How to Sell Your House for Sale by Owner - 12 Step Process
Updated: May 18, 2023
Selling a house can be a stressful experience, especially if you're doing it on your own.
However, selling your house for sale by owner (FSBO) can also be very rewarding if done correctly.
In this blog post, we will go through the steps you need to take to successfully sell your house for sale by owner.
Determine the Market Value of Your Home
Before you start advertising your house, you need to know how much it's worth.
You can find out by getting a professional appraisal or using the tax assessed value of your property as a starting point.
Many of the online value estimates are incorrect as these algorithms can not account for the property condition.
A house is only worth what a buyer is willing to pay. Market conditions such as seasonality, current mortgage interest rates, and other homes for sale in your area will have a big impact on it's current value.
Once you have an idea of your home's market value, you can set a fair asking price.
Prepare Your House for Sale
You want to make your house look as attractive as possible to potential buyers.
Start by cleaning and decluttering your home. You want to make sure it's spotless and free of personal items that could distract buyers.
You may also want to consider hiring a professional stager to help make your home look its best.
Take High-Quality Photos
In today's digital age, most buyers start their search online. This means that your photos are one of the most important things to get right.
Make sure your photos are well-lit, clear, and show off the best features of your home.
You may want to consider hiring a professional photographer to take your photos.
Advertise Your Home
There are many ways to advertise your home. You can list it on online real estate sites, such as Zillow or Trulia.
You can also create a website for your home or advertise on social media.
You can also create flyers to post in your neighborhood and around town and put a for sale by owner sign in your yard.
Show Your Home
Once you start getting inquiries about your home, you'll need to start showing it to potential buyers.
You'll need to be available for showings and be prepared to answer any questions about your home.
Make sure your home is clean and ready to show at all times.
Negotiate with Buyers
When you receive an offer on your home, you'll need to negotiate with the buyer.
Make sure you have an idea of your home's worth and the lowest price you're willing to accept.
You'll also want to consider the terms of the offer in addition to price. Who is paying closing costs? Are there any contingencies or option periods?
An offer is much more than just a price.
Complete the Sale
Once you've accepted an offer, you'll need to complete the sale.
You'll need to work with the buyer's lender to make sure they can secure financing. You'll also need to work with a title company to transfer ownership of the property.
Make sure you have all the necessary paperwork in order.
Consider Hiring a Real Estate Attorney
Selling a home can be a complex process, especially if you're doing it on your own.
Hiring a real estate attorney can help you navigate the legal aspects of selling your home. They can help you with the negotiation process and ensure that all the necessary paperwork is in order.
Be Prepared for the Unexpected
Selling a home can be unpredictable. You may get an offer that's lower than you expected, or the buyer may have trouble securing financing.
You may also encounter unexpected repairs that need to be made before closing. Make sure you're prepared for these possibilities and have a plan in place.
Be Honest and Transparent
When selling your house for sale by owner, it's important to be honest and transparent with potential buyers.
You will need to complete a sellers disclosure that addresses any known issues with your home and also be upfront about any repairs that need to be made.
Being honest and transparent will help build trust with potential buyers and can lead to a smoother transaction. It can also save you from a potential lawsuit later if the buyer feels they were misled.
Selling a house can take time, especially if you're doing it on your own.
Be prepared to wait for the right buyer to come along. If your house is not selling it is most likely priced too high.
A house is only worth what a buyer is willing to pay.
Consider a Cash House Buyer
If you're finding it difficult to sell your home for sale by owner, you may want to consider a cash house buyer.
They are real estate professionals that buy houses for cash. There are no commissions, no closing costs, no fees, they require no repairs to be done and you pick the closing date. You can also sell my house fast to a cash house buyer.
They can also help you navigate the closing process and ensure that all the necessary paperwork is in order.
In conclusion, selling your house for sale by owner can be a challenging but rewarding experience. By following these steps, you can successfully sell your home without a real estate agent. Remember to stay patient, be honest and transparent, and be prepared for the unexpected. With the right mindset and approach, you can sell your home on your own and save on real estate agent fees.