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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 rival, and possibly exceed conventional means.
When you sell your property "by owner", there are several steps you can
follow to increase the chances of a successful sale. With determination
and good planning you can sell your own property! 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.
Your title company may also be able to provide you with specific details
about your property that you can share with buyers, i.e. square footage,
year built, number of owners, etc.
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
At the
very least, you will want to develop a professional looking flier or
brochure that provides the details of your property. Pictures
are a must, and color if at all possible. Also, be sure to include a
thorough narrative description of all property features. Doing this will
positively attract more people to see your property. When you list a property with
sheboyganbyowner.com, you will have a ready- made flier available by simply printing out your listing. 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
When the time comes to show your property, you can prepare the final
touches before the showing. One nice touch we have used effectively is to
write out an index-sized card for each room, pointing out the key features
for that area. You can place the card at eye level, with some quick facts
such as dimensions, brand or style of items such as windows or flooring,
or any other prominent or exclusive feature. Just a few words can be
enough to subtly draw attention to something special. Of course your
property should be clean, neat and uncluttered throughout the listing
period. If you have kids or pets it would be preferable to have them away
at the time of your showings. Comforting smells like coffee or cookies baking
are inviting, but avoid anything that is too overpowering. 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. Hopefully, by doing so, you will foster a desire to own your
property. 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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Website Links
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Fair Housing Act.
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