This page tells you how to sell your own house for a good price.
To have success you must carefully follow all the steps.
People who say selling your own
house is difficult are usually trying to sell you information - they have
to make it sound difficult to make their sale. It is actually very easy to
sell your own home for a good price.
This page does not constitute legal advice and you follow the advice or not
entirely at your own risk.
Step 1
Have three real estate agents from different companies come and give you a free
appraisal.Get them to provide their report in writing and listen to the advice
they all give.
Step 2
Calculate the price range, according to the agents. Add
the high values the agents give and divide by 3. Likewise for the low values.
This produces the "agents
range".
Step 3
Establish an objective price for your home. Using the data supplied by the
three agents calculate what your house is worth, as follows. The agents should
have provided you with information on the sales of houses similar to your own
in your area. You need information on at least three properties like yours
that have sold within the last year. Total the sale prices for the properties
and divide by the number of properties. Do the same for the valuations
for those same properties. Calculate the percentage difference between
the valuations and sale price. (Subtract one from the other and divide by the
smaller number, then multiply by 100.) Apply that percentage difference to
the valuation of your property. The result is what you can expect for your
home.
Compare what you calculated as the value of your property with the range
that you calculated for the agents. Agents often
underestimate the value of the property - the lower the price the easier it is
to sell. Also, you will see how they try always to lower your expectations regarding
price (but not regarding how easy it is for them to sell the property).
Step 4
Visit a lawyer you trust. Tell the lawyer you would like him/her to act for you
in the sale of your house. Tell them that offers will be sent directly to them.
Should you have more than one offer then you and the lawyer will do any decision-making
together. Ask your lawer for seven business cards. You can give these to people
who are serious about making an offer.
Step 5
Prepare the house for sale: paint, repairs, garden, rubbish, tidy, and present it well.
Step 6
Take some digital pictures of your house. One outside and one inside.
Step 7
List the benefits of living in your house. Keep it practical, direct, and helpful.
Things like, close to school, close to bus stop, large bedrooms, deck, faces
north, fenced, new kitchen, view of park, whatever. Avoid things like "lovely
outlook", "sunny", "great place to live".
Step 8
Select the newspapers where you are going to advertise. Go for those that
have the most advertisements. The real estate
agents will have told you where they think the advertisments should go. You
may need one local and one regional paper. You should plan on running your
advertisement at least once a week for a month. In some papers it needs to
be twice a week. Do not try to save money on advertisments.
If you want to put your property on the internet do not pay more than $30
for the service, and do not expect much in the way of a result. TradeMe is
as good as anything. People looking for houses read the papers.
Step 9
Have a core flute sign made by a sign maker. Head it "Private Sale". Put two
pictures and as much key information as possible on your sign. Expect to spend
up to $200 on one sign. Make it of good size. Make it look like quality. Do not
try to save money on this expense.
Step 10
In all advertisements and on the sign say: Open home: Sunday afternoons 1pm
to 5 pm. Telephone the Owner: (and give your name). This name demonstrates sincerity
and directness.
Step 11
In the advertisements always give the address of the property.
People with an interest will look over the fence.
Step 12
Set the price of your property in all advertisements and on the core flute: Offers
over $xxx,xxx. Make this price either the middle point of all the real estate
agents figures, or the value you calculated for the property in step 3 - whichever
is higher. Go by the numbers do not have a guess yourself.
Exect your first offer to be about $5,000 lower than what you state as the
"offers over" price.
Step 13
Conduct your open homes on Sunday afternoons. Be open all afternoon and accommodate
people. Talk about the history of the house. Have the rates notice available,
and if possible have the plans available. Anyone interesting in buying
the house will want to see it at least twice and probably more. You must be patient
and wait for long periods. Welcome everyone. Everyone talks and what you are
trying to do is spread the word - it is quite possible that one of these people
will tell someone who is really interested. One of the advantages you have
over real estate agents is that their open homes sometimes are open for very
short periods.
Step 14
Tell anyone who wants to make an offer that this sale going to be done without
real estate agents. Tell them that by law offers for property must be in writing.
Tell them they should go to their lawyer and have him fax their offer to your
lawyer. Lawyers have the
required forms and can manage the process. Also, you must tell any potential
purchaser everything about your house and its grounds in an open and honest way.
Step 15
The first offer will probably be below the figure you cited in your advertisements.
Tell anyone making an offer that you are going to check round with the others
who have expressed interest before you accept any offer but will let them know
if it is accepted within a week.
Step 16
As soon as an offer is received by your lawyer, place an advertisement in the
newspapers: "Offers are coming in, last chance". Open home Sunday etc.
Make it a large advertisment with a photo.
Step 17
Telephone the people who have expressed interest and tell them about the offer.
Say that the price of the house is now $yyy,yyy. Set the new asking price based
on what you now know about the number of people interested. The basic strategy
of real estate agents is to get people to compete with each other. At this point
you must do just that. Always remember, however, that you set things up and that
the offers all have to go through the lawyers.
Step 18
You
and the lawyer will have to decide to accept an offer at some time. You do not
have to do anything about getting forms or checking records. If people request
an opportunity to have a builder write a report on the house you should arrange
to be there to give the builder access. Ask to have a copy of the builder's report,
and should the sale not happen that can be a document that you show to further
potential buyers.
Step 19
You will have to visit your lawyer to sign the acceptance of the offer. Check
carefully what is in the chattel list. Also, check that you have been open and
honest with the buyer. Accept the offer if it is the best you can do and over
the price you calculated as the value of your property.
Step 20
Once an offer is accepted by you and your lawyer, telephone all others who had
offers in and give them the bad news.
Step 21
The purchaser will want to see the house the day before money changes hands. Give the keys to your lawyer to be handed over when the money is in your lawyer's
trust account.
Step 22
Take down the sign.You probably saved yourself about $20,000. If you want
to thank me, send a $100 donation to your local hospice.
