General Process
Financing
FAQS
General Process
Financials
TAX IMPLICATIONS OF SELLING
FOR SALE
BY OWNER BASICS
#1-Consider offering a buyer agent commission to get more interest.
90% of people buying homes were helped by a realtor in the last 10 years. Before most these people start to look for homes they sign a "buyer broker" agreement stating they are entitled to a 3% (standard could be less) commission on whatever home they decide to buy. If you as a seller offer no commission, or less than 3% for a buyer agent to "bring you a qualified buyer", a buyer would need to be willing to pay their realtor 3% of the sales price of the home out of their pocket to purchase your home. Most are not, so 90% of the people who show their realtor your home will opt to pass and look for another home instead since they cannot afford to pay their realtor up front. If you chose to not offer a buyer agent commission, statistics show you could potentially alienate over 90% of your market.
#2- Get a Lawyer to review the contract for you
Contract lawyers usually charge $150-$300 per hour to review contracts. The offer you receive will most likely be sent over by a realtor who has the contract memorized backward and forwards. As a seller you can be in breech of contract by not sending over certain documents and disclosures to the buyer in a timely manner. Read and understand all your responsibilities and keep a calendar of deadlines
#3 Get a loan prequalification letter from any offer and call the buyer's loan officer
Anyone can write a contract on your home. But can they actually qualify for the financing? Have they ever met with a loan officer? Has their credit been pulled? You need to vet how qualified the buyer is so you don't end up with them backing out 3 weeks into the contract leaving you high and dry and wasting time.
#4 Get a third party appraisal on your home
If you are not using a realtor- we do not recommend using online appraisal estimates to base your home value off of. (see our section on how to determine home value). A third party appraiser can tell you what a home can appraise for but they are pretty subjective and not a set in stone value A realtor would be able to tell you if you could get more (or less) that what the appraisal values are