5 Tips To Know Before Selling Your Home Yourself

house selling tips before selling your home real estate home property seller advice

There are over 75,000,000 owned households in the U.S according to FitSmallBusiness. If you’re one of those homeowners, there will be a chance when you’ll want to sell your home. Has that time come? Then you should weigh out your options.

If you’re opting for a for sale by owner (FSBO) strategy, then you probably heard you’ll receive more money and not have to deal with a middle-man/woman.

However, you’re not a professional realtor. You should never go into an FSBO strategy without a plan.

Start with these 5 facts. Before selling your home, read this guide and prepare yourself before putting your home on the market.

Why Sell Your Home Yourself

The biggest reason sellers want to sell their home by owner is because they earn more money. A realtor usually takes either 5% or 6%. So, if your home sells for $250,000, the realtor can take $15,000 of that price.

While you end up saving in some areas, such as on marketing costs, you still have to pay certain costs even after paying the realtor. These costs include lawyer fees.

Before Selling Your Home: Know These 5 Facts Before Selling Your Home

Don’t put your home’s listing up before understanding the ins and outs of FSBO sales. Here are 5 essential facts to know when selling a house by yourself.

1. FSBO Is More Time-Consuming

Yes, you will earn all the money from your home sale when you sell your home yourself.

However, this comes with another price: the time you’re investing in your home sale. Since you have more responsibilities, you’re spending more time preparing everything.

First, start with all of the tasks before putting your home on the market. This includes making improvements and renovations, even making necessary repairs.

It may be best to hire an inspector to ensure your home has no hidden issues.

When your home is ready for a sale, you’ll have to list your home while making your own advertisements and hosting your own open houses. In addition, you’ll also have to handle and negotiate with buyers.

2. Know Your Home’s Market Value

Everyone wants to sell their home for the maximum amount it’s worth. However, it’s best to do market research and set your home at a fair price.

What is a “fair price?”

The best example is the median price. If you set your home price too low, buyers may think the house needs lots of work or has other problems. However, you should be open-minded to negotiating a lower price with a buyer.

If you set your home price too high, customers won’t be interested and you may wait longer than average for a sale.

How do you determine your home’s market value? Here are the three essential methods:

  • Ask an appraiser
  • Use a source such as Zillow or Trulia
  • Take a look at other homes in your neighborhood or nearby and see how much they sell for

Keep in mind, there’s always wiggle room. For example, if you notice other owners in your area are putting up their home for sale, set yours a little lower to ensure you receive a quick sale.

3. You'll Need Some Help

FSBO is not a full DIY job. You will need some help, depending on the state you live in.

First and foremost, there’s a good chance you’ll need a real estate lawyer and title agent.

The title agent will help issue and countersign the home title and the insurance that goes with the title. A real estate lawyer can review legal real estate documents such as the mortgage and any purchase agreements.

4. You Still Have to Pay Money Up Front

The benefit of an FSBO sale is you receive a lot more money from your home sale.

However, you will have to fork over more money than if you just hired a realtor.

Let’s use the title agent and lawyer as an example. A real estate lawyer charges between $150 and $350 per hour, on average. The title agent and insurance aren’t cheap, either.

Some homeowners hire an appraisal professional to determine a fair price for the home. This professional can charge a few hundred bucks for this service.

In addition, you’ll also have to pay advertising costs, which can add up to over a grand.

5. Handling the Closing Isn’t Easy

Now that you've done all of the necessary tasks and found a buyer, you probably think your work is done. Not so fast. Handling the closing is another job itself.

The closing process is a complete legal affair.

This is when the real estate or closing attorney will come in, as well as the title agent. These professionals will help with the required procedures and their assistance and signatures are often required by law.

In addition, you’ll need to provide certain documentation, such as the home’s title and mortgage documents.

Be sure to stay in contact with the buyer throughout the process. You need to ensure they’re still interested and agree to the price you stated. This is also vital for the mortgage’s sake.

If the buyer isn’t approved for a mortgage, you have to find a new buyer.

Other Facts to Consider

These 5 facts are the biggest considerations, but they aren’t the only ones. Some of the smaller facts to keep in mind include staging your home, hosting open house events, and meeting with/contacting buyers.

If you don’t put the time and money into your home sale, it will take a long time to sell your home — if it even sells at all.

Need More Real Estate Advice?

Many homeowners decide to sell their own by owner to take more money from their home sale.

But there is a lot more work in the FSBO method. Before selling your home, take these facts into consideration and understand if FSBO is the best strategy for you.

Continue reading our blog for more real estate and home selling advice. We offer helpful tips for owners, realtors, property managers, and real estate investors.

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