Dodging Foreclosure
Timing is a key feature if you anticipate needing to sell your home because of a recent job loss or pending divorce and you have determined that the amount of your savings is fairly limited.
What you want to avoid is selling your home while you are under extreme financial pressure. Or worse still, having to sell your home after missing the last two or more mortgage payments.
Avoiding being cornered into a forced sale
Should brokers or agents learn of your financial trouble, the news spreads quickly, making the chances of receiving full offers for your home less likely. This is particularly true if buyers suspect you may be facing imminent foreclosure.
Some financial advisers will suggest that if you have sufficient savings to cover your living expenses, including your mortgage payments for the next six-to-twelve months, one option to consider is selling your home as early as possible to avoid a forced sale scenario.
Saving on an agents commission
You may be tempted to sell your own home and save on not having to pay an agent’s commission. If selling your home is your initial inclination, you should be prepared to put in a great deal of time to understand the process.
Selling one’s home is not for people unwilling to learn about the real estate process and the many legal forms, services, and filings involved. This is also true for those unable to keep their emotions out of the selling process.
A maze of rules for sellers to follow
Sticking your for-sale sign on your front lawn is just the beginning. Selling your home requires you to understand the following seller-related legal and financial requirements, forms, and escrow processes.
For example, selling your home requires that you be familiar with the following:
- Seller’s Disclosure
- Purchase Contract
- Preliminary Title Report
- Termite Inspection
- Mortgage Payoff
- HOA Disclosures and Restrictions
- Lead-Based Paint Disclosure
- Property Profile Fact Sheet,
- Buyer’s Cost Sheet,
- Home Warranty Forms
- Personal Property Exclusion List
- Home Inspection Forms
Sale by owner resources
Based on a 2020 study by the National Association of Realtors, nearly 51% of home buyers found their homes via the internet. Given the pervasive reach of online real estate services and resources, more and more homeowners are choosing to sell their homes with the support of “for sale by owner” websites.
Sale by owner marketing and legal resources
Today, many online full-service websites assist homeowners through the legal requirements of the sales process, including preparing the legal documents required to sell their home, overseeing the homeowner, and providing a host of services they will handle on the homeowner’s behalf.
If you choose to use a “for-sale-by-owner” website, which is highly recommended, or you choose to go it alone, here are a few tips to consider.
Keep your expectations reasonable
Most people who endeavor to sell their home by themselves are surprised to learn that as soon as they stick their “sale-by-owner” on their front lawn, they can expect to receive phone calls within hours.
While true, you may be disappointed to learn that the people calling you are not potential buyers, but real estate agents wanting to list your home and earn a commission.
There is nothing wrong with avoiding paying a real estate commission, but you must appreciate the complexity of the process and the amount of time and effort you will need to sell your home.
So, if you are committed to learning the buy-sell process and choose a website service to support your efforts, you stand a good chance of attracting a qualified buyer for your home.
Don’t get emotional in front of potential buyers
There is a common danger among those who sell their own home. When showing their home to potential buyers, it is easy to allow your feelings and emotional attachments to interfere with the overriding goal of selling your home for the best price possible.
The truth is that while you and your spouse may have fond memories of little Jimmy taking his first few steps in your living room, that does not mean the potential buyers will feel the same about your living room. They may comment on not liking the color of your carpet in the living room or your taste in light fixtures.
Don’t get defensive or let your emotions interfere when showing the house. It’s best to remain objective and keep your presence in the background when showing the home.
Be realistic and price your home to sell
Local market forces govern home prices; notwithstanding how you feel about your home, you must detach yourself from assessing its value. Don’t set the price above the market price for your home. Price it to sell quickly.
It’s much better to focus on what your neighbors sold their homes for and compare your home’s features and conditions to other homes in your neighborhood.
Don’t get hung up on the personal things you may have done to improve your home. It may be nice that you built a beautiful treehouse for your kids, but don’t expect the buyer to factor this in when negotiating the price.
For More Information on selling your home without an agent, consider connecting with services that will support you in the process.
For sale by owner websites and resources
