6 Steps to Selling Your House by Owner
Selling your home can be an exciting time, but it also involves a lot of moving pieces.
Typically, one of the first steps homeowners take is to find a realtor they can trust to handle all the details.
But in some cases, homeowners choose to take matters into their own hands and sell their house without the help of a full-service realtor. This is called For Sale by Owner (FSBO). There are various reasons why a homeowner may choose this option, but cutting costs is a big one.
Texas realtors get an average commission of 4.5%- 6%. This percentage can take a healthy chunk out of your profits. If you’re worried about this money loss, consider these six steps to begin do-it-yourself house selling.
1. Get Your House Ready to Sell
You might be one of two people. Someone who thinks their house is perfect the way it is, or someone who tries a total remodel. Unfortunately, both types can lead to loss of money.
A better approach? Figure out which house repairs are crucial — and which are not. If your bathroom tile is cracked from corner to corner, replacing it may be necessary. However, if a single square is chipped, the cost may be too high for the return value. Often, simple touch-ups like a fresh paint job or oiling door hinges go a long way.
An essential yet often overlooked part of preparing for selling is a yard sign. Many people already know in which neighborhood they want to live. Some will drive through that neighborhood looking for buying options. In fact, 8% of home buyers find their house through signs. If your house lacks a sign, you may be overlooked.
2. Set a Reasonable House Price
The first thing most house buyers will look at is the price. A price that exceeds market value can eliminate that house from candidacy. Get a reasonable estimate for your home’s worth from a trusted source. Companies such as Zillow will give you a free price estimate with a median error rate of 1.9% for on-market homes.
3. Sell the Location
The realtor’s slogan is “location, location” for a reason. No matter how lovely your house is, if it’s in an area people dislike, you can kiss a quick-sell date goodbye. As such, it’s important to know what local features to emphasize and which to downplay.
Here are some common location downsides you can spin to your benefit.
Poor and/or Crime-Riddled Area
You’ll likely have a police station nearby. Therefore, highlighting this feature will typically positively impact since most buyers will already know an area’s crime stats.Lack of Stores Nearby
Remote places may have wide-open spaces. Focus on the natural, scenic view that comes with a sense of peace.School With Bad Rating
Find out what the school excels at. For example, if their kids test well in science and math, the abysmal reading comprehension scores may mean little to an engineering family.
4. Ask People to Share Your Listing
It may seem like a waste of time to ask your family and friends to spread the word about your house. However, 5% of home buyers either find their home through friends or buy directly from people they know.
If you have a social media account, post your house there. 51% of buyers find their house online, and platforms like Twitter and Facebook have good sharing potential. Remember, the better pictures you take, the more likely your house post will gain traction.
5. Stage Your Home
A 2017 survey showed that 97% of buyer’s realtors believe house staging has an effect on some buyers. So commit to organizing your home with these tips.
Create Space
Avoid confusing this advice with a command to remove all furniture. Furniture is an integral part of making your home feel cozy. However, you can avoid a cluttered feel by creating space between your couch and coffee table so that people can see a clear walking path. Or try floating your couches instead of pushing them against a wall. It’s also a good idea to remove extra items that may not make sense to other people — such as speakers and treadmills.Incorporate Light
The proper use of light opens a room and lets people see clearly, giving them a sense of warmth and putting them at ease. Natural light is best since it positively affects human minds and shows good window placement. So, if you can, open your window treatments. And to avoid harsh light, use warm light bulbs.Get Rid of Clutter
When it comes to home staging, the less clutter, the better. Dog bowls in the kitchen are natural to you, but they come across tacky as an outsider. In fact, remove all pet-related items, stacks of paper, children’s toys, and spare blankets.
If you’re short on time, the most important rooms for buyers to see staged are the living room, master bedroom, and kitchen.
6. Consider Hiring a realtor (A La Carte)
Selling a house may overwhelm you. It requires hard work, skill, and knowledge of what buyers want. A realtor can help you with all of these. In addition, some realtors work a la carte, meaning they will offer services for a flat fee without getting a sales commission.
Mission Realty offers a la carte services such as photography, staging, and contract review or writing. We also have a full-service realtor. And we always put 10% of our commission into a charity of your choice! Contact us today to find out more.
Key Takeaways
1. Make simple touch-ups and put out a for-sale sign.
2. Set a reasonable price to keep buyers interested.
3. Promote the best features of the area around your house.
4. Get family and friends to share your house in person and on social media.
5. Stage your home to show off the space while highlighting its potential.
6. Think about finding a realtor to do the most complex or most important tasks.