Here is the secret to selling your house alone. A hundred years ago, when brokers found properties for buyers, they had few guidelines. The greed of some brokers led to many famous stories of deception and dismay where buyers lost money and their dreams. This led to laws and a new attitude in the real estate business. Codes of ethics were developed and agents organized, reclaiming the name Realtors in 1949.
The professional real estate agent can be a very important part of buying and selling properties. The industry does not stop promoting itself and the many good reasons to hire the services of a Realtor, whether you are a buyer or a seller. However, this does not mean that you cannot sell your property on your own and save yourself the expense of hiring an agent.
Here’s the secret to making the sale. In order to sell your property on your own, you need to have two main components.
A. a cash buyer or qualified mortgage applicant
B. a place to close the deal
Solution to A. Buyers usually go to real estate agents to show them properties. You should attract buyers through your newspaper ad, fsbo signs, or online web pages. And then you need to make it easy for buyers to buy.
Solution a B. You’ll close your deal the same way the vast majority of real estate agents do: at a title company’s office (or less often a real estate attorney). This title company is the key to selling and closing your home! If you can find the buyer, this company can close the deal.
It also helps:
1. Be prepared to organize, clean and show the property to prospects.
2. Find a reputable “title company” now to prepare all the paperwork and close the deal.
3. Prepare a sales flyer with information to “sell” the property’s features and benefits and help your buyer understand and find financing.
4. Qualify your buyers by suggesting they visit a bank or a bank’s website to pre-qualify for a fixed loan amount. This will cut down on the unnecessary displays you have. Why show your house to someone who can’t afford to buy it?
Since you are the sales “agent,” it helps to learn how to pre-qualify a buyer.
Here are the pieces of the financial puzzle:
– Purchase price
– Annual interest
– Monthly payment
– Months that the loan will last
– 28% rules
For example, let’s say a buyer earns 3,000 gross per month. 28% is a general rule of thumb for what is allowed for a monthly mortgage payment. So 28% of 3,000 = $840. This $840 is approximately the maximum mortgage payment the buyer is allowed. This figure includes the loan principal and interest, plus monthly tax and insurance payments. Using a mortgage calculator, this payment equates to a purchase price of about $150,000 with annual interest of about 4%.
You can ask if the buyer intends to finance the house. If so, you can tell them in advance what the mortgage payment will approximately be. You can look up current rates on bank sites, such as Bankrate.com.
TIP: The Windows 7 operating system includes a calculator that can help you calculate the above calculation for a mortgage payment. Open the mortgage calculator by clicking Start, then type calculate in the search box. With the calculator open, click Viewscroll down to Work sheets and choose mortgage.
