subject: 7 Steps To Selling Real Estate Privately. [print this page] During the recent property crisis many home owners found hat selling property through a Realtor got quite expensive and the buyers were not willing to pay the high prices asked for by the sellers, desperate to make a profit.
The recession has indeed changed the landscape but it has not made it impossible for Joe average to sell his property privately. It has become increasingly obvious to many investors and home owners the party is over in real estate and common sense has to prevail over greed; which is how we all ended up in this mess in the first place.
The first requirement is to clean up the property. There is nothing worse than trying to view the potential in a dirty debilitated house; whether it is listed privately or through a Realtor. It will put of most of the soft investors and they are the ones who will readily accept any price; as they have no skills nor any understanding of how to negotiate. The hardened investor will see a very easy way to reduce the asking price and eat into your profits. So clean up, paint and repair everything.
Hiring a professional and reputable accredited contractor will reduce your profits but reduce your risk significantly. Do not forget that screening contractors is a must and will save you untold grief in the near future.
Secondly you need to get your property up to code. Do not leave this to chance as you will regret it and might be forced to reduce your asking price during escrow. Nothing exudes professionalism than up to date levies, wiring, approved building plans and pest control.
Remember, your profit is at stake so do not cut corners. And make sure that the escrow agent clears your house first, if anybody has a lien on your property it could delay your sale and the buyer might just walk away or negotiate your selling price to peanuts.
Thirdly, get professional appraisal. Your bank has a preferred accredited appraiser who will be able to give you a reasonable market value on your property based on location, size and building structure. The best thing about most appraisers is that they have records on which properties in your immediate area were sold for.
Remember, this selling price includes the agent commission which you will be saving on.
Fourth, you need to choose the lowest price to settle for. This amount must be all inclusive and remember to include the taxes applicable in your situation. Do not forget the Capital gains and the deferred property taxes that you accountant helped you make throughout the ownership of your property.
Then choose the middle or reasonable price you will be happy with and the price you will be ecstatic with. The variation can be 5% to 75% above or below the appraised market value. You decide according to your location and local market. Greed = holding the property for long. Cheapness = loosing potential profit. Choose wisely.
Fifth, consult your local accountant. Pay him or her the required fee so that they can tell you that you are set to sell. If you know what you are doing, then you can skip his step. If you are a novice its better to get help of a Realtor AND an accountant until you know for a fact what is involved with selling such a huge asset.
Sixth, get a real estate lawyer who specializes in transfers for your type of property and a conveyancer of the same caliber. The lawyer can apply for the transfer of the property once the sale is made and the conveyancer can facilitate the transfer. Take a short cut here and you might end up without a house, no money and a mortgage that is still payable.
So be very careful when selecting who will do the legal work for you. The good news is that in most countries the buyer has to pay for the transfer. You must just make sure that the buyer doesn't back you into a corner and insist on his or her friends effecting the transfer.
You have been warned!
Step seven is the crucial step. The step which will determine the length of the period from when you decide to sell to the time you close escrow. The advertising.
The best way to attack advertising and save on costs is to get targeted audience. Ask yourself who is most likely to buy from you and where would they be looking. Online and offline has many resources that will allow adverts from private home owners.
