How To Sell Your House By Owner

How To Sell Your House By Owner

Thinking about selling? Thinking about how to sell your house by owner? There are pros and cons to selling your house by owner. In order to understand how to sell your house by owner in TODAY’s market you must first understand how homes have been traditionally sold. Selling your home has drastically changed. Hiring a real estate agent local to the market in an office that had market presence USED to be the best way to sell your house. Let’s take a look at the three evolutions of selling real estate to further understand how this plays a role in selling your home. Let’s categorize them as Pre-historic, Pre-modern, and Modern eras.

Pre-Historic How To Sell Your House by Owner (years 100 A.D.-1995)

This era was pre-internet and pre-Multiple Listing Service. Today, we are spoiled by the availability of information via the Internet, which was not the case in the pre-historic era of selling real estate. Prior to the establishment of the MLS and the Internet, Realtors and consumers relied on receiving information about properties for sale through networking and local advertisements. Real estate brokerages and agents would network with one another to learn about new listings coming on the market. Realtors and brokerages were gatekeepers of this information making their services information-based versus customer service-based. It was very difficult to learn how to sell your house by owner at this time due to the lack of resources available. Realtors were the most abundant sources of finding information about local homes for sale. A consumer could find some properties for sale in the paper or other print advertising, but the information was predominantly controlled by Real Estate professionals. Open houses, broker opens, newspaper advertising, and hosting other networking events was how house for sale was showcased. A local Realtor with a large network was most likely the best option to sell your house at this time. Therefore, a strong local brokerage with a competent agent was the best choice to sell your house.

Pre-Modern Era How To Sell Your House By Owner (1996-2003)

The evolution of the Internet came about in 1995. While many people at that time were confused about what the Internet was, nobody knew the way we researched and viewed properties would completely change in the next ten years. The Multiple Listing Service (“MLS”) had a DOS based system in the later 1990’s and early 2000’s, but it was very confusing. It gave Realtors information on properties available for sale virtually anywhere. However, Realtors would need to do their due diligence to determine the details of the property. The Internet and the MLS were used as tools to obtain information regarding how many properties were available for sale, how much the price was, and where they were located. The MLS, however, did not have the ability to really showcase WHAT the property looked like. There was no way to see the interior or exterior of a property. Realtors at this time had access to more information, but the information was not as detailed as it is today. If you wanted to know how to sell your house by owner, major challenges still remained. The introduction of the Internet and MLS did not have many "online tools" available for people to advertise their house for sale. The majority of consumers still relied on a Realtor as their resource for researching properties for sale. Realtors and the public had more resources to utilize about properties for sale, but in a limited capacity. Open houses, newspaper advertising, and networking still served as the best ways to advertise your house for sale, but you still needed to rely on a Realtor. If you wanted to sell your house by owner, it was still a big challenge.

Modern Technological How To Sell Your House by Owner (2003-Present)

The evolution of the Internet and technology changed everything. This has allowed many people to learn how to sell your house by owner as well. The ease of using the Internet now allows consumers to advertise their house online on their own and compete with real estate agents. Home buyers now have the ability to look online and inquire about a particular property. Now, real estate agents have shifted their services to a customer service oriented model vs. an information based model. For example, 88% of home buyers will STILL work with a Realtor, but just about ALL home buyers begin their search prior to consulting with a Realtor. Realtors in today’s market are now positioned as advocates for buyers to consult with so they can make a wise investment in their home purchase. People use Realtors as a service to confirm their purchasing decision in addition to finding properties for sale. Realtors used to have an information-protected industry as they controlled everything while now the roles are completely reversed. This has caused a paradigm shift in the way real estate is marketed today. Information on properties for sale is now easily accessible for any consumer. Consumers now rely on a Realtor’s expertise in contract negotiations, marketing expertise, and advising on proper investment aspects. Today’s Realtor is no longer local to the market in which they work. The Internet has allowed real estate agent to serve more areas. A Realtor today needs to understand online marketing when selling properties. The key to selling your house today is to implement an online marketing strategy to get the most exposure since 95% of the buyers are online vs. driving around on Sundays trying to find an open house. If you are trying to learn how to sell your house by owner, you must be experienced somewhat with the Internet. Your first showing will take place online.

The How To Sell Your House By Owner Marketing Plan

Selling a house has always been about showcasing property in places where potential buyers look. In the first two eras, most home buyers learned about properties available for sale through a real estate agent. In today’s world buyers have access to hundreds of properties for sale via the Internet. Now your property is buried in a bundle of homes available for sale and the key is to make it stand out and be positioned correctly. To sell a house in today’s market you must do more than just list it on the MLS and put a sign in the yard (90% of Realtors do this). You must know how to properly advertise your house online to get the most exposure possible to receive highest and best price. More exposure equals more buzz. More buzz equals more showings. More showings equals more offers. More offers equals higher price. Marketing online is the key to knowing how to sell your house by owner.

10 Tips On How To Sell Your House By Owner

1.) Pictures: Posting bad pictures online when selling your house is the #1 mistake made by home sellers. If you want to know how to sell your house by owner, then use quality pictures. It’s a fact that properties with pictures posted online get more clicks and views than properties without pictures. The quality of the pictures is also extremely IMPORTANT. The pictures below are taken with a wide angle camera lens. It's also important to note that different online search engine platforms have different sized picture preferences that should be adapted appropriately. The use of professional pictures is highly advantageous. Bad pictures can deter a prospective buyer from seeing a property just as much as having no pictures. You'd be surprised how many listing have no pictures even in today's market. There is no coincidence that they also happen have a lot of market time (LOTS OF MARKET TIME IS BAD). Home buyers will look at the pictures before deciding if they want to view a house. If your pictures look good online they are more likely to schedule a showing. If your pictures are horrible, it can leave a bad first impression and result in no showing at all.

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2.) Videos: Video usage has increased over the past couple years, but the vast majority of sellers still do not have video attached to their listings. It's important to note that the pictures show off the main selling features of a home while the video allows a home buyer to get a walk through of the house. Using videos the correct way will increase the exposure a property has on the market. The use of videos is also important as it helps with Search Engine Optimization (SEO). Many people do not know this, but YouTube is the 2nd largest search engine in the world. You want to post your house video on You Tube. It's a fact that houses for sale online with videos get more views than those without. A video can really bring excitement to a property! Below is an example of a professional grade property video. Check it out and see if you think the property seems more exciting and attractive. This property sold in 4 days and the largest traffic source was the video! Many people who try to learn how to sell your house by owner do not think about using videos in their marketing. If you are going to try and sell by owner, I highly suggest finding a good property videographer.

3.) Online Listing Syndication/Placement: Imagine if you were a home buyer looking at your listing online. What would you want to see? Are there certain headlines that would draw your attention? Think about the last time you researched something on Google, did you scroll past the second page in the search results? This is one the biggest obstacles home sellers have when advertising their house online. Many Realtors will tell you that they place their listings on the major search engines, but do they pay for placement to appear on the first page of search results? A property listed 10 pages deep in a search does not get viewed as much as the property that appears in the first page of search results. Your house needs to be positioned correctly to appeal to an online audience so they view or click on it. It also needs to be advertised on the largest home search engines such as Realtor.com, Trulia, Zillow and Homes.com. If you want to know how to sell your house by owner, getting your home advertised on these websites is a start. Anyone can get a listing on those sites, but it’s the page placement that your listing appears on along with how you position it that will create better results.

4.) Listing Remarks: Listing remarks are crucial when describing a house for sale. If you want to learn how to sell your house by owner then you must know how to tell a great story line about your house. Your house description needs to strike a cord with your potential buyer. It is no surprise that most expired listing remarks are not very strong or appealing. Many times people who try selling their house by owner do a very poor job of describing their property. A “call to action” also tends to lack in this area. If you do not tell someone to set up a showing they most likely will not. The pictures and videos will show what the house looks like, but the house description is EXTREMELY important to "speak" to your potential home buyer about that home's lifestyle. Is the property near public transportation, highway access, or lakefront? All of these things could stand out to a potential home buyer.

5.) Property information: The information about the property must be filled out in its entirety. The Internet and MLS both give us many ways to input detailed property information. It's imperative that all the fields are filled out in their entirety. For example, if your house resides in a good school district, isn’t that one of its selling points? Make it easy for your potential home buyers to find what they are looking for. Detailed information is necessary when advertising your house for sale. If you are selling a condo and the monthly HOA dues include all utilities that would be something I would highlight. This is key to learning how to sell your house by owner.

6.) Pricing suggestion: We play within the market and do not create it therefore, the only thing we can do is abide by what it tells us. The best chance you will have at selling your house are the first few weeks it is listed. Thats when the entire market takes notice that there is a "new kid" on the block. Pricing your house is very strategic. Do you know how people search online for houses? Their main search criteria input is always price. You want to make sure that you are strategically positioned within their search criteria. Pricing a house for more than it's worth can only create market time, which will invite low ball offers. My best advice is to price your house correctly from the beginning and do not accumulate too much market time. Would you have 2nd thoughts on buying a house that's been on the market for a long time? Yea, so does every other buyer. Price it within market value and do not try to reach for something you know is completely unrealistic. If you know how to position your home asking price correctly, you are on your way to knowing how to sell your house by owner.

7.) Showing advice: A property staged correctly will also have better results. DO NOT try and sell your house without making it look good. You would be amazed at how many people try to sell their house by owner without learning the little tricks in how to sell a house by owner. Sometimes some minor improvements will yield you more money and a faster house sale. Before listing your house for sale you should capitalize on any small inexpensive improvements you can make. They can be the difference between an offer or not. They can also be the difference between how much of an offer price you receive for your house. A move in ready house will most likely sell for more money and in less time. Investing in your home sale will pay off in dividends.

8.) Weak signage: There is no better salesman for your property other than the neighbors. When you list your home for sale everyone wants to know how much it's selling for. Placing a simple "For Sale" sign and an information tube in front of your property can solve this. You can also have a call capture number posted on your signage that collects anyone's information who calls that number. Because this is the only place that phone number is posted you will know they called on your house so you don't miss any leads. The information tube can be stuffed with a flyer that lists all of your house information. You should also have a sign rider describing the features of the house. For example, 4BR 3BTH, Fully Rehabbed. This further targets and qualifies inquiries as you are letting them know the makeup of the property. This is probably one of the easier tips in learning how to sell your house by owner.

9.) Create the buzz: You want to set up a marketing plan. For example, “First showing is this Saturday from 12:00 p.m.-4:00 p.m.” or add in remarks like “Offers accepted and presented this Monday, January 1, 2013”. These statements create urgency and buzz around the house and create a perception that it is a well-valued property. Be ready to adjust when needed. You should also have a pre-determined pricing strategy set in place should your initial asking price not trigger enough traction.

10.)Offer Incentives- Create incentives to purchase the property. For example, you could offer the buyer’s agent an extra point of commission. Statistics have shown that this motivates buyer agents to show your house and then sell it. They also show that offers have come closer to asking price than if no incentive is offered at all. If offering an extra percentage to the buyers agent gets you an offer that nets you more money, then isn’t that a win? You can also offer a decorating allowance, interest rate buy down, or a home warranty to make it more attractive. Creative incentives can help you sell by owner.

How To Sell Your House By Owner Conclusion

Real estate marketing has gone through a paradigm shift in how houses are bought and sold. The key to selling your house by owner in today’s market is having good marketing. If you decide to sell your house with a real estate agent, make sure they are experienced in online marketing. They should have a solid marketing plan in place that will pay for the cost of their services.

For some homeowners, selling their house by owner is not worth it because of the amount of work entailed. It is also a fact that homes listed with Realtors sell for roughly $46,000 less than homes listed with a Realtor. In California, The average sales price to homes listed by owner was $184,000 vs. $230,000 to homes listed with a Realtor.(California Association of Realtors). If you are able to sell your house by owner then I highly encourage it. However, if you are able to receive a higher sales price for your home by listing it with a Realtor, then doesn't that make more sense? I would suggest ordering a closing cost sheet for your home before doing anything so that you can make a decision based on numbers. That's for you to decide. Hope this helped!

If you are looking to sell your home fast and for top dollar you need more than just another agent. You need a marketer! I promise you nothing but the best results or I'll literally help you move. It's only a conversation and you can see if I know what Im talking about.