By Owner - FSBO

The Basics

• the listing and selling price of all houses in your area for the last three-six months. In this market, three months or less is more comparable,
• the listing price of houses currently on the market. In this market, be sure to check if houses currently available for sale are listed lower than past sales. If so, then you must be listed lower.  The best house in the neighborhood, with the lowest price, is the one that sells, and
• the listing prices of houses that were on the market but did not sell.  
• Tips: Begin your research on the Internet. Follow-up by visiting the county tax records office to determine the selling prices of houses.

• How will you market your house to real estate agents? Most buyers use a real estate agent, so marketing to real estate agents is essential. At a minimum, you'll want to send a letter and sales flyer to all real estate agents within a 30 mile radius.
• How much money can you afford to devote to advertising? Call the local newspapers to determine how much it will cost for advertisements. You'll want to run daily and Sunday ads in the newspapers.
• Who will create your sales flyers? Buyers expect fact sheets to take with them when they drive-by or tour a house for sale.
• Where will you place signage? In addition to your front yard, is there areas leading in to your neighborhood where signage would be appropriate?
• How will potential buyers find information about your house on the Internet? You'll want potential buyers who begin their house shopping on the Internet to find your house. Be sure to build a website to help sell your house. Be sure to register your house with all search engines and place lots of photos on your web site.
• Who will take inquiry calls and schedule appointments? You'll want someone to be available to answer inquiry calls and schedule appointments. Be sure to schedule showings as quickly as possible - even the same day.
• Tips: Ask newspapers for a discounted advertising rate for multiple placements. Be sure to check with local officials to determine if there are any restrictions on where you place signs.

• Confirm that the potential buyer has pre-qualified for a mortgage loan.
• If the buyer is buying with cash, confirm that they have the necessary resources. They should be able to provide bank statements. Make sure they are not relying on an equity line of credit.  The bank may cancel their line of credit in today's financial environment.
• If the purchase is contingent on the buyer selling their own house, confirm that the buyer's house is on the market. (You may also want to determine how long the buyer's house has been on the market.) You will also want to insert a contingency into your contract - that you see all of their buyer's information or that you have a 24-hour right of recission clause.

• Are you prepared to negotiate the contract?
• Do you know what the legal responsibilities of the seller are in your area? Do you know about the mandatory disclosures? If they are not presented in a timely manner, buyer may be able to back out of contract right up until the day of closing.
• Who will write the contract? Will you need to hire an attorney? If so, what will be the attorney's fees?
• Tips: In addition to the sales contract, you'll need to complete a Seller's Disclosure and a Lead Based Paint Disclosure.

• Be sure you read all the fine print.  Can a lien be put against your house if you cancel agreement?  Is a commission due if you later decide to list with a full-service broker?  Who negotiates for you? The agent who listed your house or  someone who is located in another part of the state?  What type of service will you really get?
• If you are paying separately for each service, will your final commission be more than for a full-service broker?