How to Sell a House Privately
Selling a home is a major step for most people. It signals a fairly important change in their lives. Selling a home can also be a very expensive step, and there is no guarantee that real estate agents will succeed in selling a house—only that if they do, they will collect a hefty commission. There is an alternative that can save you thousands of dollars—sell a house privately. To do this, you do need to have the time to spend learning what you need to know and marketing your home. But you do stand to reap substantial gains.
- Difficulty:
- Moderately Challenging
Instructions
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1
Learn the basics of real estate. You can do this on your own by reading and researching topics on the Internet (see Resources below). In addition, you may want to take a short course in the fundamentals of real estate. Many community colleges and university continuing education programs routinely offer such courses at modest cost.
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2
Start fixing things up around your home. You should make sure the lawn, bushes and exterior are clean and maintained. The same is true of the interior. Clean the house from top to bottom and get rid of all that junk that has piled up in the attic, basement, and garage for 10 years (a bonus—this will make your life a lot easier when it’s time to move!). Make any minor repairs that are needed. Paint what needs painting. This can be fairly costly—but not doing so may cost you the sale or force you to accept a lower price.
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3
Find a reliable lawyer experienced in real estate ahead of time. The lawyer can help you to start with by reviewing any formal (written) offers you want to prepare. More importantly, when the time comes to close you won’t be scrambling to find legal representation at the last minute.
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4
Do the research required to know your market. To get the best price you have to know what the market value of your house is. Don’t hesitate to set your asking price at or a little above the probable sale price range. At the same time, be realistic about how much your house is worth.
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5
Put the house on the market. You need to advertise to sell a house privately. Consider retaining a company that assists people who are selling their houses themselves. These companies do charge a fee, but they do help with advertising and other details. You should have signs out to advertise that you want to sell a house privately. Advertise in newspapers and on Internet sites as well. Be open to innovative advertising strategies. For example, some people have gotten excellent results by creating their own website loaded with pictures and information and included the web address with their other advertising.
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6
Show the house to prospective buyers. You can improve your position and the likelihood of a quick sale by being prepared and professional. Have a written offer ready along with a handout that lists the features of your home (and a color photograph). Be prepared to discuss the house’s features and construction. Equally important know your community. A buyer may want to know where local schools, churches and stores are located, what the crime rate is, and so on. Keep pets out of the way and if you smoke, don’t do so in the house once you put it on the market—the odor will put off many buyers.
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7
Be ready to accept an offer—because if you do all this and do it right, you will get offers!
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Tips & Warnings
In order to sell a house privately you must have time to spend on the project. If you are up against a deadline (because of a job transfer, for instance) it’s not a good idea to commit yourself to selling your home yourself. Be realistic—this is an excellent way to maximize the money you realize from the sale, but it’s not appropriate in all circumstances.
