How to List Land for Sale by Owner

Listing a property for sale by owner avoids the costs associated with hiring a real estate agent.

All types of individuals with various education and backgrounds can list their property for sale by owner. Many people opt to sell property without the assistance of a real estate agent to avoid paying the agent's commission rate, which is usually between 5 percent and 7 percent of the sales price of the property. After you perform some improvements to get your property ready for the market and establish a selling price and price terms, you are ready to list your property for sale.

Instructions

1. Fix your property to make it look presentable to prospective buyers. Painting and basic landscaping are common methods used to make a specific property look well to attract buyers. Also, basic cleaning, including carpet cleaning and window washing, can boost the marketability of your property. Additionally, you may hire a home inspector to help you ascertain any hidden defects on your property.

2. Determine a reasonable price for the property. If your property is priced well, it will sell faster than an unreasonably priced property. For instance, if you set the price too high, then it will discourage potential buyers from deciding to work with you and make offers to buy the property. Determine what the property is worth on the market. Research the selling price of comparable properties. Consider the selling price of properties in the same geographic area, properties built during a close range of the age of your property, properties with similar square footage and properties with similar designs as yours. Alternatively, you may hire an appraiser to determine the market value of your property.

3. Decide how you will negotiate with a buyer for the purchase your property. You may choose to accept a down payment for the property prior to initiating the closing process. For instance, you choose to sell your property for $100,000 and accept a 10 percent down payment from the buyer. At this point, the buyer will need to have $90,000 to close on the property in addition to any closing fees that you may add to the purchase price.

4. Advertise your property. Display a "For Sale By Owner" sign. Advertise your property online with websites, such as Yahoo Real Estate, For Sale By Owner, Craigslist and Flat Fee Listing; by distributing fliers; newspaper classified ads; or simply by asking friends and family to help you search for a buyer. Many people choose to list their property on the internet. Some websites allow sellers to list their property for free, while others charge a listing fee. Choose a listing service that allows properties to be listed in your geographic location. Be sure to provide potential buyers with your contact information. Whether you are marketing your property online or some other method, be sure to include detailed information about the property, such as pictures, the location, price and best features.

Tips & Warnings

• It is always helpful to perform a title search on your property to determine if their are any property liens before you place your property on the market.

References

• For Sale By Owner: Home Selling Checklist
• Bankrate: 7 Steps Led to For Sale by Owner Success