Brent Winstone

How To Sell Your Home Yourself

 So, you've taken the big step and decided to sell your home.  Now you have to decide if you want to list with us as professional Real Estate Specialists, or sell your home by yourself.  Whatever you decide, you should be aware of the basics of the home selling process.  I know it's tempting to try and save the commission by selling the property yourself.  You may be one of those people who are comfortable and capable of handling the sale of your home.

Before you undertake this task, you should consider all the steps necessary to successfully sell a home in today's market, for the best price in the shortest time without complications.

Setting The Right Price  Objectively compare the price, condition and features of all similar homes in your area currently on the market, as well as those that have sold in the past 6 months to a year.  Your price needs to be competitive.  As terms are often as important as price, you should become familiar with the terms of each sale.  Keeping a net proceeds sheet should help you to estimate how much you stand to gain from the sale and provide prospective Buyers with an estimate of the purchasing costs.

Prepare Pre-Sale Documentation  Have the contracts and forms ready to handle seller's disclosure, purchase contract, mortgage payoff, deposit receipt, Buyer's cost sheet, loan application, property profile fact sheet, closing and settlement statement, personal property exclusion list, property survey and zoning certificate.

Pre-Sale Fix-Up  Take a walk through your home and note all the repairs and fix-ups necessary to enhance your home and make it more appealing to potential Buyers.  Ensure that all work is completed prior to selling your home.

Spread The Word  Maximize your home's exposure through advertising, open houses and especially by telling everyone you know.  The majority of purchasers come from referrals of satisfied customers and co-operating multi-list brokers or Buyer's Agents, not advertising.  Think about ways to reach out-of-town purchasers.  Be prepared to spend time on the telephone answering questions pertaining to your home and giving each prospect a house tour at their convenience.  Follow up each prospect with a phone call.

Pre-Qualify Prospective Buyers  Make sure prospective Buyers are able to afford the purchase of you home.  Have they pre-qualified for a mortgage from their lending institution, and do they have a Pre-Approval Letter?

Prepare To Provide Financial Information  Many prospective Buyers, especially first-time Buyers, are in need of assistance arranging the type of financing best suited to their needs.  Have the names of lending institutions and mortgage broker representatives ready to refer.

Be Impartial During Showings  Try to remain objective while prospective Buyers are going through your home.  Try not to become defensive if they point out flaws.  Instead, focus on compensating factors.  Try to customize your responses to answer the Buyer's needs.

Negotiations  Work at keeping your Buyer interested in the sale while you agree on price, terms, inspections and posession date.  Be prepared to resolve Buyer doubts and respond to any objections.  I recommend you have the contract examined by your Real Estate attorney.

Complete Settlement Details  You will be the person responsible for handling all aspects related to the finalization of the sale of your home.  This includes scheduling and conducting the purchaser's walk-through inspection, getting all the necessary paperwork (including the legally required settlement statement), following through with the lender and answering questions about settlement details.  Be careful to manage these details carefully or you could lose the sale.

Yes, But What Are You Really Saving?

Unfortunately, experience shows that home sellers who want to save the sales commissions rarely do so.  In fact, just the opposite is often true.  Vendors usually take with them more net cash when a professional Real Estate specialist is involved (often more than they initially were asking - even after paying commissions). 

Here are some reasons why:

• Most purchasers use the services of a Realtor.  The seller pays the Realtor.
• Many of the prospective Buyers are looking to save the same commission you are.  They hope they can purchase for less if you aren't paying a commission and pocket your savings.  They typically factor this into their bargaining process.
• Opportunistic speculators and investors will offer substantially less for a FSBO (For Sale By Owner) home intending to capitalize on the owner's lack of knowledge of the market.
• Real Estate professionals know your local marketplace.  They know the highest price a home is likely to bring and can advise you how to find the best balance between the highest price and the fastest sale. 
• A Real Estate specialist has experience with lenders.  They are qualified to advise prospective purchasers on how to get the best possible financing, making a higher sale price more feasible.  Your Realtor can also quide prospective Buyers through the pre-qualifying process; ensuring only qualified Buyers are looking at your home.
• Real Estate professionals have training in negotiation techniques.  Also, your Realtor is in a better position psychologically to handle negotiations than an emotionally involved seller is.  This often results in a more profitable contract for the Vendor.

So, what are you actually saving?  Chances are - nothing.  It does pay, both in time and money, to hire a professional.