- November 3, 2021
- Posted by: hellzpwince
- Category: FSBO
Key Considerations When Selling Your Home FSBO
Posting a “for sale by owner” sign in the yard is an enticing choice for homeowners looking to maximize their profits on a house sale. Real estate agents usually cost between 5% to 6% of the purchase price, which amounts to $10,000 to $12,000 in fees on selling a $200,000 home. The real estate agent fees coupled with the fact that many sellers also have a mortgage, means that every dollar matters when deciding to sell.
Whether you want to sell your property to make more money or keep more control over the sales process, you must do it correctly. This may include investing a bit more money upfront in optimizing the sale price and marketing but in the long run, it will be money well spent as you will be able to keep more of your hard earned equity.
Here are some things you should do to have a successful self-sale of your home as a for sale my owner:
1. Get Clear on Terms to be Negotiated in the Real Estate Purchase Agreement
Here are a list of items that are usually negotiated as part of the purchase agreement:
- The purchase price;
- The settlement date;
- The amount of the Earnest Money Deposit;
- Who pays for taxes and recordation fees;
- Will there need to be any rent back needed by the sellers;
- Whether the property is sold as-is;
- Are there any credits to be given by the seller to the buyer for closing costs;
- Who pays for the title fees
- .Which fixtures convey
2. Set a Realistic Price From the Onset
If you overprice your house, potential buyers may be turned off from even looking at it. Pricing a property correctly from the start is perhaps the most critical phase in the sales process, whether you sell a house with or without an agent.
Consider hiring a professional real estate appraiser to determine the worth of your home. An appraiser’s services will cost you between $300 and $400.
A word of warning about real estate search websites: Don’t depend too much on their estimations of your home’s worth. Sometimes the valuations are incorrect because they do not consider recently sold properties in your region comparable in age, condition, and size to your listing. Also, keep in mind that it is nearly impossible to accurately price a home without someone touring the inside of a home. This is because while one property may have been well-maintained and renovated, the property right next door could have been house to squatters who did not properly care for the property which undoubtedly impacts the purchase price.
3. Hire a Real Estate Lawyer
Real estate transactions are notorious for requiring several pages of paperwork, and it’s critical to understand what you’re signing. It’s an excellent idea to employ a real estate attorney to evaluate all paperwork, including disclosure statements if you’re selling FSBO well before you even receive an offer By working with an attorney from the beginning of when you first decide to sell, you will be able to better protect yourself as an attorney will be able to provide you with all the required disclosures and disclaimers that must be presented to potential buyers. These disclosures and disclaimers are often very specific to the property and are also often times, county and city specific.
In fact, in 21 states and the District of Columbia, all real estate transactions, including for sale by the owner, require the employment of a real estate attorney.
When you decide to sell your house for sale by the owner, one of your main goals should be to hire a real estate attorney who can assist you with the housing transaction. Request recommendations from friends or relatives who have previously sold a house, or search online for some of the top agents in your region. Hiring an FSBO attorney who can serve as a reference might make the sale process go more smoothly.
How Can We Help You?
If you are interested in selling as a For Sale By Owner, you’re in the right place. Get the legal assistance you need to sell your FSBO property. Saman Saba is a real estate attorney in Maryland working to empower real estate sellers and buyers so that they may make better and more informed decisions regarding one of their most important assets: their residential properties.
In an effort to help you successfully sell your property as a For Sale By Owner, we have prepared a FREE FSBO Success Packet which includes:
- An in depth explanation of our the flat fee pricing model and which services are included.
- A complimentary copy of Saman’s her bestselling book, Sell Your Home With Confidence: Reduce Your Liability When Selling, FSBO EDITION.
- A complimentary viewing of the 30 minutes Masterclass, HOME EQUITY PROTECTION: How To Not Be Bamboozled When Selling which highlights the main ways that home sellers can leave thousands of dollars on the table when selling.
- And so much more!
Ready to get started? Click here to schedule a complimentary consultation.