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20 Steps to Selling Your Home on Your Own
The real estate commission earned by a real estate professional on the sale of your property can be a considerable amount of money. And we know that you’ll agree it’s tempting to try to save that commission by selling your property yourself.
Many people are very comfortable in the role of “For Sale By Owner” (FSBO). You may find that you are one of those people. Whether you choose to take the task of selling your own property alone or prefer to work with a real estate sales professional, these 20 steps are necessary for a successful transaction to work.
- Conduct your own mini-walk-thru inspection. Make notes of all the items that need repair or improvement. You may even want to bring in a second person to come in and do the same. Your checklist should include, but not limited to, the following: Fresh, clean paint trough-out; clean windows and window coverings; well-manicured lawn and yard; plumbing and all appliances in working order; new or cleaned flooring; all sealants (windows, tub, shower, sink, etc.) in good condition; roof and gutters in good condition; etc. Tip: You may want to have a home inspector to perform a pre-inspection. This will prepare you for anything that may come up when the buyer has their inspection.
- Stage/detail your home. (Or hire a stager) Make all the necessary repairs and improvements prior to marketing your property to make it saleable. Understand that once your home is on the market, every day is “Showtime”.
- Carefully research information regarding the prices (more than just an internet estimate) and terms of sales in today’s real estate market. Investigate recent sales prices, under contract prices and unsold property (the competition) prices of properties similar to yours and in your neighborhood. You may want to visit those properties as well to get a better perspective for comparison reasons. Once done, establish a realistic asking price for your home based on that information. Remember, buyers, will be looking at that same information when determining an offer price.
- Meet with local lenders and determine financing alternatives for your prospective buyers, while determining what financial qualifications your target buyers need to qualify for the same.
- Determine which internet sites, social media and print media will best attract your property’s target market.
- Determine a marketing budget and placement calendar. Prepare a contingency for both if your home does not sell as quickly as anticipated.
- Prepare professional, attention-getting advertisements to attract the right buyers (not lookers) to your property. A direct mail campaign should also be part of that plan. Include professional photos, videos, drone shots, and well-written description which tells the story of your home. Be sure to keep all advertising to adhere to Fair Housing guidelines to avoid any violations.
- Prepare a plan to reach out-of-town and upsizing or downsizing (based on your target market) buyers, who account for a major portion of today’s homebuyers.
- Purchase an eye-catching and weatherproof yard sign; install it in a conspicuous location in your front yard. If on a corner lot, install two signs.
- Purchase multiple directional open house signs to be positioned from major thoroughfares and neighborhoods to the property. They should be installed for every open house and taken down afterward. You may need to ask the property owners of the located signs for permission and be sure you also talk to your town’s officials to sign what their sign permits process is.
- Prepare a “feature/benefit/disclosure” and photo fact sheet, outlining specific features and disclosed workings of your home and the corresponding benefits to prospective purchasers.
- Schedule and conduct an event-style open house (public and private) on weekends and weekdays. Be sure it is advertised in all mediums and begin its marketing at the beginning of the week of the open house. Be sure it is “open house ready”. Require every visitor to sign in. (You want to know who’s been through your home and it helps for follow-up calls.) Be sure all valuables and medications are stowed in a safe and secure location. Don’t forget to put out those open house directional signs first thing that morning..
- Always be available to meet prospective purchasers at your home and to answer questions regarding your home, the area, schools, shopping, transportation, etc. Just be aware that there are questions that are illegal to answer). Hopefully, you can get that time off at work. Buyers and sellers are like two ships passing in the dark and therefore, if you are not available for that buyer at that time, they will move on to another home.
- Respond to telephone (whether calls or texts) and email requests in a timely manner. Learn what it takes to “qualify a buyer” both financially and emotionally. Understand the difference between a real buyer and a “looker”. Again, ask for names and numbers.
- Be prepared to negotiate with a buyer. BUYERS BUY FSBOs FOR A BARGAIN. Take your emotions out of the negotiations, as if you are a third party. Remain calm and in control or you will be taken advantage of.
- Have an attorney on retainer (or at least on the ready), to prepare contracts and for representation. If you prefer not to use an attorney, then have all the necessary legal forms necessary, including, but limited to: Deposit receipts; Offer & Acceptance or contract; Buyer’s cost sheet; the aforementioned Seller’s Disclosure and Lead Paint Form; etc.
- Determine the type of financing you are willing to consider, such as: FHA; VA; Conventional; Seller Financing; Conventional; Straight Loan; ARM; as just cash.
- Negotiate with the buyers all the final terms of the sale including: price; financing; inspection issues; contingency dates; title issues; Home Owner Association requirements; closing date; and other pertinent considerations.
- Plan a final walk-through with the buyers before the settlement process to complete any unresolved disputes. Have a witness present.
- While doing the above 19 steps, you will also need to go through many of the same steps when locating, purchasing, and so forth, your next home.
By hiring a Realtor who does this on a daily basis and more than likely, statistics have shown, will sell your home for 8-10% more than a for sale by owner, which puts more money in your pocket, to a qualified buyer, in a much quicker, stress-free environment, successfully.
For any questions about any of your real estate needs reach out to Jeffrey Halpern, Broker-Associate, and the Halpern Real Estate Group of Howard Hanna | Rand Realty at 201.317.7527 or jeffrey.halpern@randrealty.com. For 3 FREE valuations of you home plus a buyer heat map click here.
Colonial/Farmhouse Being Offered in Denville
The Halpern Real Estate Group is pleased to present their newest listing at 365 Franklin Road, Denville.
Sitting on nearly one of the most pristine properties in Denville, this well preserved 150+ year old, Gentleman/woman’s Colonial/Farmhouse is very special and awaiting a new owner to continue its tradition and history.
Step onto the new front “lemonade” porch through the front door and get a feeling of simpler times. Front entry foyer with stairway to second floor. The first floor boasts, S-P-A-C-I-O-U-S Living Room with fireplace, leading through French doors into the sunken family room with a second fireplace, built-ins, bar, and sliders to front yard. There is a Country Kitchen with stainless steel appliances plus an original wood stove. That is where one would have access to the full basement. Off the kitchen is a newer powder room and exterior doorway. The large Formal Dining Room could easily entertain 16-20 guests.
As you get back to the foyer, amble upstairs to the Master Bedroom with full bath and walk-in closet. This level also holds three other bedrooms and two other full baths, as well as access to an attic that can easily be finished to add even more space to this nearly 3400 sq ft home. There is work to be done however the bones and history are there, to give you the opportunity to make it your own.
The home itself sits on a beautiful and private 1.4 acres boasting a 2 car detached garage and some other structures.
Denville Township boasts a town center, Denville Train station with New York direct access. The beauty of this community includes lakes, parks and a well-respected school system.
To more information of this property offered at $500,000, please contact Jeffrey Halpern of The Halpern Real Estate Group with Howard Hanna Rand Realty, at Cell/Text: 201.317.7527 or office 973.532.5727 or Jeffrey.halpern@randrealty.com. For online details listing, please visit here.
GET A YOB!
With the real estate market in full swing there are many new Realtors coming into the business or any type of independent business.
It is time, as many people have discovered, to get out of the job mindset and think of a YOB. (Your Own Business). The possibilities are endless but you need to investigate what best suits you. There are plenty of techie consultants but more are needed, web-based at home businesses, catering, opening a shop, multi-level marketing, etc. But what is best for you?
The difference between a job and a YOB is the difference between a ceiling and the sky being the limit. But the YOB takes time to plan, a YOB takes hard work and a YOB takes self-discipline. To be successful at your YOB it takes PASSION for what you are doing and understand WHY you are doing it.
Consider becoming a New Jersey Licensed Real Estate Sales-Associate. For the right person, this could be the perfect, and it may be the least expensive, (approx $1k per annum between license, Realtor, MLS, etc. fees), way to start a business. And even though you are working under the roof of a real estate company, it really is a YOB. Clients do not hire you because of the company you work for, they hire you because of you and what value you bring to them. There is very little overhead, it is a profession occupation, and most importantly, it is a YOB that you will know in 6 months whether or not you are right for it. If the business is not for you then at least you have not invested a lot of time and therefore can go another direction.
If it is for you, it is the perfect time to start. The summer is relatively a slower season for transactions but a great time to attain your NJ Real Estate License, learn the business through training, mentoring, and coaching, as well as developing a lead generation system. This will prepare you for the fall market and prime you for beyond. And by all indications, the market will improve the second half of this year and continue to get better. If you develop a passion for the business, there is no better business to own. There is no income ceiling, and more so, you are helping people realize their dream of homeownership.
The process to obtain your real estate license is as follows:
1. Go to a state certified real estate school and attend 75 hrs of required classes. (The cost is approximately $400. with some real estate companies offering reimbursement programs if you join them)
2. Take the school exam and pass.
3. Be fingerprinted.
4. Take the state exam and pass it. (You have a year from the completion date of school and you can take it as many times as you can to pass it within that year)
My only advice is to not come in the business to “try it”. You will not make it. As a matter of fact, and I am probably going against what your parents have told you, but this is what I tell my children. You never try anything. If you try it, you will fail at it. Just think of when you drop a pencil, do you try to pick it up? In anything you do, you either do it or don’t. If you do it and do not succeed at it, never consider it a failure but as a learning experience and you gave it your all. Plus, you can stay active as a referral agent and continue to receive fees. Conversely, if you do it and succeed, there is nothing better than helping people find the home of their dream while earning a terrific income
For more information on a real estate career or bringing your current real estate career to the next level, contact Jeffrey David Halpern at Jeffrey.halpern@randrealty.com.
The best month to sell your home is……..
I have been wracking my brain as to what to write this week in my blog and the other day, Mitch, a friend of mine, asked me which month is the best month to sell. Although he asked it with a little sarcastic grin as there really is no good or bad month to sell, it inspired me to give you the Realtor’s reasoning as to why to list “that” month of the year.
January. Many relocations happen in January as companies budgets begin January 1 and therefore they know whether they will be bringing employees in or shipping them out. Also, if your new year’s resolution includes moving on, why not in January. Just remember as opposed to the losing wait and joining a gym resolution, once your house sells you cannot go back on that resolution.
February. Because most sellers wait for the “spring market” to list their home, by listing in this month a seller gets a jump on the competition and possibly sell their home for slightly more than in the nexst few months, as Economics 101 tells us that a smaller supply increases demand. It also gives the seller a wide choice of home to purchase in March after their home sells.
March. The “spring market” is upon us. The weather is certainly better and more buyers are looking and therefore a better chance to sell your home and a bigger selection of homes the seller can choose from.
April. The “spring market” is in full bloom and buyers are buying and sellers are selling. Usually this month has the most activity.
May. If all holds true, the April showers brought May flowers and the home is full of color. The weather is perfect and buyers are motivated because they want to be in during the summer.
June. High school and college graduations and parents now contemplating their move to a smaller residence and buyers want to buy before summer vacations begin and to close before the upcoming school year based on an average 60-day contract to close timeline.
July. Home sellers have sold their homes during the spring market and now are desperate to buy a home. Also the school year is even closer and you certainly want the kids to be in their classrooms on time.
August. If a home is not sold, they will be re-positioning their prices to be put in line with what buyers are willing to pay and buyers, using an astute Realtor, recognize it and jump on it. And being in contract, most school systems will allow a student begin their school year in their new location.
September. The weather is still nice and buyers have the chance to really explore homes without dragging their kids to look with them. More than likely, the local buyers (ones that already live in area) will be staying around. And it also gives the empty nesters the ability to buy without worrying about schools.
October. Buyers who want to get in before the winter always look and buy at this time. With the leaves changing their colors, the beauty of fall gives the buyer a whole different perspective on the look of the home.
November & December. I combine these two months for they include the same reasons. Although less in numbers, buyers looking in these two months are the most motivated. They need to buy or they would not bother looking during the holidays and they want to be in by the beginning of the next year. It is also the time when the house looks its best between the holiday decorations of the home, the neighborhood and the community.
So the question I answered for Mitch was not as elaborate as above, but much simpler. The best month to list a home for sale is when the seller lists their home for sale – upon need or desire. There are buyers all year round. The secret to selling any home is marketing, merchandising and pricing, to a market that is ready, willing and able to buy at that time. And interviewing and choosing a Realtor who can best assist you in achieving your goals just makes it that much easier.
What’s your home worth? Get you FREE jeffstimate here.
BONA FIDE BEAUTY in Mountain Lakes
OPEN HOUSE, Sunday (6/25) 1-4
Sitting on beautifully professionally landscaped grounds, a gorgeous six (6) bedroom, three and one half (3.5) bath, Hapgood Colonial abounds in prestigious Mountain Lakes.
As you drive up the circular driveway you will be enamored by the style of this circa 1912 residence with its inviting and wide entry concrete stairway as it leads up to the large open/covered porch with plaque of its builder/architectural authenticity.
As you enter the front doorway you will be awed by home’s extensive use of crafted woodwork and inlaid hardwood flooring artistically designed through the welcoming Foyer, spacious Living Room and Formal Dining Room. Within the living room you will find the front side of the double-sided fireplace as its focal point with doors on each side that allows access into the bright and airy 29’ Family Room that also completes the second side of the aforementioned fireplace and a French door out to the front porch. On this same level entertain dinner guests in the dining room. The large eat-in-kitchen includes granite countertop and stainless-steel appliances with access to the powder room off the doorway to the backyard with extensive basement.
From either the kitchen or the foyer (two separate stairways), travel up to the second level and come upon the Master Bedroom en suite with full master bath. Added to this level are three other bedrooms and another full bath.
The home continues up another flight of stairs to the third floor, with an additional two large bedrooms, large closet, full bath and storage room. The home is heated by gas and includes two zoned central air conditioning throughout.
A walk to bucolic Mountain Lake, this bedroom community offers activities to its residents throughout the year and is situated between equidistant between the beautiful communities and downtowns of Denville and Boonton, both harboring train stations that have NYC and Hoboken direct routes. Mountain Lakes is known for its highly rated school systems.
Offered at $850,000, the seller will assist the buyer by paying closing costs (up to $20,000). Stop by this Sunday from 1-4 at 255 Morris Avenue, Mountain Lakes and take a look at this beauty
For more information please contact Jeffrey Halpern, Broker Associate, by call/text at 201.317.7527 or http://www.jeffrey.halpern@randrealty.com or Better Homes and Gardens Rand Realty at 973.427.9337. What’s your home worth? Get a FREE jeffstimate NOW!
LET’S GET READY TO RUMBLE!
In the past several months I have been involved with several bidding wars on homes, representing both buyers or the seller. Most of the are in the price range of $250-400,000. Is it a good sign – yes? Is it the sign of the times – maybe (at least for the immediate future).
The good news to report is that many (not all) sellers are pricing their homes to sell (or under-pricing their homes to produce bidding wars) and all the owner-occupant buyers on the fence are coming off the fence, as well as investors and flippers. The competition is fierce. They see value in the right priced home as well as finally taking advantage a favorable interest rates, fence-sitters become fence (and house) buyers, whereas, the investors are paying cash. Conversely, inventory is low, driving prices up a tick and multiple offers on the little inventory there is, ticking them even higher.
Getting back to bidding wars, both sellers and buyers need to know what to do if you as a seller is lucky enough to have your house as the subject and the buyer is unlucky enough to be involved in trying to attain the home.
Seller. Without a doubt it is exciting to have your home as the subject of a bidding war. It is obvious that your home was fully marketed to enough of its target market through various Multiple Listing Sites (more than one), a slew of web sites, blogging, social and business networking, mailers, newspapers, etc., as well as pricing either at market value or just below it (yes, just below as it brings about many bids and sell for what market value is).
Because a seller has the upper hand in a bidding war, the seller can control the outcome of the final price and conditions. Seller should beware of the highest bidder. The highest bidder is not always the best of the bids and a seller must use their head and not their pocket to decide which offer to accept.
Multiple offers can come in at anytime during the selling process and actually by law, can be presented to a seller up to the moment they close with a buyer. However, in most cases, multiple bids come in when a property is first listed. When they do occur, the seller with their Realtor (and hopefully one who has had experience with them), should review each offer carefully. Do not get caught up in the hoopla as it is a business decision you must make to take the right offer.
Specifically speaking, with your Realtor, review the conditions of the contract: price; mortgage amount vs. all cash; down payment; closing date; items included in the sale; home inspection time limit; and additional contractual conditions, which may include a house to sell contingency, or the like.
From there go back to the bidders with a counter-offer, or ask them to enhance their offer. Try to avoid asking them to come to their highest and best as in my experience, there really is no such thing. It is better just to come back with a counter. If the offers are at full price, revert back to enhancement or you can actually, come back with a price that is higher than the asking price (just be wary of what it is as it may just turn all your bidders away).
The respondents will either not budge from their price, come up to a price, or just walk away to avoid the hoopla. Some may ask for the other offering prices, and although the Realtor Code of Ethics (if you are using a Realtor), with written approval by the seller, requires that the existence of other offers are present be disclosed, it does not require that the other offering prices are. As a moral and ethical standpoint, I believe that the prices be kept quiet. At that point the counter-offers are presented to the seller.
Once that has been done, revisit the contracts for a second time. If they are close, take the second highest offer – not the highest. In many cases, when the highest bidder wins they will either back out because they believe they may have paid too much, what is known as buyer’s remorse, or they will do what they can to make up the difference of what they wanted to pay, through the home inspection issues. And then there is the issue of the home appraising for that highest price (of which we are finding to be a stopping point for a good number transactions today).
Whereas, by choosing the second highest, the buyer is more apt to stay with the purchase and not ask as much after the home inspection. Giving the seller more control on the buyers requests. It must also be noted to the buyer that they already had an equity increase in the home they went into contract before they even close, as someone was willing to pay more, resulting in a higher value than their purchase price. Plus, the appraisal process becomes more affable.
When the seller has made their choice, I advise that they keep the other offers as back-ups just in case the negotiations fall through.
Buyers. The buyer is most stressed, especially if this is “The House”. Some buyers have to buy 3-4 homes before they actually get a home However, it is a lot simpler. Make your initial offer, look at the seller’s counter-offer, and come back to them with yours. Then do not let the hype take over and make your final price one that is not over your head. be sure to get the assistance of a Realtor who will give you comparables of like homes in the area and in many instances, keeping you grounded. This will give you the information for an intelligent decision. You can ask your Realtor for assistance of a purchase price but keep it in a range instead of a definitive price. (Remember, although they know the market, they are not buying the home, therefore, the value is in the buyers head more than the Realtor).
I suggest you add a letter of praise to the sellers and desire to purchase their home, to be included with your offer. There have been some buyers that have used video to let the seller know they love the home. The video may hurt more than help as the seller may not like what they see in the video. (It sounds wrong but people still do discriminate) If you win the bid, good for you. If you do not, leave your offer as a back-up and keep looking. It may have not been meant for you anyway or the other offer may fall through and therefore, you still have a chance.
Overall, multiple bidding can be stressful for both sides and getting the assistance from a Realtor will keep your emotions in check while giving you a representative that will work hard for you and your real estate goals
Buyers are Liars & Sellers are Yellers
Ever since coming into real estate (1985 for me), my colleagues have always warned me, “buyers are liars and sellers are yellers.” Some still believe it to this day. My take is completely different “buyer are buyers and sellers are sellers”. Pretty simple.
BUYERS ARE LIARS?
“Buyers never tell you exactly want they want. They do not want a townhouse and they buy a townhouse from another agent.” “Buyers tell you they are qualified to purchase at a certain price point when suddenly after making an offer, they do not exactly qualify for their purchase.” “They want just a certain town or neighborhood and would never live in that area and yet they end up buying in that area”
Those statements have been said by agents for years and years and yet it is not the buyer that is the liar, it is just because the buyer just does not always know where they want to live, how they want to live, or may have a misperception of where they can afford to live. It really takes a Realtor working closely with their client and cares enough about their client to go through a discovery period to decipher all the parameters of that client. A Realtor must ask the right questions, and show a smattering of houses and areas. It also takes the buyers to be honest with themselves and their Realtor, to understand what they can buy at the time. A buyer cannot expect the perfect house nor the perfect location, but they should not feel they have to settle for a house either.
A good Buyers Agent realizes that buyers can be a fickled bunch when they begin but in the end, with a Realtor that listens, really listens, the buyer will find the home that they want, not what the Realtor assumes what they want.
SELLERS ARE YELLERS?
“My agent is doing nothing!” “My agent does not bring anyone to my house!” My agent doesn’t advertise enough.” “My agent over (or under or mis-)priced my house!” “My agent never calls me!”
Valid thoughts from the seller? More perception than realty in most cases some and totally correct in a much smaller percentage. One statistic has held true – 70% of sellers whose home listing expires, do not re-list that same agent, instead vies for another agent and agency. The main reason why has nothing to do with the home not selling, but rather how the agent approached the entire process. A bad agent will love a seller to get the listing and leave that seller after they have secured it; otherwise the majority of the agents do what is necessary to get a house sold. However, in most cases the seller has no idea what the heck their agent is doing unless they happen to stumble upon an ad in the paper or a posting on a website.
The majority of home sellers’ biggest complaint is that the agent never communicated with them. The key to a great listing agent as well as their obligation to the seller, is that they keep in constant contact with the seller at least once per week and stick to it. That weekly call should include market updates, showing follow-ups, what actions the agent has taken to promote the property, and a frank discussion of where all of it relates to the subject property. And that communication should happen even if nothing happens that week. If an agent can keep to that discipline, the yelling very rarely happens. If you can find an agency that guarantees it or they will be fired, even better. (ask about the Coccia Performance Guarantee). Accountability is the key to success.
REALTOR OF YOUR CHOICE
In either case buyer and seller, choose your Realtor wisely. Interview several Realtors, even if you know someone in the business. Your relationship with a Realtor first and foremost should be a business decision. Make sure they understand your needs and conversely, listen to what they are saying to you. They are the experts and they represent your best interest. Together you should be able to accomplish your real estate goals.
