How to Sell Your House by Yourself (For Sale By Owner Tips)

How to Sell Your House by Yourself (For Sale By Owner Tips)

If you’re looking to sell
your home without an agent, here is a step-by-step
process on how to do that. (upbeat music) I’m Jeremy McHone with
the Whissel Realty group and today I’m going to tell you how to sell your home without an agent. Now, the first step in the process is determine your asking
price for your home. You can do this by looking
at comparable homes that have sold in your
neighborhood recently. You can use Realtor, Zillow, Trulia, those type of websites, or you can also look back
at the county tax records to look at the prices
that homes have sold for. Make sure when you’re
looking you’re only looking at homes that have sold. Don’t look at homes that
are pending or active because we don’t know how much those are going to ultimately sell for, so you’re looking at bad data. Now, once you’ve generated that list of homes that are comparable to yours, a good way to do it is to look at homes that have sold
within the last six months, within a half a mile radius and then within 20% of the
square footage of your home. If you can’t find good comparable homes within those parameters, you can start to expand
those parameters out to find a better list of comparables. So you can go up to a
mile, up to a year back, try to stay within that 20%
of the square footage though. Now, when you’re looking at your home compared to the other homes, look at features that they have in common and also features that are different. If you look at enough
comparables you can start to get a feel for the value
that different features add and you can subtract and add accordingly. Keep in mind that things like solar don’t necessarily add value to your home. So if you’re looking at a
home that doesn’t have solar, your home won’t necessarily sell for more just because yours have solar. Now that’s a whole different video, so I won’t go down that rabbit hole. Now, once you’ve
established an asking price, ask yourself how that price
is going to look to a buyer. ‘Cause if a buyer’s looking at your home for a certain price, they’re also going to be looking at other homes in the neighborhood
at a similar price point. You’re going to want to
make sure that your home is compelling to that buyer. ‘Cause if your home’s not
compelling it’s not selling. All right the next step is
to take photos of your home. You can do this yourself, but
I’d highly recommend hiring a professional photographer
and videographer to do the photos for you. The reason why is they’re going to have the proper equipment
and software to edit it. And if you try to buy that yourself it can easily cost thousands or tens of thousands of dollars. Now, make sure when you hire a
photographer or videographer, you’re hiring one that specializes in real estate photography. And the reason is homes don’t photograph the same as portraits or as weddings, so you want somebody who’s a specialist. You’re also going to want to make
sure that they can take videos and they can take drone photos as well because those convey a lot of value when you put ’em online with your ad. Keep in mind that 44% of home buyers find the home that they buy on the Internet. And when they’re looking on the Internet they’re basically looking at photos and then they’re deciding
which home they want to go see. So having professional-level
photos of your home is vitally important to getting it sold. So the next is to put your
home on the major websites on the Internet for buyers to find it. Now, the MLS is a tool that agents like myself can use to put it on there and it syndicates to all these
major websites automatically. Now, because it’s a tool that
only agents have access to, you’re going to have to find another way to get your home on those major websites, but I’m sure you can figure that out. Make sure that when you put
your home on the Internet, in the description you’re
including any features or benefit to your home that
the photos don’t convey. School districts,
benefits to the location, things of that nature. Most home owners who
are sellin’ their home as a for sale by owner without an agent, they’re doing so because they
want to save on the commission. Now, you can save on the
listing agent’s commission by selling your home yourself, but you’re still going to want to offer a buyer’s agent commission. So you’re paying the agent that brings a buyer to the transaction. The reason why you’re
going to want to offer that is because if you don’t then
that agent’s going to expect their buyer to pay them out-of-pocket. A buyer’s agent commission
is typically two to 3%, so that cost is going to
get passed along to you in terms of a lower offer price anyway. Now, if you’re trying to work with buyers that don’t have an agent, you can do that, but more than likely you’re going
to be workin’ with investors that are going to low-ball you
because they’re just looking to buy your home and then
they’re going to sell it after they buy it from you for a profit. Now that your home is on
all the major websites, the next step is to host an open house. An open house is a great way
to get buyers in the door. Now, when it comes time
to host your open house, you’re going to want to make sure you buy as many open house signs as possible. You can make do with 25 though. Just get 25 open house signs. Make sure you get custom ones. Have ’em professionally
made with bright colors so they direct people to your house. Don’t get the generic ones. They don’t attract as much attention. You won’t get as much
traffic to your open house. You’re also going to want to make sure that you have a sign put in the front yard so people know you’re selling your house. You can have that sign custom-made and then you can have a
professional sign company come install that sign
in your yard for you. Now, when the day of the open house comes, you’re going to want to
make sure that you put out at least 25 open house signs
directing people to your house from all the major streets around you. You’re also going to want
to make sure you have the open house catered or
at least have some kind of food and beverage there, that way it’s more welcoming and it’s also going to encourage people to stay in the house longer and give you a better
chance to sell it to them. Now you’re also going to want to make sure that you promote your open house on the major websites that you’re on, Zillow, Realtor, Trulia. You’re also going to want to make sure that you invite all the
neighbors to the open house and tell all the neighbors about it, that way they can refer their friends and family to the open house. A good way to do that is
to just old-fashioned knock on their door and tell
them about your house. What we agents do is we
actually pay for a title company for a service to get the phone numbers for all the people in the area and then we go and we call them all to tell them about the open house and to ask ’em who they
know that’s interested in moving into the area. Keep in mind that between
friends, relatives and neighbors, and people seeing signs in the front yard, that’s where 15% of buyers are coming from who ultimately end up buying a home. So you don’t want to skip
that step in the process. (upbeat jazz music) So you’re also going to want to do a lot of social media advertising. Obviously the first step
is to share the video that the videographer
and photographer took and the photos and the listing on your personal social media pages. Now, you’re going to want to
go one step further than that. Also create a business page, that way you can put some money behind it and boost those posts and
do some actual advertising through Instagram and through Facebook. And every time you host an open house, you should be putting that open house on your personal page
and on your business page and you should be putting
some ad money behind it to promote it on Facebook and Instagram. Now that your home’s on the market, expect your phone to ring a lot. You’re going to get a ton of phone calls. Now unfortunately probably
over 90% of those phone calls are going to be agents that
are trying to get your listing. Now, a lot of those agents might tell you that they have a buyer
and if they do, great. Have them come by and show the house. Just be aware that some of those agents that are coming by that
say they have a buyer are coming by just to get in front of you so they can then try to
win your listing from you. So you’re going to get a lot
of sales calls from this. Now you’re just going to
have to sift through all that to find the buyer that
ultimately places an offer. When your home’s on the market, what we do is we put our home
on the market on a Wednesday, then we don’t allow any showings until the open house on Saturday. Now that does a couple things. It allows you to keep your sanity so you’re not having to leave the house every five minutes
for showings during that time. It also brings everybody
in at the same time, so they see all those
people in the open house and it creates that competitive
nature inside everybody. Now after the open house you’re
going to want to make sure you reach out to everybody
that came through. That’s why you should be signing
people into your open house and collecting their information. You’re going to reach
out to them afterwards and ask them for feedback. I know it’s your house, but make sure when you get that feedback you’re not getting emotional about it, you’re not reacting to it because you actually want that feedback. That’s going to help you sell the house. The most important feedback
is the negative feedback ’cause that’s something
you can actually change and do something about to make
your home more compelling. Now, moving forward after that open house, you’re going to have to
take those phone calls and you’re going to have to
schedule the showings yourself. So just be aware you’re
going to get a lot of calls, but you’re going to have
to take those calls. Some of them are going to be buyers and you’re going to have
to schedule those showings. You can also use a third-party service to schedule your showings,
but that gets a bit pricey. Once you’ve done the showings,
you done the open houses, and you get those offers, first, expect a lot of people
approach a for sale by owner the same way they expect a garage sale. They’re going to expect a deal. So expect to get some
lower offers, that’s okay. Now it’s time to negotiate. If you haven’t negotiated before, there’s no replacement for experience, but you can buy some
books to help you learn a little bit about negotiation. And the more you know about the local real estate market in your area, the more that’s going
to help you negotiate with a savvy agent or a savvy buyer. Now, once you’ve come to
terms and you negotiate it and you have an offer that
you’re ready to accept, don’t accept that offer until you’ve read every word of that contract. The contracts are long
and there’s a lot of stuff that a savvy agent can put
in there that you may miss that can come back to bite you later. In fact I highly recommend
if you’re not using an agent, hire a real estate lawyer to
look over your contract for you to make sure you don’t leave yourself legally exposed to something that’s going to come
back and bite you later. ‘Cause somethin’ you overlook can end up costing you thousands or tens of thousands of
dollars down the road, or even worse, it can
leave you legally exposed and could end up with a lawsuit later. Once you’ve accepted that
offer, that’s exciting, now it’s time to open escrow. You’re going to have to
find an escrow company and a title company. If you need a referral for
those I can help you with that. I can be happy to refer
you to a good escrow and a good title company. Now once you’re in escrow, you’re going to have to
fill out some disclosures and disclose everything you
know about the property. You’re also going to have to make sure you’re holding the buyers accountable to the timeline in the contract. Now when it comes to disclosures, if you haven’t done it before
it can be very time consuming. Even if you have done it before. So you’re going to want
to make sure you hire a transaction coordinator to prepare the disclosures for you. It’s going to make it a lot easier. They’re also going to help make
sure you fill ’em out correctly so there’s no errors or
omissions that come back and result in a lawsuit after the fact. ‘Cause you want to make sure you’re not leaving yourself
legally exposed to something. (energetic music) As the transaction comes along, after the buyer does
their home inspection, expect to get a request for repairs. Now, that’s the second
round of negotiation, so be ready to negotiate that as well. They’re probably going to ask
for some repairs or some credits. In addition to that if the
buyer’s financing the purchase, they’re going to have to have an
appraisal done for the lender. So you’re going to have
to schedule the appraisal. When the appraiser comes out, you’re going to want to
make sure you’re prepared with some comparable properties and a list of benefits and upgrades to help support the price that you’ve gotten in your contract. After the appraisal comes back, hopefully it comes back at-value. If not you’re going to have
some more negotiating to do. Now you’re well on your way
to getting your home sold. Now if this sounds like too much for you or you have some more questions, I love to be a resource for you. Just give me a call at 619-971-0791 or drop a comment below and I’ll make sure I
reply to it, thank you.


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