8 Steps to Selling a Property “For Sale By Owner”

Step 1. Preparing your Home to Sell
Presentation is everything! Home buyers are attracted to clean, spacious, attractive houses that are move-in ready. Brighten-up the property and remove all clutter. Simple visual improvements such as trimming trees, planting flowers, cutting grass, shampooing rugs, and even re-painting a faded bedroom will greatly enhance the appeal of your house. Also, make sure your house smells good. That's right, pet odors and smoke do not help sell properties. Invite a neighbor or friend over to walk through your house like a buyer would. Get their opinion on how it "shows."

See our Preparing Your Home To Sell tips for additional guidance on preparing your home.

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Another way to correctly price your house is to find out what other homes, similar to your own, recently sold for in your neighborhood. Talk to other home sellers, check out the real estate listings in your local newspaper and the Internet, and search the Jackson County property appraiser’s web site for recent sales in your neighborhood. Set your house selling price just under a whole number, such as $259,900 rather than $260,000.

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Step 3. Consult a Real Estate Lawyer
Having a real estate lawyer at your side provides peace-of-mind. An experienced real estate lawyer can help you evaluate complicated offers, act as an escrow agent to hold the down payment, evaluate complex mortgages and/or leases with options to buy, review contracts, and handle your home's closing process. They can also tell you what things, by law, you must disclose to buyers prior to a sale and can also help you avoid inadvertently discriminating against any potential buyers.
Some title companies will handle all aspects of the transaction and have in-house legal departments that can assist you with legal issues that may arise.

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Step 4. Marketing Your Home
LSFSBO.com will market your property not only locally but nationally and internationally twenty four hours a day, seven days a week.  LSFSBO.com will be on the largest search engines so that buyers will be able to find your property. The yard sign will have your phone number and Web ID number.  This will allow potential buyers to contact you directly and find out more information about your property on the website. 

Write an effective ad

Most home buyers quickly scan ads, so it is important that your house stands out. For example, you may want to add a theme-line such as "Priced below market" or "Great schools." Survey our website and see how others have written their ads. You will quickly see which ads are "buyer friendly."

Home Photos: A picture is worth a thousand words

If you are taking a photo of your home, be sure that the home's yard/driveway is uncluttered. Remove bikes, garbage cans, and parked cars. The same applies for interior shots. People are looking to buy your house, not your possessions. Think of furniture as props and the room a stage. Move things around if you have to. Sometimes renting a storage unit and removing clutter is a good idea. Take up to seven pictures with a digital (recommended) or 35mm camera. The photos can be emailed or mailed to us to scan. (Mailed photos will not be returned.)

Lawn signs

Lawn signs are one the most important marketing tools for home sellers. They attract attention to your home. Directional signs also help drive buyers to your property, especially if you do not live on a busy street. Determine the best location for your sign by looking for a spot that can be easily seen from the road as cars drive by. Indicate this location on the worksheet. Please contact your local Diggers Hotline (1-800-344-7483) to determine if any buried electrical or gas lines are present in the selected location. (LS FSBO is not responsible for any damages to buried electrical, plumbing, or gas lines.)

Open houses

Open houses are sometimes a good way to attract buyers to your home. Typically open houses are conducted because they are a good way to attract buyers, not just for the open house but for all houses for sale in the area (yes, your competition).  If there are other open houses in your neighborhood you can get some of the drive bys to see your home if you also run an open house.

Home Information sheets

It is a good idea to create an information sheet (with a photo) about your home to give potential buyers. As part of our service you are able to print brochures to hand to buyers or put in the brochure box for potential buyers that visit your home.

Showing your home - You are your home's best salesman

Who knows your home better than you?  Buyers will be able to ask the seller questions and get the answers they need.  You, as the seller will control when and how you show your property. Showing your home can include both individual appointments and open houses. Have brochures and completed forms (see Step 3) ready to hand out to potential buyers. Be sure to answer all questions honestly. On the day of the appointment, make sure your home is clean and presentable.

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Step 5. Negotiating an Offer on Your Home
When a buyer makes an offer (this is often presented to you directly from the buyer or through their lawyer), you should consult with your attorney. Many offers can be complicated and contain special clauses that favor one party over another.  Purchase price isn't everything. Carefully consider the purchase contract's other terms and conditions.

Assess your buyer's financial qualifications

Is the buyer pre-approved? How much of a loan is the buyer seeking? Lenders tend to shy away from underwriting a deal in which the purchase price is higher than the nearest comparable sale and the buyer is putting down very little money. If this is the case, your buyer may not be able to obtain financing.

If you feel the home's offer is insufficient, make a counter offer. Rarely is a first offer the buyer's absolute highest price they are willing to pay. Negotiating is part of the home selling process.

When you accept an offer, it is common practice to accept earnest money. This shows the buyers interest and deters them from backing out of the offer. The deposit can be any amount you agree upon, but typically ranges between $500 - $3,000. The money can be held by the seller or in an escrow. An escrow account can be opened through title companies, attorneys, banks, or an escrow service.

In the offer, the buyer may have included some contingencies. Contingencies are items such as home inspections, termite, well and septic, financing, appraisals, and others.

To provide evidence that the property is free and clear of any liens and encumbrances you will need to purchase title insurance. The insurance can be purchased through your local title insurance company. Obtaining title insurance may take a few weeks, so you may want to do this as soon as possible.

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Step 6. Home Inspections
All standard real estate contracts are going to give the prospective home buyer the right to inspect your property.
If you are concerned about how your home will fair when inspected, you may want to visit your local inspector. They can conduct an inspection for you before a potential buyer has one done. This way, you can address the problems before a buyer stumbles upon them and you can show the inspection reports to potential buyers if you desire.

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Step 7. Appraisals
If there is a loan involved the mortgage lender will order an appraisal of your home. They may also order a surveyor to make sure that the property boundaries are properly laid out. They will also order a title search. These tasks are all the responsibility of the buyer and/or their attorney.

Prior to closing, if you have a mortgage, you should notify your lender that you will be paying off your mortgage. After a closing date has been agreed upon, you should contact your utility providers and advise them of your final billing date.

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Step 8. Closing
The day of the closing, the property's buyer will do a "walk through" to make sure all agreed repairs are completed and that the home is in the same condition as when the buyer made their offer.

You may close with an attorney, or with a title company. At the closing, all monies will be collected, any existing loans or liens will be paid, the deed will be transferred, and insurance will be issued insuring a free and clear title.

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Disclaimer: This step-by-step home selling guide is a general overview of the process when selling a home, it may not include all the steps required based on your specific situation. Most sellers are more than capable of selling their own homes.  Many of the steps outlined will be done by the sellers and buyers with the help of their title company. If you have questions or concerns feel free to consult a real estate attorney or your title company.

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