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Model Agent Real Estate Blog

Wednesday, September 30, 2009
A How-To Guide For Selling Your Home "For Sale By Owner"
first article in a series on selling your home by owner

Selecting the option of selling your home For Sale by Owner (FSBO) requires taking a look at the big picture. Seven percent (7%) is the annual national average of FSBO homes sold to buyers who are not family members or personal acquaintances.

"To be successful in selling homes in this very small market requires Owner Sellers to assume the role of a real estate sales person. If you're not willing to play this star role in selling your FSBO home, save yourself a lot of time and call a REALTOR now. If you are still with me let's move on to Act I."

ACT I: The Plan

Either you plan to succeed, or you have planned to fail. So let's do some planning for success.

What's the reason for selling your house?

The answer to this fundamental question is the core of your marketing plan. Simply put: No reason to sell equals no motivation. In this market, buyers are rapidly eliminating sellers who are not motivated. If you are thinking I don't really have to sell, do yourself a favor don't put your property on the market until you are ready. Sellers, if you're are motivated and ready to go. Let's find answers to these most common top ten questions.

  1. What price do I ask for my house?
  2. What determines market value?
  3. What are the steps in making my house more marketable
  4. Who are the potential buyers for my house?
  5. How do I expose my house to these potential buyers?
  6. What's the most effective method of showing my house to a potential buyer?
  7. How do I know if a potential buyer is qualified to buy my house?
  8. What's the best way to negotiate when I get an offer?
  9. What's in a sale contract?
  10. What's the bottom line from the sale of my house?

Those 10 questions require immediate answers prior to placing your property on the market.

The foundation block in building your plan is considered to be the most important of all, and is the answer to the first question.

What price do I ask for my house?

The answer to this question in many ways determines answers to most of the remaining nine questions. Prior to answering, let's examine the term "market" as it is used in selling real estate. What does it really mean? You must as least decide on a limited definition of the term market and how your market will affect the sale of your property.

"My market is comprised of buyers looking at similar homes to my own"

Let's keep this simple and start by looking at similar homes to your own that are for sale in your neighborhood, and then expand your list by adding similar homes in similar neighborhoods in your area. These homes will be your competition (also referred to as "Comps") and those homes determine your market. Remember, you're not competing with two bedroom homes if you are selling a four bedroom home.

Next, let's answer the second question - "What determines market value?" before having all the factors to answer the first question "What price do I ask for my house?

What determines market value?

Market value can be defined as the most probable price a property is estimated to bring at a given time and place, when the buyer and seller act prudently and knowledgeable. It is based on the principle that the value of a property will be no greater than that of an equally-acceptable substitute.

In my next blog we will be talking about the second question "What determines market value". This question must be answered before having all the factors to set market price.

Be sure to check back next week for my upcoming blog.

Posted on Wednesday, September 30, 2009 in:

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(Last revision on Tuesday, October 20, 2009)

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Welcome to my new blog! Keep checking back as I begin to add resource documents, links and tips to help home buyers and sellers looking for ideas.

This is also where I plan to inject my expertise into current topics related to buying and selling For Sale By Owner and MLS properties.

Thank you for visiting!

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