For Sale By Owner (FSBO)

Does the thought of paying a realtor thousands of dollars to list and market your house fill you with horror? Selling your property privately, without involving a real estate agent, may entail more work on your behalf, and you might find it hard to reach as many prospective buyers as a realtor would. On the other hand, if you're successful, you'll save the commission you would have to pay a realtor.

However, although selling a house may look easy, there's far more to it than putting a sign on the front lawn and waiting for the buyers to come knocking at the door. There's an array of laws, regulations and knowledge that go into securing a successful sale, and if you're going to succeed in selling your house privately, you'll need to put in some hard work and effort.

First Steps

Go to your local city hall, registrar of deeds and local library and find out what inspections you'll need and what professionals you'll need to get involved.
Check realtor sites and MLS listings to find out selling prices for properties that are similar to yours in your neighbourhood.
Have your home inspected and appraised by a professional. This will give you a realistic appraisal of your home's value, and will also give you a critical unbiased view to your home. In addition, it will alert you to any problems or repairs before your potential buyers find them, and adds professional support to your required disclosure statements.
Decide the asking price. It is important to remember not to price your home out of the market; even if you bring the price down at a later stage, sellers may notice the length of time that the house has been on the market, and may assume that there is a problem with the house.
Prepare and stage your house as described earlier in this section. Wash down siding, touch up any painted trim, and straighten up the yard, and inside, depersonalize the house as much as you can. Clean out closets and storage areas, and make sure that everything is absolutely clean.

Advertising Your Home

Over 85% of home buyers start their search on the Internet. Take advantage of this by signing up with one or more For Sale By Owner websites. There are a number of sites with varying fee structures where you can list your home, along with photos and particulars.
Set up your own website dedicated to selling the property. This may be worth doing if the value or location of your property makes it of special interest. Don't give the exact address, and emphasize if it's in a tourist area or employment hotspots, especially if employees come to the area from a long-distance or from abroad.
Pay for a small ad in the local paper, giving a telephone number but not your address.
Drop details into local mailboxes. Your home may be just what someone locally is looking for, whether it has a bigger garden, special features, or is simply larger or smaller than their own.
Ask to display an advertisement on staff noticeboards in large offices, universities, or hospitals.
Add at least one picture of your house to go with your listing. If possible, have this taken by a professional photographer so that it can be shown in its best light.
Include photos of your home's best features. Add in pictures of its wonderful views, beautiful garden, or magnificent fireplace.
Make sure that you provide information in your listing that buyers want to know. Information about the neighborhood, proximity to shopping and transportation, school system (short walk to neighborhood school!), can be just the thing that will entice a buyer to check it out.
Use professional looking signs - not just on your lawn, but at the end of your street to direct buyers toward you. People are far less likely to try to lowball a professional sale.

Showing People Round

Create a demand. Realtors often arrange the several potential buyers to view and more or less the same time, to make the property that popular. Hold an open house viewing on a single afternoon so that prospective buyers find the place buzzing and realize they need to make a good offer quickly.
Make sure that you're available to take calls and make appointments for showings.
Always have another person with you when you show round potential buyers.

Making a Sale

Once you have an interested buyer, be prepared to negotiate. You should have a firm lowest price that you won't consider offers under, but even if the first offer is above that price, you'll benefit from meeting the buyer halfway between your asking price and their offer.
Make sure that all paperwork is filed on time and in order.
Follow through on required inspections and make sure that copies are provided to the buyers.