For Sale By Owner (Source; theprovince.com)
Are you interested saving on commission when selling your own home? Are you considering selling your home this Spring? Well, you are not alone.
In a recent online survey of home owners by Marin County more than 55% of home owners answered Yes to a question about their interest in selling their own home. That’s partially because the real estate information that was held beyond lock and keys is now readily available on internet to both sellers and buyers.
But you to be a great negotiator if you are going to get the highest price possible for your home since the odds are against For Sale by Owners. In fact, according to National Association of Realtors, 28% of the homes sold by their owners were under-price which means as owners you might be starting your negotiations at a huge discount. So, how will you determine your final sale price?
Negotiating a real estate transaction is the combination of science and art. Assuming you have managed the pricing of your home properly, then you need to decide how you will negotiate and select the right offer to counter.
- Multiple Offers: you need to counter everyone who has submitted an offer and request their Highest & Best offer.
- Cash Offers: Validate the source of funds to make sure that the funds have not been transferred recently and they are seasoned.
- Contingent Offers: These are the offers that are tied to the approval of a loan and typically inspections. You will need to take the extra step to make sure to only select the offer that has the least number of contingencies. You will also need to make certain that this buyer can perform if their lender’s appraisal is less than their offer price.
- Deposit: Anyone who is serious about buying your home, needs to be putting at least 3% of their offer price as their initial deposit. Use this as an indicator of their serious intent to close the home.
- Close of Escrow: If you need the proceeds of your sale to make other investments, then this could be one of the most critical selection criteria among the offers. We also use this as a guide to determine fake cash offers specially when they require 30 days to close.
Finally, challenges to selling your own home are not insurmountable, but it requires serious planning and education on your part. But don’t feel you are alone in this venture and you can take advantage of our 1% listing program if your home is in Silicon Valley.
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