“For Sale by Owner”... Is This
Role Right for You?
Selling a home is a complex and time-consuming process,
involving countless details, long hours and exhausting legwork. Still, many home
sellers opt to take the “For Sale by Owner” route. To help you determine if you
can successfully sell your home yourself, carefully review the following steps.
Step
One. Thoroughly
research information regarding the price and terms of sales in today’s real
estate market. Investigate recent sale prices of properties similar to yours in
your immediate area. Know lot size and current tax information. You’ll also
need existing loan information and your province’s property disclosure laws.
Step Two. Meet with local lenders and determine financing alternatives for your prospective buyers.
Step Three.
Conduct your own mini walk-through inspection. Jot down all
items that need repair or improvement. Your checklist might include: fresh
paint throughout; clean windows and window coverings throughout; well-manicured
lawn and yard; plumbing and all appliances in working order; all sealants
(window, tub, shower, sink, etc.) in good condition; roof and gutters in good
condition—no repair needed.
Step Four. Make all necessary repairs and improvements before you begin to advertise the property.
Step Five.
Be available at all times to walk through the property with
prospective buyers, while answering questions and offering information about
local schools, parks, transportation, shopping, houses of worship, etc.
Step Six. Establish a marketing budget.
Step Seven.
Determine which newspapers will best advertise your
property. Call them for rates and deadlines.
Step Eight.
Prepare a
professional, attention-getting advertisement that will attract the right
buyers to your property. Place your ad in the newspaper(s), then check that it
ran as placed. It is important to note
that your advertising is limited to how many newspapers you place your ad in
and for what time duration. This can be
very expensive and probably misses 75% of your target market, however, a
professional realtor using the MLS (Multiple Listing Service) can expose your
property to thousands of Realtors and potentially 100% of all buyers (i.e, internet,
broker reciprocity). This is a huge
advantage to getting your home SOLD!
Step Nine. Prepare a plan to reach local buyers as well
as those out-of-town buyers, who account for a major portion of today’s home
purchasers.
Step Ten. Purchase an eye-catching and weatherproof
yard sign; install it at the front of your property.
Step Eleven. Purchase special “open house” signs and install them in paths leading from main roads or thoroughfares, through the neighborhood, to the property.
Put these signs out each time you hold an open house, and be
sure to remove them following each open house.
Step Twelve. Prepare a “feature/benefit fact sheet”
outlining specific features of your home and the corresponding benefits to
prospective purchasers.
Step Thirteen. Schedule and conduct open house “weekdays”
as well as open weekends.
Step Fourteen. Learn how to separate the “lookers” from the
qualified buyers. Ask for names and phone numbers, and be sure to follow up
with telephone calls.
Step Fifteen. Be prepared to negotiate with the buyer(s)
as though you are an impartial third party. Remain calm and refrain from any
emotional outburst that might spoil the sale.
Step Sixteen. Obtain all forms necessary for the legal
sale of real property such as Deposit Receipt and Offer to Purchase, Buyer’s
Cost Sheet, and Seller’s Disclosure Form (in our increasingly litigious
society, it is imperative to disclose all known defects to the buyer(s).
Step Seventeen. Determine the type(s) of financing you are willing
to consider, such as CMHC, Seller Carryback First Loan, Conventional Loan With
Seller Carryback Second Loan, and “Wrap Around” Loan, etc.
Step Eighteen. Negotiate with the buyer(s) all final terms
of the sale including price, financing, inspections, date of closing, date of
possession and other pertinent considerations. Have an attorney review
contracts if appropriate.
Step Nineteen. Plan a final walk-through with the buyer(s)
before the settlement process is complete in order to resolve any dispute. Have
a witness present.
Step Twenty.
While marketing your
current property, locate and negotiate to purchase your next home. Attempt to
schedule both transactions to close simultaneously so you and the buyer can
move at the same time.
Many home sellers feel very comfortable in the “For Sale By
Owner” role. However, people pressed by
limited time and energy may be better suited to partnering with a real estate
professional. While making efficient use of your time, a pro can manage the
entire process and steer it toward a successful sale. In
addition, recent studies show that the average sale price of homes sold by a
realtor are 3-8% higher than For Sale By Owner. Food for thought and definitely more money in your pocket.
Please contact me for further information:
604-728-4074
graeme.mulski@prudentialsussex.com