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FOR SALE BY OWNERS
Handouts For FSBOs

When you decide to sell your property yourself,

follow the following 5 recommended steps in order to

succeed in your plan:


(1) Tips on How to Price Your Home

(2) Open House Tips


(3) Seventeen Service Providers You Need When You
 
Sell


(4) Six Forms You’ll Need to Sell Your Home

(5) Is Your Buyer Qualified?


(1) TIPS ON HOW TO PRICE YOUR HOME:


1- Consider comparables. What have other homes in

your neighborhood sold for recently? How do they

compare to yours in terms of size, upkeep, and

amenities?


2-
Consider competition. How many other houses are

for sale in your area? Are you competing against

new homes?


3-
Consider your contingencies. Do you have special
 
concerns that would affect the price you’ll receive?

For example, do you want to be able to move in four

months?
  


4-  Get an appraisal. For a few hundred dollars, a

qualified appraiser can give you an estimate of your

home’s value. Be sure to ask for a market-value

appraisal. To locate appraisers in your area, contact

The Appraisal Institute

(
www.AppraisalInstitute.org) or ask a REALTORÒ


 for some recommendations.


5-  
Ask a lender. Since most buyers will need a

mortgage, it’s important that a home’s sale price be

in line with a lender’s estimate of its value.


6- Be accurate. Studies show that homes priced

higher than 3 percent over the correct price take

longer to sell.


7-
Know what you’ll accept. It’s critical to know

what price you’ll accept before beginning a

negotiation with a buyer.


(2) OPEN HOUSE TIPS:


1- Advertise your open house. Ideally you should

advertise both the weekend before and the weekend

of the open house. Check with the local paper to see

when their ad closing deadlines are.


2-
Create a property summary sheet. This sheet gives

prospective buyers an overview of your home.

Include dimensions for each room, copies of a

property survey, summaries of utility costs and

property taxes, and a list of when capital items, such
 
as roofs and furnace, were added.


3-
Develop a sign-in form for prospects’ addresses.

You’ll ideally want both phone numbers and e-mail

addresses to follow up with prospective buyers.


4-
Put up signs. One or two days before the open

house, place directional signs at major intersections

within three to four blocks of your house. Be sure

you check on anti-sign regulations in your area.


5-
Get your house ready. Remove clutter, clean your

house, wash your windows, add flowers, turn on

lights, open draperies and blinds, remove valuables

and breakables, confine pets, turn on soft music, and

set up a table for your property fact sheet near the

entrance.


6-
Develop a follow-up sheet. Getting feedback on

your home from prospects who attended your open

house will give you a better understanding of how to

make your home more appealing to buyers.


(3) 17
 SERVICE PROVIDERS YOU'LL NEED

WHEN YOU SELL:

  1- Real estate attorney

  2- Appraiser

  3-
Home inspector

  4-
Mortgage loan officer

  5-
Environmental specialist

  6-
Lead paint inspector

  7-
Radon inspector

  8-
Tax adviser

  9-
Sanitary systems expert

10-
Occupancy permit inspector

11-
Zoning inspector

12-
Survey company

13-
Flood plain inspector

14-
Termite inspector

15-
Title company

16-
Insurance consultant

17-
Moving company


(4) FORM YOU'LL NEED TO SELL YOUR HOME:


1- Property Disclosure Form. This form requires you

to reveal all known defects to your property. Check

with your state government to see if there is a special

form required in your state.


2- Purchasers Access to Premises Agreement. This

agreement sets conditions for permitting the buyer to
 
enter your home for activities such as measuring for

draperies before you move.


3-
Sales Contract. The agreement between you and
 
the seller on terms and conditions of sale. Again,

check with your state real estate department to see if
 
there is a required form.


4-
Sales Contract Contingency Clauses. In addition

to the contract, you may need to add one or more

attachments to the contract to address special

contingencies—such as the buyer’s need to sell a

home before purchasing yours.


5-
Pre- and Post-Occupancy Agreements. Unless

you’re planning on moving out and the buyer moving

in on the day of closing, you’ll need an agreement on

the terms and costs of occupancy once the sale closes.


6-
Lead-Based Paint Disclosure Pamphlet. If your

home was built before 1978, you must provide the

pamphlet to all sellers. You also must have buyers

sign a statement indicating they received the

pamphlet.


(5) IS YOUR BUYER QUALIFIED?


Unless the buyer who makes an offer on your home
 
has the resources to qualify for a mortgage, you may

not really have a sale. If possible, try to determine a

buyer’s financial status before signing the contract.


1-
Has the buyer been pre-qualified or pre-approved
 
(better) for a mortgage. Such buyers will be in a

much better position to obtain a mortgage promptly.


2-
Does the buyer have enough money to make a

downpayment and cover closing costs? Ideally, a

buyer should have 20 percent of the home’s price as
 
a downpayment and between 2 percent and 7 percent
 
of the price to cover closing costs.


3-
Is the buyer’s income sufficient to afford your

home? Ideally, buyers should spend no more than 28
 
percent of total income to cover PITI (principal,

interest, taxes, and insurance).


4-
Does your buyer have good credit? Ask if he or

she has reviewed and corrected a credit report.


5- Does the buyer have too much debt? If a buyer

owes a great deal on car payments, credit cards, etc.,

he or she may not qualify for a mortgage.
 


Web Site Resources for Consumers Credit Union Consumer Facts, http://www.cuna.org/data/consumer/advice/retire_home/hometoc.html

 

www.EnergyGuide.com

 

Provides an easy way to assess energy use and get quick tips on saving energy.

 

Environmental Protection Agency, www.epa.gov

A one-stop shop for advice on testing for and mitigating pollutants, from lead paint to radon to mold.

 

Equifax, www.Equifax.com

A source of credit reports.

 

Experian (formerly TRW), www.Experian.com

A source of credit reports.

 

Federal Citizen Information Center, http://www.pueblo.gsa.gov/results.tpl?id1=17&startat=1&--woSECTIONSdatarq=17&--SECTIONSword=ww

Offers a list of consumer articles about home sales, financing, and maintenance.

 

Ginnie Mae, http://www.ginniemae.gov

Provides advice to buyers on affordability and home ownership, including calculators.

 

U.S. Department of Housing and Urban Affairs, http://www.hud.gov/buying/index.cfm

Offers advice to buyers on finance, fair housing, and more.

 

ImproveNet, www.improvenet.com

Provides links to contractors and architects for remodeling projects for buyers and repair services for sellers. For a small charge, buyers can use the site’s Estimators to determine how much renovating a property they’re considering would cost.

 

Moving.com

 

Helps buyers and sellers with packing tips and timetables, online mover links, and places to store belongings so that homes look less cluttered.

 

REALTOR.com

 

Offers consumer information for buyers and sellers as well as home listings and links to service providers.

 

Real Estate Buyer’s Agent Council (REBAC), http://www.rebac.net/hbk.html

Offers a homebuyer’s kit with useful information and checklists.

 Trans Union Corporation, www.transunion.com

A source of credit reports.

 

 

   GOOD LUCK
Please call me anytime if you have any question (909) 754-4947

 

 

 

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