Seller's Articles

Selling a Las Vegas Home "For Sale By Owner"

Some home owners want to give a shot at selling their home themselves. Ironically, the phone begins to ring and the majority of calls are made by real estate agents trying to list their home. What most who try to sell their own home don't realize is that they will be competing against all of the homes in the community that are being marketed by Realtor's with special tools and years of experience. It will likely be challenging and very frustrating.

It is important to educate yourself and prepare yourself for the ride. If your marketing plan is not well executed your home could remain on the market much longer than you expect because you are not attracting buyers. You may have an offer accepted at some point but your buyer is not qualified and will fall out of escrow. Many sellers become frustrated and give up. Here are some tips to help you determine if selling the house on your own is the appropriate approach vs using a professional real estate agent.

Price it Right
Correctly setting your asking price is critical and is the number one difficulty for sellers not utilizing an agent according to the National Association of Realtors. Setting your price too high will cause your home to sit on the market while you make extra mortgage payments. Setting it too low will leave money on the table. Many factors go into pricing the home right. Keep your emotional judgment at bay and make the decision based on an objective investigation. Gain an understanding for the market in your area. In order to establish a realistic price for your home, objectively compare the price, features and condition of all similar homes in both your neighborhood and other similar communities which have sold in recent months. It is also important for you to be familiar with the terms of each sale. Terms are often as important as price in today’s market. Carefully budget your selling costs and prepare a net proceeds sheet to calculate your best estimate of what you will take away from your home sale. Prospective buyers may also request this kind of analysis of buying costs.
Prepare Your Home for Sale
A home's first impression is key. Analyze the home and determine what items should be repaired or improved so the house will get the best return. Ensure your house stands out compared to other competing houses.
Have the appropriate legal documentation and representation as needed
Protect yourself by including key disclosures, terms, contractual statements, etc. Hire a real estate attorney if needed to produce the documents.
Market Your Home Effectively
Beyond the sign you will put on your lawn, you should find effective ways to spread the word about your home. Local buyers can be reached through the newspaper, but this is only a small part of the market you are after. Be sure you include the many buyers who could already be working with a Realtor®. To locate them, target as many top agents as possible in your market to see if the criteria of their buyers matches that of your home's. Create a strategy to reach out-of-town buyers also. You will want to provide great customer service to potential buyers and make your home available. Ensure that there is always someone available to answer the phone, pick up messages promptly, and be ready to give qualified prospects a tour of your home as soon as possible.
Remain Objective During a Showing of Your Home
Do not become emotional during the sale of your home. If a prospective buyer says something negative about your home stay positive and do not counter them on the offensive.
Pre-Qualify Your Prospects
Don’t waste your time entertaining buyers who could never afford your home. Research their financial steadiness with respect to job security, salary, debts, liabilities and credit standing.
Negotiate Effectively & Knowledgeably
There will be many details to resolve before a sale can be considered final: price, terms, inspections, possession date, buyer concerns and objections. Understand the contract you are using so you can explain all aspects to the buyers. Be ready to make necessary amendments to the sale. The contract you use should be thoroughly examined by your real estate attorney. Meanwhile, manage the buyer’s interest in your home so that it doesn’t wane during negotiations.
Know Your Buyer
Your objective during negotiations is to control the pace and set the duration. Try to determine what your buyer’s motivation is. Does he or she need to move quickly? Do they have enough money to pay your asking price? Knowing this information will give you the advantage in the negotiation because you will know up front, what you will need to do in order to get what you want.

How to Assess Your Net Gain
To analyze whether or not you will end up ahead by choosing to sell on your own, consider the fact that most home buyers do use a real estate agent because it doesn’t cost them anything for this service. Use caution because buyers, investors, and speculators who seek out For Sale by Owners are typically those in search of a bargain. The low-ball offers from these types of buyers will often net you much lower in the long run. What you will have to judge for yourself is the following:

Be prepared with your marketing, negotiations, evaluations, showings and all legalities.
Consider what it will cost (include time, effort, financial) you to effectively market your home and assemble all necessary materials from the “for sale” sign to any contracts.
Is the price that a buyer, purchasing from a For Sale by Owner seller, will pay going to net you what a skilled real estate agent is going to be able to get you by marketing with the experience of a brokerage and sophisticated tools? Is this net price (include time, effort, and financial costs) higher than the price an experienced agent could net for you minus his/her commission?

If you are prepared to go it alone we wish you luck. Check out some of the other articles we have. They may come of great assistance.

If you have doubts or feel we can be of service to you in our well oiled processes please contact us. We would love to help you sell your house so you can focus your time, energy, and emotion elsewhere.

NOTE: Information on this site is not guaranteed to be accurate. Some content is compiled from 3rd party sources. If you are aware of incorrect or outdated information, feel free to contact us.