SELL YOUR HOUSE FAST IN CORPUS CHRISTI€¦ · Learn How To Sell Your House Fast! • Sell It...

Your Guide To Getting A GuaranteedCash Offer On Your HouseIn 48 Hours Or Less!

Learn How To Sell Your House Fast!• Sell It Yourself• Sell In Foreclosure• Sell With A Mortgage• No Agent Sales

CORPUS CHRISTIReal Estate Tips From Real Estate Professionals

SELL YOUR HOUSE FAST IN

ThisbookisprotectedbythelawsoftheUnitedStatesofAmericainregardstocopyrightandintellectualproperty.©2015AllrightsreservedLEGALDISCLAIMER:Thecontentsofthisbookaremeanttoprovideinformationtohomeownerswhochoosenottousealicensedrealestateagent,realtororbrokertoselltheirproperty.Validattemptshavebeenmadetoprovideaccesstohelpfuldata,weblinksandaccuratecontent.Theauthor,distributororrelatedentitieswillnotassumeanyformofliabilityforoutdatedcontent,inaccuracies,orotheromissions.Pricedata,weblinks,registeredtrademarksandothercontentinsideofthisbookarepropertyoftheirrespectiveownersandnoinfringementisintended.Nopartofthisbookore-bookmaybereproducedinanymannerthatviolatesthecurrentcopyrightlawsintheU.S.Thisbookisnotmeanttoprovidearealestateeducation,professionaladviceorrenderlegalortechnicalinstruction.Informationincludedinthisbookthatisinaccurateatthetimeorprintingordistributionismerelyanoversightandnotemporaryorconsequentiallosstoapersonorcompanyisintended.ThecontentsofthisbookwereputtogethertoprovideaninformationalresourcetointroducealternativerealestatestrategiesusedsuccessfullybysomeownersofhomesintheUnitedStates.Allpersonswhoaccesstheresourcesorcontentdisplayedinthisbookdosoknowingthatnowrepresentationsorwarrantiesareimpliedbytheauthor,distributor,orlicenseeofthisbook.Allactionstakenwhenapplyingthecontentinthisbookwillbesolelythedecisionsofeachpersonapplyingthemethodsandnotoftheauthor,publisher,ordistributor.Thestrategiesthataredescribedmayormaynotbefromthepersonalthoughtsoftheauthororotherprofessionals.Othermethodsdoexistthatcouldbeexaminedthatcouldprovidethesameorsimilarresultsasdescribedinthebookore-bookcontent.

TableOfContents

YourPathToASuccessfulHomeSaleBeginsHere..................................................................3

SellingHomesTheTraditionalWay.........................................................................................4

FSBO:ForSaleByOwner........................................................................................................9

4RealEstateProfitKillers.....................................................................................................20

SmartHomeRepairs.............................................................................................................22

SellingAHomeInForeclosure..............................................................................................28

SellingAHouseWithAMortgage.........................................................................................31

TheAssumableMortgageOption.........................................................................................34

MarketReadyVs.Move-InReady.........................................................................................36

DeterminingTheAskingPrice...............................................................................................40

NegotiatingWithABuyer'sAgent........................................................................................42

BuildingYourFSBOTeam.....................................................................................................47

ChoosingaClosingAgent......................................................................................................55

NoAgentHomeSales...........................................................................................................57

InvestorAdvantage:BuyerNetworks...................................................................................59

AdditionalHomeSellingTips................................................................................................61

NowWhat?..........................................................................................................................65

YourPathToASuccessfulHomeSaleBeginsHereCongratulationsformakingthedecisiontotakecontroloftheprocessofsellingyourhome!Ifyou’rereadingthisbook,chancesareyou’regettingreadytosellyourhousebutdon’tnecessarilywanttogothetraditionalroutewitharealestateagent.Youknowtherearealternatives,butyou’rejustnotsurewhatthoseareyet.You’reinterestedinlearningaboutalternativewaystosellyourpropertythatcanresultinasuccessful,evenmoreprofitablesale.Thegoodnewsisyou’vecometotherightplace.Forafirst-timehomeseller,thereisalottolearnandunderstandaboutthehousingindustry.Itcanbeoverwhelming.Tomakeiteasierforyou,whatwe’vedoneistakethecomponentsthatyoumostneedtoknowaboutandputthemtogetherinthiseBook.Wewantedtofeaturesomeofthemethodsthatareeasiestandmostaccessibletotheaveragehomeowner,whetheryou’resellingahousethatisfiveyearsoldor50yearsold.Onceyougothroughtheinformation,you’llhaveabetterunderstandingofwhatyouroptionsare,andhowtoproceedinthewaythatmakesthemostsenseforyouandyoursituation.Thepracticaladviceandstrategiesaredesignedtohelpsaveyoutime,money,andstress.Soifyouwanttosellyouhousewithouthavingtofullyrelyonrealtors,agents,brokers,orevenotherfamilymembers,thenyou’reintherightplace.You’lllearnthebasicsthatanyhomeownercanusetomaximizetheprofitsfromyourhomesale.Readytogetstarted?

SellingHomesTheTraditionalWayFortheaveragehomeowner,whentheymakethedecisiontoselltheirhome,theyautomaticallywillturntoarealestateprofessionaltohandletheprocess.Sure,thatmakesalotofsenseinsomecasesbecausetherearealotofdifferentcomponentstothesellingprocess,andtherearealsothingsthatcangowrongandderailasaleifoverlookedornothandledproperly.Forafirst-timeseller,itcanbeoverwhelmingtofacetheprospectofmanagingeverythingthemselves,includingmarketingthehouse,findingprospectivebuyers,andmanagingthetransaction.That’swhereagentsorbrokerscanstepintoalleviatesomeofthepressure.Butgoingthetraditionalrouteisn’ttheonlyway.Therearealternativesoutthere,it’sjustamatterofdoingsomeresearchandbeingwillingtoinvestalittleextratimeandefforttofollowoneofthosepaths.Beforewecantalkaboutanyalternatives,it’simportanttounderstandexactlywhatthetraditionalhomesellingmodellookslike.

The5-Step,TraditionalHome-SellingMethod

1.PrepareToSellAssoonasahomeownermakesthedecisiontoputtheirhouseonthemarketforatraditionalretailsale,therearetwothingsthathappen:thehouseandpropertyispreparedforthesale,andalistingagentiscontracted.Thesetwothingswon’tnecessarilyhappeninthatorder.Thehomeownermaybeawareofwhatneedstobedonetothehousesothatitlooksmostattractivetopotentialbuyerssotheywillstartonsomeofthatworkpriortoengagingwitharealestateprofessional.Othertimes,theagentwillprovidethehomeownerwithalistofrepairsorupdatesthatshouldbedonetoattractthemostinterestedbuyers.Theupdatescanbecosmeticimprovements,landscaping,decluttering,repairs,orreplacements.Whenalicensed,accredited,orcertifiedrealestateprofessional(realtor,realestateagent,broker)isenlistedtohelpwiththesaleofahouse,feesareincurred.Theremaybelistingfees,andmostdefinitelytherewillbeacommissiontobepaiduponcompletionofthesale(commonly3%totheseller’sagentand3%tothebuyer’sagent).Thesefeeswillreducethehomeownerprofits.Inexchangeforthefees,theagentwillmarketandadvertisethehouse,listitontheMLS(MultipleListingService),manageshowingsoropenhouses,screenbuyers,handlenegotiations,andmanagethefinaltransaction.Ideally,thechosenagentwillbeknowledgeableabouttheneighborhoodandpotentialaskingprices. 2.SetTheListingPriceSettingthelistingpriceiswherethingsstarttogetreal.Thisisoneofthemostimportantstepsinthewholeprocessbecauseitisyourbaselineforattractingtherightbuyersandforanynegotiationsthatwillhappenlater.Thehomeownerhasthegoalofgettingthemostmoneypossiblefortheirhouse,enoughtocovertheirexpenses

(includingbankandrealtorfeesandcommissions).Eventhoughtherealtorwillsettheaskingprice,thehomeownerneedstobeinvolvedtoensurethattheirneedsandexpectationsarebeingmet.Here’sanotherwaytothinkaboutthat.Ifahomeownerandtheirlistingagentarefarapartontheproposedaskingprice,say,by$20,000,tothehomeownerthatrepresentsasignificantamountofmoney.Buttotheagent,theyaregoingtogeta3%commissionnomatterwhat,andthedifferenceislessthanathousanddollars.Aninformedagentwillsetthelistingpricebasedonthehouseandpropertysizeandcondition,andbasedonneighborhoodcomparablesales.Theywillalsotakeintoaccountmarketconditionsandtheprospectivebuyerpool. 3.MarketTheHomeAfterthelistingagentischosen,anyupdates/repairstothehousearecomplete,andthelistingpriceisset,thehouseisreadytobeputonthemarket.Thisiswheretheagentcompletelytakesoverandtapsintothemarketingandadvertisingtoolsattheirfingertips.Theywilltakephotographsoftheproperty(hopefullyprofessional),listitontheMLS,ontheirwebsite,alerttheirbuyerlist,postForSalesigns,andletotheragentsknowaboutit.TheagentwillsetupOpenHousesandshowingsandfollowupwithanyinterestedbuyers.Most,ifnotall,ofthismarketingtakesplacewithoutthehomeownerevenknowingit’shappening,andthisiswheretheycanrelyontheagenttousetheirnetworktofindtherightbuyerwiththerightoffer.

4.EvaluateTheOffersIfanagentisdoingtheirjobrightandsetareasonableaskingprice,marketedthehousetotherightpotentialbuyers,soonenoughofferswillbesubmitted.Atthispoint,theagentwillrevieweachoffer,includingfinancingmethod,contingencies,andanyotherfactors.Themostattractivebid(highestandbestoffer)willbechosenandpushedthroughforsale.Negotiationswilltakeplacebetweenthebuyer’sagentandtheseller’sagenttoresultinthefinalsalepriceandterms.Here’saninterestingthingthatfirst-timesellersmaynotbeawareof.Thehighestofferisnotalwaysthebestoffer,andmaynotbetheonechosenintheend.Ifthehighestoffercomeswithalotofstipulationsorwilltakealongtimetocloseduetofinancing,etc.,thenaloweroffermightbethebetterdecision,especiallyifitisacashofferthatcanclosefast.Thesooneradealcloses,thesoonerthesellercanmoveon.Alternately,ifahousesitsonthemarketfor90+daysandanofferisplaced,theagentmayencouragethesellertoaccepttheoffertoclosethetransaction.Thelongerahousesitsonthemarket,thelesslikelythefullaskingpricewillberealized.5.Clo$eTheDealOncethehighestandbestofferhasbeensubmittedandaccepted,it’stimetolockupthedealandturnoverthepropertytothenewowners.Thisstepinvolvesalotofpaperworkandalotofdifferentpeople(lenders,mortgagebroker,titleagency,andthebuyer’sagent,forexample).Gettingtoclosingdaycanbetime-consuminganddelayscanhappenatanypointintheprocess.Thisisthepointwheretheclosingfeesandcommissionsshowuponpaper.Thesefeeswillcutintotheexpectedprofitfortheseller,sothatissomethingthattheyneedtobepreparedfor.Hopefully,theirrealestateprofessionalhasdonetheir

jobandhelpedthehomeownerplanfortheseexpensessotherearenosurpriseswhenthekeysarehandedoverandmoneychangeshands.Thefeesandcommissionsaddupquicklyinatraditionalhomesale,andthisiswherealternatehomesalemethodsbecomemostattractive.Sellerscankeepmoreoftheirprofitswhentheychoosetoselltheirhouseoutsidethis5-steptraditionalprocess.That’swhatwe’regoingtofocusonfortheremainderofthisbook.We’lloutlinesomeofthemosteffective,stress-freewaystosellyourhousefast,formaximumprofit.

FSBO:ForSaleByOwnerYou’veseenthesesignsaroundtown,advertisingahouseforsaledirectlybytheownerratherthanthrougharealestateagency.Whywouldsomeonechoosetohandletheirownhomesaleratherthanusingarealtor,especiallyknowingnowwhat’sinvolved?Themainreasonis,mostlikely,toavoidpayinganyrealtorcommissions.Ratherthanturningover6%+ofthesellingpricetosomeoneelse,theywillkeepitforthemselves.InaFSBOsale,ahomeowneralsoretainscontrolovertheentireprocess.Thatallsoundsgreat,right?Itis,untilcomplicationsorsomethingunexpectedhappensthateitherdelaysthesaleorpreventsitfromhappeningaltogether.ThepercentageofhomeownerschoosingFSBOoverarealtorisstillsmall(below10%)butthankstositeslikeZillowandForSaleByOwner.comandtheeaseofmarketingyourhouseonline,thatnumberissuretogrowoverthecomingyears.SellingFSBOisrisky,butthenthereisnoguaranteethatyourhousewillsellwitharealtor,either.WhenahomeownerchoosestodoaFSBO,theyareassumingallthelegworkinvolvedwiththesale:repairsandstaging,marketing,settingtheaskingprice,findingbuyers,managingshowings,negotiating,andhandlingtheclosing.That’salotofballstojuggleatonce,anditgenerallyprovestobemoretimeconsumingthananticipated.

Reachingqualifiedbuyersmightbethebiggesthurdle,althoughagain,therearewaystopromoteaFSBOtoincreaselistingvisibilityforanadditionalfeeonvariouswebsites.Themajorityofbuyersarestartingtheirhomesearchonline,soit’snolongerenoughtopopasignintheyardandhopeforthebest.

AWordAboutTheFairHousingActAportionoftheCivilRightsActof1968knownastheFairHousingActwasestablishedtoeliminatediscriminationduringarealestatetransaction.Theselawsareenforceableforeverytransactioninthehousingindustry,regardlessofthepersonoragencysellingaproperty.AnyonewhochoosestogotheFSBOrouteneedstoreviewandunderstandcurrentfederalandlocallawsbeforelistingapropertyforsaleonthemarketandshowingittopotentialbuyers.MoredetailsabouttheFairHousingActcanbefoundhere(atwww.hud.gov).

FSBOCostsForAHomeownerWhenconsideringaFSBO,homeownerswillneedtofactorinthefollowingcosts.Whileeachonemaynotseemtobemuchonitsown,theyquicklyaddup.Knowingwhatyou’llfacebeforeevengettingstartedcanhelpinthedecisionmakingprocess.Manyofthefeeswillneedtobepaidinadvance.DirectCostsToTheHomeowner IndirectCostsToTheHomeownerCleanup,repair,renovations,updatestothehouseandpropertytogetitinsellablecondition

Liabilityinsuranceifthehomeownerpolicydoesnotcoverhomeshowingsoropenhouses

Homeinspectionanddisclosures ComparativeanalysisHomeappraisal StagingProfessionalphotographyformarketing

Buyer’sagentfees

Advertisements(newspaper,online)

Closingagentfees

MLS TitlesearchSignage UtilitiesifthehouseisvacantOpenhouses TemporarystorageAttorneyfees BuyerscreeningsLet’stakeamoredetailedlookatthedirectfeesinaFSBOandsharesomeadditionalinsight,asthosearetheonesthatwillforsurecomeourofthehomeowner’spocket.

FSBODirectFeesThedirectfeesarethosethatanyhomeownerwillaccrueinaFSBOsituation.Thesefeescanchange(upordown),butwecanatleastofferaguidelinethatcanbefollowedandplannedfor.

CleanupandRenovationCostsAlmosteveryhomethatgoesonthemarketneedssomeworkdone(interior,exterior,landscaping)beforeitcanbesuccessfullymarketedforsale.Realestateprofessionalsspendalotoftimewithhomeownersonthisstepbecauseitwillpositivelyimpactthesaleandaskingpriceofthehouseeverytime,almostwithoutfail.We’lltalkaboutstagingthehomeshortly,butcleanupandrenovationareaninvestmentoftimeandmoneythatwillpaydividendsintheend.Thisisaboutputtingforwardthebestpossiblefinishedproduct.Nowyouneedtolookatyourhouseobjectively,asifyou’retheprospectivebuyerseeingitforthefirsttime.Lookovereveryinchverycloselyandcritically,floortoceilingandeverythinginbetween.Interiorcleanupcouldmeanthatflooringhastobereplaced,wallsrepainted,plumbingleaksrepaired,holesinthewallpatched,electricalsocketstested,carpetsprofessionallycleaned,andsoon.Exteriorcleanupcaninvolverepairingsewageordrainagesystems,repairingdownspoutsorguttersystems,residingorpaintingtheexteriorofahome,removingdeadtreesorfixingholesinsidewalksordriveways,andpossiblyreplacingtheroof.Forthebigjobsyoumayneedtocallinaprofessionalcontractororconstructioncompanytotackleyourrepairlist.Makesuretoverifylicensesandinsuranceforanycontractorsthatarehiredbeforeworkbegins.Hourlyratescanrangefrom$25-100/hour,sobesuretoobtainawrittenestimatebeforeagreeingtoanywork.Ifyoudon’thaveacontractoryoucantrust,moreinformationcanbefoundatthefollowingwebsites:

• www.abc.org• www.nascla.org• www.nahb.org• www.nari.org

HomeInspectionsHomeinspectionstakeplaceontheinsideandoutsideofapropertytocheckforanydefectsorproblemsbeforeasale.Mostagentswillexpectapotentialbuyertopaytohaveaninspectiondone,butwhoactuallyendsupwritingthecheckcanbenegotiated.Infact,it’sbecomingmorecommonforhomeownerstopayforaninspectiontodetermineneededrepairsinordertohelptheirhomesellfaster–everythingwillbedonealready.Moststatesnowrequireadisclosureformaspartoftherealestatetransactionprocess.Sellersaretypicallyrequiredtoincludeadisclosurethatstatesnostructuralflaws,harmfulgasses,moldorotherissuesarepresentinahomeatthetimeofsaletoabuyer.Thesedisclosuresareoftenpreparedbyanattorneyafterahomeinspectionisdoneinordertoeliminatepotentialliabilitiesthatcouldbedirectedtowardthesellerifissuesarefoundafterthesaleiscomplete.Oneofthelargestnon-profitcorporationsthatadherestostateregulationsforinspectionsistheInternationalAssociationofCertifiedHomeInspectors(www.nachi.org).Homeownersshouldexpecttopay$300-$600forafirst-timeinspectionreport.

HomeAppraisalHomeappraisalsareimportantinhelpingtodeterminethecurrentmarketvalueandsetthelistingpriceforaproperty.Thesellerpaysfortheappraisal,generallybetween$200-$500.Itisimportantthattheappraisalbedonein-personbyalicensed,independentappraiser.Itwilltakeafewhourstocomplete,dependingonthesizeoftheproperty,andthefinalreportwillincludepositiveandnegativeaspectsofthehome.Itistheinspector’sjobtoremainneutralintheirassessment,

notingthingslikestructuralintegrity,floodzonestatus,andfactorsthatmaypotentiallyreducethemarketvalueofthehome.Likejustabouteverythingthesedays,youcanfindhomeappraisersontheInternetwhowillgiveyoualow-orno-costappraisal,butthedownsideofgoingthisrouteisyouwillnothaveadetailedreport,butonebasedonestimatesoflocalrealestatemarkets.Moreinformationforqualificationsthatappraisersmustadheretocanbefoundatwww.appraisalfoundation.org.

ProfessionalPhotographyIfchoosingtotaketheFSBOroute,onethingyoudon’twanttoskimponishavingprofessionalphotographsofyourhousetaken.Itmaybetemptingtojustgrabyoursmartphoneandstartsnappingphotos,butenlistingthehelpofaprofessionalwillresultinmoreattractivephotosthatyoucanusetomarkettheproperty.Thekeyisselectingaphotographerwhospecializesinrealestatephotos.Pricingforaprofessionalphotographercanbenegotiated,butchancesaretheywillhavesomesortofpackageprice.Therearedifferentfactorsthatmakeupthepackage,includingtheirtraveltime,numberofphotographs,fileoutput,on-sitetime,turnaroundspeed,andanyretouchingservices.Anaveragecostfor10-15photosis$125-$300.

NewspaperAds

Homebuyersareincreasingturningtoonlineresourcesfortheirnewhomesearch,butthatdoesn’tmeanprintisdeadyet.AccordingtoresearchdonebytheNationalAssociationofRealtors,20%ofpotentialbuyersstillrelyonnewspaperads(asopposedto57%whousemobile).Asyoucanimagine,pricing

foradsvaries,asdoestheoptionofcolororblackandwhite,howmanyphotographsyouinclude,thesizeofyourad,andhowlongitwillrun.Nationalaveragesfornewspaperadsrangefrom$15-$400,soyourbestbetistocontactyourdesignatedpaper’sadvertisingdepartmentforhelpandguidanceinplacingyourad.ManypapersnowofferaprintandonlinecombinationpackagethatcanhelptargetbothprintbuyersandInternetbrowsers.Acoupleofplacestostartyourresearchinclude:• www.naa.org• www.usnpl.com

MultipleListingService(MLS)FeesFormanyyears,accesstotheMLSwasimperativeinthehomebuyingprocess,andrealtorshadexclusiveaccesstoit,makingthemequallyimperativetobothbuyersandsellers.TheMLSwasdesignedtohelprealestateprofessionalsattractbuyersandsellhouses.Ifahomewasn’tlistedontheMLS,findingtherightbuyerwasamuchmorechallengingtask.TheMLSwasaprivateentity,specifictoaparticularareaorregion.Butthingsarechanging.ThankstositeslikeZillow,bothbuyersandsellersarerelyinglessandlessontheall-mightyMLS.Thatdoesn’tmeanit’sgoinganywhereanytimesoon.Thefactis,it’sadaptingandhasrecentlyeaseditsexclusivityandopeneditsdoorssonowanyonecanlistaFSBOontheMLSforafee.AflatfeeMLSprovidercanbeusedtosubmitalisting.Thefeedependsonthelengthofthelisting,thecity,andnumberofregionalMLSdatabasesthatwilldistributelistinginformation.Pricescanbeaslowas$199orgoashighas$850forastandardflatfeelisting.BecausetheMLSismeantforrealestateprofessionals,aflatfeeproviderofferstheonlywayanFSBOsellercanaccessthedatabaseforpromotingahome.

Companiesthatofferflatfeelistingservicesinclude:• www.flatfeelisting.com• www.nomoreagent.com• www.owners.com• www.brokerdirectmls.com• www.forsalebyowner.com

SignageWhetheryou’readvertisingaFSBOontheMLS,throughsocialmedia,orinanewspaper,onethingyouabsolutelymusthaveisgoodsignageinfrontofthehouse.AccordingtotheNAR,51%ofhomebuyersrelyonsignagetofindtheirpotentialhome.Dependingonthehomelocation,cityorneighborhoodrulesorvariances,andestimatedlengthoftimethatthesignwillbeneeded,therearedifferenttypesofsignstochoosefrom.Whetheryouchooseastakesign,oneinametalframe,atopamailbox,orinawindow,anysignageshouldinclude“ForSaleByOwner”andacontactphonenumber.Someyardsignsevenhaveaplacetoincludebrochuresorflyerswithmoredetailsabouttheproperty.Aquicknoteaboutthephonenumber.Understandthatthenumberwillbecallednotonlybypotentialbuyers,butalsopossiblyfromotherrealtors,investors,nosyneighbors,andothersolicitors.Notallcallswillbefromlegitimatebuyers.Sobeforeyouincludeyourhomeorcellphonenumber,considerobtainingaseparatecellphoneorvoicemailthatyoucanuseexclusivelyforinquiries(thatinevitablewillcomeatallhoursofthedayandnight).YoucanevengetafreephonenumberfromGoogleVoicethatcomeswithsomeveryusefulfeatures.

Signsarereadilyavailableathardwareorhomeimprovementstores,fromalocalprinter,orofcourse,online.Someprintingcompanieshavepre-madetemplatesforFSBOthatcanhelpyoumakeaprofessionalsign.Yourinvestmentinsignagewilldependonhowmanyandwhattypeofsignsyouneed,butcanstartaslowasabout$25forone.Checkoutsiteslike:• www.buildasign.com• www.vistaprint.com• www.fastsigns.com• www.esigns.com

OpenHousesOpenhousesareaneffectivewaytofindpotentialbuyers,butcanbeabitmorechallengingtotheFSBOseller.Openhousesgivepotentialbuyersachancetowalkthroughthehouseandpropertyandaskquestions.Whenworkingwitharealtor,thatpersonhandleseveryaspectoftheopenhouse,fromstaging,arrangements,printedmaterial,marketing,andmanagingtheactualopenhouse.Theyevenhandletheessentialpost-openhousefollowup.ButanyFSBOsellercancertainlyruntheirownsuccessfulopenhouse,withalittlepreparation.Whatarethekeyelementstoasuccessfulopenhouse?• Stagingthehousewillbeimportant.Thismeansremovingexcess

clutterandanythingoverlypersonal.YouwanttogivepotentialbuyersanopportunitytoenvisionthemselveslivinginthehousewithouthavingtogetpastyourfamilyphotosandcollectionofStarWarsfigurines,nomatterhowcooltheyare.Arrangetheroomsinthewaytheyaredesignedtobeusedtohelpthisvision.

Enlistingthehelpofaprofessionalstagingcompanycanbeagreatassethere(butanotherexpense).

• Marketingmaterials.Thismayincludeflyersorbrochuresthatfocusonthespecificsofthehouseandproperty,aswellasmaterialstoannouncetheopenhouseevent.Havinganattractivemarketingpiecethattheopenhousevisitorscantakewiththemisaneffectivemarketingstrategy.

• Bepreparedtoholdmultipleopenhouses,incaseyouarenotabletofindabuyerafteryourfirst.Ifyouneedmorethanone,factorinadditionalmarketingmaterialsandadvertisingexpensestoreachasmanypotentialbuyersaspossible.

• Haveasystemtomonitoropenhouseattendees.Unfortunately,thereisapotentialfortheftduringopenhouses,sonotonlyisitimportanttostoreanyvaluables,butmakesureyoukeepaneyeonthosewhoaregoingthroughyourhousesothatnoneofyourbelongings“walkaway.”

• Followup.Makesureyoucapturethecontactinformationofallattendeesandfollowupwiththemaftertheopenhousetogaugetheirinterest.

Theamountyouspendonanopenhouseiscompletelyuptoyou,andwilldependonyourstaging,marketingmaterials,advertising,andhowmanyopenhousesyouhold.Regardless,don’tforgettofactorthesecostsintoyouroverallbudget.

AttorneyFeesAnyrealestatetransactioninvolvesalotofpaperwork,andit’scommontohaveanattorneypresentonclosingdaytomakesureallthedocumentsareinordertohelppreventproblemsdowntheline.ThisholdstrueforaFSBOsaleoranytraditionaltransactionwitharealestateprofessional.So,legalexpenseshavetofactoredintooverallcosts.Ideallyyouwanttoworkwitharealestateattorney,andheor

shemaychargebythehour(generally$75-$400)orchargeatransactionalfee($500-$2,500),whichisasortofall-inclusivefee.Somestatesactuallyrequirethatallrealestatedocumentsbepreparedbyarealestateattorney,sobesureyouknowthelawswhereyouareselling.Youcanlearnmoreorfindaqualifiedattorneyat:• www.americanbar.org• www.legalzoom.com• www.rocketlawyer.com

4RealEstateProfitKillersFormostsellers,thegoalistogainsomeprofitsfromthesaleoftheirhouse(specialcircumstancesaside).Unfortunately,thingscanhappenduringthesaleorclosethatcanreduceoverallprofits.Sure,somethingscanbepreparedforandprevented,whileothersarenotsoeasytocontrol.We’regoingtolookatfourthingsthatareabsoluteprofitkillersforahomesale.Theseproblems,whilefrustrating,canbeminimizedoreliminatedbydoingyourresearchandwiththoroughpreparation.

1.TakingTooLongtoSellForbuyers,thelongerahomesitsonthemarket,themorebargainingpowertheyhave.Forsellers,everydayclosertothatmagic90-daymarkbringspanicanddollarsslippingaway.Ifahomeisonthemarketpast90days,buyerswillbegintoloseinterest,thinkingthattheremaybesomethingwrongwiththeproperty.Andthereverywellmaybe.Theaskingpricemaybetoohigh,ortheremaybestructuralissues,orsignificantcodeviolations.Regardless,thelongerahomesits,thesmallertheprofitmarginwillbe.

2.AskingPriceIsTooHighAcommonmistakesellersmakeisaskingtoomuchmoneyfortheirhouseinaFSBOsituation.Yes,thisdoeshappenwithrealtors,too,butarealtorshouldbeabletobackuptheirlistingpricesuggestionwithsolidreasoning,thenknowwhentostrategicallydropthepriceifthehouseremainsunsold.Ofcoursesellerswanttogettopdollarfortheirhome,buttheyneedtoberealisticandexamineneighborhoodcomparablesandobtainanindependentappraisaltoarriveatafairaskingprice.Ifapplicable,commissionsorotherfeescanbefactoredin.

Ifthatdoesn’thappen,buyerswillshyawaybecausetheywillhavedonetheirhomeworkandgenerallyhaveanideaofwherethepriceshouldbe.

3.FailedInspectionsWetalkedabouttheimportanceofahomeinspectionearlier.Notallhousesaregoingtopassinspection.Sellersarerequiredtoincludeadisclosureoftheirproperty’sconditionbeforeasalestransactioncantakeplace.Ifthatdisclosureincludessignificantstructural,interior,orexteriorproblems,thedealcouldpotentiallyfallthrough.Attheveryleast,itwillcostmoneytomaketherepairsbecausechancesarethebuyerisnotgoingtowanttosinkthemoneyintothehouse,unlesstheygetitatasignificantreduction.Eitherway,theprofitsfromthesalewillquicklygodownthedrain.

4.CommissionsAndFeesItissoimportanttofactorincommissionsandotherfeesintotheaskingpriceofahouse.Understandthat,ifyouareusingarealestateprofessional,youwillbepayingabout6%incommissions,andthat’sbeforeyougettotheotherfeesthatwetalkedaboutearlier.Thesefeesaddup,andcanbearealshockifyou’renotpreparedforthem.Asmuchaspossible,learnwhatthefeeswillbeinadvanceandcloselymonitorandtrackwhatyou’respendingduringyourFSBOsale.Understandhowandwhenthefeeswillbedeductedbeforestartingyoursale.

SmartHomeRepairsInordertomaximizeyourprofitpotential,chancesareyou’regoingtohavetomakeaninvestmentinyourhousebeforeyouevenputitonthemarket.Itmayseemcounter-intuitive,butmostbuyersdon’twanttomoveintoanewhouseonlytohavetoinvestevenmoremoneyonupgradesorfixes.You’llneedtotakecareofanyrepairsandpossiblytakeonsomeupgradesorimprovements.Buthowdoyouknowwhentherepairsyou’remakingwillresultinaddedprofitswhenitcomestimetosell?Youneedtoconsiderwhetherthechangesyou’remakingwillactuallyhelpthesaleofyourhouse.

TopExteriorInvestments1.LandscapingCurbappealisthefirstthingthatbuyersseewhentheyapproachahouse,somakingthebestfirstimpressionpossibleiscriticaltowhethertheykeepdrivingorstoptotakeacloserlook.Thisisgoingtobethefirst“wow”factor.Makingsurethelawniscut,shrubsaretrimmed,weedsarepulled,andflowersareplantedisjustthestart.Tendtopestcontrol,lighting,anddrainage/septic/sewer.Ifthereisafence,makesuretherearenoholesormissingboards.Don’tforgetaboutthemailboxandhousenumbers.Dependingonwhatneedstobedone,theinvestmentcanberelativelysmallifyou’rewillingtoinvestsomeelbowgrease.Forbiggerjobs,considerhiringaprofessionallandscapertogetthejobdonequickly.

2.RoofandSidingRoofingandsidingrepairsorreplacementcanbesomeofthecostliestrepairstomakeonahome,buttheywillbecrucialtoasuccessfulsale.

Apotentialbuyercandealwithanunkemptlawn,buttohavetofacespendingthousandsandthousandsofdollarsforanewrooforsidingisadifferentstory.Ifaroofisingoodconditionstructurally,itmaydowellwithacleaning.Ifthereismossgrowing,thatmayindicatebiggerproblemstoabuyer.Obvioussignsofrepairswillalsoraisequestions.Buyerswilllikelyasktheageoftheroof,understandingthatmostasphaltshinglesgenerallyhavea25-yearlifespan.Thesameholdstrueforvinylsidingandothertypesofconstructionmaterials(brick,stone,woodsiding).Obvioussignsofdamageorrepairwillraisearedflagforbuyersandimpactsellerprofits(orevenpotentialtosell).Ifrepairscanbemadecleanly(sidingrepaired,gapsinthebrickorstoneworkmortar),great.Otherwise,considerreplacementorcompleterepair.Theserepairswillmostlikelyrequireprofessional,licensedcontractorstocomplete. 3.FreshPaintAneasywaytodressuptheexteriorofahouseiswithafreshcoatofpaint.Ifthewholehouseispainted,thenfreshenupthehouse.Ifthehouseisbrick,stone,orhasvinylsiding,thenpaintthetrimworkandfrontdoor(andshutters,ifapplicable).Thisisahugepartoftheoverallcurbappeal,andabuyerwilldefinitelytakenoteofpeelingtrim,afadedfrontdoor,orchippedhousepaint.Andthatwillreflectinoverallprofits.Aninvitingoutsideisgoingtomakesomeonebelievethattheinsideisasinviting;thatcarehasbeentakentomaintainthehouse.Enlistingthehelpofaprofessionalpaintermakesthemostsenseforthisrepair,althoughitcanbeaDIYprojectifyouhavethepropertools

andtime.Theadvantageofhiringaprofessionalistheywillbeabletocompletethejobinasetamountoftime,andyoucannegotiatethattheypainttheinterioratthesametime,tacklingtwoprojectsatonce.Whilepaintisnotthatexpensive,youwillbepayingfortheirexpertise,tools,andspeed.4.Driveway,PorchandSidewalkWorkThiscategoryisanextensionoflandscapingandhasanimmediateimpactoncurbappeal.Ifaprospectivebuyertripsoveradrivewaycrackonthewayintothehouse,you’reimmediatelylosingmoney.Driveways,sidewalks,walkways,andstepscanallcorrodeorcrackovertime.Closelyexaminetheconditionoftheseelementsonyourpropertyandmakethenecessaryrepairs,regardlessofmaterial(concrete,asphalt,pavers,bricks,wood,stone).Onceagain,bringintheprofessionalstogetthejobdonefastanddoneright.

TopInteriorInvestmentsNowthatthebuyershaveseentheoutsideandhavefalleninlovewiththehousesofar,they’regoingtomoveinside.Thisiswhereyoucanreallyhelpsealthedeal.Let’slookatsomeofyourwisestinteriorimprovementsorrepairs.1.KitchenAndDiningRoomNationalstudieshaveshownagainandagainthatthetwobiggestdecidingfactorsthatmostpeopleconsideringwhenbuyingahomearethediningroomandkitchen.Soitmakessensethatthat’swherewestartourinteriortour.Commonproblemsintheseareasincludeleakingpipes,outdatedorbrokencabinets,saggingfloors,oldfurniture,oldpaintorwallpaper

(notretro,justoutdated),smallsize,andlackofmodernappliances.Ifyou’relucky,thefixesaremainlycosmetic.Butifrepairsgobeyondlooks,itisadvisabletoinvesttohavetherepairsdonebyaprofessional.Thisisoneplacewherechancesareverygoodthatyou’llrecoupyourinvestment.Ofcourse,besuretostaywithinyourbudgetandperhapsasimportantly,staywithinneighborhoodstandards.Goingoverboardonyourupgradesayhavetheoppositeeffectandactuallypriceyououtofthebuyer’srange.Mostopenhousetoursstartorendinthekitchenordiningareabecausetheselocationsareimportant.Theyaregatheringareasanddeservealotofattention.Byupgradingolderornon-relevantmaterials,thevalueofahomecanbeimprovedandtheoutcomecouldmakethedifferencewhetherahomesitsonthemarketorissoldwithinthemagic90-daylistingwindow.3.BathroomRenovationsSimilartoupgradingakitchen,theimportanceofremodelingabathroomcannotbeoverstated.Somebuyersareevenwillingtopaymorethanmarketpriceforapropertythathasagreatbathroomcomparedtoasimilarhomewithanokbathroom.Buyersexpectaclean,workingbathroomwithafunctionallayout.Anysignsofleakingpipes,malfunctioningtoilets,drains,orfaucetsareturnoffsforbuyers.Thefloorsneedtobecleanandfreefromexcessivewear.Likethekitchen,moneyinvestedtoupgradethebathroomwillberecoupedduringthesaleofthehouse,makingitawiseinvestment.4.BedroomsBedroomsusuallydon’tneedtheextentofworkthatkitchensandbathroomsdo.Mostoften,afreshcoatofpaintandnewflooringwillbewhat’sneededtomakeagoodimpression.Inthesespaces,thechallengemayfalltostagingmorethanrepairs.Ofcourse,repairany

holesinthewallsordamagetoclosetdoorsorlightfixtures.Makingsuretheroomslookasinvitingaspossibleandarefreefromexcessiveclutterwillmakeabigimpact.5.ShowcasingBasementsandAtticsBasementsandatticscanbetrickybecausethesespacesareoftenleftunfinishedinahouse.Theytendtobestorageareas,soagain,declutteringandorganizingcanbethemainchallenge.However,thesespotsarealsowheresomeofthebiggestproblems(read,mostexpensive)canappearinahouse.Adamp,moldybasementcanbeasignofwaterdamage,acrackedfoundationorflooding.Thesameistrueinattics.Roofleakscanresultinmold,insectsorcrittersmayhavetakenupresidencethere,ortheyarejustneglectedanddirty.Moldabatementisoneexpensethatmightbenecessaryifwhiteorblackmoldisfoundinabasementorattic.Mosthomeinspectorswillbeabletoidentifyifmoldispresent.Ifabasementisunfinished,youmaywanttoconsideratleastabasicbuild-outtoaddlivingspacetoyourhomeandenhancetheappealtopotentialbuyers.Improvingatticsandbasementareascanbearealwinnerwhenitcomestoshowcasingahomeforsale.

FinancingPlannedInvestmentsOnceyoudecideonwhatrepairsorupgradesyouwanttomake,youneedtorunthenumberstomakesuretheworkyou’regoingtobeputtingintothehousewillberecoupedduringthesale.Thenyouhavetomakesurethatyoucanfinancetheprojects.Ifyou’realreadyunderwateronyourhouse(owemorethanit’sworth),youmightnothavethefundstoinvestinrepairinganyproblemsarediscovered.Ifyoudohaveequity,youcanconsiderprivateloans,homeequitylinesofcredit,orcashpaymentsasawaytofinancetheplannedinvestments.

Thedecisiontoinvestinrepairsshouldneverbetakenlightly.Itcanbeahardpilltoswallowwhenneededrepairsarediscoveredthatwouldpreventthepromptsaleofaproperty.

SellingAHomeInForeclosureAmortgagecompany,servicer,ortrueownerofahomeholdsthedeedtoafinancedpropertyuntilallpaymentsarecompleted.Homeownerswhohaveproblemsmeetingmonthlymortgagepaymentsultimatelyfacethethreatofforeclosure.Whilefederalandstatelawsdoexistthatprovidesomepersonalprotections,oncetheforeclosureprocesshasstarteditcanbedifficulttostop.Apersonwhoisinterestedinsellingtheirhomeinforeclosurehaslimitedoptionsforcompletingasale.Whileitcantakeyearstogothroughtheprocessofabankorlenderforeclosure,thereareoptionsthatcanbeconsideredinanefforttogetoutfromunderamortgageandstartfreshdowntheroad.

AdvantagesToForeclosureSalesDefaultingonpaymentsonamortgageorloanagreementthateventuallyleadstoforeclosureorbankrepossessioncanhaveanegativeimpactoncreditratings.Foreclosuresandbankruptciesaretwoblemishesthatremainonapersonalcreditreportforthelongesttime.Thesnowballeffectwillshowupintheformofcomplicationstogetfuturehomeloansormortgages,autoloans,personalloans,oreducationalloans.We’regoingtofocusonthreeoptionstosellingahomeinforeclosure:thedirectsale,ashortsale,andaninvestorsale.Thesedohaveanadvantagewhenitcomestoconsumercredit.Long-termissuescanbeavoidedandmortgagedebtcansometimesbeerasedifaforeclosureisavoided.Strictguidelinesgenerallyneedtobefollowedforthesesales,soitisbesttoworkwithanexperiencedprofessional/investortoevaluatealloptionsandensureapositiveoutcome.

3WaysToSellAHouseInForeclosureEveryforeclosureisdifferentandeverystatehaslegislationthatwillhelpdecideonwhatislegalornotlegaltodoonceahomeissenttothelossmitigationdepartmentatabankorlendinginstitution.Regardless,Itisalwaysadvisabletogetsomeformofprofessionaladvicebeforeconsideringyoursaleoptions.Everystatehaseitherajudicialornon-judicialforeclosureprocess,meaningwhethertheforeclosureprocessgoesthroughthecourtsornot.Whichstateyouareinwillhelpdictatehowfasttheforeclosureprocesswillbecompletedoncethepaperworkisinitiated.Typically,a90-daywindowofmissedpaymentswilltriggerapre-foreclosurenoticethatissenttothepersonlistedontheloanormortgagepaperwork.1.Pre-ForeclosureSaleInmostcases,untilthedateofalender-initiatedauction,someonewhoisbehindmorethan90-180daysontheirmortgageandstillowesapercentageofitonahomecanlegallyenterintoasalescontractwithabuyer.Theactualsalepricewilllikelybedeterminedbytheamountowedontheoriginalloan,andshouldhelpsatisfytheremainingmortgage,therebyavoidingbankrepossession.Thistypeofsalecanhelpahomeowneravoidhavingadamagingforeclosureontheircredithistory.Thesellerwilllikelynotmakeaprofit,butwillbeabletomoveonwiththeirlifeandavoidanoutrightforeclosure,whichbringsalong,hardroadtorecovery.2.ShortSaleInashortsale,abankorlenderagreestoacceptlessthanwhatwasoriginallyagreedontosatisfyaloanormortgage.Thereareusuallystrictrequirementswhenitcomestoapprovingashortsale,anditcanbealengthyprocesstogettothefinalsignature.Ahomevalue

estimationhastobecompletedandsubmittedtothelendertoprovethecurrentmarketvalueofthehome.Thenacostanalysis,includingwhat’sleftontheloanagreementtosatisfythesaleprice,willneedtobedone,alongwiththedifferencebetweenthecurrentandformerpropertyvalues.Ashortsalewillinvolvenegotiationwiththelender,andalotofpersistenceisneededtomakesurethesaledoesnotfallthroughthecracks.Ifthathappens,thewholeprocessstartsover,allthewhilegettingcloserandclosertoaforeclosuredate.Shortsalescanbecomplicated,soit’sgenerallybestthatahomeownerenlistthehelpofaprofessionalsuchasaninvestor,realtor,orbrokertogetitdone,ratherthantryingtotackleitontheirown. 3.InvestorSaleSpeakingofinvestors…sellingyourhometoaninvestorcanbeaverysolidstrategyforahomeownerfacingforeclosure.Investorsbuyandsellrealestateandareabletoofferalternativesnotavailablewithatraditionalhomesale.Investorscangenerallycloseonahosefast,oftenmakingacashoffer.Theyhavealargenetworkofbuyersandaccesstoprivatefunding.Theyknowhowtoeffectivelynegotiatewithbanksandcanhelpeasetheburdenthatcomeswithaforeclosure.Manyinvestorswillalsobuyahomeasis,regardlessofcondition,becausetheyhaveanumberofdifferentexitstrategiestochoosefrom.Theinvestorapproachhasbecomemorepopularstartingwiththeforeclosurecrisisin2008andtoday,findinganexperiencedinvestorisadefinitebenefittosomeonefacingforeclosure.Andforthehomeownerwhoisinthatsituation,believeuswhenwesay,youwillbecontactedbyinvestorsonceyouareinthepre-foreclosurestages,sothenit’samatterofdeterminingwhowouldbethebestfitforyoursituation.

SellingAHouseWithAMortgageMosthomeownerstookoutamortgagetobuytheirhouse–a10,15,20,25,or30-yearmortgage.Nomatterwhathappens,theyarelockedintomakingmonthlypaymentsontheirhouse.Butasyoucanguess,noteveryonestaysintheirhomelongenoughfortheirmortgagetobepaidoff.Soacommonquestionthathomesellersaskis,“CanIsellmyhome,evenifithasanexistingmortgage?”Potentialbuyersthatviewapropertylistingtypicallydon’tknowinadvanceifamortgagealreadyexists.Themostimportantinformationtodetermineisthepotentiallossthatahomeownerormortgagelendermighttakewhenasaleisarranged.Planscanbemadetosellahousewithamortgage,althoughthereisalengthyresearchprocesstocompletepriortodecidinghowtolistthehomeforsale.Herearethestepsthatshouldbetakentoresearchamortgage:

1. Findoutwhoownsthemortgage–Thecompanythatthemonthlymortgagepaymentissenttoisnotnecessarilywhoactuallyownsthemortgage.Mortgagedebtiscommonlysoldinstockexchanges,sotheoriginalunderwritermayhavesoldthedebttoanothercompanyandisnolongertheowner.TheTruthinLendingActmakesiteasiertofindthetruemortgageowner.Awrittenrequestcanbesenttotheagencylistedonthemortgagedocumentstofindoutwhotheowneris.

2. Determinetheamountowedonthemortgage–Oncethenameofthemortgageownerisidentified,youcanrequesttheamountowedonthemortgage.Thepayoutamountwillincludeanyremainingpayments,plusallaccruedinterest.Nowahomesalepricecanbedeterminedbasedonthisamount.Don’tforget,therewillstillbeclosingcostsandcommissionsthatwillimpactexpectedprofits.

3. Getanappraisal–Appraisalsgiveasnapshotofthetruevalueofapropertyasitstandsrightthen.Afteryouknowthemortgagepayoutamount,itisimportanttoknowthecurrenthomevalue.Thedifferenceofthosetwonumberswillgiveanindicationofanyprofitsthatmightbeinthesale.

BewareofUnderwaterMortgagesNoonebuysahomethinkingthatitsvalueisgoingtodrop.Everyonethinkstheirhomewillappreciateinvalueeachyear.Therealityispropertyvalueshavefallenasmuchas40%insomecities,leavinghomeowners“underwater,”owingmorethantheirhomeisworth.Becauseofthisdifference,whensellinganunderwaterhome,moneywilllikelybeowed.Underwaterpropertiescanbesoldinashortsale,whichmustbenegotiatedandapprovedbythelenderormortgageservicerinadvanceofthesalehappening.Ifashortsaleisnotapproved(andthiscanhappen),asalecanstillhappen,butthehomeownerwillberequiredtopaythedifferenceatthetimeofclosingifthesaleamountislessthanwhatisowedonthemortgage.Eventhoughthisisnotidealforthehomeowner,itisanoptiontohelpstayoutofforeclosure.WhatAboutASecondMortgage?It’snotuncommonforhomeownerstohavemorethanonemortgageonaproperty,bytwodifferentlenders.Ifthemortgagesarefromthesameagency,thenit’salittlesimpler.Butifthemortgagesarefromtwodifferentcompanies,itcangettricky.Twoormorelendersthatmustbepaidthetotalamountoweduponthesaleofthehomecancausecomplicationsduringorafterasale.Secondmortgages,justlikeafirstmortgage,havestrictrequirementsandmustbecloselyevaluatedbeforeasaletakesplace.Lendersandmortgageunderwriterswillplace

alienonapropertyuntilthefirstorsecondmortgageispaidinfull.Buyersshouldneverassumethatatitleisfreeandclearuntilatitlesearchprovesotherwise.Toputthisinmorerealisticterms,let’ssayapropertyownerplanstosellahousefor$150,000buthasafirstandsecondmortgagethattotal$182,500.Oncefeesaretakenoutoftheprofitsatclosing,itisentirelypossiblethatbothlenderscannotbepaidinfullfromwhat’sleft.Acashshortfallof$32,500ormorecouldcausearealissueforahomeownerwhoissellingduetojobloss,foreclosure,bankruptcyorwhoplanstobuyanotherhouseinthefuture.Whileit’snotimpossibletosellahomewithasecondmortgage,therearereasonswhyapotentialbuyerwouldthinktwicebeforegoingafteroneofthesehomes.Allexpensespayableatclosingwillalwayscomefromwhateverprofitsareleftoverafterfirstorsecondmortgagesarefulfilled.Incorrectlyestimatingpayoffamounts,payofffees,additionalinterestpaymentsorcommissionscanbeahugeproblemforanyhomeowner.AvailableEquityWhenplanningtosellahomethathasafirstorsecondmortgage,knowingtheequitythatmayhavebuiltupiscrucial.Thisamountcancomefromanappraisal,taxestimation,orcurrentmarkettrends.Whenconsideringsellingahome,theequitywillalwaysplayapartinanyexpectedprofits.Homeownerswithverylittleequityusuallyplantolistahomeabovemarketvalueinordertokeepasmuchoftheleftoverprofitsaspossible.Theaccruedequitythatmightbeavailableisanimportantpartofamortgage.Anyoneinapositiveequitypositionatclosingshouldreaptherewardsofselling,regardlesswhetherafirstorsecondmortgageexistsontheproperty

TheAssumableMortgageOptionThetopicofassumablemortgagesisoftendebatedintherealestateindustry.Whiletheprocesshasitsprosandcons,itmightnotbetherightchoiceforeverypersonwholistsahomeforsale.Anassumablemortgageiswheretheremainingdebtonamortgageistransferredtoanewownerofahouse.Thenewbuyerthenassumesallresponsibilityformortgagerepayment.Thismethodofacquiringapropertyisenteringthespotlightinmanymarketsduepartlytotightercreditrestrictionsfornewhomeloans.Homebuyersdohaveadvantageswhenassumingamortgage,althoughsellersassumeagreaterriskunlesscertainconditionsareincludedinatransfer.

BuyerAdvantagesWhywouldabuyerwillinglytakeonsomeoneelse’smortgage?Theanswerisprettysimple…whentheirowncreditisnotstrong.Apersonwithalowercreditratingandhastroubleobtainingproperfinancingforahomepurchasecouldbeinterestedintakingonanexistingmortgage.Ifthesellersecuredtheirmortgagewhenrateswerelower,thebuyerwithpoorcreditwillbenefitfromthatbecauseratherthangettingamortgagewithaninterestrateof8%-10%,theycouldhaveoneat,say,5.5%,whichisasignificantdifference.Qualificationsforassumablemortgageswillvarybetweenlenders,andclosingcostsaretypicallylowerwhenalesseramountisowedontheproperty

SellerAdvantagesThebuyerisnottheonlyonewhocanbenefitfromanassumablemortgage.Theassumablemortgagedoesprovidereliefforapropertyownerwithouthavingtoqualifybuyerswhoneedfinancing.

Manymortgageswritteninthelast25yearsincludewordingthatmakesanassumablemortgagelegal.MostVAandFHAloanscanbeassumedwithoutmuchdifficulty.Butsincenoteveryservicerwillapproveone(somehaveadueonsaleclausewhichmakesthemillegal),it’simportanttocheckinadvancetoavoidanylistingerrorsorrisklosingasale.Asellermaybeabletogetabetteraskingpricebecauseofthecreditadvantagesthatanassumablemortgageoffers.Abuyermaychoosetoskipthefinancingprocessaltogetherbecauseoftheriskofbeingdenied.Whenanewhomebuyerassumesamortgage,alldebtandobligationstothepreviousmortgagearenormallyremovedfortheoriginalmortgageholder.Alendermayreserveaone-yearperiodafterthesaletoensurethatthenewbuyerdoesn’tmissanypayments.Ifpaymentsaremissed,theresponsibilitycouldfallbackonthefirstmortgageholdertoensurethatpaymentsarebroughtuptodate.Someagreementsspecifythatafirstmortgageholderwillberesponsibleforalloftheremainingpaymentsuntiltheoriginaltermofthemortgageends.Everyagreementwillbedifferentandshouldbeexaminedinadvancebeforeofferingahomeforsalewithanassumablemortgage.

MarketReadyVs.Move-InReadyOnceasellerhasdecidedtoputtheirhouseonthemarket,whetherasaFSBOorwithanagent,theyneedtotakeahardlookattheconditionoftheirhome.Isitmarketready?Isitmove-inready?Whatneedstobedonetogetittoeitherstate?Ifsellingthroughanagent,heorshewillhelpmakesurethehouseisatleastmarketready.ButinaFSBOsituation,thesellerwillneedtotakeanobjectivelookattheirhouseandmaketheirowndeterminations.Amarketreadyhouseisonethatisasattractiveaspossible,particularlyontheexterior.Itlooksgreatinphotographsandseemstobeintopcondition.Theinsidemaystillneedworkandtobeupdated,ortherearerepairstobemade.Ahomethatismove-inready,ontheotherhand,hashadallinteriorworkorissuesresolved,andanyneededupdateshavebeenmade.Itliterallyisreadyforanewbuyertomoverightinafterthecloseofthesale.

Inorderforapropertytobeconsideredmarketready,therearefivemainthingsthatarealestateprofessionalwilllookfor:• Landscapingthatisaboveaverage–Thepropertyisinasgreata

conditionasitcanbe.Thelawnismowed,weedspulled,bushesandshrubstrimmed,flowersplanted,barepatchesfilled,andexteriorlightingworking.

• Neworlike-newwindows–Newerwindowswillbemoreenergyefficient(nottomentionusuallyeasiertoclean),whichwillbeveryattractiveforabuyer.

• Noexteriorclutter–Thisplaysdirectlytocurbappeal.Ifthereisalotofexteriorclutter,buyersmaybeturnedawaybeforestepping

MarketReady

LandscapingisAboveAverage

NeworLikeNewWindows

OutsideCluperEliminated

VisibleHouseNumbers

NoTitleLiens

Move-InReady

NeworLikeNewCarpetorHardwood

NoPlublingorHVACProblems

WorkingAppliances

ElectricalUptoCode

SolidFlooring

footonaproperty.Makesurealltoolsandtoysarestored,extravehiclesremoved,garbagecontained,andsoon.

• Housenumbersareeasilyseen–Asidefromthisbeingasafetyfactor,ifabuyerorotheragentcan’tfindyourhouse,theycan’tevenbegintoknowwhethertheywanttobuyit.Somakesurethehousenumbersareclearlyvisiblefromthestreetandareilluminatedatnight.

• Acleartitle–Therearealotofdifferentliensthatcanbefiledagainstaproperty,amechanic,county,orfederallien,forexample.Runningatitlesearchisveryimportantforanybuyer,makingsuretherearen’tanyliensonthepropertythatwilldelayorderailthesale.

Amove-inreadyhouse,ontheotherhand,includestheabovementioneditems,butincorporateselementsontheinteriorofthehouse:• Neworlikenewcarpetingorhardwoodflooring–Ifpossible,

newcarpetingshouldbeinstalledinthemostheavilytraffickedareas,includingbedroomsandlivingareas.Ifnewcarpetingisjustnotinthebudget,thenathorough,professionalcleaningshouldbedone.Rightnowhardwoodflooringisverypopular,soupgradingtohardwoodwilldefinitelyattractabuyer’sattention.Lookforstains,holes,anodor,andwearspots.

• NoHVACorplumbingproblems–HavetheplumbingandHVACinspectedbyaprofessionaltomakesuretherearenoproblemsandeverythingisworkingwellandisoptimizedforefficiency.Thisincludesthewaterheater,pipes,drains,faucets,toilets,sinks,airconditioners,andducts.

• Working,modernappliances–Often,appliancesareincludedinthesaleofahome.Butthat’snotgoingtobeanincentiveiftheappliancesareoldandinefficient.Appliancesthatareingood

workingorderandareenergyefficientwillbeabonus.Andintoday’smarket,havingstainlesssteelkitchenappliancesisevenbetter.

• Electricalthatisuptocode–Athoroughbuyerorrealestateprofessional,nottomentionaninspector,willcheckalltheelectricalinahouse,includingoutlets,wiring,electricalpanels,fuses,andlines.Anyissuescanholdupthesaleandshouldbefixedimmediately.

• Solidflooring–Weakfloorboards,softspots,saggingorunevenfloorscanturnawaypotentialbuyers,andcanbeanindicationoflarger,structuralissues.Itcouldsignalrot,foundationsettling/cracks,insectdamage,orwaterdamage.

DeterminingTheAskingPriceNomatterthereasonbehindsellingahome,settingtherightaskingpricecanbecrucialtotheopeningstageofnegotiations.Reasonablenegotiationscan’ttakeplaceiftheaskingpriceisnotknown;itisthestartingpoint.Thereareseveraldifferentstrategiestohelpsettheaskingprice,whichwe’lllookathere.Itgoesbeyondthehouseitself,andisinfluencedbyotherfactorsthatareoutsideofthehomeowner’scontrol.

Localcomps–Realestateprofessionals,investors,andFSBOsellerswillallusealocalcomparativeanalysistohelpdetermineahome’slistingprice.Theybasicallylookatwhatsimilarpropertiesnearthesubjectpropertyhavesoldforoverthepastyear.Compswillbepulledonhousesthatareasalikeaspossible,includingsize,construction,ageofthehouse,numberofbedroomsandbaths,lotsize,neighborhood,andanyotheramenities.Compswillhelpdeterminewhatabuyerislikelywillingtospendonthehouseandpreventthesellerfrompricingthemselvesoutofthemarket.

ComparablesPurchasePrice

andDepreciacon

MarketDemand

EscmatedAppraisalValue

DeterminingAskingPrice

Purchasepricevs.depreciation–Homesellersaregoingtorememberwhattheypaidforthehouseandexpecttorecouptheirinvestment,plus,whentheygotosell.Therealityistheoriginalpurchasepricemaybyhigherorlowerthantheselling(asking)price,dependingoneconomicconditionsanddepreciation.Theremaybesituationswhereahomeislocatedinahot,upandcomingneighborhood,andwhenthathappens,asellercangetluckyandearnahigherreturnontheirinitialinvestment.Eitherway,knowingthedepreciationratecanhelpdictatearealisticaskingprice.Marketdemand–Therearealotofdifferentfactorsthatcaninfluencemarketdemand,whichwillcompelbuyerstoofferabovemarketvalueforahome,including:• Neighborhood• Specialinteriororexterior

amenities• Location• Walkability• Schooldistrict

• Proximitytopublictransit• Lowerpropertytaxes• Noorlowhomeowner’s

association(HOA)fees• Lowcrimerates

Knowingthemarketvalueofapropertyandevaluatingcompscanhelpdeterminewhetherahomeisinahighmarketdemandlocation.Inthesecases,it’snotunusualtomarketahomefor10%-30%aboveestimatedvalue.Andwhenyou’reinareallyhotmarket,letthebiddingwarbegin!Estimatedappraisedvalue–Realestateprofessionalswillrecommendthatsellershireaprofessional,licensedandaccreditedappraisalcompanytogetanofficialestimateofthetruevalueofahome.Becauseneutralthird-partyprofessionalsperformtheappraisals,theycarryalotofweightindeterminingtheaskingpriceofahome.

NegotiatingWithABuyer'sAgentChancesare,whengettingclosertoasale,thehomesellerwillhavetodealwithabuyer’sagent.Anagentissomeoneappointedbythebuyertodiscusstheneedsofthebuyerandnegotiatethesaleontheirbehalf.Thispersoncanbeanattorney,investor,orrealestateagent.Theyworkoncommission(generally3%),andhaveafiduciaryresponsibilitytothebuyer.Chancesaregoodthatasellerwillnotmeettheactualhomebuyeruntilanin-personclosing.Specifically,whatdoesanagentdotoearntheircommission?• Propertyresearch• Marketanalysis• Advisoronmarketconditions• Negotiatingpriceswithsellers• Providepropertyrepairadvice• Refertitleinsurancecompanies• Submitoffers,forms,andcounteroffers• Protectbuyerinterestsatclosing

It’spossiblethatasellermayencounteradualagent.Thisisanagentwhoisrepresentingboththebuyerandthesellerinatransaction.Inthiscasetheyhavearesponsibilitytoprotecttheinterestofbothparties.Somepeopleprefertoworkwithseparateagentsinordertogetthemostoutofthetransaction.Becauseofthedoublingupofrolesinadualagentsituation,therewillbedoubletheamountofpaperworksotheremaybeadelayinprocessing,anditmaybemoredifficulttomeetinpersontonegotiate.Foraseller,agoodpositionwouldbetohavemorethanonebestofferonthetabletouseasleverage.

CommonNegotiationPointsTheaskingpriceforapropertyismorethanlikelytobeshotdownbyabuyeroranagentwhencertaininformationisknownaboutaproperty.Offerscancomeinonapropertyfrommultiplesources,althoughagentswillalwayssubmitastructuredoffer.Therearesomecommonpointsofnegotiationthathappen,generallyatthreepointsinthetransaction.HomeInspections–Itisperfectlynormalforapropertyownertopayforahomeinspectionduringtheinitialresearchphase,beforesellingahouse.Thiswaytheycanfindoutifanyworkneedstobedonetomakethehousemove-inready.Additionalinspectionsmayalsobedoneonsewers,awell,ortotestforradongas.Intheeventaninspectionhasnotbeendoneyet,asmartbuyer’sagentcanusethisasanegotiationpoint.Typicalhomeinspectionsfromanaccreditedcompanycost$300-$600.Amotivatedbuyerwillwanttonegotiatethiscostsotheydon’thavetopayforitbeforebuyingtheproperty.Inspectionsthatareinitiatedbythebuyerbecomepublicrecord,soanypositiveornegativeinformationinthereportaboutthestructure,interior,exterior,ormajorsystemswillbeknown.Thisknowledgewillbeusefulforabuyerandhisorheragent,andcanserveasjumpingoffpointsfornegotiation.Anynegativefindingscanbeusedasleverageforalowerinitialoffer.Sellerswhoarelookingtoreceiveaspecificofferpriceontheirpropertyneedtobeawareoftheimpactthatathoroughhomeinspectioncanhaveonthetransactionandpreparetoaddressanyreportfindings.Concessions–Therearetwotypesofconcessionsthatmaybenegotiatedduringarealestatetransaction:buyerandsellerconcessions.Becauseeachbuyerandeachtransactionisdifferent,it’shardtopredictthatmightcomeupinthenegotiations.It’stheagent’s

jobtodiscussallconcessionswiththesellertoreachanagreementthatbothpartiesaresatisfiedwith.However,theywillsharetipsandadvicebasedontheirexperienceandknowledgethatcoulddelayaquicksale.Someexamplesofwhatabuyermightnegotiateforinclude:• Contractorexpenses,ifcertainrepairsneedtobecompleted.• Theseller’spersonalpropertyinsidethehome(antiques,artwork,

non-standardlighting,rugs,furniture).• Appliances.• Homeappraisalestimatesduetodifferencesinmarketvaluevs.

estimatedvalueoftheproperty.Ontheotherhand,thesellermayoffersomeofthefollowingconcessionsto“sweetenthepot”forthebuyer:• Reducedlistingprice.• Payingaportionofthedownpayment.• Offeringanextendedhomewarranty.• Payingpropertytaxesforayear.• Payingtitleinsurancefees.

CounterOffers–It’sunusualforthefirstoffermadeonahousetobeaccepted(unlessthere’sabiddingwaronahotproperty).Thenormisthattherewillbecounterofferssubmitted.Propertyownerscanprovideinformationtohelpanagentcomeupwithamorecomfortableofferthatwillenticemorebuyers.Commontypesofcounteroffersinclude:• Asellercanagreetolowertheaskingpriceifcertainconditions

aremet.

• Restrictionsmaybeplacesonthetimelimittopreparecounteroffers.

• Offerswillonlybeconsideredafteraspecificnumberofdays(thisisacommontacticusedwhentherearemultipleoffers).

• Nopendingofferswillbereconsidered,ratheranewoffermustbesubmitted.Thisstrategyallowstimetoexploreotheroffersthataresubmitted,andgiveaseriousbuyerthechancetoprovetheirintenttobuy.

Thesetacticsworkbestwhenthehomeinspectionreportcamebackfreeofanymajorissues.ClosingCosts–Buyer’sagentstendtoliketonegotiateclosingcostsasanadditionalconcession.Thenationalaverageforclosingcostsis1.5%-6%ofthesellingpriceofthehouse,soitcanbesignificant.Asellerwhoagreestopayalloraportionofthesellingpricemightgettoaclosingfasterduetotheshowofgoodfaithduringthenegotiations.Notwobuyerswillpaythesameclosingcostsontransaction.Sellerswillgenerallyconsiderpayingclosingcostswhentheconditionsareextraordinary:threatofforeclosure,movingout-of-state,bankruptcy,deathinthefamily,ordivorce.Closingcoststendtobeanegotiationpointwhentherehasbeenlittlesuccessinthenegotiationprocessotherwise.Oftenacompromisewillbereachedwereeachpartypays50%oftheclosingcosts.Negotiatingthesecostscanbeapowerfultool,butonlyifthebuyerismotivatedtoclosewithinacertainnumberofdaysaftersubmittingtheiroffer.

Multiple(Serious)OffersIfahomeislocatedinahotorup-and-comingmarket,chancesaretherewillbemultipleofferssubmittedonthehouse;thisiscommon

andnormal.Sowhilenegotiationononeofferishappening,secondandthirdoffernegotiationscouldbetakingplacewithotheragents.Requestingallseriousbuyerssubmitagoodfaithearnestdepositwillcutdownonwastedtimeandkeepnon-seriousbuyersaway.Sellersshouldhaveanideaofwhatthebestpricewouldbewhenanofferissubmitted.It’sunusualtoreceivethelistingpriceonthefirst,second,oreventhirdoffer.But,sellersshouldstarttotakeanofferseriouslywhenitiswithinabout10-20%ofthebestmarketpriceforthehouse(basedonmove-inreadycondition).Thiswillprovidethebestleveragewhenitcomestonegotiatingandacceptingthebestoffersubmitted.

BuildingYourFSBOTeamSellingahomeviaFSBOinvolvesalotofworkthatmanyhomeownersaren’tpreparedfor.Therearealotofsteps,andatsomepoint,itmakessensetobringpeopleonboardwhoareexperiencedathomeselling.Buildingyourteamcanbecomplexbecauseyouhavetomakesureeachpersonyourecruitwillworkefficientlyandexpertlytogettheirpartdone.

Pre-QualifyingRepAcrucialroleonarealestateteamissomeonetohandlepre-qualifications.Whilebuyerswillputinsomeefforttofindoutthesellingpriceofahome,notallofthemarepreparedtoactuallymakethepurchase.Apre-qualifyingrepcanhandleallinquiriesonceyourpropertyislisted.Havingsomeoneelsemanagethesetaskswillfreeupyourtimetofocusonotheraspectsoftheprocess.It’scommonforaseller(especiallyafirst-timeFSBOseller)tospendtoomuchtimeonbuyerswhoarenotqualifiedtobuythehomeorhasnorealinterestinmakingapurchase.Beforeyourecruitafriend,familymember,orcompletestrangertobeyourpre-qualifyingrep,checkyourstate’semploymentlawstoseeiftheywillneedtobepaidtohelpsellthehouse.Knowingabuyer’sneedsisimportant,butcanbedonesmartly.Byqualifyingallpotentialbuyers,itwillbeeasiertofindoutwhoisseriousaboutbuyingwithinthenext30-90daysandwhoisnot.Apre-qualifyingrepwilldothefollowing:

• Manageincomingandoutgoingphonecalls–Inrealestate,answeringandreturningphonecallsasquicklyaspossibleiscrucial.Ifyouwaittoolongtoaddressinquiriesandquestions,

youruntheriskofthepotentialbuyerlosinginterestandmovingontoanotherhouse.Youneverknowifthecallerisinquiringforthemselvesorgatheringinformationforaparent,child,orfriend.Ideallyyouwillequipyourrepwithaphonescriptthattheycanfollowwhenspeakingwithpotentialbuyers.Thegoaloftheirconversationistogatherinformationandqualifyprospect,notactuallysellthepropertyornegotiateonpriceorinterrogatethecaller.Youwantthemtofindout:o Doesthebuyerliveinthearea?o Isthebuyeremployedorself-employed?o Isthebuyerpre-qualifiedforamortgage?o Doesthebuyerhaveanagent?o Doesthebuyerhaveintenttobuyatthistime?o Conthebuyerprovidetwoformsofcontact?

• Manageemailcorrespondence–Thesedays,it’snotuncommonforprospectivebuyerstomakepropertyinquiriesorevenarrangewalk-throughsviaemail.Justasyouwouldarmyourrepwithaphonescript,providingthemwithguidelinesonhowtorespondtoemailinquiries(hint:promptlyandprofessionally!)willbeverybeneficialtotheirinformationgathering.Theyneedtobeabletoobtainthesametypeofinformationasoverthephonewillhelpthemdeterminesomebasicinformationthatcanthenbepassedalong.

• Schedulingwalk-throughs–InaFSBOsituation,thehomeownerwillneedtobeavailable,virtuallyatalltimes,forprospectivebuyerwalk-throughssotheycanseethehouseinperson.Thepre-qualifyingrepcanscheduletheseappointmentsbasedontheavailabilityofbothparties.

Pre-Qualifiedvs.Pre-Approved

It’simportantnottoconfusepre-qualificationwithpre-approvalintheprocessofdealingwithpotentialbuyers.Thereisoneveryimportantdifferencebetweenthetwoterms,anditallhastodowithfinancing:

Pre-Qualified Pre-ApprovedNotcreditchecked Creditchecked

Firstroundofquestioningtoensuresomeoneisaseriousbuyer

Approvedforacertainamountofmoneythroughalender

Buyerswhoarepre-qualifiedinthefirstroundofquestioningarelikelymoreseriousthanbuyerswhorefusetoanswerquestions.

MarketingTeamMembersOneofthemostimportantthingsaFSBOsellerwillneedtodo,nomatterthebudget,isadvertisetheirhometofindmotivatedbuyers.Thebudgetwilldeterminewhattypesofadvertisingaredone,butthankstotheInternet,anadvertisingdollarcanstretchfarthesedays.Infact,themajorityofbuyersstarttheirhomesearchonline,soaddingyourhousetothemixisalmostanecessity.Therearealotofdifferentadvertisingoptions,andthebestchoicewilllikelybeacombinationofseveralmethods.Whenadvertising,sendingouttherightmessageisimportanttoattractmotivatedbuyers.Thegoodnewsisyoudon’tneedtobeanadvertisingexperttomakeyouradsstandout.Therearealotofonlineresourcesthatyoucanturntoinordertocraftthestrongestmessagepossible.• Freelancecopywriters–Usingatraditionaladcompanywillbe

expensive.Thankfullythereareresourcesonlinewhereyoucanfindqualifiedwritersforaveryreasonable(eveninexpensive)fee.Someofourfavoritecontentbrokersinclude:o Textbroker

o Upworko Crowdcontento iWriterOnegoodthingabouthiringaprofessionalwritertocreaterealestatelistingsortextforflyersisthescreeningprocess.Allofthesecontentbrokersconductwritingskilltestsuponapprovingwritersforhire.Thiscreatesatiersystemthatgradeseachwriteronhisorherabilitytoproducequalitywork.Thatratingisalsoreflectedintheirwritingfee,rangingfromaslittleas$.02/wordto$.12/wordormore.Thecompanywillalsochargeasmallprocessingfeeforeachjob.Sofora300-wordrealestatead,usingthescaleabove,you’dpaybetween$6.00and$36.00.Thatcanfitintojustaboutanybudget.

• Videoprofessionals–IncludingavideoinyourFSBOadsisverypowerfulandcanhelpshortenthesalescycle.Creatingaprofessionalvideodoesnothavetocostalotofmoney.Justlikewithwriters,youcanhireaprofessionaltoproduceavideothatincorporatesprofessionalphotographsandtexttakenfromthehomelisting,resultinginapolished,appealingfinishedvideo.Youcanfindfreelancevideoprofessionalsonsiteslike:o Fiverro Upworko Odesko Guruo Freelancer

Aswithwriters,feesforvideoprofessionalswillvary.Youmayfindsomeonewillingtoproduceanicevideofor$5.00orfor$200foraone-minuteproduction.

• Photographer–Professionalphotographyisalwaysessentialwhenitcomestosellingahouse,whetherwithanagentorFSBO.Itwillbetemptingtotakepictureswithyoursmartphone,butdon’t.Investtohaveaprofessionaltakethephotosbecausetheywillknowthebestangles,lighting,andeventimeofdayto

photographthehouse.Findaphotographerwhospecializesinrealestatephotography.Onceagain,youcansearchonlineoraskforreferralsfromfriendsoragentsyoumayknow.Thepicturesyougetwillbeusedinallyourmarketingmaterials,fromonlineadstobrochuresandflyers.

MarketingYourHomeOnceyouhavethepictures,videoandadcopy,it’stimetospreadthewordandstartattractingtherightbuyers,andyourbestplacetostartisonline.Aswiththeteammemberslistedabove,youcanalsofindavirtualassistant(VA)whowillpostyourpropertyadstoonlinesites(youcanalsousethemforqualifyingreps).Someofthebestsitestolistyourpropertyoninclude:• Craigslist• Zillow• MLS• eBay• ForSaleByOwner

Anysitethatacceptsindependenthomesforsale(FSBO–withoutusinganagent)willrequirecertaincriteriabeforethelistingisactive(Craigslististheexception,therearenofeestolistanythingforsaleonCraigslist).Somerequireanupfrontfeeorcommissiontocreatethelisting;itvariessobesureyoureadthefineprintbeforestartingalisting.

DirectMailWhenyou’retryingtosellyourpropertyFSBO,printadsandtheInternetmaynotbeenough.Youwanttoexhaustallyourmarketingavenuestoincreaseyouroddsofsellingfast,soyoumayconsider

incorporatingdirectmailintoyourmarketingplan,dependingonyourbudget.Directmail,particularlystandard-sizedpostcards,canbeeffectiveingettingthewordoutaboutyourhome,butthereisanexpenseinvolved,soyouwillneedtocheckyourbudget.Youwillpayfortheproductionofthepieceaswellasthefulfillment(mailing).You’llalsoneedtohavealistofaddressesyou’dliketomailto,soeitheryouwillneedtodothatresearchyourself,outsourceit(yourVA),orpurchasealist.Bulkmailingisusedtotakeadvantageofspecialpostagerates.Ifyou’redoingadirectmailcampaign,you’llneedtoobtainalistofqualifiednamestosendto.Therearehundredsofcompaniesouttherewhereyoucanbuyqualifiedrealestateleads,anddoingaquickGooglesearchwillturnupalotofpossibilities.Onethingtowatchforistomakesurethedatayou’llreceiveiscomplete,notjustanemailaddressorname.Whenbuyingalistfromabroker,makesureithasafullname,address,phonenumber,andemailaddress.Acoupleofcompanieswelikeare:• Experian(SmallBusinessServices)• TheBoldLeadsCompany

OnlineAdvertisingOnlineadsareaprovenwaythatnearlyanyonesellingaproductorservicecanconnectwithmotivatedbuyers.GoogleandBingaretwoofthemostpopularformatsforInternetbasedadvertisingintherealestatespace.Eachcompanyhasspecificguidelinesabouthowtosetupanaccountandhowtoaddmoneytofundtheadvertisingcampaigns.RealestatebuyersinlocalareascanbefoundusingtargetedkeywordsthataresuppliedthroughGoogleorBingwebplatforms:

• adwords.google.com• advertise.bingads.microsoft.com

Awordofcaution:sinceadvertisingisbasedontheamountofspecifickeywordsearchesthattakeplaceinagivenmonth,advertisingpricesfordirectwordsorphrasescanfluctuateandcompetitionforthebestkeywordscanbetough.ApersonwholivesinapopulouscitywilllikelybecompetinginanInternetadvertisingcampaignwithlargerrealestateagentsorbrokersthathavehugeadvertisingbudgets.Buyerintentkeywordslike"realestateforsale"or"forsalebyownerhomes"willmostlikelybeexpensivetobidon.Whileitmighttakesometrialanderrortoeffectivelyreachbuyersusingwebads,youcaneventuallyfindsuccessandreachmorebuyerscomparedtoregularpostcardmarketinginaspecificneighborhoodorgeographicarea.

HiringaSearchEngineMarketingAgencyProfessionalagenciesexisttohelpsmallbusinessesattractmorebuyersontheInternet.Thesefirms,knownasSEMorSEOagencies,specializeinwebmarketingpractices.Whenputtingtogetheramarketingbudget,theservicesofoneofthesecompaniesmaybeanoptionforyoutoconsider.Amarketingfirmwillknowhowtonarrowdownthetypeofbuyeryou’relookingfor.Theywillusedifferentleadgenerationstrategiestoqualifybuyerswhoarereadytomakeanimmediatehomepurchase.Thiscanbedoneusingsocialmediaplatforms,multiplewebsites,e-mailmarketing,andwebadvertising.Adownsidetohiringamarketingcompanyistheadditionalcostsinvolved,generallybetween$500-$4,000/month,sothisisnotagreatoptionforsomeoneonatightbudget.

EvaluatingtheResultsRegardlessofthestrategiesusedtobuildyourteamwhensellingahome,youneedtocloselymonitoryourresults.Theseadditionaladvertisingexpensescanquicklyeatupyourbudgetandprofitsfromthesaleofthehouse.Butitwillbeworthitifyouhavequalifiedhelptoyou’reyourhomequickly.Foranymarketingoradvertisingcampaigns,keepacloseeyeonyourresultssoyoucanadjustifsomethingisnotworkingorworkingwell.Youdon’tneedanythingfancy;asimplespreadsheetwilldothetrick.

ChoosingaClosingAgentYourhardworkhasjustaboutpaidoffandyou’regettingreadytocloseontheFSBOsaleofyourhouse.Thisiswhenthetermsandsaleofthepropertyarefinalized.Aclosingagent,sometimescalledasettlementagent,issomeonewhoprocessestherealestatesalesdocuments.Realtorshavealistofclosingagentsfromwhichtochoose,butwhataboutforyourFSBOsale?Sellingahomewithoutaclosingagentcansurelyresultindelaysthatcandisruptanotherwisesmoothsale.Aclosingagentmaybeanattorney,arepresentativefromatitlecompany,orabankescrowofficer.Whoultimatelydoesthisisuptothehomeowner.Anattorneyisapopularchoicebecausethecontractscanbedrawnandreviewedupinadvancetomakesurealllegalitiesareinplace.

WhatToLookForInAClosingAgentWhenchoosingaclosingagent,lookfor:• Agoodreputation–Workingwithaclosingagentwhois

respectedintheindustryisideal.• ExperiencewithFSBOs–TheFSBOprocessiscomplex,whichis

probablywhytheoverallpercentageofFSBOhomesalesisrelativelylow,around10%.FindingaclosingagentwithFSBOexperiencewillbeadefinitebenefit.Theywillknowwhatisrequiredinanon-realtorsalesagreementandhowtoaddressanytitleissuesthatmaycomeup.

• Acentrallocation–Youwanttomakeiteasyforeveryoneinvolvedintheclosingtobethere,sochoosingacentralorconvenientlocationwillhelpspeeduptheprocess.

• Reasonablefees–Understandallthefeesthatyou’llberesponsibleforinaclosing,includingescrowfeesandtitlecosts,

nottomentionthefeefortheclosingagent.Closingagentscandeterminefeesbasedontheamountofworktheyhavetodotogetthebuyerandsellertoagreeonthetermsofthesale.Talktotheclosingagentinadvancetodeterminewhoispayingwhatandhowmuchtheyarepaying.Atypicalclosingfeeisaround1.5%-6%ofthesale.Thefeecanincludelocalcommissions,recordingfees,applicabletaxes,notaryexpenses,andreconveyanceorprorationexpenses.

ClosingDelaysDelayshappenallthetimeinrealestateclosings.Theycancomeasaresultoffinancingorfromthebuyer.Often,buyerswilltrytodelayaclosingattheendoforstartofanewmonth,dependingonthelender’scycle,topaylessinterestonafinancedhome.Anexperiencedclosingagentwillknowhowtoidentifythesedelaysandworktomakesurethataclosinghappensontheagreedupon,scheduleddayandtime.Anothertypeofdelaycancomefrommistakesinthepaperwork.ThistendstohappenmoreoftenwithFSBOsalesbecause,inthequesttocompletethepaperworkwithoutprofessionalhelp,numbersmaybetransposed,namesmisspelled,supportingpaperworkmissed,oressentialdocumentsareoverlooked.Forthehomeownerworkingontheirown,aFSBOsalecanbecomplicatedandnerve-wracking.Therearealotofmovingpartstokeeptrackof,buthavingtherightteammembersinplacecansavealotoftimeandmoney,withtheendresultbeingafastersaleandhopefully,greaterprofits.

NoAgentHomeSalesThenoagenthomesellingprocesswasdevelopedasalesscomplicatedwaytosellhomesthanusingtraditionalmethods(realtorsandagents).Thekeytosuccessusingthismethodistohaveaccesstobuyerswhoarewillingtomakeanimmediateofferonahouse.Workingwithsomeonewhohasexperiencewiththissystemcannotonlyexpeditethesaleprocess,butalsoavoidcostlyerrorsormistakesthatcandelaythesale.Therearemanyadvantagestousingthenoagenthomesellingprocess:• NoCommissions,BiggerProfits–Becauseyou’renotusingan

agencyorbroker,you’resavingthe6%-10%commission,whichcouldbetensofthousandsofdollars,potentially.Thatmeansanymoneyusedtowardsstaging,orevenrepairs,canbeearnedbackimmediatelyatclosing.

• FasterClose–Whenmakingadirectsaletoaninvestor,closingscanbedonewithin2-4weeks,sometimesfasteriftherearenoliensonthepropertyandthetitleisclear.Thereisalsolesspaperworkbecauseyou’renotduplicatingdocumentswithmultiplepeopleinvolvedintheprocess.

• FewerNegotiations–Ifahomeinspectionandpriceestimationhasalreadybeendone,andrepairs(completedoryettobedone)havebeendisclosed,cashinvestorstypicallywon’tneedtonegotiatefurther.Theyhavealltheinformationtheyneedtomakeafairoffer,reducingwhatcanbethemosttimeconsumingportionofaclose–thenegotiationphase.

• AttorneysorClosingAgentsAlreadyInvolved–Investorsalmostalwaysworkwiththeirownclosingagentinordertoclosefaster.Thatmeanslooseendsaretiedupquicklyandtherearenodirectclosingcoststothehomeowner.

• NoBuyerPre-Approval–Sellingtoaninvestoralmostalwaysmeansacashofferwillbemade.Withthefundssecured,theycanbuythehomequicklybecausetherearenobuyerqualificationsthathavetobesatisfiedbeforetheclosecanmoveforward.

• NoOpenHouses–InaFSBOsellingsituation,thehomeownerhastomanageallOpenHouses,whichareverydisruptive.Sellingdirecttoaninvestorcaneliminatethisotherwisenecessaryevil.Aone-timemeetingisusuallyallthatittakesbeforeacashofferismade.Theymaydecidetoordertheirownhomeinspection,butagain,you’renotdealingwithmultipleOpenHouses,whichisahugeadvantagetothehomeowner.

• HugeBuyerNetwork–Investorshavetheirownbuyernetworkthattheycantapintoiftheydonotwanttopurchasethepropertyfortheirportfolio.Evenwhenthishappens,thesalescycleisdramaticallyshorterthanwhenusinganagent.

Thenoagencyhomesellingmethodhasvirtuallynocomplicationsandisoneofthefastestmethodsofsellingahouse.FSBOisnottherightsellingmethodforeveryhomeownerbecausetherearealotofadditionalstepsthatthehomeownerhastodothatwouldnormallybedonebyarealtor.Butfocusingonsellingdirectlytoaninvestorcanshortenandstreamlinetheprocess,savingmoneyalongtheway.TappingintotheexpertiseoftherightpeoplecanyieldexcellentresultsoncetheFSBOsigngoesupintheyard.

InvestorAdvantage:BuyerNetworksSellingahomebygoingstraighttoarealestateinvestororinvestmentgroupdoeshavemanyadvantages,oneofthemainonesbeingthebuyernetworksthatareinplace.Thesenetworksarecreatedandmaintainedbyinvestorsandcanbeaccessedwhenahomeisupforsale.Thisisextremelyvaluableandattractivetoanysellerbecauseitcanmeanafastsaleandachancetomoveontothenextphaseoftheirlife.

BuyerNetworkAdvantagesHavinganetworkprovidesmoresecurityforthesellerofapropertyinmanyways,including:• Nomarketingneededtofindbuyers,whichisacostsavingsthat

canaddupquickly.• Mostnetworkbuyerspaywithcash,eliminatingthetimespent

waitingtoseeifabuyerisqualifiedforfinancing.• Manycanclosein14daysorless.• OpenHousesandmultipleshowingsareeliminated,asisthe

hassleofdepersonalizationinthehouse(removingphotographs,storingantiques,decluttering,etc).

• Networkbuyersprovideaclosingagent,virtuallyeliminatingclosingcostsanddelays.

• Nohassleofremovingpersonalitemsinthehouse.

BuyerNetworkDisadvantagesWhiletherearealotofadvantageswhencomparinginvestorsalestorealestateagentsales,therecanbesomedisadvantagesthatcomeup.Thepersonalsituationofeachhomeownerwilllikelydictatewhatthese

arebecausenotwohomeownerswillhavethesameneedsandopinions.Somethatwe’veheardinclude:• Independentpaperworkprocessing–Mostinvestorswillhave

someoneontheirteamwhohandlestheclosingpaperwork.Thesellercanaskifallthedocumentsarebeingpreparedbyanattorneyorotherexpertpriortosigningtosettheirmindateasethateverythingiscomplete.

• Somebuyershavenoagent,whichmeansahomeownerwillbedealingdirectlywiththeinvestor/buyer,whichcanbeintimidating.

• Marketofferswillbelowerbecauseinvestorsexpecttopaylessthanthecurrentmarketvalue,dependingontherepairsorupgradesneeded.Sohomeownerswhohavenotcompletedtheneededrepairsorareexpectingfullretailmaybediscouragedwhentheyreceiveaninvestoroffer.

• Buyerbackgroundchecksmaybeneededtoensurethatthebuyerislegitandtheyhavethefinancinginplacetobackuptheiroffer.Italsoprovidespeaceofmindforpersonalsafety.

Anyonewhohastriedunsuccessfullytosellahomeinthepastwillappreciateaswiftandpain-freesale.Negotiatingwithaninvestorprovidesoptionsthatarehardforsomehomeownerstopassupwhenahomeneedstobesold.Thebenefitofclosingonapropertymuchfastercomparedwithlistingoneformonthswitharealestateagentisoftenadecidingpointforsellers.Homeownerswhoarenotwillingtopayupwardsof10%inagencyorbrokercommissionsareoftenattractedtoselldirecttoaninvestororinvestmentfirm.Therearealotofdifferentscenariosthatahomeownercanencounterwhentheydecidetosellthroughnon-traditionalmeans.Choosingtheoptionthatwillresultinthelargestprofitwiththeshortesttimetocloseisusuallythebestonetotake,andoftenthatiswithaninvestor.

AdditionalHomeSellingTipsFinally,wewantedtosharesomeadditionalsellingtipsthatcanleadyoutoafast,profitablehomesale.Thesewillbeimportantnomatterhowyouchoosetosellyourhome:1. Research–LearnasmuchasyoucanabouttheFSBOprocessbefore

youputyourhouseonthemarket.Findoutwhatyouralternativesare(agent,investor,FSBO,broker)andchoosetheonethatmakesthemostsenseforyou.Thisimportantfirststepwillincreaseyourchancesforapositiveoutcome.Tounderstandthefairmarketvalueofyourhome,lookatother,similarhousesforsaleinyourarea.Runyourownanalysisofcomparablepropertieswithina1-or2-mileradius(“comps”).Examinewhatrepairsorupgradesneedtobedoneonyourpropertyandfactorthatintoyourfinalestimationandpricing.Readotherpropertylistingadstolearnhowtheyarewrittenandwhattheyarefocusingontoattractbuyers.Intherealestateindustry,homesalesareusuallybetterinthespring,summer,orfall.Winterisgenerallyatoughtimetosellahome.Therearealsotimesoftheyearwhenloansprocessfasterandinterestratesarelower.Examiningthemarketforpotentialdisruptionscangivealittleextraassurancethatnounexpectedissueswillarisewhenputtingyourhouseonthemarket.

2. Identifysellingpoints–Pinpointassetsthatwillattractbuyersandmakeyourpropertystandapartfromothers,suchasthequalityofthelocalschoolsystem,neighborhoodwalkability,accesstoamenitiesorpublictransportation,churches,entertainmentandrestaurants,parks,etc.Inaddition,spotlightinguniquefeaturesof

thehomecanattracttherightbuyer.Highlightthingssuchasapool,workshop,detachedgarage,garden,quietneighbors,fireplace,orothercustomfeatures.

3. Provideproofofrepairs–Savvybuyerswillwantproofthatstatedrepairsorupgradeshaveactuallybeendoneandwillrequestproof.Makeavailableanaccountingofallexpensesincurredduringrepairsorrenovationandifpossible,beforeandafterphotosandacontractorreference.

4. Clean,clean,clean–Whetheryoumakerepairsandupgradesor

not,it’svitalthatyouscrubyourhousefromtoptobottomsoitsparklesforanypotentialbuyers.Payspecialattentiontobathrooms,kitchens,flooring,sinks,cabinets,andclosets.Thisappliestotheexteriorofthehouse,too.Bricksandconcrete(andevenyourroof)canbecomedirtyovertime,sogivingeverythingagoodpowerwashingcangoalongway,butmayneedtobedonebyaprofessional.Thiswillbemoneywellspentbecausecurbappealiseverythinginhomeselling.

5. Knowthehome’ssystems–Beingabletodisclosetheenergy

efficiencyofahomeisimportant.ThismeansknowingtheR-valueofanyinsulationoranyfactsaboutenergyefficiency.SomeHVACcompaniesofferlow-orno-costenergyaudits.Inaddition,havethewatersystemtestedtoproveitisfreeofanychemicalsortoxins,nomatterifit’swellwaterorcitywater.

6. Detachemotionallyfromthehouse–Beforeyoulistyourhouse,

youneedtoemotionallydetachfromit.Thiswillmakeiteasiertonegotiatewithmotivatedbuyersbecauseyouwillbemorereceptivetofair,reasonableoffers.

7. Beopentoalloffers–Noteverybuyerwhomakesanofferwillbeacashbuyer.Beingopentolenderfinancing,ownerfinancing,oralternativefinancingmethodscouldhelpsecureafastersale.Buyersmayhavecreditissuesorotherfactors,whichmakesithardtopredictwhatsortsofoffersyou’llencounter.

8. Offerahomewarranty–Offeringathird-partyextendedhome

warrantycanbeapowerfulnegotiationandsellingpointwhileprovidingpeaceofmindforthebuyer.

9. Createavirtualtour–Createavirtualhousetourvideothatyoucan

uploadtoYouTubeorVimeosoprospectivebuyerscan“walkthrough”thehousewithoutbeingtherephysically.Thiscanbeatimesaverandweedoutthenot-so-interestedprospects.Videoscaneasilybeupdated,shouldanythingchangeinthehouse.

10. Setpricetiers–Toreachawide-rangeofbuyers,establish

differentpricetiers,suchas:onepricefortheemptyhome,oneforthehouseplusfurnitureandkitchenappliances,andathirdwithallthatplusahomewarrantyandthreemonthsoflandscapingservice.Doingthiscanenticebuyerswhohavedifferentneeds.

11. Add“ForSaleByOwner”tolistings–WhensellingahouseFSBO,

besuretoincludethosekeywords–ForSaleByOwner–inallyourlistings.Thiswillalertanyonewhosearchesfororreadstheadaboutthatfact,andcanactuallybringinmorepotentialbuyersaspeopledon’twanttopayarealtorcommission.

12. Don’tforgetsocialmedia–Don’tforgettoadvertiseyourFSBO

homeonsocialmedia.Thisisagreatwaytoquicklyandinexpensivelyreachalotofpeople.PosttoFacebook,Twitter,YouTube,andothers,andyourfollowerswillbeabletosharethelistingtotheirsocialnetwork.

13. Rotatetheads–Therewillbehomebuyerswhoreviewreal

estateadseveryday,andiftheykeepseeingthesameadoverandover,it’sgoingtogivetheimpressionthatthehomeishardtosellorhassomeproblems.Byrotatingyouradsandchangingthingsup,youwillbroadentheappealofthehomeandappealtonewhomebuyersandthosewhohavenotyetfoundtherightone.Changethecopy,useanewpictureorupdatethevideotomakeitappearfresh.

14. NopetsattheOpenHouses–IfyoudoholdanyOpenHouses,be

suretogetanypetsoutofthehouseforthattime.Askifafriendorfamilymembercanpetsitforacoupleofhours.Notallprospectivebuyerswillbepetpeople,andhavingpetsinthehouseduringashowingcanbeadistractionandcompelthemtofocusonstains,damage,orodorsthattheymightnototherwisenotice.

15. Bidsandpricewars–Iftherightmotivatedbuyercomesthrough

yourhouse,theymightfallinlovewiththehouseandwanttomakeanofferimmediately.Makesureyougettheircontactinformationandbepreparedtoaccepttheirbidrightthenorsoonaftertheyleave.Ifyoufindyourselfinthefortunatesituationofabiddingwarwhereyouhavecompetingoffers,focusonthehighestandbestofferfromthebuyerwhoiswillingtonegotiateandcloseintheshortestamountoftime.

16. Prepareforapricereduction–Ifyou’vedoneyourhomework

andhavethepropertylistedforafairpricebutarenowreceivinganyoffers,youmayneedtoreduceyouraskingpricetoenticeprospects.Droppingthepricebyaslittleas3%canbringinmoreinterestedbuyers.Beforecommittingtoalowerprice,makesureitdoesn’tcutintoyourexpectedprofitstoomuch.

NowWhat?Inthisguidewe’vesharedalotofusefulinformationforanyonelookingtosellahouseontheirown.Whileeverystrategyisnotrightforeveryoneoreverysituation,we’veoutlinedapaththatcanleadtoasuccessful,immediatesale.Whethersellingthroughanagent,FSBO,ordirecttoaninvestor,makingwisedecisionsatthebeginningoftheprocesscanhelpachieveafastersalewithfewercomplications.It’suptothesellertofindtheroutethatworksbestforthem.

Real estate is a people business,and you, as our client,

are what’s most important to us.

We believe that everyone should be able to sleep well at night, and, as investors, we have options that traditional sellers do not. We take pride in creating relationships that last, and provide a customer service

experience that is tailored to you.

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