functional Steps To Sell Your House Privately
Why Sell Privately?
Well let’s get straight to the point, the main reason for selling your home privately is to save money. And this is a great reason, as by not paying agents commissions you can save up to $15000 on a $500,000 dollar house. This is calculated using an agent’s commission of 3%, however they can often be higher than this.
So if an agent sells your house, and puts in around 60 hours (can often be far less especially during expansion markets) of work selling your house for $500,000, by showing people by, answering phone calls, and placing your ads in the newspaper. This method that you are effectively paying your agent $250 per hour, for something that you could easily do yourself.
Why Do People Not Sell Privately..?
The main reason people choose to use agents, is because they think there is some mystique to selling a house, and also that they would not be able to manager the negotiation.
However, the simple fact is that houses sell themselves, not agents. If your house is priced well, you have put effort into the turn up, and have marketed your character, you will find a buyer, no problem.
This method that every hour you put in, you will be paying yourself $250 per hour using the example. Wouldn’t this money be better in your pocket instead of the agents?
And who is more qualified to sell your house than you? You can point out all the features and good aspects of your house, small things like, this part of the house gets great sun in winter, things the agent just wouldn’t know.
How to Sell Privately..?
Once you’ve decided to sell privately all you have to do is follow these steps, and you’re on you way to cracking open the bubbly…!
Step 1. Study the market in your area
To ensure you have a good understanding of the current real estate market in your area, take the time to study current trends and pricing. Take particular notice of houses similar to yours, in your area. Look at the advertised selling price vs. the time the house has been on the market.
Pay particular attention to similarities that have sold, this will give you a good idea of current market value, as those houses have truly sold at that price.
You can find this information out by yourself by looking at real estate internet sites, however there are companies that will provide current real estate statistics for your area, generally at a fee. If you are interested in obtaining this info, just kind ‘real estate statistics’ into a search engine.
Step 2. Get an independent evaluation (not by agents)
Setting the right price for your house is imperative, as a house that languishes on the market for too long will become stale, and buyers will surprise what is wrong with it, and if you undervalue your house you could lose out on money.
Studying your local area will give you a good idea on the value on your home, and what price you should set it at. However, it is nevertheless generally a good idea to get an independent valuation (not by an agent) to give you a valuation on your house. This service will generally cost a associate of hundred dollars, but will save you undervaluing your house. They will also be able to point out issues with your house, which you will be able to attend to before sale.
Step 3. Get a contract drawn up by a solicitor before you begin the selling course of action
Selling a home yourself is simple, however one thing that has to be done by a specialized is the contract of sale. in spite of of whether you sell privately or by an agent, a solicitor or conveyancer will be needed to draw up your contract of sale.
It is important to put some thought into things such as settlement period and sale inclusions and exclusions, and other factors at this stage. However, your solicitor of conveyancer will be able be able to walk you by this. This will ensure that all factors that you want determined in the sale are sorted out up front.
Step 4. Get a pest and building report done on your character
It is a really good idea to get a pest and building report done on your house before you put it on the market. This will ensure that you can repair any issues that you might have with your house that may delay the sale.
It will also give buyers peace of mind that the house is structurally sound and is pest free. It is a good idea to make copies of this report, and include it in your information pack that you give to possible buyers.
Step 5. Organise an information package on your house that you can give to buyers.
This will ensure that most shared questions that buyers might have (and forget to ask during inspection) are answered. You can also use this package to point out good features of the house such as a sunny backyard during winter, which is why the private seller is the best qualified to sell their house.
Information to include is things such as:
o Cost of rates/amenities/utilities
o Local council area
o Schools nearby
o Shops and sets nearby
o Recent repairs/extensions completed
o Any other information that you think will help in selling your character
o Land dimensions
o House dimensions
o Contact details (give a mobile number if obtainable and make sure that you answer it)
Step 6. Marketing/Advertising
already though you are selling privately, establishing a marketing plan is nevertheless very important. Traditionally the way most houses were noticed was by having a for sale sign out the front, as the majority of buyers already live in the local area. A for sale sign is nevertheless basic, however statistics show that the internet is the first port of call for buyers these days looking for character. So to get your marketing campaign started at the very minimum you should have a for sale sign and an internet listing
For sale signs and internet listings are the cornerstones of advertising your character, however there are other simple, cheap and easy steps you can take to market/advertise you character.
You can print up a flyer on your computer, which has the applicable details about your character, and a photo. You can then stick this up on notice boards around town.
You can let all your friends and relatives know that your house is for sale. An effective way to do this is with a bulk email. Using the network of people you know will quickly and effectively reach hundreds or thousands of people, as your contacts let other people know.
You can also place a small text ad in your local newspaper, where you can state the ID of your internet listing so that people that like the sound of your character can take a look on the internet. This way you get cheap advertisement, and people can nevertheless view your character.
So to recap your marketing/advertising campaign should include some or all of the steps below…
1. Organise an internet listing of your character
2. Organise a ‘private sale’ for sale sign for your character
3. Make a flyer about your character and spread it around your town
4. Use your personal contacts to spread the information that you are selling your house
5. Place a cheap text ad in your local newspaper
Step 7. Prepare your negotiation
Before you start your advertising campaign it is a good idea to have a negotiation plan. Negotiation is the part of private selling that most people seem to think is the ‘hard part’. However if you know what outcome you want, then it’s as easy as selling a car.
Again, I must stress that it is important to have priced your house correctly, so that you know how much your house is worth.
The things to consider about your situation when thinking about negotiation are things such as:
o Are you willing to negotiate on price, and what is your rock bottom figure?
o Will you offer a small discount for a quick (or protracted) settlement?
o What settlement terms do you want?
Knowing the value of your house, and knowing what kind of settlement you want (this should be stated in the contract) makes negotiation a breeze. Dealing directly with the buyer also allows both parties to come to the best arrangement to adjust to both parties.
Step 8. Settle and celebrate
Once the deal had been hit, your solicitor/conveyancer will do the rest.
Now all there is to do is congratulate yourself, enjoy the satisfaction of selling your house yourself and saving yourself thousands in the time of action, and crack open the champagne!