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Selling FSBO
Why
sell your property by owner? Protecting your hard earned equity is the
biggest reason. You may be willing to pay an average 6% commission to
get a sale, and not think any more about it. Remember though, that is
6% of the total selling price, but what if you don't own your property
outright? As an example, if you have $50,000 of equity in a property
that you sell for $125,000, a 6% commission is $7500, or 15% of your
equity! If your equity was only $30,000, the commission would be 25%
of your equity.
To see where you stand, try using
real numbers based on your own equity and payoff. You might quickly
decide that selling it yourself is the way to go. While our fee is only
a few tenths of one percent of a selling price, your property's
exposure on this website will possibly exceed conventional means.
When you sell your property, there are several
steps you can follow to increase the chances of a successful sale. Below
is a sample marketing plan, and some helpful articles about selling
on your own. For more resources, please call us at
920-893-3764
, or write to
support@sheboyganbyowner.com
A sample outline to
market a property
1. Set a price
To succeed in selling your property, pricing it
competitively is critical. The objective is to accurately match up your
property to those that are currently on the market, those that have
sold, and those that have not sold. Try and stay within your neighborhood
and compare your property to other properties with similar styles. To
find out what a property sold for in the City of Sheboygan, contact
the
Sheboygan City Assessor, tell them an address and ask for the date
and amount of the last sale. For property values outside of Sheboygan,
you will need to visit the
Sheboygan
County Register of Deeds. Using a property address, tax I.D. number,
or legal description, request the dollar amount of the most recent transfer
fee for that property. Divide the transfer fee by .003 to give
you the most recent selling price. After doing the necessary research,
set a competitive price for your property. For a quicker
sale, consider reducing that price by at least 1/2 the amount you would
pay a broker. Doing so will attract more buyers to your property, and
you will still save a considerable amount. At this time, you may also
want to consider any terms to offer a buyer, such as owner financing.
Also, decide what you will or will not pay for on the buyer's behalf,
such as closing costs or loan fees.
2. Get forms and documents
Gather all the legal documents necessary to complete
the sale of your property. To clarify the process, review the Wisconsin
residential offer to purchase form and the Wisconsin real estate condition
report before your property is on the market. This will save both you
and your buyer from any confusion at the crucial time when an offer
is made. As a convenience these forms are available here.
Review them carefully and consult your attorney if you have questions.
Wisconsin law does require you, the seller, to provide a buyer with
a completed and signed Wisconsin real estate condition report.
3. Arrange a real estate attorney
You may want to choose a real estate attorney
to represent you in the sale and closing of your property.
Click
here
for more legal information.
4. Arrange a title company
You will need to select a title company to provide
title insurance to your buyer and represent you at the time of closing.
If you can find your existing policy, check with that title company
first. When a title company holds your current policy, many of them
will give you a discount if you order your new policy from them. The
reason being is they will only have to search and read records from
the date of the existing policy forward.
Click here for more information about
title insurance
5. Inspect, repair, and clean your property
Before your property is on the market, inspect
it top to bottom. Try to put yourself in the buyer's shoes and make
a list of everything that needs fixing, painting or cleaning. Critical
items should include:
*clean yard and maintained landscaping
*exterior paint with no peeling, breaks or fading
*no broken windows or damaged weather-stripping
*roof shingles in good repair with none missing
*fresh paint inside wherever needed
*cracks in walls and ceilings patched and painted
*plumbing leaks and defects repaired
Taking care of these things before your property goes on the market
will show a prospective buyer pride of ownership, and most likely lead
to a much faster sale and a much better return for the seller.
6. Advertise
When
you list a property with
sheboyganbyowner.com, you will have a ready- made flier available
by simply printing out your listing. This will includes your photos
and the details of your property. You may also find that prospective
buyers who come to visit already have your flier, printed from their
own computer after seeing your listing on this site. To compete effectively
in the marketplace, consider all available means to get the word out
including signs, classifieds, bulletin boards, postcards, business cards,
the Internet, and word of mouth. Tell everyone you know and everyone
you come in contact with. A high percentage
of buyers find properties by driving through areas that interest them,
so a prominent good looking sign is key. Every property listed with
sheboyganbyowner.com
has the use of a heavy-duty professional yard
sign and post for the duration of the listing. The sign features
our web address, a distinctive house logo, and the owner's telephone
number prominently displayed.
7.
Make yourself available
Make as much time as possible to be there when
a prospective buyer wants to tour your property. Ideally you should
be ready whenever the phone rings. As you may find out, shoppers will
sometimes call from their cell phone in their car in front of your property!
Maintaining a clean and neat house will definitely serve you well. The
more prepared you are, the better your chance of a successful sale.
8. Get ready to show your property
Your property should be clean, neat and uncluttered
throughout the listing period. So prior to closing, a quick touch up
should be all that is needed. If you have kids or pets it would be preferable
to have them away at the time of your showings. To let in the maximum
amount of light, open all your blinds and curtains, and if its nice
out open the windows as well. Some soft music is a nice touch, but nothing
that some people might find disagreeable or distracting. Classical or
instrumental would work best. Be sure to secure all your valuables in
a safe place, or consider a safe deposit box until you have a sale.
Also, to keep track of whom you speak to, and for security reasons, have
all your guests sign in with their name, address and phone number. Now, with
some determination and good fortune, you will succeed!
9. Putting
a sale together
When the time comes
to actually "sell" your property, the property itself can
do much of the selling for you, if you have done the necessary preparation.
Whoever buys your property will do so because it combines most of the
elements they want in a way that just feels right, and makes them comfortable
enough to step forward with an offer. What you the seller can do is
determine what those elements are, and positively reinforce them.
Naturally, before any sale is complete, both parties must be in agreement
on all the details. Specifically, the buyer and seller must agree on
the final price, financing contingencies, professional inspection, title
policy, closing date, and possession date. All of this involves negotiating,
which can make some people uncomfortable. Nevertheless, it is an unavoidable
part of the process, but it does not have to be a nerve-racking experience.
Indeed, many who buy and sell by owner find that without a third party
in between them, they are able to communicate easier and more clearly
with the other party. If both parties remain pleasant to each other
no matter what the topic, or how far apart you might be, you will be
able to maintain mutual respect. That in itself goes a long way toward
striking a deal. Once you have an agreement, contact your attorney and/or
title company to get the process moving forward toward your closing
date. They will discuss what they need from you, and expedite everything
required for the closing. When you do reach this point, it is still
a good idea to continue marketing your property until all contingencies
of the sales agreement have been met, in particular a loan commitment
letter if the buyer is taking out a mortgage.
Congratulations, you made a sale!
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Fair Housing Act.
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