The Greater Albuquerqueâ€™s current market conditions are not really geared for FSBOâ€™s. In the past 6 months 25% of all sales in the NW were bank foreclosures, or short sales. The National Association of Realtors reports that the majority of for sale by owners end up listing with a Realtor and on average sell their home for 16% more than selling FSBO; part of the reason is because most buyers are represented by an agent. Other reasons are because owners who sell by themselves lack the expertise to price a home (many real estate agents don't really know how to evaluate precision pricing either)Â to sell and fall short on marketing knowledge. If going at the home selling alone you should seriously think about hiring an appraiser and asking for a GPAR; General Purpose Appraisal Report. This report costs less, usually around $350, depending on appraiser and complexity of the subject property.Â The appraisal report will give you information on market conditions, what you should list the property for, what the sale price is likely to be,Â what the median days on market is, and much more information that will provide you with the knowledge necessary to negotiate.Â With all of this being said, it is still not impossible to sell your home on your own. I have prepared some tips that should improve your odds. If you want a list ofÂ real time listingsÂ or need a referral using Real Livingâ€™s Relocation program I can help get you positioned to see your next home ownership goal.
Preparing Your Home to Sell as a For Sale By Owner
Staging a home is a valuable step in procuring your buyer. Empty homes and homes that are left unclean like dishes in sink, unmade beds, back yards with toys left everywhere are hard to sell and virtually impossible to sell for current market value.
- Before you begin to prepare your house for sale, examine the home from a stranger's viewpoint. Ask a friend to help, who might be more removed from your attachment.
- Consider spending money on improvements, fixing things that don't work and making repairs before selling to improve your profit.
- Do not underestimate the power of home staging. It can mean the difference between selling now for more money or not at all.
- Pets in the home present its own set of challenges. It's harder to sell a home where pets live.
- If you have a vacant home think of staging alternatives.
Steps To Do FSBO Marketing Right
With all the money you will be saving over hiring an agent, spend a big chunk on advertising. Figure out your target audience and get the message to them.
Signage encourages home shoppers to immediately call you or your agent. It's free advertising! If your home is a corner lot, put up two signs.
- Some homeowner associations prohibit real estate signs.
- Some HOAs allow only window signs.
Try talking to a neighbor whose home is located at the corner of a busy street, asking for permission to put a sign in that yard with an arrow pointing toward
Photograph the Front
The most recent data shows that over 80% of purchasers are starting their search online. Listings without a photo or with only an exterior shot are often passed over and ignored. Buyers are visual. Follow these tips and your house photo will look ten times better than the competition's:
- Crop out sidewalks and streets.
- Remove vehicles from driveway / front of home.
- Shoot up-close & angled photos.
- Avoid shade on the house.
- Clear away vegetation blocking front door or path to door.
If you own a condo or townhome without a yard, then take pictures of the clubhouse, pool, spa or tennis courts. If you have a yard, however, buyers will want to see it.
- Emphasize space and shoot long.
- Mow the lawn & trim bushes.
- Remove evidence of pets.
- Put away children's toys.
- Avoid shooting into the sun.
Take photos of every room in the house. It is the digital ageâ€¦ why not?
- Open drapes & blinds, bring in the light.
- Turn on lights.
- Focus on interesting details like the condition of a wood floor or a fireplace mantle.
- Remove trash cans & close toilet lids in bathrooms.
- Use floral arrangements in kitchens & dining rooms.
- Avoid taking pictures directly into mirrors with flash on. There should not be any people or pets in photos of the house.
Get It In the Newspaper
Print advertising reaches buyers who read newspapers. Online ads reach the rest. If your neighbors say, "Everywhere I look, I see your home advertised," you're doing a good job. Puts ads in:
- Major newspapers. Find out which days pull the most readers. Typically it's Sunday but some newspapers also publish "picture classifieds" on other days.
- Local newspapers. You can probably run a larger ad for less money that will more closely target those looking in your area.
If you're an unrepresented seller, you can buy mailing lists from list brokers. If you are represented by an agent, ask about a direct mail program. Here areÂ a fewÂ places to mail:
- Neighbors. Everybody has friends and relatives who might want to move near them.
- Agents who represent buyers in your neighborhood.
- Buyers who live in other areas and often relocate to your neighborhood.
Not every home is suitable for an open house due to location or other factors, and sometimes the only way to determine that is to try it. If nobody comes, that's probably a good indication. However, if your home is located near a high traffic area where buyers often swarm, then it's a good candidate.
- Place open house signs throughout the area directing buyers.
- Advertise in the newspaper.
- Advertise open house times online.
Technology has made it very easy to create and send electronic flyers. You can also include multiple photographs of your house. Costs vary but it's generally less than $100 to produce. Here are ideas for recipients:
- Real estate agents who sell in your area.
- Friends, family and coworkers.
- Out-of-area brokers and agents who represent buyers in your area.
Avoid marketing mistakes by being flexible with showings, offering incentives to buyers and obtaining buyer feedback.
Â Get a Lock Box
If you decide to offer a commission to selling agents, you will want to put a lockbox on your premises for easy access.
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