The ABC's of Selling for the For Sale By Owner
No matter what time of year you plan to sell your home it is a smart move to prepare a home selling plan. You should do this before you even start making repairs, selling your home or marking dates on your calendar for an open house. Of course, you want top dollar, but you could make costly home selling mistakes along the way if your eagerness for quickly selling causes you to run out and stick a for sale sign in the yard before you're fully prepared to sell.
The A, B, and C's of selling Your Home you should follow:
A. A Motivation for FSBO Selling:
Everybody has a reason to sell. Take the time to explore your reasons for selling. Was it just ideas that popped into your head one day or did someone make a suggestion that your house could bring in big money? If you aren't truly motivated or committed to selling and you haven't completely thought through the entire process -- you could be setting yourself up for disappointment.
B. Buying a New Home:
Most people who sell do so to buy another home. Put together a list of neighbourhoods where you may want to live and drive them. Make sure to attend as many open houses in that neighbourhood as possible to give you an idea of what is available and for how much. Check out pricing between newer homes vs. older homes and make sure to weigh all your options. In doing this you may just decide it is better to stay where you are.
C. Call Real Estate Agents:
Interview real estate agents or home selling companies and talk to at least three neighbourhood specialists. Ask For Sale By Owner listing agents to give you a marketing plan that explains what they will do to market your home. Also ask the agent to prepare a comparative market analysis for you. Make sure to ask advice concerning preparation of your home for selling, repairing your home, home staging, and home pricing.
Compare suggestions and consider accepting the soundest advice. Don't spend a lot of money on making improvements but do make sure to repair the obvious maintenance issues if these have been neglected. If you are unsure as to how to stage your house for sale you can hire a professional to do this for you. An empty house won't sell as quickly as a staged one, as it gives the buyer a vision as to how their furniture will look in the same spaces. Also do not over price your home. Homes that are overpriced often sell for less than market value.
D. Decide on a Lender:
First, call your existing lender to find out exactly how much you need to pay off. You should order a beneficiary statement. A beneficiary statement is a letter from the financial institution that holds your promissory note and mortgage. It explains what is required to release the borrower from debt.
Then, check out new financing offers from your own lending institutions and credit unions. Ask for a Good Faith Estimate (GFE) which is a disclosure containing a mortgage lender's "best guess" estimate of all the costs associated with obtaining a loan. Compare rates and fees. Also, ask for referrals to mortgage brokers from agents. Often, mortgage brokers have more flexibility to discount rates and are more competitive. Get a loan preapproval letter, so you know how much of a mortgage you will qualify to obtain. Compare mortgage loan types and choose wisely as a lower mortgage payment might make you more comfortable in the long run.
E. Ensure You Sell Before Buying:
The moment your home goes on the market, you might be tempted to look online or view the newspaper etc, to find the house of your dreams. Next thing you know, you'll want to make an appointment to view a few homes. It is almost always more profitable to sell as a For Sale by Owner before buying.