How to Sell Your House for Sale by Owner

Take time to prepare your home before putting it on the market.

According to the National Association of Realtors, 13 percent of homes sold in 2008 were sold by the property owner. For sale by owner, or FSBO, home sales are in the minority due to the amount of preparation and work involved. But homeowners benefit by saving on agent commission fees. Find out how to prepare your home and whom to consult before placing your home on the market.

Instructions

1. Decide on a sales price. Search online to get an idea of what homes in your area are selling for. Look for classified advertisements in newspapers and on the web, such as Craigslist. Zillow is a website that provides recent home sales and value estimates. Make appropriate adjustments to the price based on your home's amenities. For example, a golf course view or extra large lot will command a higher sales price. You can also hire a licensed real estate appraiser to give you an accurate market value of our home. Appraiser fees range between $200 to $500.

2. Repair and touch up your home. Walk through your house with a critical eye. Repair cosmetic damage, such as loose floorboards. Repaint the interior a light neutral color to give your home a fresh feel. Don't forget about curb appeal. Clear weeds from the front path and mow the lawn. Plant colorful flowers to brighten up the house.

3. Stage your home. Clear out clutter and personal items, such as family pictures. Leave only essential furniture and rearrange the pieces to showcase each room. Consider hiring a staging professional if you struggle with decorating.

4. Hire a property inspector. A potential buyer may decide to hire her own property inspector while in escrow. However, having an inspection report on hand gives potential buyers peace of mind if they decide to make an offer on the house. The buyer feels at ease knowing that there is little chance of hidden defects or need of major repairs. Most property inspectors charge based on the square footage of your house. Property inspections range between $200 to $500, depending on your location and the size of your home.

5. Consult a legal adviser or attorney. Look for a professional with experience in real estate transactions. She can assist with drawing up contracts and advise you on the potential legal liabilities of selling your home. An attorney will also educate you about state-specific real estate transaction requirements, such as seller disclosure forms.

6. Put your house on the market. Host an open house over the weekend. Advertise in your local newspaper and online at Craigslist. Take pictures of the interior and exterior of your home and create a flier for attendees. Place a "For Sale" sign in your front yard.

   Consider inviting local real estate agents for a private preview of your home. Offer a commission percentage to a real estate agent who presents an accepted purchase contract. Most real estate agents will work for 2 to 3 percent of the sales price, but commission fees are negotiable.

Tips & Warnings

• Some real estate brokers provide a la carte services for a flat fee. For example, you can pay to have your property listed on the Multiple Listing Service, where real estate agents list available homes for sale. Fees for this service vary, but range between $300 and $500. But be prepared to offer the buyer's agent a commission fee if you accept an offer from her client.

• When reviewing offers from potential buyers, ask them to provide you with a prequalification letter from their lender. Or, request proof of funds for a cash offer. Save time by knowing that your buyer is financially capable of purchasing your home.

References

• U.S. Department of Housing and Urban Development: Selling a Home
• Realtor: Get the House Ready
• CNN Money: Selling Your Home on Your Own

Resources

• Realtor: Home-Seller's Basics
• Craigslist
• Zillow