When I was walking through the neighborhood recently, I saw a for-sale by-owner (FSBO) home nearby. We live in a leading school district for this county, and while houses aren’t going as quickly as they were a couple of years ago, a well-maintained home will sell within a few weeks at the right price. Seeing the seller’s sign made me ponder eventually selling our house without an agent. Here are some things to keep in mind if you decide to sell your home yourself.
Take a fresh look at your house
We are considering some home renovations, including removing carpet for a more modern floor. I realized the carpet looked outdated, but until we started talking to contractors, I never really saw it as other people do. That’s what you need to accomplish with your house – how do other people see it? While your couch may be the best napping couch ever, does it look like it came straight out of an 80s sitcom? Is your refrigerator older than your college kids? Taking a fresh look can be a challenge – if you are having a hard time, invite some very honest friends or relatives over to give their opinion.
View other homes
To see how your house compares to others in your neighborhood, consider visiting nearby open houses. Not every house looks like an HGTV design house; yet almost every house is positioned so it shows well. You can see what’s important to potential buyers by how the house has been updated or staged. Notice the lack of family photos, whether the rooms are more formal or informal, or if every home seems to have a dedicated office. Then go back home and see if you can reimagine your rooms to reflect what you learned at the open houses.
Research the local market
Open houses are a great way to get information, both on what buyers want to see and also how sellers are pricing their homes. There may also be a neighborhood expert just waiting there to talk to you about the market. Make time to talk to the agent at the house. What are they seeing – are homes selling quickly? How much has the market moved over the last few months? The more you can learn, the better.
Additionally, sign up for notifications when homes in your area are listed. We moved into our neighborhood in 2016. Since then, I’ve received daily emails showing new homes for sale but also notifications of when those homes went under contract. Even though we’re not selling soon, I have a good idea of where I would price our house based on this research.
Set a competitive price
Agents will tell you that they can help you set the most accurate pricing, and oftentimes that may be true. But some agents who perhaps don’t have many listings may inflate the list price for your home just to have more inventory, while others will undercut the price for a quick sale. The best route for you is to look at comps – comparable sales in your neighborhood. You can find these on major home sites. Look at the price history, noting what the house was listed for and what it eventually sold for. Are homes going for above or below initial pricing points? If you have doubts, many people say to price a little on the lower side. A sold house that you’re no longer making payments on is better than one just sitting there. Plus, if you have to lower your price several times, people may start to wonder what’s wrong with the house.
Prepare your home
If you have house repairs that you haven’t gotten to, it’s time to fix them. This includes loose shutters, overgrown landscaping, or a stained driveway. Inside, make sure the cabinets close and don’t stick; consider upgrading the pulls if they are old. Take down personal photos, and clear away the clutter. If you have a basement or can rent a storage unit, consider moving items out of your main living areas to make the house seem larger.
If you don’t have a regular cleaning service, this may be one time to hire a deep cleaner to ensure your house looks its best. You don’t want to have cobwebs in the corners or dirty grout in the shower when prospective buyers are touring.
Stage your home
Staging your house can help update the feel of your home while showing off the best features for buyers. If your furniture is newer, consider rearranging and/or removing pieces to improve flow. Define different areas, whether office areas for work or seating areas for entertaining. You can choose to stage several rooms or the whole house. Professional companies are available if you need help or if your furniture and belongings are older.
Take photos
The last time we sold a home, we were limited on the number of photos that we could upload to the online listing services. Recently I’ve seen homes with more than 100 photos. While that may be overkill, taking well-lit professional looking photos throughout your house is key to a timely sale. In fact, this may be an area where you want to hire a photographer if you have any doubts.
Advertise
While a yard sign is necessary, the chances of someone driving by your home and purchasing it are low; everyone starts with online listings. Create a detailed description of your home and neighborhood amenities (pool, parks, tennis, etc.). If you’ve recently renovated or updated mechanical systems, provide that information in your listing also. You can find examples of listings on home sites but can also take advantage of AI to help you write one.
Schedule open houses and showings
Once your home is in pristine condition and listed, schedule an open house to gauge interest. You can instantly judge how people see your house and their reaction to your price. You can even ask how it compares to other listings in the area.
Emphasize the key features and unique benefits, talk about the neighborhood, try to find out what’s important to your potential buyers, and suggest where the house could fit their needs. For instance, if they have a young child and there’s a park within walking distance, mention the playground where you took your kids.
Hire a real estate attorney
While your buyer may have an agent in tow, you may receive offers from people who aren’t represented by a buyer’s agent. In either case, you will need someone familiar with the local laws to draft a contract and protect your interests. Talk to an attorney before you list to make sure they will be reachable when you need them and to understand all costs for their services.
Realize this is a give and take…and don’t take it personally
When selling, you have to treat it as a house, not your home. That’s hard to do, especially if you hear prospective buyers say they may blow out this wall or remove this crazy wallpaper. You can’t take it personally.
This goes doubly in negotiations after an offer is made. An offer below asking is not a personal affront to you as the home owner. It’s simply an offer. Treat it as such. When they come back and mention that their inspector found a squirrel nest in the attic, they aren’t saying you don’t have a clean house. They are merely saying they want the access points closed off.
Closing the sale
Depending on the type of buyer you have, closing may be mostly managed by their mortgage company or you may need to use a lawyer, escrow service, or title company. In either case, having a lawyer closely scrutinize the agreement and offer you advice on how to move from agreement to a final closing meeting is well worth the money.
Many people have successfully sold their homes on their own or with the help of a few professionals (photographers and lawyers) along the way. Treating it as a transaction, not as a sale of your beloved family home can make the process smoother. If you are in a market where homes are selling quickly, this might be the right tack for you.