buyer. It should say that income, assets and credit scores have been verified. If it doesn't, ask your buyer to firm it up.

Building Inspections

Your buyer will most likely want to have a building inspection. This means that a qualified professional will evaluate the soundness of your house from top to bottom. Sometimes a buyer will want to renegotiate after this inspection. As a For Sale By Owner, you will have to decide if you are willing to do so. Sometimes a few minor repairs will make a transaction go smoothly and may be worth agreeing to.

Attorneys

Not every state requires that you have an attorney to close on a house. However, as a For Sale By Owner, you may not have had any professional guidance. It is probably not a bad idea to hire an attorney for your transaction. You will want to find someone who is familiar with real estate transactions and knows your local customs and procedures.

Setting the Closing

The bank which is funding the mortgage for your buyer will set the closing date. Depending on your location, you may or may not know what that date is until it is pretty close. You will know the approximate timing, which will be stated in your contract, but be sure to keep in close contact with the buyer to make sure that everything is moving along smoothly.

Final Walk Through

Right before the closing, you will have to schedule a final walk through with your buyer. The house should be vacant and broom swept at this time. The buyer will walk through your house and make sure that it is in the condition he or she expected and that all appliances and heating systems are functioning properly.

Closing

Make sure to bring photo ID and all necessary paperwork to the closing. If you have hired an attorney, he or she will tell you what to bring. Be prepared in case any minor issues come up at the last minute. This can happen on occasion. Just try to keep cool and be reasonable and most likely any last minute glitches will be smoothed out. I hope your transaction is a smooth one! Good luck with your sale.