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For Sale By Owner


By: Edward McCarthy
President: Sell By Owner Listings, Inc.

For Sale By Owner Seller's To Do List

Here's a general list of tasks that you should complete to sell a for sale by owner home. Following these steps will lead you to a successful closing of your home for sale by owner.

Set your asking price. This should be based on the selling price of homes that have recently sold in your area. There are many online valuation services that can assist you.

Estimate your cash profit. Your cash profit is the amount you receive from the sale less mortgage and other bills.

Make necessary home improvements. Only make the improvements if the cost will create a justifiable increase in the asking price for your for sale by owner home.

Prepare the for sale by owner home for viewing by buyers.

  • First work on the exterior of the for sale by owner home. Manicure the lawn. Rake the leaves. Spruce up shrubs and trees. Repair fences and touch-up the paint if necessary. Repair shutters, gutters and shingles. Clean and paint siding.

  • Then work on the interior. Brighten up your home by painting with light colors. Remove clutter from your home. Consider having a yard sale to get rid of items you don't need. Clean everything! Eliminate all squeaks, leaks, and rattles.

Obtain the necessary forms. In most cases, you will need sales contracts and disclosure forms. You can get these from any major office supply store like Office Depot, Office Max, etc.

Fill out the forms. Make several copies to have on hand at all time. That way if a buyer accepts your price, the only thing you'll have to do is get his or her signature.

Get a professional appraisal or inspection or both, if desired. While neither of these is required for you to do, the lender and the buyer will often have their own appraisal and inspection done. Having your own completed gives you a chance to make any necessary repairs.

Hire a real estate attorney or escrow. During the process, you will need a third party to hold onto the deed and deposits made by the buyer. You can kill two birds with one stone by hiring an attorney since you will likely need one in the process anyway.

Decide your for sale by owner home showing days. Set the date in the future to give you enough time to prepare it for public viewing.

Start advertising your home. Choose among several methods of advertising your for sale by owner home. From Internet advertising such as www.SellByOwnerListings.com to newspaper advertising, many options are available. Start getting the word out about your home.

Negotiate with serious buyers. If you receive a complicated offer from a buyer, you should review it with a real estate attorney to make sure you completely understand the terms before agreeing to the offer.

Have the buyer sign the sales contract. At this time you also collect an earnest money deposit, which is held by the escrow agent, or your real estate attorney, until closing.

Select a real estate attorney, if you haven't already, to handle the closing. In some states, the lender's attorney handles the closing. In this case, your attorney is your representative during the process.

Recalculate your cash profit from the sale given the final sale price of the for sale by owner home.

Review the settlement statement before closing. Make sure the calculations match your estimations.

Closing day. Bring your driver's license. Collect your cash. Hand over the deed.

Congratulations! You have sold your home for sale by owner!

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