For Sale By Owner
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Some folks prefer to sell their house without the help of a Realtor. Homeowners choose this option for a variety of reasons, including the intention to save money. We understand these concerns and we are here to help. This page was developed to assist sellers who prefer to market and sell real estate themselves.
First Things First
Reviewing the fundamentals of real estate sales is the first step in the process. Read through these questions and prepare your answers so that you’re ready to tackle the project head-on.
1. Are you available to schedule showings throughout the day? This is the most critical question in 2009, because there are several homes for sale in each neighborhood. If buyers are looking at 2 p.m. on Tuesday, you'll want to be on their list of homes to see. With so many houses to choose from, they probably won't go back to see one more house on Saturday.
2. Will you be present at each showing, or will you use a lockbox to enable Realtors and Buyers to see your home privately? This is another critical question; studies have shown that buyers have a difficult time envisioning their furniture placement when the current owners are in the home. Your success depends on your willingness to leave the premises while the buyers stand in your living room, kitchen and master bathroom – discussing and determining whether it “feels like home”.
3. Will you be able to verify that interested parties are qualified buyers? You don’t want to waste your time, take off work, rush home to meet prospective buyers – only to find out that the interested party needs to sell their home first ... and they haven't put it up for sale yet .... If you are willing to pay a Buyer’s Agent’s fee, and a Realtor accompanies the buyer to the showing, you have the assurance that the buyer is qualified. Realtors pre-qualify buyers before wasting their time and gas. You can check the Realtor’s license at the Colorado Real Estate Commission website.
4. How will you verify the buyer’s ability to qualify for a loan, and how will you make sure that the lender is working diligently to fund the loan by the closing date? Before a buyer enters your home, they should have a pre-approval letter from their lender. If they haven't started that process, they aren't ready to look at your home.
5. Who will draft the contracts and provide the closing? You will need to contact a real estate attorney. Give us a call - we have a list of attorneys to help you start the interview process.
6. Are you willing to pay a Buyer’s Agent co-op fee? The majority of qualified buyers work with a Realtor for the following reasons:
| a. Realtors can inform buyers about real estate values, taxes, utility and maintenance costs, municipal services and facilities. Realtors are generally aware of proposed zoning changes and provide that information to their clients. |
| b. Unlike a private seller, a Realtor has no emotional connection to the real estate. This means that the Realtor is objective about the assets and detriments of a house. The Realtor includes this information when viewing the property with the buyer. |
| c. A Realtor makes sure the buyer is qualified for a home loan and works closely with the lender to ensure a smooth funding process. |
| d. Realtors draft contracts necessary to execute the sale, and ensure that the closing documents are prepared and presented correctly and on time. |
7. What’s your timeline? Do you have a few extra months? Studies have shown that houses listed with Realtors sell faster than houses marketed directly by the owner. This is typically due to an insufficient marketing effort combined with most homeowner’s habit of attending the showings.
Next …
Once you have answered those questions, you’re ready to dive into the “fun stuff”. Marketing your home is a pleasant experience that you will probably enjoy.
- Read Preparing Your Home For Sale, which takes you from addressing curb appeal to recaulking the bathtub.
- Stage Your Home. This is such a critical component of the home selling process, we provide it as a service to all of our listing clients. Pack away everything that reflects your personal interests or your family, and rearrange the furniture to visually open your house to prospective buyers.
- Write your Marketing Plan. Include the puchase of yard signs, newspaper advertisements, and internet listings. Make sure your Marketing Plan establishes the actions you will need to take in the next 90 days to six months.
- Price Your House to Sell. This is the toughest thing to do, whether you use a Realtor or go it alone. It’s tough because your home is a commodity, much like stocks and bonds, or flat screen TV’s. Buyers won’t feel the same “aaaah” that you feel. They’ll just compare your price to the one down the street and the one eight blocks away.
- Take your interior and exterior photos; create your flyers and other marketing materials.
- Call the real estate attorney. You’ll need him throughout the process.
Once You Have Found the Buyer ...
- Draw up the contract and negotiate the price.
- Qualify the buyer and stay in daily contact with the lender throughout the process.
- After the home inspection, be prepared to re-negotiate your contract if the inspector finds any latent or patent defects.
- Purchase Title Insurance.
- Direct your real estate attorney to draw up all of the necessary documents and provide the closing services.
And keep in mind, our goal is to be of service at all times. If you have any questions, we are here to help.
5350 So. Roslyn Street #150
Greenwood Village, CO 80111
Local: (303) 718-4148
Toll Free: (800) 515-0657
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