Should I Sell My House FSBO? Do you have what it takes to sell your house?

If you are considering selling your home answer the following 25 Questions (FSBO Test) .

Your answers to these questions will help you determine if you require the services of a real estate professional to help you prepare and sell your home, for the most amount of money, in the least amount of time!

1. Do you have the time, energy and contacts to handle all the aspects of selling your home as a FSBO?

2. If you do it yourself as a FSBO, do you think the results would be as good as or better than if you use a "competent" real estate professional to assist you with your home purchase?

3. Can your personal time be spent better doing other activates, rather than marketing and showing your home?

4. Are you comfortable dealing with contracts and legal issues?

5. Do you have "free" access to legal real estate advice and real estate contracts?

6. Do you have access to the "true" price your neighboring homes sold for excluding, buyer closing costs, mortgage discount points, buyer incentives etc.?

7. Do you know how to price your home?

8. Do you know how to stage your home?

9. Are you available on short notice to show your home?

10. Do you have the ability to pre-qualify a buyer before showing your home?

11. Are you comfortable showing strangers through your home? Are they a security risk?

12. Do you have the time, budget, resources and expertise to market your home as a FSBO?

13. Do you know how to effectively market and advertise your home?

14. Do you know what must be disclosed to a home buyer and what does not need to be disclosed?

15. Do you know what constitutes a legally binding real estate contract?

16. Do you know how to handle a purchase offer?

17. Do you know how to handle a request for closing costs or mortgage discount points?

18. Do you know how to handle the situation if a buyer has a home to sell before they can close on your home?

19. Do you know what appliances and fixtures are included in the sale of real estate?

20. Do you know how to handle a buyer's appraisal that is below your asking price?

21. Do you know how to ensure your home is inspected by only a reputable competent home inspector?

22. Do you know how to handle repair and home inspection requests and repairs?

23. Do you know what you are or are not required to repair or replace?

24. Do you know how to follow up on the buyer's financing to ensure that they will be approved?

25. Are you aware of the legal and financial liability that can come with selling a home as a FSBO if you make a mistake?

Add the number of "YES" answers. If You Answered "YES" to:

* 25 Questions - Do It On Your Own, You Are Awesome!

* 23 to 24 Questions - If you do not use the services of a real estate professional to help sell your home, be sure you have a contingency plan and help for the questions you answered no.

* 21 to 22 Questions - You should use a real estate professional to help you sell your home.

* Under 21 Questions - No question - you should consider using the services of a real estate professional to help you sell your home.

Fact: The number one reason someone sells their home on their own is to save on real estate commissions.

Fact: Most people who shop for homes For Sale By Owner are doing so to get a bargain price and buy the home below "fair market value."

Fact: If your home is not priced below market value most For Sale By Owner buyers will not buy your home.

Fact: The number one reason For Sale By Owner sellers do not sell their home is because it was not priced right, below "fair market value".

Fact: 78% of all homes for sale by owner end up being listed and sold with a real estate professional.

Fact: 86% of all homes are sold by a real estate professional

Fact: 14% of all homes are sold by owner.

Question: If your goal is to sell your home, For Sale By Owner to save real estate commissions and the buyers goal is to buy a home that is For Sale By Owner, so as to get the home below "fair market value".

Who Will Win? The objectives of each party are diametrically opposed to each other. If you concede on the price was it worth all the work and risk to save little or no money? If you do not concede on the price will your home sell to a buyer looking to purchase a For Sale By Owner home for less than market value?

Fact: The best opportunity to get top dollar for your home is to expose it to as many ready and willing home buyers as possible.

Fact: 82% of real estate sales are a result of a real estate professional's contacts through previous clients, referrals, friends, family, and personal contacts?

Fact: Real estate professionals have errors and omission insurance to help cover the liability that can accompany buying or selling a home. Do you?

Fact: Even when a mortgage company says a buyer is approved it does not guarantee that the mortgage company will fund the buyer's mortgage for the purchase of your home.

This is not a solicitation for a listing if your property is already listed with a broker. Realtor & MLS are registered trademarked names of the National Association of Realtors.

This has been provided for general informational purposes only and does not offer legal or financing advice. It is always recommended to seek legal and/or professional representation in any real estate transaction.

Come up with a suitable price. Visit other like-kind properties. Ask three real estate agents what they think the price should be. Consider that they may be trying to get the listing, and that their prices may be inflated because of this. Remember, even in a weak market a property will sell if it is priced correctly. DO NOT OVERPRICE IT OR YOU WILL BE WASTING YOUR TIME!

Purchase and Post: "For Sale" and/or "For Sale By Owner" signs at the local hardware store (Home Depot, Lowes, etc). Purchase "Open House" signs as well. Write your telephone number on the signs in black magic marker.

Advertise: Create an HTML ad for your home and post weekly in Craigslist.com. Advertise in your local paper's Real Estate section. Send emails out to friends regarding the sale of your home.

Open House: Have weekend open houses. Try to have your open house at the same time as others on your street that is listed with brokers. The traffic generated by the brokers' advertising will move onto your home if directed to it with signs, balloons, etc...

Have a Seller's Disclosure Form. Provide buyers with a sheet that discloses any defects in your home. While this protects you later in the deal, it also ensure you that potential buyers know about the defects before they offer, and as a result, will be hard pressed to demand money off after an inspection (when, presumably, the inspector points out the items that you've already disclosed)

Be Patient. Remember that most people who visit your home are either not serious buyers, or are serious buyers that are looking for something else. Do not get overly excited each time a person comes through your door!

FSBO Checklist as a convenient way to keep track of all the things you should do to complete the process of successfully selling your home as a "For Sale By Owner".

Preparing To Sell

___ Understand The Selling Process Completely
___ Ready & Able To Do The Work That Is Required To
Sell As A FSBO
___ Knowing Timeline For Moving Out Of Your Old
House & Moving In Your New Place

Preparing Your House

___ Landscaping In Good Condition
___ First Impressions Are Most Important - Mow
Yard, Edge & Trim Bushes
___ Paint Front Door & Entryway
___ All Clutter Removed
___ Kitchens & Bathrooms Spotless
___ All Appliances In Working Order
___ All Faucets & Toilets In Working Order
___ Change Light Bulbs To Bright White For Greater
Light While Showing
___ Carpet Cleaned & Floors Waxed
___ Clean All Windows, Inside & Out
___ All Rooms Spotless & Orderly
___ Remove Excess Clutter In ALL Rooms

Understand Your Market

___ 1) Am I In A "Buyer's Market"
___ 2) Am I In A "Seller's Market"

Pricing Your Home

___ Visit Competing Houses On The Market In Your
Area
___ Create A "Value Range" For Your House
___ Decide On An Asking Price For Your House
___ Obtain A Good Faith Estimate
___ Calculate Net Proceeds On The Asking Price

Completing Seller's Disclosures

___ Know The Disclosure Rules & Forms Needed For
Your Area
___ Get The Standard Sales & Purchase Contract From
Your Real Estate Lawyer
___ Complete Seller Disclosures On The House

Prepare Marketing Materials

___ Acquire FSBO Sign
___ Acquire Flyer Container
___ Create Sales Flyer
___ Write An Advertisement For Classified
Advertising
___ Create A Home Financing Flyer, GREAT Programs
Here
___ Have Available Neighborhood & School Reports
___ Consider a Home Warranty, Benefits For Buyer -
Increases Value For Your Home

Attracting Buyers

___ Advertise Online
___ Place Ad In Local Newspaper
___ Hold Open Houses On Weekends
___ Ad Placed In Neighborhood Newsletter, If
Available

Handling Potential Buyers

___ Provide Buyer's Information On Your Home &
Screen Unnecessary Inquiries
___ Put Small Valuables Away Before Showings
___ Keep A Log Of Potential Buyers Who You Show
Your House To
___ Follow Up With Each Potential Buyer

Writing The Offer

___ Obtain Contract Forms If Buyer Is Not Using
Their Own - You Can Get These Vital Forms From
Your Attorney or on-line.
___ Know The Typical Elements Of An Offer & Contract
___ Know Your Preferred Time Frames For Settlement
___ Hire A Real Estate Attorney (varies on
individual states)
___ Be Certain Local Requirements For Seller
Disclosures Are Met

Negotiating The Offer

___ Offer Is Presented For Consideration
___ Assess The Good & Bad Points Of The Contract
___ Pre-Qualify The Buyer Before You Sign A Sales
Contract
___ Price Is Acceptable Or Counter-Offer Price Is
Decided Upon
___ Time Frames For Inspections, Financing &
Settlement/Closing Date Acceptable Or
Alternatives Decided On For Counter-Offer
___ Inspection, Closing Cost Contribution & Other
Contingencies Are Acceptable Or Alternatives
Decided On For Counter-Offer
___ Earnest Money Deposit Is Acceptable Or
Alternative Decided On For Counter-Offer
___ Accept Contract, Reject Contract Or Prepare
Counter-Offer In Response To Contract

Handling The Details

___ Home Inspection Completed If Contract Requires
___ Home Inspection Followed-Up On
___ Home Inspection Issues Resolved, If Necessary
___ Other Inspections Completed, If Required By
Contract
___ Roof Inspection (Included in Home Inspection)
___ Electrical Inspection (Included in Home
Inspection)
___ Inspections Followed-Up On
___ Inspection Issues Resolved, If Necessary
___ Property Disclosures Delivered To Buyer, Or
Condo Documents, If Appropriate
___ Property Disclosures Approved By Buyer
___ Property Disclosure Issues Resolved, If
Necessary
___ Buyer Applies For Mortgage
___ Buyer Provides Pre-Approval Letter, If Not
Already Provided
___ Appraisal Completed
___ Appraisal Followed-Up On
___ Appraisal Issues Resolved, If Necessary
___ Buyer's Mortgage Is Approved
___ Open Escrow With Your Title Company Or Another
Source
___ Deposit Earnest Money with Escrow Company
___ Provide Necessary Documents to Escrow Company
___ Survey Is Completed, If Necessary
___ Title Search Is Completed
___ Issues with Title Search Resolved, If Necessary
___ Title Commitment Completed
___ Termite Inspection Ordered, If Necessary
___ Termite Inspection Completed
___ Termite Inspection Followed-Up On
___ Termite Inspection Issues Resolved, If Necessary
___ Buyer Obtains Homeowners Insurance
___ Repairs Required By Contract or Inspections
Completed
___ Settlement/Closing Date & Time Scheduled
___ 1) With Escrow Officer or Closing Attorney
___ 2) With Buyer's Lender
___ 3) With Buyer
___ Final Walk-Through Completed With Buyer
___ Buyer Is Satisfied With Walk-Through
___ Issues with Walk-Through Resolved, If Necessary

Settlement/Closing

___ Review Closing Documents 24-48 Hours In Advance
Of Closing
___ Resolve Issues With Documents, If Necessary
___ Settlement/Closing Day - YOU DID IT!

The Top Three Buyer Turn Offs:

House odors and smells: This is at the top of my list. Pet odors or sickroom smells or huge buyer turn-offs. Some people are used to the house smells and it doesn't really affect them but others might have allergies, etc. There are services that specialize in odor and cigarette smoke removal.

Overall cleanliness: You have to get your home in shape inside and out before it goes on the market. Make sure that the bathrooms and kitchen are sparkling. These two rooms can make or break a deal. Clean, sweep, vacuum, etc. the floors. Make sure that your kid's toys are not sitting on steps or landings, etc. Look for the obvious things that need to be cleaned like your windows inside and out, the paddles on your ceiling fans.

Clutter: Another buyer's pet peeve is clutter. People want to see room and light. Remove your winter clothing from your closet and vice versa for summer clothes. Put all of your items that you usually don't use or are seasonal in your garage or storage locker. Remove the items on your kitchen countertops that aren't used everyday. Most people would expect to see a coffee maker, toaster, toaster-oven, microwave to name a few. Also, remove all of your magnets from your refrigerator and the cereal boxes on top or anything else.

Remember your home has to be in presentable condition at all times. You never know when people will want to take a look at your home. Someone will call from your sign and want to take a look at your home in some cases right in the middle of dinner with your family. Some folks have no regard for your personal life or your time. You may want to set up certain times or days for your showings and open houses.

In my next section I'll give websites you can go to help you prepare your home for sale whether you decide to go FSBO or hire an agent.

Are you looking to increase the value of your home while staying
within your budget? Full remodels, even for one room, can cost many
thousands of dollars, and while the cost may be worth it if you're
planning on staying put, most remodeling projects increase your
home's value by at most 80 or 90 cents for every dollar you invest.
Thus, if you're looking to sell your home right away, or if you're
buying and selling a home for profit, you want to keep your
improvements simple and cheap. Here's how.

Steps

1. Spruce up the yard. Get rid of trash and yard waste.
   Keep your lawn in good condition and mow it. This includes using a
   weed whacker to get in the tight corners and along the edges of
   sidewalks and the house. Trim the hedges, get rid of weeds, and
   mulch the flower beds. If you don't have much to work with, plant
   some flowers or install some landscaping appropriate for your home
   and climate.
   
   
2. Eliminate clutter inside the home. If you're going to be
   showing the house to potential buyers, get the house organized and
   get rid of clutter or put it in storage. A nice, tidy house will
   seem larger and more elegant.
   
   
3. Wash walls and windows. It's a lot cheaper to wash walls
   or siding than to repaint or replace siding, and many times a good
   cleaning will make your home's finishes look good as new.
   Pressure-wash your home's exterior, and wash interior walls. Clean
   your windows so that you can't tell they're there.
   
   
4. Add a fresh coat of interior paint. Sometimes you just
   really need to repaint, but you can do it yourself relatively
   cheaply on interior walls. First, patch up any holes, no matter how
   small. To get a silky smooth finish, apply a coat of primer. After
   the primer dries, lightly sand it with a fine grit sandpaper (220
   grit). Apply the first coat of latex paint, and then lightly sand
   that layer also. Wipe the walls down with a damp cloth after each
   sanding session. Then apply the final coat of latex paint.
   
   
5. Put up fresh curtains and blinds. Blinds don't cost
   much, and curtains can be cheap also. Over time, the sun fades the
   colors from your blinds and curtains, so new ones will make a
   better impression than old ones.
   
   
6. Clean up the carpet. You can shampoo or steam clean your
   carpets, or you can use a dry cleaning system (available from
   various sources, such as Oreck), which requires no water or steamer
   rentals, and which dries instantly and kills virtually all mold and
   bacteria. Apply according to the manufacturer's instructions, and
   then vacuum. If all else fails, get a professional to do the
   carpets for you. You'd be surprised how much better your carpet
   will look after a good cleaning.
   
   
7. Install modern light switches and outlets. Some of the
   new style switches can be easily installed using the wires already
   running to the old switches. Just be sure to turn off the power to
   the room or entire house before doing any work. The new outlets
   look nice, and give the impression that the electrical wiring in
   the house is newer than it really is. Dimmer switches are
   especially desirable, although this can be illegal if the outlets
   are of three prong type while the wiring is two prong. It also
   could lead to trouble if the buyer's home inspectors catches
   on.
   
   
8. Refinish kitchen cabinets. Outdated or worn cabinets can
   bring the whole kitchen down, but refinishing them is relatively
   cheap and easy to do. If you have a dark or small kitchen, make it
   look larger and brighter by using a lighter finish on the
   cabinets.
   
   
9. Up the wattage of your light bulbs to make things even
   brighter. Just make sure you don't exceed the maximum specification
   for lamps and other lights. (You could use compact florescent light
   bulbs in order to make the room brighter without getting new
   fixtures, plus they save electricity meaning they save you
   money.)
   
   
10. Get a professional floor plan company to check on your
    home's square footage, which is sometimes higher what your county
    assessor has recorded. Because homes sell for hundreds of dollars
    per square foot, even a small increase will more than pay for the
    service (typically a few hundred dollars). You'll be able to list
    your home for more money, but at the same price per square
    foot.
    
    
11. Wood Trim and Cornicing are a cheap and easy do it
    yourself idea that can add tons of "WOW" factor to the look of your
    home. Simple ceiling trim and armchair railing are the easiest and
    most typical upgrades found in newer homes. To make an even bolder
    statement, paint the walls a neutral, flat color and paint the trim
    a high gloss white.
    
    

Tips

• Improve the things people can see. Getting rid of highly
  visible eyesores will add the most value per dollar to your
  home.
• Remember the senses. Put out fresh flowers for your open house;
  they make even the most dungeon-like house look inviting. Bake some
  oatmeal or chocolate chip cookies--they invoke good thoughts for
  most people. Then leave them out for visitors. If you don't have
  time to bake, burn a candle or use potpourri. Use smell sparingly;
  some people are more sensitive than others. Consider playing some
  very soft classical music in the background.
  
  
• Consider turning on all the lights when the real estate agent
  arrives with potential buyers,this will help to
  brighten up your house.
  
  
• As a last resort, consider flooring options. If your carpet is
  in really bad condition, you can replace it, or you can restore the
  original hardwood floor. Hardwood floors are very popular right
  now, and in a lot of cases old houses have nice hardwood flooring
  underneath the carpet. Rip up a bit of carpet in a closet or other
  inconspicuous area to check the floor's condition, and compare the
  price of restoring the hardwood to that of installing new
  carpet.
  
  
• Don't be afraid to spend a couple of extra dollars on good
  paint rollers. Those 5- for- $10 rollers will make your walls look
  blotchy.
  
  
• Paint with a neutral color such as beige. It will make the
  house seem larger.
  
  
• Semi-gloss paint will make your walls seem brighter. If your
  walls have imperfections, such as dents in the drywall or cracks in the plaster, consider using flat paint to hide those imperfections.
  Keep in mind that flat paint shows dirt easily and is difficult to clean, so leave it until just before your open house!
  
  
• Install ceiling fans. If you live in an area where warm weather
  is common, replacing built in ceiling lights with ceiling fans will improve the form and function of your home. You can find ceiling fans at a "big box" retailer or at your local hardware store with
  lighting for as little as $20.00 a fan
  
  
• Use floor and table lamps in every room and sheer curtains to
  make your open house more inviting. Lamps give a softer light, and
  the curtains let in sunlight, which makes the room more home-like
  and less clinical. You can pick up decent stuff from garage sales
  if you don't have any.
  
  
• Check the main circuit breaker panel to see if the kitchen, bathroom and garage circuits are protected by GFI breakers. If not, install GFI outlets in those locations. local laws can vary. some cities/counties do not require GFI receptacles. A GFI is usually only needed within a certain amount of feet within a water source.
  GFI outlets are $11.00+, minus the cost of the wall plate. They are expensive, but sometimes mandatory. If there are multiple outlets on one circuit, only the outlet that supplies power to the rest of
  the outlets/room needs to be GFI protected.
  
  
• Clean, clean, clean. Nothing improves the value more for so little of an investment than a good cleaning. Houses that look and smell clean have great market appeal. Even an older house with
  older appliances will fare well if everything is sparkling clean!
  
  
• You may wish to consult with a state licensed appraiser before doing any remodeling. An appraiser can give you valuable insight into what your market area can and cannot support.

Warnings

• Before doing any electrical work on the house, shut the power off to that room from the main circuit breaker. Shutting power off
  to the whole house is even safer.
  
  
• If you don't feel comfortable making a repair or improvement, call a professional. It's better to pay to have the work done than
  to have to pay for extra damage you do.
  
  
• Follow the manufacturers' recommendations for cleaning walls or
  carpets, or you may do more harm than good.
  
  
• Always try to compare the cost of any improvement to the value
  it will add to the house. Many times, the improvement simply won't
  be worth it.
  
  
• Improvements that might not be cost-effective in most housing markets might pay off in highly active or inflated markets.
  
  
• Most Fluorescent bulbs don't work with dimmer switches, so be careful not to put them together. Unless the bulb's packaging indicates dimmer compatibility, assume that a dimmer will not
  work.