Top 10 FSBO Tips to Selling Your Home by Owner

By using some simple FSBO (For Sale by Owner) tips and techniques, the average homeowner can sell his or her own home without the assistance of a typical listing agent. You can sell your own home and save thousands, but it takes work and commitment.

Below you will read some simple strategies that can stack the odds in your favor, greatly increasing your chances for success when selling on your own.

FSBO Tip 1. Know real estate market.

It is imperative that you know what is going on in your subdivision, community and town. Most FSBO's just log onto Realtor.com and look at the price of the homes that are for sale. Unfortunately, that's like trying to cross a four lane highway and only looking one direction. What you don't see can kill you, or in this case, your sale. It is imperative that you know the SALES in your area for at least the past 3 months, and preferably the past 6 months. (feel free to contact me for this information with no commitment expected)

FSBO Tip 2. Timing is everything.

It's important to know what kind of market you're in. Are you in a buyer's market, seller's market and just as important, which way is the market going? It may be a buyer's market now, but showing steady signs of improvement, and the converse may be true as well. Timing is going to play a crucial role in the pricing of your home.

FSBO Tip 3. Consider offering compensation to a buyer's agent.

Most buyers realize the huge benefit of using a buyer's agent since the seller pays for it. If they're not using a buyer's agent then the buyer is definitely going to offer you at least 6% below MARKET value because why would a buyer let the seller save all the money from not hiring an agent? More importantly, by offering compensation to a buyer's agent you can then market to all the buyer's agents in town and have them all working for you to find you a buyer's agent. That's why we recommend a FSBO on the MLS program where you list your home on the MLS for a low flat fee ($295) and offer compensation to a buyer's agent.

FSBO Tip 4. You're selling a house not a home.

While it's important to become emotionally detached, you don't have to become a robot. After all this is your home, be objective but don't be cold. Keep in mind that people are going to perceive your home differently than you do. Either way remain positive and ultimately the right person will walk through the door and buy your home. Be sure to remove any "wall of fames" from the house. If you have a wall with a couple dozen family photos, please consider removing a lot of them, you want buyers looking at the house, not your trip to Egypt.

FSBO Tip 5. How to determine the fair market price of your home.

This always seems to be a real tricky one. For many home sellers this typically reveals itself as a major point of contention. When trying to decide on a price guessing or basing your asking price on hearsay or nontraditional methods immediately reduces your negotiating advantage. Basing your price on what the house down the street sold for or what media outlets perceives as increased market value is not the way to get a legitimate price either. There are only two legitimate and well-recognized ways of determining a fair market value. Contact a real estate agent to provide you with a CMA otherwise known as a comparative market analysis. Most FSBO on the MLS companies will do this for you as well if you don't want to hear a sales pitch from an agent.

FSBO Tip 6. Preparing your home for sale.

Today's real estate market rewards those homeowners that place a high-value on neatness as well as cleanliness. It not only adds value but also generally promotes a quicker and more profitable sale. Once again the depersonalizing of your home helps your prospect with such an emotional decision. De-cluttering the inside of a home is also key to your preparation. If necessary, rent out a small storage space and store some household items there. Just as a side note, having a garage sale is also a great way of getting rid of items that clutter up the house. Not only do you get rid of the items but also you make a little money in the process.

FSBO Tip 7. Start spreading the news.

It should be understood if you're going to sell your home and you're going to do it yourself, the easiest way to get the word out is to put a sign in your yard. This will immediately get the attention of anybody that happens to ride by. Naturally, this is the essence of selling on your own. Coming up with a highlight sheet to outline the key features of your home is a must. With the readily available use of word processing programs putting together a simple highlight sheet is easy and be sure to include photos. There are also a number of free and low cost resources on the internet, not to mention all the social media sites such as Twitter and Facebook can be powerful.

FSBO Tip 8. Knowing a few, negotiating skills will get you a long way.

It's not necessary to become the next great diplomat. You will want to keep in mind that it's necessary to keep your emotions and personal feelings regarding the negotiating price of your property in check. When discussing the selling price it's important that your calculations and numbers are correct. This allows you to have greater flexibility and leverage and you can negotiate from a position of strength.

FSBO Tip 9. Qualifying buyers and stopping the lookie loos.

So what's a lookie loo? A lookie loo is a person that comes to your house and looks in everything. They, look in cabinets, closets and drawers check everything out but never make you a serious offer. You need qualified buyers looking at your home or it's going to get very discouraging. One of the best ways of getting qualified prospects is to have them referred by your mortgage broker/lender. You can also take the direct approach. If you're arranging a showing over the phone, go ahead and ask them if they are pre-qualified. Don't be too shy when it comes to your prospects. If you're holding an open house and someone expresses interest in your home go-ahead and ask. Most of the time if they're pre-qualified they love to tell you. So don't worry about asking, it's the right thing to do.

FSBO Tip 10. If all else fails go to where the Realtors hang out.

If after a while, you're not getting the results that you were hoping for you can always go to the MLS option. This doesn't mean that you have to list with a traditional real estate agent or broker. As a private party, you can list your home with your local multiple listing service. Usually this cost a fee but by doing this you automatically expose your house to thousands of potential prospects all over the country. The upside is that you should be able to sell your home in short order. This will sell your home far faster and typically at a higher asking price than selling as a FSBO without the MLS. We recommend you list with a local flat fee company, not a national one. Feel free to contact us for a list of Flat Fee companies in your state.

Largest & Most Expensvie Valley Homes

What is the largest home currently on the market?

I ran a search today looking for the largest home currently on the market. Practical reason, no., not really. I located a gorgeous 7 bedroom, 9.5 bathroom home on 19.2 acres. This home was built in 1994, has an indoor/outdoor swimming pool, indoor tennis courts, ballet and cance quarter, male & female locker rooms, and just in case you need extra space, the tennis court can be converted into an 80+ car museum. This 27,000 square foot home can be all yours for $15.9 million. (pic left)

What is the most expensive home currently on the market?

Currently the most expensive home on the market is located at 5600 N. Saguaro Rd. in Paradise Valley and is listed for $18.9 mil. This home boasts 17,000 sq ft, 4 bedrooms and 9 bathrooms. This home was built on 5 acres in 2004 and has been on the market for 399 days. This home was originally listed in Feb '08 for $23 mil. The monthly tax payment on this home is approx. $4,583. (pic right)

If you know anyone interested in these homes or any others, I am more than happy to help with the search, and as always, you can list your home on the MLS & Realtor.com for only $295 at www.295List.com

Michael Vick's 8 Bedroom Home at Auction

Michael Vick's 14,886 sq ft home located at 2927 Darlington Run in Duluth, GA went on the auction block yesterday and failed to sell. The minimum price was $3.2 million. I guess there are no takes for the 8 bedroom, 8.5 bathroom home.

The house was originally purchase in 2005 by Vick for $3,775,000. Vick is currently in Leavenworth federal pen and is expected to be released in July. Apparently his $25 Mil per year contract wasn't enough money, so he held illegal dog fights at his home (not pictured). Zillow currently has the home listed at $4.1 mil by Funari Realty.

As always. we sell homes on the MLS & Realtor.com for only $295 -http://295list.com/

Homes For Car Prices

Just out of curiosity I ran a search for single family homes, not including manufactured homes, under $40,000 and found that there are currently 828 such homes on the market. The entry level home in this category is an REO (bank owned) property located at 110 W 6th ST Eloy, AZ 85231 Click to view listing(s), asking $9,900. To put this in perspective, the average cost of a new car in 2008 was over $27,000.

The least expensive home in Phoenix proper is located at 2624 W. Washington St. Click to view listing(s) This is another REO and the asking price is $13,500, it was built in 1946, has 3 bedrooms, 3 bathrooms and 1,095 sq ft. If you could find 100% financing at 6%, your Principal and Interest payments would be just under $81 per month. This home sold for $33,000 in 1990.

For information on selling your home on the MLS & Realtor.com for only $295, please go to www.295List.com or call 602 821-8358.

What Else Can We Do?

Bar none the most frequent question I get asked by clients is "What else can we do?"

There's no doubt about it, the most important place for your home to be advertised is MLS & Realtor.com, that's where over 80% of home sales are going to come from. The two places I recommend all my clients to put their homes is Zillow.com ( which we do for your) & Craig's List, and I recommend they update it at least every other day if not daily. These services are completely free and Criagslist.com is the largest classified in the nation. There are also lesser known services such as kijiji.com and backpage.com that I would recommend posting an occasional ad, but Craig's List is the big one.

Most people know about Zillow.com and they put their homes on there and never go back, which works fine for Zillow because it stays posted for a certain number of days without any upkeep. Craig's List requires more vigilant upkeep. Although your ad will stay on Craig's List for up to 45 days, within 2-3 days the listing becomes buried many pages from the font page and becomes nearly useless.

How To Keep Craig's List Fresh?

Check out a website called Postlets.com. You can upload your listing information and pics to them and they export everything to Craig's List & backpage for you. Here's where you need to keep vigilant. Once they've created your post they will generate an HTML (hyper text markup language) code for you. It looks like gibberish if you don't understand HTML, but that doesn't matter. Copy the code into a simple text or word document on your computer and just get in the habit of going on Craig's List every other day and creating a new ad. You can create an account for free, and then you just need to paste the HTML code that you have saved to your computer and this will save you the time of having to type a new ad every day.

Keep in mind, if you want to put it on Craig's List daily like we recommend,you're going to need to create 2 different ads in Postlets with differing texts. Craig's List will not allow you to paste the same ad twice within 24 hours, so create an ad for even number days and odd number days.

Mandatory Apprenticeship

I remember distinctly passing my real estate exam, getting my license, finding my broker and being extremely excited about getting my start...The problem was, I didn't know anything. Sure, I passed the exam and new all the laws, but that's not what being a Realtor is about. It's about giving advise and helping me find property that is best suited to their needs. It's about how to handle all the different parties in a transaction and how to negotiate and close the deal.

I believe that the real estate industry should follow the appraisal industry and adopt a mandatory apprenticship program. In order to become an appraiser one has to have 90 class room ours and then 2000 apprenticeship hours. Real estate agents are advising people about the biggest purchase most of them will make in their lives, and agents don't need to disclose how long they've been active, how many transactions they've done or how experienced they are.

For example, when you first start out as an agent you are taught to talk about "we" a lot. We have 6 offices, we have over 40 homes sold this month, we have sold $80 mil worth of real estate. In order to make up for the agent having ZERO experience, the agent just says we a lot and that way he/she can take credit for everything the brokerage they're with has done, which in turn makes the agent sound very knowledgeable. Is what the clients don't know is that agent may be licensed for all of 3 days and works from home and has a broker that spends far more time on the golf course than in the office.

If there was a mandatory apprentice ship, which should be a combination of homes sold and hours spent, then all buyers & seller would be guaranteed to be working with an agent that has at least seen a transaction from start to finish and has some a far better idea what they're doing.

As always, you can sell your home on the MLS & Realtor.com for only $295 at www.295List.com

Median House vs Average House

The question posed is, what is a better market indicator, the Average Home Price or the Median Home Price, and what's the difference?

People tend to get confused between median and average, and many people believe it to be the same thing. Everyone knows that an average is the sum of the group divided by the number in the group. That works well with batting averages and things of that nature, but when you start using numbers that can have large skews on the high or low end, the median is a much better indicator.

I typically think of median home price as "What can I realistically buy the typcial house in that neighborhood/town/state for?" The median will represent that number far better than the average. Here's a real esample for a search I ran today. If a buyer wanted to buy a home in the 85262 zip code, under 1,400 sq ft, I would come up with a median home price of $409,900, yet the average price would be $2,126,000. Can you imagine being a home buyer and asking "What's the average home price for homes under 1,400 sq ft in the 85262 zip code?" Then you get the answer of over $1.2 Million. If that buyer was qualified for a $500,000 home, based on the average home price, they would think they couldn't find anything in that area, even though there are only 2 above $500,000.

How can this be? This is the perfect example of how numbers outside the typical range can greatly skew a number. In the above example there were 5 homes available between $369K - $449K, one home at $875,000 and the last home was $12 Million. When averaged out, the total comes to over $2.1 million.

So, the answer to the initial question is clearly the median home price is a far better indicator. It tends to track the "typical home" in a neighborhood, and isn't as subjective to huge swings due to sales on either extreme.

As always, we offer $295 MLS listings at www.295List.com .