10 TIPS on Selling Your Home Yourself....the Great, the Good and the Bad!

Hey everyone,

Today's post is on a possibly sensitive subject.......Selling Your House Yourself.

Sell-my-house-fsbo.com

Now I'm no Real Estate Agent, but I do like to dress up and play one when I'm selling my houses myself! lol  

No, I don't tell them I'm an agent, I just get to give house tours of my home, and hear nice comments.....it's pretty fun!

Ok, now back to the post. 

So this will be a pretty open and honest post about the pros and cons of selling your home yourself. I've dabbled in real estate for many years now, and this will be the third house I've sold.....possibly not by myself, but we'll get to that later. 

PROS:

The great thing about selling your house yourself is that 

1. The process is not rocket science (in my opinion). Yes, it takes some time, effort and googling, but it really is do-able!

2. You can save yourself thousands of dollars! ....and I have! You are not paying your own agent, who usually requires around 3% of the house sale. This can really add up! Especially if your house is worth some money! (keep in mind, some agencies ask for less commission). 

3. It can be a fun learning process. I really enjoy it!

* At the end of this post I'll give you all my tips on selling your own home. 

CONS:

1.  You do have to educate yourself in the area of what the other houses that are like yours in your area are selling for. These are called comparisons, or "comps". 

2. You also have to educate yourself on the home selling process and print some paperwork off line (if the buyers don't have a real estate agent).

3. You will (most likely) need to host your own open houses during the week or on the weekends (whatever days are customary in your area).

4. You may be boycotted by real estate agents in your area! Truly!

5. If you are only going off word of mouth, and Craigslist, it might be VERY difficult to get it sold in a market like we have today. (this is why I encourage purchasing an MLS....more on that in a bit)

We sold two houses in Hawaii by ourselves. It was a great experience. One sold in a week and the other was bought by the renters. I had no problem getting people to come look at the houses! 

I'm selling our house now and it's a different ball-game!  I've had one showing in three weeks! This may be an area and a market where I need a real estate agent! ....just keepin' it real!

FYI:

If you don't know the prices involved in selling a house, it is customary to for the SELLERS to pay 3% of the house selling price to the buyer's agent, 3% of the house selling price to the seller's agent (if they are using one) and 1% to the escrow service. BUYERS don't pay an agent. They typical also pay 1% to escrow.  Now....keep in mind, agent's commissions are negotiable, and escrow costs will depend on a lot of different things, and are also negotiable....but I'm just giving you a general overview.

If you are up for trying to sell your house yourself, these are my suggestions:

1. Purchase an MLS! This is a spot on the Multiple Listing Service. This is what all the Realtors check and search. There are agencies that sell these.  In Hawaii, the agency that sold these was easy to find. In Washington, it was actually difficult to google and find one, but I eventually did! I've paid anywhere from $500-$600 for an MLS, and it has been WELL WORTH EVERY CENT! Otherwards, you probably won't get enough traffic from a sign in your yard and Craigslist postings. You might....depending on where you live and what your price is, but just sayin' the Realtors will have your listing if you purchase one! 

1.5.  I know it's wierd to have a number 1.5, but I forgot to tell you how I find comparisons, and I want to throw it in here without changing my numbers. 

Some houses are easy to "comp" (find comparisons for....remember you're finding comps to know how to price your house). Some houses are in cookie cutter planned neighborhoods and there are a lot of houses that have sold that are almost just like the one you're selling! Look at all those house prices. Make sure they have the same number of bedrooms and bathrooms, and about the same amount of sq footage, and about the same amount of upgrades and then throw out the high price and the lowest price and look at the other listing prices and that's probably around what you should be listing your house for. 

If you live in an area that doesn't have many comps, I start going around and collecting flyers a year or two ahead of time (not kidding). I look at how similar they are to my house, I file it away, then I get on the county assessors website and find out what they sold for. I have to take my best "guestimate" on what my house is worth.  I search for houses like mine on many local real estate websites. 

In Hawaii, they had a WONDERFUL site that I could even search by neighborhood! Here in Washington, I have to get on different sites, I eventually realize what sites are easiest to search in and use them.

2. Put signs in your yard with flyers! I'm a visual person, so I like the the colored ones with pretty pictures, but use a program to make a flyer and state all the houses information on it, with your number, the address and the price. I made my current flyer on PicMonkey.com and it was EASY! If you don't know what to put, just look at a couple other flyers. 

3. Do post on Craigslist! I have most my inquiries off of Craigslist. I don't necessarily get a lot of follow-up, or traffic, but I do get inquiries! Often times from Real Estate Agents!

4. Make your house look GOOD! If you aren't design minded, ask a friend that is to help you, and be ready to be able to store some things in someone's garage if necessary! Sometimes less is more!

5. Have open houses. I've never had a ton of luck with these, but I know people who have. I do think it helps spread the word that you're selling your home. 

6. Either purchase a lock box (I bought mine at Walmart for $20), so Realtors can take their clients in without you there,  or put something nice on and show your house to the agent and people coming through. Don't say a lot unless they ask you, unless you want to show them your kitchen pull-out cupboard drawers, or your hidden sewing closet,  or something that they wouldn't see by themselves that would benefit them. But besides those weird hidden things, just walk behind them and observe....don't show them family heirlooms and tell them stories about Aunt Pearl's china set!
Also, get rid of the kids and animals for the showing! If you're going to show your home, be professional.

7. Give it a couple days. If you haven't heard from them, call the real estate agent and say, "Hi, this is so and so, thanks for bringing your clients through the other day. What did they think of the house?" Be professional, be ready to be humble, and then think about the agent's answers. 

8. Offer the buyer's agent 3%!!! I can't stress this enough! They are doing a job and they expect to get paid and they should! If you're selling your own home the buyer's agent is probably going to babysit you a bit as well as take care of their clients, so they deserve to be paid!  I also offer the purchasing party 3% if they don't have a Realtor. 

If you don't offer a commission, they probably won't show your house to their clients, and I can't really blame them!

9.  If you are selling to someone who also isn't using an agent, you can purchase the necessary paperwork off line, at an Office Depot-type store, or the MLS agency may provide you one.  I always sell my houses 'as is" and I always make sure there is an inspection.....even if I'm the seller (the buyer customarily pays for this).  If you are scared of who will tell you what the next step is, usually your escrow agency will. 

10. Be professional! You are acting as your own agent. Be kind, courteous and humble. 

Hopefully this post doesn't anger too many real estate pros out there! I had great successes selling my houses on my own when the market was good. It literally saved me thousands.....and thousands of dollars. I wouldn't have changed that for the world! It was also a very fun experience!

On the other hand, the market is not what it used to be. I have purchased an MLS here with not a lot of luck. This may be a market (and area) where I will need a professional. I'm a DIYer at heart and it is worth it for me to try to do it myself (I also have a lot of time to sell, so experimenting is ok in my situation), but I'm also realistic and will be having a few Realtors come over and give me there thoughts on prices and their game plans if the traffic doesn't pick up.
I'm going to let your comments fly on this post. I'm probably going to get some written lashings or something, (try to keep it somewhat positive). Say your thoughts. I'm not an expert, agents have a LOT of experience, all I can give is my small amount of experience, but I do think I am offering some information that people don't know out there, so that's why I posted it. Overall, I'm glad I do it this way, even if I doesn't work for me this time.  

So those are my thoughts on selling yourself. If the market will supports it, and the Realtors in the area will be supportive of you,  you can save thousands of dollars, but on the other hand, you might be out some time and $500 for an MLS that doesn't do you much good. 

--Katie

Posting to:
Mondays: The DIY Showoff Project Parade Made by You Mondays Embellishing Life Everyday Just Something I whipped up Monday The CSI project Menu Plan Monday C.R.A.F.T. The Southern Institute Making the World Cuter Thrify Décor Chick Metamorphosis Monday Sumo Sweet Stuff Gunny Sack Singing Three Little Birds DIY Homes Sweet Home Dittle Dattle1929 Charmer Everything Under the Moon ModMix Monday Sew Stylish Sew Can Do Everything Under the Moon Manic Monday Alderberry Hill Between Naps on the Porch

Tuesday: http://savvysouthernstyle.blogspot.com/ Blue Cricket Design Somedays Crafts Sew Much Ado Sew Woodsy Handy Man, Crafty Woman {Primp} Midweek Fiesta Rae Gun Ramblings Polkadots On Parade Petals to Picots The Southern Product Queen Sew Crafty It's Overflowing Northern Cottage Primitice and Proper Stories from A to Z Destination CraftThe Pinkatamus Gingerbread Home Happy Home Today's Creative Blog The Melrose Family Growing Home Romance on  a Dime New Nostalgia

Wednesday Blue Cricket Design Somedays Crafts Sew Much Ado Sew Woodsy Handy Man, Crafty Woman Savvy Southern Style {Primp}Midweek Fiesta Rae Gun Ramblings Polkadots On Parade Lollipop Cards JAQS Studio Let Birdz Fly Let Birdz Fly My Girlish Whims Restored it Wednesday It's Overflowing Uncommon Eye Heart Ginger Snaps and Crafts Tutus and Tea Parties Kampen Lane Designs Southern Lovely Coastal Charm

Thursdays: Transformation Thursdays Somewhat simple Show off your stuff House of Hepworths Delightful Order My Simple Home Life The Frugal Girls Thrifty Thursday DIY Diva Thursday Tablescape Thursday No Minimalists Here Crafty, Scrappy, Happy Thrifty Decorating Between U and Me Thrifty and Fabulous Shabby Creek Cottage The Vintage FarmhouseCraftionary The Vintage Farmhouse I've Gotta Create Embracing Change Live Laugh Rowe Redoux Interios Made in a Day Shabbilicious Friday 

Fridays: The Shabby nest Show and Tell Friday Finding Fabulous I’m Loving it Simply Sweet Home Whipper Berry Chic on a Shoestring decorating Spunky Junky Delicate ConstructionHomemaker in Heels Family Ever After French Country Cottage Common Ground Young And Crafty At the Picket Fence Fingerprints on the Fridge Miss Mustard Seed Addicted to Decorating Bacon Time with The Hungry Hypo Making Lemonade I Can't Stop Crafting Over the Big Moon Shabby Art Answer is Chocolate 5 Days 5 Ways Petals to Picots Country Mama Cooks Classy Clutter Hating Martha Mom 4 Real Here Comes the Sun Days of Chalk and Chocolate  Create. Craft. Love: Pomp Party Remodelaholic Ivy and Elephants Homespun with Love

Saturdays: I heart nap time- Sundae Scoop Tatertots and Jello Be different Act Normal Funky Junk 2805 Making Lemonade Blog I am Along for the Ride Lolly Jane Raising Oranges The Tattered Tag Meg and Mums 6 Sister Waywayd Girls' Crafts Curb Alert

Sundays: Homemaker on a Dime Sunday's Best CRAFT

Delightfully Noted Blissful and Domestic

Jennifer Rizzo's  Summer Pinterest Challenge

Wed morning