Should You Sell Your Home as a For Sale By Owner

"Can I sell my home on my own, as a For Sale By Owner?" 

As the real estate market continues to heat up, many homeowners are questioning if they can sell on their own and save on the commissions that would be paid to a real estate agent. Yes, you could try it yourself, and you might be succesful, and you might save some money - but, it is a risk. Selling real estate is more complicated than people would think. When a real estate transaction goes through smoothly, most sellers and buyers do not quite realize that the smoothness may have been from the expertise and professionalism of the Realtors involved. However, if you want to know a little more about selling on your own, we have some good info for you below.

Steps to Selling Your Home on Your Own:

Below are some steps to be aware of in selling your home without the aid of a Realtor®. We highly recommend using a Realtor, as it is what we do every day. A Realtor can be a big help to you, but to be helpful, we have this list below of things to consider, and the steps you'll go through as you work to sell your home on your own. If you have any questions, just give us a call. We're always happy to be of help. 435-901-2158.

Why are you selling your home?

This is the first question to ask yourself. The more you candetermine about why you are selling, and how soon you need to be sold, will help you determine the proper timeframe to produce the most beneficial results. If your motivation is higher, or you are planning on a relocation for a job, you'll need to get going right away, and will need to be priced accurately to get sold sooner, rather than being on the market too long.

What will buyers think of your home's price?

When searching for a home, buyers will go through extensive comparison shopping with much of their concern focused on price. With the ease of finding information on the internet, buyers today are so well educated on the real estate market's activity and pricing. It is so important for you to determine a realistic and accurate market value for your home. You will want to set the price of your home high enough to ensure a maximum return to you, yet still appear attractive to buyers when compared to similar homes. You can browse our website to see what other homes in your neighborhood are priced at. You will need to be cautious about overpricing. Check out our pricing guide on this page of our website, it explains the dangers of pricing too high. If you need more info on recent sales in your area, just email or call us and we'll get that to you, free of charge, no obligation. Remember, we are here to help. 

Where do buyers search to find the home they purchase?

Knowing where buyers come from is the first step in developing a strong and successful marketing campaign. The typical home buyer views numerous homes online before going out to view homes in person. You will want to get your home marketed on as many real estate realated websites as possible. Knowing which marketing resources buyers use the most has enabled us to develop a very comprehensive, focused and effective marketing plan. Here's a hint about our marketing plan, over 90% of buyers are actively searching the web when looking for a home. We have a substantial marketing network to get our listings on all the major real estate search websites. As a For Sale By Owner, this may be difficult to do on your own, but a first step might be FSBO.com or Craigslist. 

What should you do to get your home ready to sell?

Your role throughout the selling process can have a great impact on it’s success. You will want to do as much as posible to fix items that need repair, and get your home in the best show ready condition possible. Landscaping is key as you only get one chance to make a first impression. Inside, everything needs to feel bright and open, so de-clutter your home of excessive items. Move out extra furniture to open up the rooms layout. Neat and tidy, and watch out for odors. Do a thorough cleaning. You want your home to feel as new as possible. Nobody wants to buy another persons problems, so get your home in the best condition you can.

Once you get an offer, how will you know if it's the best offer?

Here's a hint: The first offer is often the best offer. Buyers watch the market closely, and as soon as they find the right fit, they often act quickly. There are many factors to consider within an offer besides the price. Below is an extensive list of all the items to be cautious of, and consider in an offer. The price being offered on your home is one of the biggest factors to weigh in, but there are so many other elements of the offer. So read through the sales contract thoroughly, and think carefully before making any decisions.

Purchase Price - Be sure to factor in all the terms of the offer before getting excited or disappointed.
Included Items - What is included - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork, etc.?
Excluded Items - What is excluded - Refrigerator, Washer & Dryer, Hot Tub, Furniture, Artwork, etc.?
Water Rights - Do they apply?  You may need to employ the services of a Water Lawyer.
Earnest Money - This is the initial deposit.  The importance of this item is often overlooked.
Method of Payment - Is this a cash sale, conventional mortgage or seller financing?  How much down payment?
Special Assessments - Are there any outstanding or upcoming HOA assessments?  Who pays, Buyer or Seller?
Possession - When does the property legally change ownership?  (Buyer receives keys and moves in)
Seller Disclosures - What information about the property is the Buyer asking for?  Do we have it ready?
Due Diligence Condition - What "outs" will the Buyer have?
Appraisal Condition - Is the sale contingent on the home's appraisal amount?
Financing Condition - Is the sale contingent on the Buyer securing financing?
Additional Earnest Money - Will the Buyer offer an additional deposit of earnest money?
Additional Addenda - Are there any additional terms or addenda attached to the offer?
Home Warranty - Is the Buyer asking for a home warranty?  Are they asking for you to pay for it?
Mediation - If a dispute arises, how are you and the Buyer directed to handle it?
Seller Disclosure Deadline - What is the deadline date for you to provide all seller disclosures?
Due Diligence Deadline - What is the deadline date for the Buyer to complete due diligence?
Financing & Appraisal Deadline - What is the deadline date for the Buyer to cancel based on loan denial?
Settlement Deadline - What is the deadline date for you and the Buyer to complete closing?
Response Deadline - How long do you have to respond to the offer, or counteroffer?
Multiple Offers - As great as it is to have multiple buyers for your home, we need to negotiate strategically. 

Once you have a deal and are under contract, what happens?
Can the buyer cancel, when do you really know you are truly sold?

Once you accept a buyer’s offer, your home is then considered “Under Contract". Although under contract for sale, you will still have much work to do to ensure a successful closing. Many of these steps will have strict deadline dates applied, and if not completed properly and on time, could cause forfeiture of the contract and loss of the sale. A deal is not truly done, until it is really done, meaning until the closing, funding and recording has occured.

Here is a brief summary of the "Under Contract" process:

Providing the Seller's Disclosures
This is the process where you as the Seller are required to provide information on your home.
• Seller Property Condition Disclosure - filled out, signed and dated from Seller.
• Commitment for the policy of Title Insurance, showing easements, encroachments and liens.
• HOA information, budget, minutes, assessments, CC&R's, and survey, water rights if applicable.
• Copy of any leases, rental, and property management affecting the property not expiring prior to closing.
• Notice of any claims and/or conditions relating to environmental problems & building or zoning code violations.

Buyer's Due Diligence (Evaluations and Inspections)
This is the time period provided to the Buyer to learn, review, inspect and decide if acceptable.
• The Buyer will carefully review all items provided in the Seller's Disclosures.
• The Buyer may schedule physical condition inspections, tests and evaluations of the property.
• The Buyer will review the costs, terms and availability of homeowner's insurance for the property.

Buyer's Right to Cancel or Resolve Objections
If the Buyer determines the Evaluations and Inspections to be unacceptable, the Buyer may:
• No later than the Due Diligence Deadline, cancel the contract by written notice to Seller.
• Or no later than the Due Diligence Deadline, resolve in writing any objections.

Remaining Contingencies and Financing
In the final steps of the transaction we will coordinate and complete any remaining details.
• Is the sale contingent upon an appraisal? At what amount did the property appraise?
• How is the Buyer's financing going? Are there any last minute issues for securing their mortgage?
• Was the sale contingent upon the Buyer selling their previous home?
• Final pre-settlement walk-through inspection.

Settlement (Closing)
Settlement, and then Closing shall take place only when all of the following occur:
• Buyer and Seller have signed all documents required by REPC, Title, Lender, etc.
• Any monies required to be paid have been delivered by Buyer and/or Seller.
• The proceeds of the new loan have been "funded", then all closing docs are "recorded" at the County Recorder.
• Hand off keys, garage door openers, manuals, warranties.
• Help you to find a new home in this area or offer relocation assistance.

Before you go it alone, schedule a Listing Consultation with a REALTOR®

Before you begin the lengthy and complicated process of selling your home on your own, you really should interview with a couple local Realtors who specialize in your market area. They typically will come to your home, assess your home's value and selling potential, and can inform and educate you on the markets recent activity and recently closed sales in your neighborhood. Often, the Realtor® will show you their Listing Presentation which is a presentation that an agent uses to demonstrate to the seller of how they plan to market the home and get the home sold. More expansive listing presentations are designed to educate the seller on the entire home selling process, basically what to expect and when. As a seller, the more educated you are on the home selling process, the better decisions you'll be able to make when the time comes to do so.

Additionally, working with a Realtor® is a huge benefit to you. Sometimes, you might not even realize the benefits, until you run into trouble trying to do the sale on your own. When you work with a Realtor®, their fiduciary responsibility is to you. That means you have an expert who is looking out for your best financial interests, an expert who’s contractually bound to do everything in their power to protect you. That’s big — the value of that commitment cannot be overstated. “For more than 100 years, Realtors® have subscribed to the NAR’s strict Code of Ethics as a condition of membership,” says National Association of Realtors® President Gary Thomas. “Realtors® have the expertise and experience to help sellers protect their investment and help buyers build theirs.”

Buying or selling a home is not like purchasing a plane ticket. Every home is different, and laws change every year and vary from state to state. Generally speaking, people purchase a new home every 7-10 years, and a lot can — and usually does — change between transactions. Realtors® are immersed in real estate, and they must stay current with all the updates in regulations, laws, contracts and practices. Once you retain your Realtor®, they put that knowledge to work for you.

Our Proven Plan to Help You to Sell Your Park City Home.

When you're ready to take the next step toward selling your home, we're here to help. We have developed a proven, comprehensive plan for selling homes. Our business model is simple, "Quality rather than Quantity". When we list your home, there is no up front cost to you. We cover all the expenses and marketing costs. We are compensated only if we successfully sell your home, so your success truly is our success. Our promise is to work hard to ensure that you get the best price, in the quickest time with a transaction as smooth as possible. As we get into the process of photography, marketing, showings, offers, negotiating, and eventually closing the sale, it can all be an overwhelming and emotionally charged process. Just remember, we will be your guide throughout every step of the way.