"For Sale By Owner" Checklist

Before the Sign goes up:

  1. Prepare a one or two page brochure as a take away.  Most Buyers will look at more than one home before they decide to buy.  They need something that reminds them of the really great features of your home when they are deciding what to see a second time.
  2. The first page of your brochure should have a color picture of the best exterior view of the house, and be current (no snow pictures if you´re selling in July).  Put the full address under the picture (remember, they have at least 20 of these, so help them remember).  Then put in a paragraph that describes the house and the best of its unique features.  If it has a beautifully private fenced in yard, mention it.  Follow this with a bulleted Features section.  At the bottom, put your contact information, including all phone numbers and your e-mail address.
  3. The second page should be more pictures, in color, highlighting the unique and desirable features of your home.  If you have a private back yard, remind the Buyer with a picture looking out from the deck.  Do NOT include pictures of features that you absolutely love, but that most Buyers will see as problems (for example, your fire engine red kitchen).
  4. Everything else you need will be in black and white, so breathe a sigh of relief.
  5. The next page of your brochure should be a MLS (Multiple Listing Service) style description of your home.  Go to www.homes.com and look at a sample.  This will include bedroom dimensions, internal and external amenities, appliances, taxes, etc.  Page one has the overview, this page has the details.
  6. Page four should be a letter from you to prospective buyers.  It should describe your personal experiences with your home, your neighborhood, and your schools (your living room in the morning sun, your deck at sunset, your annual block party, your local high school soccer club, favorite teachers, etc.)
  7. Page five should show your yearly utility costs:  Gas, Electric, Water, Sewer, Trash, etc.  If you can, show monthly and yearly amounts.  If you´ve done anything to reduce utility costs, mention it here.
  8. You should give a copy of your brochure to every INTERESTED buyer.  The rest of the materials you need will be for Buyers to look at, but not take, or to use if you get an offer.
  9. Provide a Competitive Market Analysis showing comparable homes for sale in your neighborhood.  Go to www.homes.com or its equivalent and search for comparable homes.  Do a spreadsheet showing address, bedrooms/baths, square footage, levels, garage style, basement, and list price.  List each home for sale in your area, including yours.  Use a yellow highlighter to set your home off from the others (hopefully you´re in the middle).
  10. Typically a home in Indianapolis will sell for a little less than 96% of list.
  11. Provide information on schools in your area.  Go to your school district´s website, or go to my Communities/Schools page and print out the information.
  12. Almost all Sellers must prepare an Indiana "SELLER'S RESIDENTIAL REAL ESTATE SALES DISCLOSURE."  See here for possible exclusions:  http://www.uslegalforms.com/lawdigest/seller-disclosure-digest.php/IN/IN-37014.htm.  For printable Indiana Disclosure form go here:  http://www.in.gov/icpr/webfile/formsdiv/46234.pdf.  Be honest in filling out this form.  Do NOT hide anything that you really know.  Also, do not be afraid to say that you do NOT know.  In the end, your Buyer will probably make their offer contingent on a Home Inspection, so hiding things will NOT work.  Honesty is the best policy.
  13. This "SELLER'S RESIDENTIAL REAL ESTATE SALES DISCLOSURE" must be signed by both the Seller and the Buyer to insure a valid and enforceable Purchase Agreement.
  14. If your home was built before 1978, you will need to provide a lead based paint disclosure.  Go here for the rules:  http://www.hud.gov/offices/lead/disclosurerule/index.cfm;  and here for the printable form:  http://www.hud.gov/offices/lead/1018/selr_eng.pdf.

 

Before you Show the home:

  1. "Neutralize" your home.  Neutral colors and carpet.  You can offer an allowance to replace the bright orange shag carpet, but nothing can erase a first impression.  Buyers usually see replacement/repainting costs at about 3 times actual cost.  If you can afford it, neutralize first, and avoid the whole issue.  E-mail me with your zip-code and I´ll send you a list of reasonable carpet companies and painters for your area.
  2. You love your knickknacks.  Your Buyer wants to visualize his, and yours just get in the way.  A good rule of thumb, no more than three objects on any flat surface.
  3. Your closets are more than adequate to meet your needs, but they´re full.  The Buyer sees a full closet, and therefore sees no closet space.  Be creative and box up what you don´t need at the moment.  Half full closets and pantries give the right impression of available space.
  4. If you have so much furniture that you can hardly see the floor, store some.  You want your buyer to be able to visualize his furniture comfortably fitting in your spacious living room.
  5. The yard can sell the home.  Dandelions, weeds, leaves, dead flowers, your beloved but rusty patio furniture can all detract from your home, and all are easily remedied.  Invest a few dollars and have a Landscape Service do a quick clean-up (E-mail me for some names.).
  6. If you have an older home, consider offering a Home Warranty to your Buyer.  It will protect them from any major problems with plumbing, electrical, major appliances, heating and cooling systems for a year, and it will probably cost you less than $400.  Go here:  http://www.hmsnet.com/CHO/FAQ.shtml for more information.

 

After your Home is on the Market:

  1. Always answer your contact phone.  Nowadays, your buyer may be sitting in front of your house, calling on a cell phone.  If he´s working with a Realtor, he´s in the middle of touring 6 or 7 homes.  You need to be available to take calls, your buyer won´t wait.
  2. If you can´t be available all the time for showings, find someone you trust and get them a key.  A stay at home neighbor or nearby relative works best.  Whoever will do the showing needs to know the "showing rules" and know where to find the property brochures.
  3. Keep the home in showing condition at all times.  Worst case,  prepare yourself for the "30 minute drill".  Keep it close enough that in 30 minutes you can be ready for a showing.

 

When you Show Your Home:

  1. Open every curtain and blind and turn on every light in the house.  If possible, schedule your showings when interior natural light is at its brightest/best.
  2. Greet your prospective buyer at the door with a friendly welcome, and a copy of your brochure.  Introduce yourself and then say these words:  "Please make yourself at home and take your time looking around.  I´ll be right here if you have any questions."  Then grit your teeth and do NOT follow or show them the house.
  3. You are doing this because they NEED to look in your closets and cupboards and talk about your home, and they can´t do that when you are standing right next to them.
  4. Answer all questions honestly, but do not "Sell".  Your job is to provide information.  Homes sell themselves, and only the buyer ever really knows why.  If your home can´t sell itself to these particular buyers, you won´t do any better.  Just take a deep breath and let them go.
  5. Never embellish or promise.  Never commit unless you intend to follow through.  Do not tell them "You´ll love eating breakfast on the deck in the summer."  If we have a heat wave this summer, or 90 straight days of morning thunderstorms, you´ll get a call.  It´s okay to say "I love eating breakfast on the deck in the morning."  Don´t get paranoid, I´m held to a much higher standard than you are.  In general though, maintain an objective tone.
  6. Do NOT negotiate price or terms.  You´re goal is to get a written offer, and then to react to that written offer.  Any conversational concessions you make now will just give the prospective buyer a lower starting point when making an offer.
  7. You are representing yourself, NOT your potential buyer.  So your job is to represent your client, YOU.  Remember that your buyer is not your friend, he is someone who is trying to get the best deal he can.

 

When You Get an Offer:

  1. Remember to breathe.  It´s NOT personal.
  2. Your buyer is probably not working with a Realtor, at least not in making his offer to you, so he has no one advising him on what to offer.  Most buyers assume that the asking price is greater than the price the Seller will settle for, and no Buyer wants to pay more than they have to.  Because you are selling the home yourself, the buyer assumes that you are saving a ton on the real estate commission and quite naturally, wants to share in that savings by offering a lower price.
  3. You now get to make a counteroffer, something to the effect that you accept the Buyer´s offer in all respects EXCEPT for the following:  (insert a list of your substitutes for anything you find objectionable, including his ridiculously low price).
  4. This is a GREAT time to get your attorney on the phone.  I know, we live in Indiana, and we don´t use lawyers here, but this IS a contract you´re about to review and possibly sign.  Play it safe.
  5. Review any contingencies ("Contingent on Buyer selling his home at a price acceptable to Buyer within x days.", "Contingent on Buyer obtaining financing at x% APR within 10 days.", etc.).  Make sure these contingencies can be met within a reasonable period, and that a reasonable period is specified.  You don´t want to take your house off the market for any lengthy and indeterminate period.  The period should be well defined (x days) and objective (mortgage at x% vs. mortgage at APR "acceptable" to buyer).  In your counteroffer, be reasonable, but take out any subjective, nebulous or indeterminate conditions.
  6. If your Buyer has EVER worked with a Realtor, they will request a home inspection (which THEY should pay for).  Accept this as fact, and if they skip it, you should SUGGEST it.  It gets you off the hook.  Remember, you may be responsible for "defects" that you should have known about, even if you don´t.  Recommending a home inspection may hurt, but it may also eliminate your liability if something comes up later.  After all, if the inspector didn´t find it, how could you possibly know?
  7. The primary concern of a home inspection is to find any "major defect" that significantly impacts the value of the home.  It is NOT a vehicle for the Buyer to get you to correct minor maintenance issues or cosmetics.  Set your Buyer´s expectations now.

 

After the Home Inspection:

  1. Okay.   The report came back, and they found some problems.  Unfortunately, this is the Buyer´s opportunity to back out of the deal, or to try to negotiate a change, usually price, in your deal.
  2. The Buyer will tell you in writing what he wants.  You should review the inspection carefully.  You are only responsible for "major defects", not cosmetics.  If the Buyer asks for a price reduction or a repair allowance, it will often be for more than the repair/replacement will actually cost.  So, figure out what you can do yourself and get estimates on any major defect you need help with.
  3. At this point you have at least three options:  1)  Tell the Buyer that you are unable or unwilling to make the repairs and he can walk if he wants;  2)  Offer to have the repairs completed and move forward with the deal; or 3)  Offer a price reduction or repair allowance in line with your estimates.
  4. This is another GOOD time to chat with your attorney.
  5. If you offer the price reduction or allowance, include copies of your estimates with the counteroffer to show the reasons for your response, but expect to haggle.  If the Buyer comes back asking for more, ask to see his estimates so you can understand the differences.
  6. In the end, you will hopefully have a final and complete deal.

 

Prior to Closing:

  1. Pick a good Title company and order your Title policy.  If you have your title documents from when you bought the home, take them along.  That will mean the title company gets to do less work and they should give you a discount.  Typically, you select the Title company and pay for the Seller´s policy.  The Buyer typically pays for his policy.
  2. Arrange for a Home Warranty to be provided to the Buyer at closing if you offered to provide one.

 

When you close:

  1. Ask to see a copy of the Deed and Abstract and compare the property description to the description on the Title Policy.  It needs to be the same.

 

Okay.  I´ve given you what I think you need to know to successfully market and sell your home (to Print, right click anywhere in the text, and choose Print). 

Of course, I´d still like you to list your home with a Realtor, and in particular, to list it with me.  So, if you´re in the mood, take another minute (or two) and reflect on why that might make sense (and dollars ...).  To help you, I´m providing my "10 Reasons that you really, ReaLLy want to use a Realtor to Sell Your Home". Trust me, you´ll laugh at least once. 

 

"10 Reasons that you really, ReaLLy want to use a Realtor to Sell Your Home":

 

  1. Time is money. 
    1. Quite a few years ago, I hired an architect to design a remodel on my home.  Since I considered myself to be pretty literate in the building trades (silly me ...), I told him I was going to be my own General Contractor. 
    2. He was wise enough (or kind enough) not to question my qualifications, but after giving me a very long look, he asked, "How much do you make an hour?" 
    3. I thought it was a fair question, so I told him.  At the time, I was a very good, freelance software designer, so my hourly rate was not small, and I was proud of it. 
    4. He paused strategically, and then he said, "Do you think you´ll save as much being your own General Contractor, as you´ll lose by doing that when you could be designing software?" 
    5. Needless to say, that ended my brief career as a General Contractor.
    6. The moral of the story is:  "You´re trying to save money, so do the math and make sure you´re actually saving money."
  2. You´ll get added to my Christmas card and calendar list.
  3. Everyone in Indiana is nice.
    1. The Buyers are nice.  So are you.  So am I.  If I were selling my own home, I´d lose my shirt.  Because I´d be nice.  "Yes Buyer, you´re right, the carpet IS two years old.  And it IS the wrong color.  How much did you want me to reduce the price?  Sure, $10,000 sounds fair ...  Oh, the wallpaper too ... ???"
    2. Yes, I´m a nice person.  But when I´m working, my job ... my reason for being ... my self esteem ... all depend on my ability to represent the very best interests of my Client (that would be YOU ...).
    3. Yes, I´m a nice person.  But I represent each and every one of my Clients to the best of my ability.  That´s why, when a Buyer´s agent delivers an offer on your home, he or she sees my "professionally noncommittal" side.
  4. You´ll get to hear my cheery voice every Wednesday, rain or shine, until we sell, and close on, your home.
  5. You may have noticed that I didn´t mention advertising in my Checklist.  That´s because I don´t know anything about it.  I know how to write a killer ad, and produce a brochure that will highlight the best features of your home and stick in the mind of prospective buyers.  But I don´t know advertising, because F.C. Tucker does.
    1. Tucker will take my brilliant ad and pictures, and will get them out, in color, in Homes Illustrated and Tucker Talks Homes every month.
    2. Every time we hold your home open, Tucker will advertise it in the Star.
    3. If I ever get writer´s block, and can´t write a killer ad (rare, but once every 10 years or so), Tucker will do it for me.
    4. I don´t know advertising because Tucker does.  I can focus my attention on what I do best, highlighting and marketing your home.
  6. I´m only ONE (really nice) guy.
    1. With 650+ really close friends (the rest of my Tucker family) who are going to market your home to every buyer in, or relocating to, Indianapolis.
    2. And I´m going to let my 650+ close personal friends know why I´m excited about Your Home.
    3. And I´m going to take a select group of my fellow Tucker colleagues through your home, so that they know it as well as I do.  Plus, they always have really great ideas that I might not have thought of (Okay, usually I´ve thought of them first, but I don´t tell them that.).
    4. And your Home will be featured on my Website, and in the Multiple Listing Service, for absolutely eVerybody to see.
  7. You´ll get your own private area on my Website, where you can go anytime to see all of the activity on your home (showings, advertising, open houses, and all Buyer feedback), as well as sales activity for comparable homes in your area.
  8. If we choose to offer a Home Warranty to our Buyer, it will go into effect immediately for you.  It will cover repairs if anything goes wrong with your Plumbing, Electrical, or Major Appliances from the date we sign up until closing, at no cost to you.
  9. You, and your Buyer, will become lifetime members of Tucker HomeLink, a concierge service that will find you just about any home related product or service you´ll ever need (plumbers, painters, appliance repair, moving, etc.).
  10. And the 10th and Most Important reason to use Me as your Realtor:
    1. You get "Me."
    2. Forever.
    3. 24 hours a day, seven days a week.
    4. Whether you´re in the market for a home again, or just lost my Chili recipe.  Telling me about you first grandchild, or asking my advice on how to get rid of "black spot" on your roses.

 

So, the next time you´re in the market to buy a home, or know of someone buying or selling a home ... call Me.