How to sell your home without a real estate agent

Given the rapid rise in home prices in recent years, home sellers are taking a hard look at the commission they have to pay to a real estate agency to market and sell their home. Real estate commissions vary across the country; they average in the range of four to seven percent.

According to the 2004 National Association of Realtors® (NAR) Home Buyers and Sellers Profile, fourteen percent of homes were sold by the owner. The NAR study listed the two most difficult tasks for sale by owner (FSBO): preparing and arranging the house for sale and getting the price right.

Invite three full-time mid- to high-production agents over to your home for pricing feedback. Understand that if the three pricing opinions are not what you think the property is worth, you need to understand the danger of an overpriced property. Overpriced homes have been studied by large national real estate brokers, and overpriced homes take longer to sell and sell at a lower price as a percentage of the original listing price.

Ask agents for constructive feedback on what to do to make your home visually appealing to most buyers. Below are some staging tips to prepare your home for the market.

1) Find out how to “organize” your home to maximize its appeal to home buyers by creating a spacious and homebuyer-friendly home environment.

Start by eliminating the first thing that gets in your way.

· Take one or more important pieces of furniture out of each room to make it more spacious.

· Keep matching furniture pieces together to create uniformity in a room.

· Create seating areas where two or more people can talk.

2) Keep your eyes moving when organizing a room.

· Use the placement of furniture to direct the buyer’s gaze to the characteristics of a room.

· Move large furniture away from windows.

Place large furniture at the entry end of the room to lighten the visual load at the opposite end of the room.

· Use area rugs to anchor the seating arrangement.

· Have your dining table closed to the smallest size.

3) Use furniture placed at angles in a room to update it quickly.

Tilt a bed in a corner of a bedroom to focus attention.

V-shaped angle furniture in living and family rooms.

Angled furniture can help fill a sparsely furnished room and give it a designer look.

4) Create vignettes in rooms to create atmosphere.

Breakfast tray with cups of coffee, newspaper, vase on the bed.

Set the dining room table with linen tablecloth, dishes, cutlery and glasses.

· Prepare the game table for chess, bridge or backgammon.

5) Effective model homes focus on creating the right environment.

· Tidy up the clutter so shoppers can layer their furniture and lifestyle.

Clean, fresh and new smell.

· Attention to details. Clean rooms and trimmed landscaping.

· Subtle background music, classical, light jazz or rock.

· The interior decoration and the colors of the walls accentuate the architectural characteristics of the house.

Live plants or fresh flowers add the finishing touches.

6) Understand the decorating basics that can guide you in repositioning a room.

· Colour. A little goes a long way.

· Scale. Do furniture sizes complement or overwhelm a room?

· Pattern. Easy does it to avoid being distracted from the room.

· Turning on. Use it to define dark corners. Help fill a room.

· Focal point. Fireplaces, views, art, find one in every room.

·Texture. Add visual interest, warm spaces, and cool finishes.

Understanding and completing paperwork in a real estate transaction was the number three hardest task according to the NAR study. Once your home is priced right and ready for the market, you should hire a real estate attorney to help you review contracts, disclosure forms, and qualify potential home buyers. An experienced real estate attorney can help you avoid common pitfalls in real estate negotiations and will facilitate a smooth transaction.

Here are some details about real estate contracts.

· Use a real estate contract approved by your state’s association of real estate attorneys or the local Board of Realtors®.

· Real estate contract. A binding agreement between buyer and seller. It consists of an offer and an acceptance, as well as a consideration (that is, money).

· Acceptance. Agreement by the parties to the terms of a contract.

· Contract period. Research typical contract lengths, the standard is 45 days from contract to close.

· Have sold comparable properties available to potential buyers.

·Comparable. Closed prices for homes similar in age, condition, location and size.

· Price. Study the average sales prices as a percentage of listings in the last six months.

· Low ball offers. Buyers must offer more than 87% of the list if they are serious; otherwise, you should not respond at all to petty offers.

Against offers). The response to an offer or bid by the seller or buyer after the original offer or bid. Request all counter offers in writing.

Require all buyers to present the highest level of mortgage commitment to their contract.

· Mortgage Commitment. A document from a mortgage lender that commits the lender to provide a loan on the agreed terms and conditions.

Term, rate and amount of the mortgage. Look for hefty down payments of twenty percent or more. Interest-only loans indicate that buyers may be struggling to qualify for a loan.

Offers in cash in lieu of mortgage financing must be confirmed with a letter from your financial institution stating that there are funds on deposit to close the contract.

Federal law requires disclosures about the hazards of lead-based paint.

Lead Hazard. A release of reports or knowledge of lead-based hazards. Buildings built after 1978 do not present lead hazards.

Read Protect Your Family From Lead in Your Home by the US EPA.

Real Property Disclosures Required by the Federal Government or Your State Written statements by the seller (s) of a property that reveal any known defects.

· Local Disclosures. Local disclosure requirements that the seller provides and the buyer acknowledges, such as certificates of occupancy.

Form W-9. An IRS form requesting taxpayer identification and buyers’ certification numbers to receive interest on earnest money from delivery to closing.

· Subject to appraisal. Most contracts as part of the mortgage contingency require that the property in question be priced at a minimum contract price.

· Appraisal. An objective third party opinion of the value from a licensed or certified appraiser.

· Down Payment. Money given to the seller at the time the offer is made as a sign of the buyer’s good faith.

Research the usual bail deposits as they vary. The higher the deposit, the greater the buyers’ motivation to perform the contract.

· Refund of security deposits. The contracts must stipulate the reimbursement of the entire security deposit within the agreed contingency periods. The seller’s attorney must have security deposits.

· Attorney approval period. Your attorney reviews and makes changes to the contract, usually within 5 to 7 business days.

· Property inspection period. The right under a contract for the buyer at your expense to discover the actual condition of the property. This period is usually 5 to 7 business days.

· Well and septic tank inspections. These are independent of structural and mechanical inspections.

· Contingency timelines run at the same time.

· Contingency. A provision in a contract that requires certain acts to be completed before the contract becomes binding.

· Closing date / guarantee deposit. The end date of the transaction process where the deed is delivered, the documents are signed, and the funds are dispersed.

· Date of possession. The date agreed by contract on which the buyer can occupy the property.

· Final route. A tour of the property prior to closing or escrow that allows buyers a final check on condition, agreed repairs, and personal property.

· Tax apportionments. The amount of credit given to buyers at closing for unpaid property taxes, when taxes are paid late. The proportions must always be greater than 100%.

· Personal property. List and initial all personal property included with the sale, such as air conditioners, appliances, and play equipment.

· Home sale contingency. The contract is subject to the sale of the buyer’s property.

Buyers show motivation by including a home sale contingency by having their current property already on the market.

· Home closure contingency. The contract depends solely on the successful closing of an existing real estate contract.

Marketing your home to prospective buyers should include these methods.

· A professionally painted garden sign.

· Classified and photographic advertisements in newspapers.

· Public and corridor open doors.

· Internet: virtual tour and at least eight photos.

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