The real estate world’s hustle-and-bustle is quickening in pace—and the prospective home buyers of 2021 are asking, How Do I Sell My House As A For Sale By Owner in today’s market? Here is Richr’s comprehensive guide to being a For Sale By Owner in 2021.
You may be asking, how to sell my home in today’s real estate market? Selling one’s home to move up in the world can be inspiring—but it can become immediately daunting if one’s resources wear thin. For some, pre-existing budgets can make the difference between a dream home purchase and an incredibly expensive, exhaustive buyer’s slog burdened by middle persons, yellow tape and hefty commission fees.
Let’s face it: Even if one’s professional real estate providers are incredibly skilled—helping them find some of the best listing imaginable—the following service charge can be, and often is, incredibly expensive.
If you’re worried about real estate commissions taking a big chunk out of your deal, you still have options. Selling your home privately, in most cases, tends to be the direct alternative.
How to sell my home Privately as a For Sale By Owner?
You’ve probably heard that it’s impossible—or at least incredibly irresponsible—to pursue house-selling privately, without agent liaisons to make the ends meet. While this might’ve been true in the past, this isn’t the case in 2021. If you’ve sold homes before, you’re likely in the clear as it is. Even those barely knowing the real estate game’s ropes, today, can start executing transactions without ever paying a commission fee.
If you’ve never sold a home before, completing a zero-commission sale is possible today with us at Richr.com. Selling your home privately can save you a lot of money, in the long run. To do so effectively, however, you’ll need to take certain steps to make sure you’re making effective business decisions. Fortunately, when boiled down, the process of selling your home privately is a lot easier than it might’ve once seemed.
In our comprehensive guide to being a For Sale By Owner in 2021, we will cover the basic steps of private house-selling, first. Then, we’ll take a closer look at two of today’s leading resources for homeowners looking to sell, commission-free: house buying companies like Richr and providers like Redfin.
Prepping Your Home As A For Sale By Owner
How to clean my home before putting it on the market
When considering, “How Do I Sell My House As A For Sale By Owner?” you’ll need to make sure your home is as fit for purchase as possible. Unless your selling a fixer upper or a knock-down, you will want to start with cleaning your home from top to bottom.
- It’s time for a deep clean. You need to go beyond merely dusting and vacuuming. Get into the corners and crevices to make the home shine.
- To ensure that you never overlook a surface when cleaning, have a plan. Clean every room from top to bottom, and left to right, and don’t neglect the ceilings. Remove any cobwebs that may be lurking.
- Make sure the kitchen and bathrooms, in particular, are thoroughly cleaned. These are the rooms buyers will spend the most time in as they are inspecting your home.
- Clean your front door and entryway as dirty stains can put buyers off and give an unkept feeling to the property.
- With coronavirus as it is, buyers may expect kitchen cabinets to be left open so they can see the quality of the cabinets, so make sure these are clean too.
How to sell my home and declutter before listing your house for sale by owner
- Simply cleaning is not enough for many homes. In today’s society, most homeowners have more items in their home that can comfortably fit. You must declutter to show your home in its best light. For example, you may love your vast book collection but if it makes your home look cluttered, pack it up!
- To start, remove any of the personal items from your home that may make someone else feel like a guest. Examples of this include your children’s artwork, family photographs or heirloom pieces that you love, but that does not fit your home’s overall decor. Pack these away for enjoying in your new home. Remember, the goal is to create a space potential buyers can easily picture their own family in.
- Remove items from your home that you no longer love, enjoy or need. Recycle, trash or sell these items, but get them out of the home.
- Then, look through your home to find items that you can live without for the time when your home is on the market. Things like your seasonal décor or large toys can go into storage while you have the home on the market.
- Finally, determine if there are any pieces of furniture you can remove temporarily to make the home look larger.
Homes look larger and fresher with less STUFF, so clean it and have a clear out to help your home look its best for its date with buyers!
Should I fix up my home before I sell my home?
As you prepare to place your home on the real estate market, you may want to make improvements to help raise the home’s true market value. From updating an old bathroom to changing out the front door, some home improvements can bring a good return on your investment. But, what exactly should you improve on first, if at all?
Before making any home improvements, take into consideration the state of the current home market and buyer’s trends. You don’t want to make improvements that will price your home well above other properties that are up for sale in the neighborhood. You may turn away buyers who simply can’t afford to purchase a highly-priced home in a low-priced neighborhood.
Also, think objectively. If you have a dated house that has only had minor upgrades since the 1980s and 90’s, then look around your community and see what new owners have done to similar homes. Ask yourself, is a buyer in my area more likely to buy my house and:(1) keep it much the same (it’s modern and gorgeous) (2) undertake some superficial updating (it has great bones but is dated) (3) completely gut the inside (new mechanical, electrical and plumbing) (4) knock it down to rebuild.
In scenarios (1) and (2), it is probably worth investing money on decorative upgrades and partial improvements to attract buyers who don’t want a huge project.
In scenarios (3) and (4), it might not be worth investing in partial upgrades as buyers are going to be valuing your house by the size of its shell or at land value.
Always Do Mechanical Repairs or Replacements First: While repairing or replacing the mechanical systems, such as the furnace, plumbing, electrical systems, or water heater, may not seem like glamorous improvements, they are top selling points for buyers. Knowing that the air conditioning system won’t break down in the heat of summer, and not needing to find a more energy-efficient water heater can bring peace of mind to a buyer.
Structural Improvements are a Must: A roof is another big-ticket improvement you may also consider. An old roof can scare buyers who don’t want to deal with the expense or hassles of fixing the roof the moment they move in. Also, the roof can impact a buyer’s financing when they are using specific home buying programs, such as FHA financing or Veteran’s Administration financing.
Besides the roof, also take a look at the foundations. Leaking and cracked foundations can impact a home sale and lower its market value. You want to ensure the house is structurally sound before placing the property up for sale.
Energy Efficient Improvements: Many buyers will search for homes that have energy-efficient features. These features won’t put a strain on their daily finances in maintenance, upkeep, or utility costs. You can add energy-efficient doors, windows, and appliances to the home. You may also consider placing in energy-efficient central air, furnaces, air conditioners, or water heaters. More budget-friendly improvements can consist of changing out old lighting and plumbing fixtures to add ones that conserve more water and electricity.
Partial Upgrades on a Tight Budget: Since you may be spending a lot of money on necessary repairs, you may not have the large budget to make sweeping improvements throughout your house. Instead, consider making partial enhancements if you are looking to update old kitchens and bathrooms. Replacing flooring and countertops can significantly pay big dividends. Also, consider replacing the hardware on cabinets, or upgrading kitchen backsplashes and bathroom tiles.
How Much Should I list my House For?
As a seller who chooses to sell commission-free as a For Sale By Owner —it’s important to make the most out of any resources available to you to determine the home’s fair market value. You can check out the sold price of properties in your neighborhood by looking on your local property appraisers site (many show comparable properties that have sold in your neighborhood), on consumer sites like zillow or realtor, or by taking a look at home value estimators like Zillows Zestimate. Remember that estimators are just that, estimators. They do not know the interior of your home or the quality of your finishes, so you are best placed to gauge the correct listing price for your home.
How do I manage viewings as a For Sale By Owner?
Selling your Florida home is an exciting adventure that can be very rewarding. As part of this journey, you’ll have to market your home, manage showings, and arrange for in-person open houses (when they are permissible again!). While this might appear like a lot of work, there are a few tips that you can use to make life easier, while simultaneously making your home appeal to prospective buyers.
Showings are a significant component of selling your home. Fortunately, through the following tips, you can remain organized and have a positive experience while prospective buyers fall in love with your Florida home.
How do I prepare to sell my home for a viewing?
Remove items of value. You don’t want them to go missing!
Keep your family and pets out of the house during all showings. You want buyers to picture their own family there, not yours.
Make it smell nice: Make sure that your home is pleasant smelling, without being overwhelming. Avoid strong cooking smells like onions and fish. Keep in mind that some people have allergies, so fresh flowers can often be hit or miss. Scented candles and baked bread or cookies, on the other hand, can be enticing to people’s sense of smell.
Provide information: Place one-page fliers with a flattering picture of your home, an engaging description, the listing price, and your contact information in the entry hall and the kitchen. You can also place a bowl by these fliers to collect business cards and a sheet to capture contact information from interested buyers or their real estate agents.
Be a great host: Welcome viewers to your home and thank them for coming.
Have support: If it makes you feel more relaxed, you can have a friend or spouse with you as you host a showing. A comfortable host will make potential buyers feel more at ease.
How do I keep track of my viewings to sell my home?
Use a scheduling app: Reduce stress and stay organized by using a free schedule app, such as Calendly, to schedule all of your open houses and showings. Make sure to send calendar invites to the buyers (and if applicable, their real estate agent), for any individually scheduled home showings.
Virtual phone number: Don’t forget you can use a virtual phone number to manage calls associated with your viewings, such as Google Voice.
How do I Advertise My Open House to sell my home?
Let people know about your upcoming open house by placing signs in front of your home. This traditional but proven tactic helps spreads the word amongst your neighborhood. If your open house is on Sunday, make sure that you post the signs by the proceeding Thursday, and promptly remove them on the Monday after the viewing. You can also update your listing on the MLS. Use social media to spread the word about your upcoming open houses with a Facebook post.
What day of the week is best for an open house to sell my home?
Generally speaking, the weekends are the optimal time for an open house. However, if your schedule is flexible, you can also schedule an open house mid-week to appeal to buyers who are otherwise occupied on the weekends. Between 12-2 pm or 2-4 pm are common timeframes.
How do I get buyers to make an offer to sell my home?
After you have completed a showing or hosted an open house, it is essential that you follow up with interested buyers. To do this, you can start by sending them an email. Depending on their response, you can also follow up with a phone call. While it is crucial for you to stay in touch with interested buyers, you don’t want them to feel overwhelmed or pressured by your communications.
Remember, through honesty, respect, and an understanding of the buyer’s needs, you are more likely to have positive interactions that result in a quick sale.
How Do I Sell my home for a Cash Offer?
A cash offer is an all-cash buying offer in which the seller doesn’t require the buyer to have a mortgage. In most cases, a cash offer buyer doesn’t need to have financing support, either: They’re willing to pay directly in cash to close the transaction, which can certainly be a benefit to both parties—as it circumnavigates the often-lengthy underwriting processes involved with homebuyers getting loan approval.
Selling for a cash offer is simple enough, but it’s important to consider selling at a lower price in exchange for transaction brevity. You can also sell your home to a cash buying company if you so choose. Beware that these types of companies called iBuyers charge as much as 9% in finance fees to buy your home quickly, which can compare to agent fees for putting it on the market.
Are Companies that Buy Houses for Cash Legit?
A cash-for-houses company like Opendoor, Offerpad, or Zillow Offers, buy homes which, typically, need to be remodeled—operating on a cash-in-hand basis. Packed with many resources typical market buyers simply can’t afford, these companies can be the quickest option to sell your home—if, for whichever reason, you prefer a simple, quick, transaction experience.
Are these companies a scam? No—they’re legitimate businesses. They profit on their niche service, which is purchasing homes that would normally be difficult to sell or for sellers that need to sell in a hurry.
Be wary about the offers you receive for cash buyers for homes purchased unseen because they are likely to have a high margin in there for unknowns. They will try to take advantage and attempt to flip the home and make a profit for the difference.
Is For Sale By Owner Worth it to sell my home?
Fortunately, within the FSBO market, you have MLS listing options like flat fee MLS options or free MLS listing options at your disposal like Richr. These listings are powerful tools to use and help buyers and sellers get a better picture of their local market at large. Before negotiations even begin, however, there’s another option you should consider:
The use of MLS listings, as well as brokerages grounded in their use—such as Redfin if you want agent representation.
Is Redfin Really One Percent Commission?
Real estate brokers combine the individual listings of each real estate agent, enabling the depiction of highly accurate appraisals via innovative databases. One such brokerage is Redfin—a provider well-known for its proposed one-percent service commission fee, which is presumably quite good. But is Redfin’s commission claim true?
Technically yes—emphasis on the technical part. To receive a one-percent listing commission fee with Redfin, you’ll need to confine your selling market to one of the 27 per cents of markets Redfin serves. The one-percent fee is also subject to change. To achieve it, you need to sell your home via a Redfin agent. Then, you’ll need to purchase a new home within 365 days via another Redfin agent. The one-percent commission fee can’t be less than $6,500, either.
Reaching the Signature Line
It’s important to remember that the real estate world has an underlying golden rule: buyers and sellers incur most financial burdens before, during, and after any transactions occur, regardless of any external help they employ, or any commission fees they pay.
At the end of the day, it’s up to you whether you’d like to sell your house without paying commission fees. At least now you know important aspects of “How Do I Sell My House As A For Sale By Owner?”. As we’ve seen above, you have a number of viable roads to take. You may increase your negotiating flexibility as a seller when it comes to price-talk due to the commission savings you are benefiting from. You can still come out ahead, financially, once all expenses are tallied up. And, with a keen approach to fiscal planning, you can even discover new, profitable avenues before ever reaching the signature line. We hope our comprehensive guide to being a For Sale By Owner in 2021 was helpful!