For Sale By Owner

Every Realtor knows that a homeowner can sell their own home. What most homeowner's don't know is that Realtors sell  homes for more money.  According to The National Association of Realtors (NAR), Realtors  in 2005 for sold homes for an average of 16% more than a FSBO

The information you need before you try and sell your home yourself! But first ask yourself these 4 questions.

• Do I know the competive market value of my home compared to similar homes in my neighborhood? Or, am I likely to price my home to high and limit offers, or too low and lose thousand of dollars of hard-earned equity?
• Do I have the expertise and time to screen unqualified prospects before showing my home? Am I prepared to leave work at lunch for showings and rearrange my schedule so I'm available every night and weekends?
• Do I know all the financing options and zero down programs available to buyers? Will I get stuck with buyers with poor credit?
• Do I have the knowledge to handle legal binding contracts before an offer is presented of disputes after an offer is accepted on my most valuable asset?

You may find the process of selling your home very easy or it may turn out to be more complicated than you imagined depending on the transaction. Here is a list of 10 things you need to be familar with in order to have a successful sale.

1. Escrow Company-Select a good Escrow company. Escrow is a neutral third party that facilitates the transfer of property and money. Some of their duties include: preparing escrow instructions and ammendments, determining legal ownership, request for demands, verify that buyer is qualified and meets lenders requirements, confirm property meets requirements, prorate taxes and insurance, have legal documents recorded, comply with time limits in insructions, disburse funds, close escrow when instructions have been fulfilled and prepare closing statements for both buyer and seller.
2. Closing Costs-Understand and be familiar with Closing Costs. Closing costs include but are not limited to: taxes, insurance, assessments, liens, escrow, title, commission, inspection fees and miscellaneous fees.
3. Title Insurance-Title Insurance guarantees the you are getting something for your money when you buy real property. Title insurance guarantees that the ownership of the property you are buying is just as it's states in recorded documents.
4. Lender-Have lender information available to prospective buyers. Make sure your buyer is pre-approved through a reputable lender or bank. Know the difference between pre-qualified and pre-approved.
5. Appraisal- This process consist of several steps: research subject property size, bedrooms, baths, lot size and square footage. Subject property will be compared to similar properties within a one mile radius and sold in the last 6 months. These are called Comparable Properties. The appraiser will also do an interior and exterior inspection of property which will include photos.
6. Home warranty- On a typical home costs approximately $275-$475 and will cover major systems. Price may vary depending upon additional coverage. This policy will provide coverage for the buyer for 1 year and can be renewed. In the event of a problem a deductable charge $40-$60 per claim and they will send out an approved repair company to take care of the problem.
7. Inspections- A home inspection and termite will be peformed by most buyers. Other inspections that may be necessary are septic, roof, mold, pool and spa. Repairs are negotiated between buyer and seller so it is important to know the condition of your home.
8. Showings- Showing your home requires that you are available daily which includes weekends. You do not know who will be entering your home so make sure all valuables are safe or in another location. Be careful. Working with a Real Estate agent can solve this problem because they pre-qualify prospective buyers first.
9. Advertising/Marketing-Make a professional flyer with photos, have an open house, Harmon Homes, classified ads, be sure to talk to your friends and neighbors, are some of the ways to get buyers to your property.
10. Documents and Disclosures-Be familiar with all documents, reports, disclosures, statement of insurability and certificate of retofits that you will be required to provide to the buyer. These will include a Natural Hazard Disclosure, Transfer Disclosure Statements and Statement of Insurability. Other documents may be required depending on the transaction and Real Estate Brokerage involved.

Other Items You Might Need

• Blank/sample purchase agreements
• Mold disclosure forms
• Seller disclosure forms.
• Pest inspection/termite inspection
• Detailed flyers from a home lender illustrating the best home loans available on your home. These flyers are great because they clearly illustrate different home loan options available to prospective buyers.
• Copy of the plat map for your street or subdivision.
• For sale signs.
• "Buyers Cost Sheet" for prospective buyers. These forms are customized for your home and clearly portray how affordable your home is when considering income tax savings and future appreciation.
• Title insurance and Escrow companies selected
• Title and Escrow information and forms.
• A customized feature sheet on your property, with photos laser-printed.
• Fax-on-demand so that buyers can obtain up to 4 pages of printed information on your home anytime, 24-hours a day.
• Open house signs.
• Photo and advertising information for newspaper.
• A list of all homes in the area (or on your street) currently for sale.
• A list of all homes in the area (or on your street) recently sold.
• A list of all homes in the area (or on your street) recently for sale but that expired unsold.
• Property survey request forms.
• How to finance this home information from a lender.
• Home warranty information and application forms.

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