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Do-it-yourself home sellers Four questions to ask yourself Almost every home seller dreams of bypassing professional real estate agents and saving the 6 or 7 percent sales commission. How to decide if you need a professional real estate agent. If you want top price or your home, which we'll presume is in excellent
condition, interview the best real estate agent before deciding if you really
need an agent. In the interview you should get a written CMA (comparative market analysis).
This form shows recent sales prices of comparable nearby homes, the asking
prices of similar neighborhood homes now listed for sale, and the asking prices
of recently expired listings in the vicinity that didn't sell. The top agent in your area will show you their estimated market value of your
home. This will give you a good idea of your home's sales price. Pay special
attention to the agent’s marketing plan. Without aggressive proactive
marketing it is likely that it won't sell. If you're thinking of selling your home alone, after your have interviewed
the agent, ask yourself four key questions: (1) How will I market my home without professional help? Can I write and pay for effective advertising to get prospective buyers to
inspect my home? Who will answer the phone during the day, evenings and
weekends? When will showing appointments be made? Can I create effective
exposure of my home on the internet? How
will I know if the people wanting to see my home are even qualified to purchase?
Should I put a "for sale by owner" sign on the front lawn? How will I
treat prospects that ring my doorbell to inspect my home? How will I, or someone
in my family, screen callers to be sure they are serious buyers and not future
burglars casing my house? (2) How can I prepare a legally binding enforceable sales contract when a
serious buyer wants to make an offer? Locating a serious buyer is just the first baby step to a home sale. The big
step is to get that buyer to sign a purchase contract. You must ask yourself: Do I have the printed forms, including property
condition disclosure and lead-based paint disclosure forms, required by state
and federal laws? Can I fill out these forms? Is my real estate attorney
available weekends and evenings to prepare these papers? What if the buyer
offers less than my asking price? How will I make a counteroffer? Can I control
my temper when negotiating face-to-face when a buyer who criticizes my house to
negotiate the price down? How will I handle a buyer who wants to
"save" the real estate sales commission by reducing my asking price? What if a buyer wants to make his purchase offer contingent on obtaining a
mortgage and approving a professional inspection report? If the buyer makes the purchase offer contingent on sale
of the buyer's current home, how will I handle that? Who should hold the buyer's
earnest money deposit? What inspections will I allow? Termites? Radon?
Structural engineer? Professional inspection? Who pays for the title insurance,
transfer taxes, escrow and attorney fees and other customary closing costs? (3) If a prospective buyer is not pre-approved for a mortgage, can I help
him get financing? Should I take my house off the market while the buyer obtains mortgage
approval? "If you can't finance it, you can't sell it" is an old real
estate motto. Unless the buyer is pre-approved for a home loan, it's up the
seller to help him obtain a mortgage; otherwise, a home sale won't occur. Can my current mortgage be assumed by a buyer? If so, what will be the fees?
What remaining liability would I have? Does the present security deed contain a due-on-sale clause and a prepayment penalty?
Which local mortgage lenders offer the easiest terms? Who are the tough,
by-the-book lenders who sell their mortgages to Fannie Mae and Freddie Mac? Who
are the flexible portfolio lenders? What if the buyer wants a VA, FHA or PMI
(private mortgage insurance) home loan? What loan types can I assist in buyers
closing costs and how much? Are there any state and local home
finance assistance plans? How can discount points work for or against the
buyer? What if the buyer needs a non-conforming loan? (4) How can I get the sale successfully closed? Who will handle the closing procedure? Can my real estate attorney handle the
sale closing? How much will it cost? Who pays? How will the buyer and mortgage
lender obtain title insurance? Who pays for it? Will the buyer have an attorney at the sale
closing? What if the buyer wants me to carry back a first or second mortgage? Do
we need title insurance? (The answer is yes.) Who checks the title? Who records
the deed and all the other closing papers? How will the property taxes and other
ongoing expenses be prorated between buyer and seller? What taxes are due to the
state? Summary Getting top dollar for your home, with or without a professional real estate
agent, usually requires getting the home into first-class condition, the
correctly marketing it. If a professional agent isn't hired, be ready to market
the home, take countless prospective buyers through your home, prepare a legally
binding sales contract, help the buyer obtain mortgage financing and get the
sale successfully closed. The bottom line is selling your home isn't easy,
that's why 95% of all homes for sale are listed with a REALTOR®. If you are still interested in selling your own home, we offer a free For
Sale By Owner's kit. Our kit includes all the forms. We will even help you write
your ads! I know that after 30 days that you will want the professional services
that we have to offer and chances are you will want to be out of the for sale by
owner business. Contact us now and we will have the free kit sent to you within
24 hours. send mail to: randy@randydurham.com
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Send
mail to randy@randydurham.com
with questions, comments or requests for info. Copyright © 1999-2008 Randy Durham ,LLC
Licensed in TN & GA (423) 664-1900
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