The Top 3 Ways To Sell Your House

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1 The Top 3 Ways To Sell Your House

2 Selling Your Home Yourself? There are many pros and cons for this option. Benefits of selling your home by yourself include the possibility of recouping some of the sale money from your home because you won t have any commissions to pay. The drawback is that selling a home on your own makes you responsible for knowing and following all of the steps and legal requirements involved in selling a house or property. Many people have a friend or relative that has sold a home themselves in a short period of time, for all the money, with no problems! Understand you re not everyone, and those success stories are a small fraction compared to the number of homeowners that have ended up in court, accruing huge legal bills, losing money, and have the entire sale process take forever. Yes you can become a salesperson and sell your own home. But it will take time and money. Are you prepared for another full time job? What s your time worth? Should you be spending that time looking for another house or moving your family? You need to determine whether your investment in time, money, and energy will be repaid in what you save. Weigh the pros and cons carefully in an industry of which you have little expertise. As the old saying goes; The lawyer who represents himself has a fool for a client! Good advice in any profession. FACT: Selling your own home yourself will reduce the number of potential buyers because you don t have access to the lists of buyers available in your market. FACT: Buyers are apprehensive about contacting a for sale by owner simply because of all the legal problems that could arise without the guidance of a real estate professional. FACT: Homes for Sale by Owner take longer to sell. FACT: On average, Homes for Sale by Owner are sold for less. Realize...it s not going to be cheap If you re not planning to spend at least $1,000 to market your house (newspaper ads, yard signs, fliers, MLS listings, etc.), then you re not really serious. Expect that getting your house show ready (paint, landscaping, removing and storing as many household items as possible, repairing or replacing all inoperative items, cleaning up the yard, etc.) will cost $2,000 - $5,000+. Administrative expenses will include: closing costs, escrow fees, attorney fees, title search and transfer fees, title insurance, bank fees (if you have a mortgage), taxes, HOA fees, home inspection fees, home warranty costs (usually requested by the buyer) totaling $3,000 - $10,000. You will be expected to research and pay licensed professionals for each of these services. Legal Issues Selling a house is full of complications that most people don t understand nor are they prepared for. Perhaps the most dangerous aspect of the home selling process involves contracts and closings, for which you will need the services of an expert who understands contracts and can guide the process to a closing that is legally sound. Many closings have been marred by legal issues that have led to unexpected outcomes or worse - lawsuits, additional expenses, and ultimately a failure to sell at a price and time of your own choosing. Page 1

3 On a personal note Your home and yard, inside and out, must remain show-ready 24 hours/day. Be prepared to remove pets and family each time a potential buyer and/or real estate agent calls requesting to see your home. Understand that you will have little control over who will be inside your home to look around, take pictures, etc. Price the House to Sell Disassociate yourself with your home. Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf. Make the mental decision to let go of your emotions and focus on the fact that soon this house will no longer be yours. Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners. The single most important factor to consider when selling a house is pricing it correctly. First decide: do you want a quick, hassle-free sale, or do you have plenty of time to prepare your home, conduct open houses, make price adjustments, and conduct negotiations? You ll need to settle on an asking price. In doing so, forget what you originally paid for the house, how much you've spent on renovations or remodeling, and even how much money you need to move on to your next home. When it comes to pricing your property the only yardstick that matters is what comparable homes are selling for in your neighborhood now. What your friend s home down the block sold for last summer means nothing. Only a professional with real estate experience familiar with your area can give you a legitimate price; retail or wholesale. Homes sell at the price a buyer or investor is willing to pay and that a seller is willing to accept. If priced too low, the seller should receive multiple offers that may drive the price up to market value. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting an agent or wholesale broker solely based on their suggested selling price. Why must the price be right? The critical selling time is within the first month after your home hits the market. If the price is too high, you'll turn off potential buyers and investors. If the price of your house is too high in an effort to test the market with the intent of lowering the price later, you will lose potential buyers and have a hard time attracting them back, even with a lower price later. A home priced too high will remain on the market unsold for months. Each time you lower the price you become a more desperate seller, and time is quickly ticking by. The longer a seller's home is on the market, the less attractive the home becomes to buyers. Real estate investors buy homes quickly that are priced right for the market. Page 2

4 Hiring a Professional FACT: You can legally sell your home yourself. FACT: You can hire a real estate agent to represent you and list your home for sale. FACT: You can contract a real estate broker/investor to offer your home to a list of wholesale buyers with ready cash. Should I hire a Real Estate Agent? Hiring a Real Estate Agent will cost you about 3% - 4% of the selling price of the house. The person buying the house will pay another 3% - 4% for their agent s service. If the realtor you hire represents both, you the Seller and the Buyer, the agent receives the total 7% - 8% of the selling price. Many agents prefer an exclusive listing, meaning you agree to pay a commission regardless of whether the agent is actually responsible for finding the seller. Realtors prefer to contract 90+ days to sell a house. They put the home on the Multiple Listing Service (MLS), put up a yard sign, and wait for interested buyers to call. A realtor will conduct open house events, show potential buyers the property, and shepherd the selling process through closing of escrow when a buyer is obtained. You should commit for no longer than three months in case you find the agent lacking in enthusiasm. You don't want to be locked into working with the wrong agent. A real estate agent is a good choice if you have plenty of time to market and negotiate your home sale. Should I contract a Real Estate Broker/Investor? A Real Estate Broker/Investor is not paid a commission on the selling price of your house. A broker/investor has cash buyers who are financially prepared to make real estate purchases immediately. The broker/investor is paid by the buyers when a house is purchased. One of the biggest differences which saves the seller time and a lot of money is that a broker/investor sells a home or property As Is, Where Is, meaning that the seller, YOU don t have to do anything to the house. You do not have the expense and endless job of making a home show-ready No painting, no repairs, no removing of furniture; nor the anxiety of having strangers wander through your home at a moment s notice. Most importantly, the seller has no closing costs, title transfer fees, legal filings, inspection fees, attorney fees, etc. All is paid by the broker/investor. The broker/investor is a real estate professional experienced in the closing processes, legal filings, title transfers, and ultimate payment to the seller in a fraction of the time. Their relationship with title companies, attorneys, and support professionals, AND a list of cash ready investors, enables them to sell and close many more properties very quickly. An excellent choice if you re motivated and want a quick sale. Page 3

5 Bottom Line Consider your options carefully, and personally. Selling a home yourself generally takes longer, is sold at a lower price, requires far more work than imagined, and often times puts the seller in a legal quagmire. A real estate agent makes every effort to represent both the seller AND the buyer (they receive both commissions) and is paid on the selling price of the house. They re paid either way, and in no hurry. A broker/investor will purchase your home or offer it to cash ready buyers literally within minutes of a signed agreement. No closing costs, no fees, no open houses, no fix-up/clean up, no repairs..as Is, Where Is. Which option is best for you? Page 4

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