Why one should sell privately?

The main reason for selling your home privately is to save money. Why pay outrageous commissions to real estate agent, why not keep the big fat commissions to yourself and make a large down payment on your next dream house. Why not hang to your equity that you have worked so hard for, rather than give it away to real estate agent selling your house on your own privately without a real estate is easy. By not paying agents commissions you can save up to $25000 on a $500,000 dollar house. This is calculated using an agent’s commission of 5%; however they can often be higher than this.

Wouldn’t this money be better in your pocket rather than the agents?

How to Sell Privately..?

Once you’ve decided to sell privately all you have to do is follow these steps, and you’re on your way to save thousands of dollars by selling your house or property privately.


Step 1. Study the market in your area
To ensure you have a good understanding of the current real estate market in your area, take the time to study current trends and pricing. Take particular notice of houses similar to yours, in your area. Look at the advertised selling price vs. the time the house has been on the market. Look for the properties that have sold in your area, this will give you a good idea of current market value, as those houses have actually sold at that price. You can find this information out by yourself by looking at real estate internet sites, however there are companies that will provide current real estate statistics for your area, generally at a fee. Just type “real estate statistics” in your search engine and you will get this info.


Step 2. Your home must be priced correctly.
Setting the right price for your house is very important, as a house that languishes on the market for too long will become stale, and buyers will wonder what is wrong with it, and if you undervalue your house you could lose out on money.

Studying your local area and do the survey of actual prices of comparable homes will give you a good idea on the value on your home, and what price you should set it at. However, it is still generally a good idea to get an independent valuation (not through an agent) to give you a valuation on your house. This service will generally cost a couple of hundred dollars, but will save you undervaluing your house. They will also be able to point out issues with your house, which you will be able to attend to before sale. "Don't be greedy,” One should never assume that home is worth more than the top price of a similar house in the neighborhood just because it's fixed up."

A Real Scenario: An owner who bought home for $38,000 years ago and decided to sell it himself. He decided on his own to price it at $120,000, and thought she had gouged a buyer, who agreed to pay it. But an appraiser hired after the deal went through valued the home for $20,000 more than the purchase price. The original owner wanted to cancel the deal and ask for more but couldn't because he/she had signed a contract, “Tragic situation,” To avoid it, "you need to get your home appraised if you have owned it for more than two years,”.


Step 3. You can get the price you want.
Some buyers assume that owners selling homes themselves should deduct the amount of an agent's commission from their asking price. FSBO experts disagree. They say that homes sold by real-estate agents have prices that are marked up to cover their commissions.
"Whether you sell it or an agent sells it, a property is worth what it's worth," You make money by not paying the commission, not by discounting the property.

FSBO sellers think they need to start with a high price and then lower it during negotiations. But if their initial price is too high or not based on the home's actual price and they typically don't get it or can't sell their homes. Owners should ask for a little more than what they want. For instance, if your home is appraised for $400,000, and you'd like to sell it for that amount, start by asking $410,000. Then, during negotiations, if a buyer makes a $390,000 counteroffer, "you bring them back up to the price you want,"


Step 4. Get a contract drawn up by a Lawyer before you begin the selling process
Selling a home yourself is simple; however one thing that has to be done by a professional is the contract of sale. Regardless of whether you sell privately or through an agent, a Lawyer will be needed to draw up your contract of sale.
It is important to put some thought into things such as settlement period and sale inclusions and exclusions, and other factors at this stage. However, your Lawyer will be able be able to walk you through this. This will ensure that all factors that you want determined in the sale right.
A real estate lawyer can / will

• Help you evaluate and guide complicated sales offers.
• Act as an escrow agent to hold any fund transfers (e.g. down payments)
• Evaluate complicated mortgages, leases.
• Review contracts, details and the closing proceedings for the sale
• Tell you what you will need to disclose to potential buyers about your home prior to the sale (you are legally obligated to provide a disclosure)
• Help you acquire title insurance.

The services of a lawyer are highly recommended to any sellers that are not experienced with the home selling process. Spending a relatively small amount of money for a professional to look after your best interests can save you a lot of money and will give you peace of mind.


Step 5. Important things to consider:
The condition of your home is one of the most important aspects of the home sales process that you have complete control over. "Presentation is everything".

Buyers in general are attracted to homes that are clean, spacious and well lit with an attractive decor. Before placing your house up for sale brighten up your home, remove counter clutter, and make sure all the rooms of the house are neat and tidy. Scrub and vacuum all of the interior floor coverings and walls until they sparkle. Making simple cosmetic changes to your property such as trimming the lawn and hedges, planting flowers, re-painting weather worn exterior surfaces as well as fixing any tiles or gutters that may be broken can make big difference between closing a sale and watching a qualified buyer walk away.

And who is more qualified to sell your house than you? You can point out all the features and good aspects of your house, small things like, this part of the house gets great sun in winter, things the agent just wouldn’t know


Step 6. Get a pest and building report done on your property
It is a really good idea to get a pest and building report done on your house before you put it for sale. This will ensure that you can repair any pest problems that you might have with your house that may delay the sale.

It will also give buyers peace of mind that the house is structurally sound and is pest free. It is a good idea to make copies of this report, and include it in your information pack that you give to potential buyers.


Step 7. Organize an information package on your house that you can give to buyers
This will ensure that most common questions that buyers might have (and forget to ask during inspection) are answered. You can also use this package to point out good features of the house such as a sunny backyard during winter, which is why the private seller is the best qualified to sell their house.
Information to include is things such as:

• General cost of amenities and utilities
• Schools nearby and their rankings in school boards
• Shopping complex and services nearby
• Recent repairs, upgrades and extensions completed.
• lot size
• Total square feet of the house.
• Any kind of other information which will attract the sale
• Contact details and make sure you respond to the call.

Step 8. Marketing/Advertising
Sell your house fast by following our marketing tools. With the mighty power of internet which has biggest market exposure to use our services to sell your property or a house. An internet property profile is the most effective way to sell your property fast.
Privatesalebyowner.net can help you in marketing your property. Our website receives lot of visitor everyday and we are one of the fastest growing real estate websites in Canada with extensive experience in private sale of houses and properties. We can provide you with a comprehensive online property profile on our website in addition to yard signs, bi directional corner signs, and other sales tools.
For sale signs and internet listing is the key for advertising your property.

Talk to your friends and relatives and tell them that your house is for sale. An effective way to do this is with a bulk email. Using the network of people you know will quickly and effectively reach hundreds or thousands of people, as your contacts let other people know.

Sales Ad: Generally people look at your property profile. So it should clearly stand out and should be understandable. It should be concise to the point description, of the main facts about the property. Mention facts such as the number of bedrooms or bathrooms but keep your description to the point.

Lawn Sign: Traditionally the way most houses were noticed was by having a for sale sign out the front, as the majority of buyers already live in the local area. A for sale sign is still essential, however statistics show that the internet is the first port of call for buyers these days looking for property. So to get your marketing campaign started at the very minimum you should have a for sale sign and an internet listing.

Photos: Seeing is believing. Take as many pictures u can cover every important feature of your house (digital cameras offer a relatively inexpensive way to take as many pictures of your home as you need without wasting film). Include as many photos with your online listing as you are allowed (with Privatesalebyowner.net, you can include up to xx images with your listing). Make sure to take both interior and exterior pictures along with pictures of any special features on your property such as a pool, hot tub etc.

Feature Sheets: You should make color copies of your online listing and distribute them to as many busy places as you can such as your office or gym. You can also make them available in a box near your yard sign for passerby traffic.


Step 9. Prepare your negotiation Before you start your advertising campaign it is a good idea to have a negotiation plan. Negotiation is the part of private selling that most people seem to think is the ‘hard part’. However if you know what outcome you want, then it’s as easy as selling a car.

It is also important to find out as much as you can about your potential buyer such as; are they pre-approved for a loan and how much of a loan are they seeking (what is their down payment amount). Money lenders tend to stay away from deals where the purchase price of the home is higher than the next comparable sale and the buyer is putting down less than a 10% down payment. If you price your home too high the buyer may not be able to get financing! On any offer you accept make sure your money will not be in escrow for longer than 30 days. Also, if you receive more than one offer do not counter offer more than 1 offer at a time. If two buyers accept your counter offers at the same time you could end up in some legal trouble

Knowing the value of your house, and knowing what type of settlement you want (this should be stated in the contract) makes negotiation a breeze. Dealing directly with the buyer also allows both parties to come to the best arrangement to accommodate both parties.


Step 10. Home Inspections: All standard real estate contracts allow the prospective home buyer the right to inspect your home and property. A home seller can also arrange to have a home inspector look at their home to identify anything that should be fixed prior to attempting to sell.(we have qualified home inspectors associated with us and u can use their services) This can help provide credibility and trust from potential buyers and show that you are being pro-active in identifying and fixing problems with your property.

If a potential buyer schedules a home inspection and they find a lot of problems with your property, they may kill the deal so make sure you are fully aware of any shortcomings your property may have prior to placing it on the market and fix them.

Once the Inspection process is complete from the buyer’s perspective the buyer will make an application to a mortgage lender to secure the funds for the purchase.

Step 11. Buyer Appraisals and Mortgage Concerns
When a buyer applies for a mortgage, the mortgage lender will:
• order an appraisal of the home (to ensure the buyer is not overpaying than the market price)
• order a title search to determine if the property has liens on it
Before closing the sale, make sure to contact your utility company to stop the services on your behalf.

Step 12 - Closing the Deal
On the closing date the home buyer is allowed to perform a walk through of the property to ensure that all agreed to repairs have been performed and that the home is in the same condition as when the buyer made their offer. If a problem arises at this point, all monies are held in escrow while the problems are resolved.

Typically, closings will occur 30 - 90 days from the date the sales contract was signed. Your lawyer will handle the details of the closing on your behalf ensuring that; all money is collected, loans or liens are paid, the deed is transferred and issue insurance to make sure there are no issues with title. A lawyer will write you a check for the funds you are due from the transaction, less expenses within 1 - 2 business days after the closing. "For sale by owners" homes are available all across Canada and if you are also an owner of FSBO house, you need to first attract the potential buyers so that you can succeed in selling your forsalebyowner house fast. In current real estate market scenario, more and more prospective buyers are looking for the opportunities in FSBO market on line. If you are owner of a house and want to sell the house through "for sale by owner" methodology, and save thousands of dollars.

Step 13. Relax and celebrate
Once the deal had been struck, your lawyer will do the rest.

Now all there is to do is congratulate yourself, enjoy the satisfaction of selling your house yourself and saving yourself thousands of dollars, and crack open the champagne!