Selling Your Own Home

Selling your own home can be a frustrating process. In the right market though, it can make sense to save thousands of dollars in commission and do it yourself. If you've decided to try, use the tips here to do it right, and to avoid common FSBO (for sale by owner) mistakes.

1. Understand what value is. It's not what you think your house is worth, and it doesn't even matter how much you put into it. It is only what it's worth to buyers. Find out what they've paid for similar homes before you decide on a price.

2. Try to be objective. This is difficult . You might want to get an honest and outspoken friend to walk through the house with you. He'll see the problems you didn't know were problems.

3. Always have a plan. What will the kids say when buyers call? Where will you close? Will you have documents drawn up by an attorney? A plan helps it all go smoother.

4. Make lists. What has to be fixed, cleaned, changed, or removed? Do the most obvious things first, in case you don't get to everything.

5. Be prepared. List every question buyers might have, and be ready with an answer. Have comparison sheets showing what other homes sold for, so buyers can see the value. Have a map marking nearby stores and libraries, etc. are.

6. Sell the benefits. Don't say "it's near stores." Say "You can walk to the store in four minutes." Don't say "two car garage." Say "No more chipping ice off the windshield in the morning."

7. Have important information in ads. Square feet, bedrooms and bathrooms, address, telephone number, and price. Leaving out price means some buyers won't call, and you'll waste time with others who shouldn't call.

8. Listen to the buyers. A big mistake sellers make is to get defensive about their home. Listen to criticisms, then resolve them or ask how important the issue is to the buyer. In other words, learn a little bit about selling.

9. Be careful with sales agreements. Be sure it is understood by both sides. What happens, and when does it happen? What if the buyer doesn't get financing? What's included? When will the buyer take possession of the house? Who pays for the closing?

10. Make the closing easy. Have documents all ready to sign. Have answers to likely questions. This is likely the single largest financial transaction in your buyer's life. Make sure he's comfortable.

There's more to selling your own home than can be covered in ten tips, of course. Use these tips, however, and you'll be doing better than most FSBO sellers. You may also want to read the article on the advantages of offering seller financing.

Also, read my book, now free: How to Sell a House