Real Estate: How To Be Sucessful as FSBO (for sale by owner)

Seller's Check List 

FSBO with & without Offering Owner Financing

• SELLER'S CHECKLIST:
  
  o Price your house properly: You could hire an independent appraiser or receive a free appraisal from a Real Estate Agent. Most agents offer this service for free because they want listings. Be honest when you approach an agent. Explain that you are thinking about selling your home and you're trying to get a feel for what the market is like at this time.
  
  o Advertise Your Home: Generate traffic by classified ads in local paper, weekly shoppers and/or other weekly publications, online listings. Splurge on a sign for your front yard. And don't forget - Word of mouth.
  
  o Be mindful of the Fair Housing Act:
  Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18) and handicap (disability).
  
  o When Brokers call: You may get calls from local agents trying to convince you that you need to list your house. They may say they have a prospect that's dying to see your property. Remember: if you allow an agent to show your house, you may be liable for his or her commission, even though you haven't signed a listing agreement.
  
  You could request your Attorney to draw up a one time only open listing agreement. Seek your attorney's advice.
  
  o Closing the deal: Gathering the necessary paperwork. Keep in mind you want the strongest qualified buyer
  
  The interest on your note: can be 1 to 1.5 above traditional home loans, but can be negotiable so you don't loose the sale. Based on circumstances: if the buyer is putting down 20-30%, he/she would have a lower interest rate
  *The credit of Payer
  * Employment
  * References
  * Banking-Financial Statement
  *Incorporating a balloon payment. Usually 5-10 years
  * A good down payment. Make sure your buyer will invest some of their own money. This will also show commitment on the part of the buyer.
  
  For a Note Buyer, when purchasing a mortgage note, there are many things to consider. Each note has a risk associated with it. Additional factors to above when not utilizing a Simultaneous Closing is the Amount of Equity in the Property and the Seasoning of note.
• Getting Your House Ready To Sell:
  
  Do you remember the first time you saw your home? What were the features that made you want to buy it? Chances are those same features will be appealing to your buyer. Perhaps there was something special about the patio. Or maybe it was the flower garden in the back yard. How about those special features in the kitchen that impressed you. You liked that large party room. That little pantry off the kitchen that's been so handy. Do you recall how these features looked when you first saw them? Restore them. Bring them back. They are going to help sell your home.
  
  Before you start to promote your home give it a thorough cleaning. Wash the windows. Shine the floors. Polish the furniture. Scour and scrub the kitchen and bathrooms. Give the landscape a good manicure. Curb Appeal is going to make the buyer want to go inside.
  Clean out the garage, attic, basement and all closets. Hold a yard sale to get rid of unwanted items. You can donate anything that doesn't sell to charity (Salvation Army or Good Will etc.)
  
  Make sure the house has a clean fresh smell in every room. Even the closets. Open the windows and air things out. Carpets and curtains can collect bad smells like tobacco and cooking odors. Check bathrooms and basement for mildew odors.
  
  Make minor repairs. Fix squeaky door hinges, old peeling paint, cracked or stuck windows, loose door knobs, crumbling grout between bathroom and kitchen tile, rusty gutters, and sinks that leak and don't drain properly.
  
  The front of your home is where the first impression is made. Make sure the drive-way is clean and free from oil spots. Eliminate moss or mildew build-up on the front steps. The hardware on your front door should sparkle. Take care of paint that's peeling. Add a little color to the porch with a basket of flowers. A nice door mat also makes the front door look appealing.
  
  The entry area will also create first impressions. Repair scratches in wood floors or worn spots in carpets. A well placed mirror can make an entry area look larger, especially with flowers in front of it. Be sure to have the entry closet clean and free of clutter.
  
  Put high wattage light bulbs in all fixtures and turn them on when you show the home. Keep the drapes open so that everything is well lit. Dark areas can send out a bad message. People may think you're trying to hide something. If you have rooms painted in dark colors change them to light colors, such as an off white. Lighter colors create an open look.
  
  Have as much open space as you can. Personal family heirlooms can make the home look like a museum. Put away all the personal possessions and let the buyer see how much room there really is. The buyer needs to have a clear picture how their belongings are going to fit in the house. Remove unnecessary furniture. The more furniture in the room the smaller it looks. Sometimes family pictures can make walls look cluttered. A mirror that is placed in the right spot can make a room feel larger.
  
  Get The Word Out:
  The first thing to do is put up a sign in the front yard. Tell your neighbors. They may already know of someone looking in the area, maybe even a family member. Let people know where you work, a church group or club. If you want to go further, put up notices on bulletin boards. Last but not least, run a classified ad.
  
  Showing Your Home:
  When you have an appointment to show your home, open the windows and air out before any potential buyer arrives. This will get rid of any last minute unpleasant odors that might be lingering. It's always a good idea to have the scent of pleasant aromas in the house. Things like fresh bread,cookies, the smell of cinnamon or vanilla.
  
  Open House:
  An open house can be very effective in promoting your house.
  For Two reasons:
  1)You can schedule the open house at a specific time and day and you'll be attracting a lot of people at the same time.
  2)This creates a spirit of competition. Competition produces action that ends up with a sale.
  
  Place a welcome sign in your front yard or by the front door.
  For security reasons, I would recommend having visitors sign in before they go through your home.
  Have a information circular or flyer on your home that visitors can take with them. The information flyer is good for people who call on your newspaper ad. You can take their address and even mail one to them.
  
  The information flyer should include: Your name, address and phone number. Sales Price and if you're offering OWNER FINANCING,the down payment you're requesting. Mention you'll consider all offers in writing, with the understanding you won't take the home off the market until a legally binding sales contract has been signed and earnest deposit money is deposited with your attorney.
  Respond to all offers and if they are too low, counter the offer.
  
  Your information flyer should also include:Property taxes, insurance and utilities etc..and remember to list the features of your house:
  Square footage, type of roof and age, kind of heat, air conditioning, schools, kind of water heater and age, the lot size, describe the structure, electrical system, bathrooms and kitchen, the rooms size and measurements and public transportation available.
  
  Tell a little about the outdoor features and anything else you feel is unique about the home.
  List any recent repairs or maintenance. When was it last painted or sided, new roof etc.
  Have pictures on display during different seasons of the year. If you're showing your home during the fall or winter, show pictures during spring or summer. The pictures will show the flowers and plants in bloom.
  
  Schedule your open house during peak hours when traffic goes by your house. Put a sign up where people will see your sign as they drive by.
  
  These tips may take some time, but in the end, you will see the reward.