Here is the Secret to Selling Your Home 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. Ethical codes were developed, and agents organized, claiming the name of Realtors in 1949.
The professional real estate agent can be a very important part of buying and selling property. The industry does not fail to promote itself and the many good reasons to hire the services of a Realtor, whether buyer or seller. However, this does not mean you can’t sell your property on your own and save the expense of hiring an agent.
Here’s the secret of making the sale. To sell your property on your own, you must have two major components.
A. a cash buyer or qualified mortgage applicant
B. a place to close the deal
Solution to A. Buyers normally go to Realtors to have properties shown to them. You must attract buyers through your newspaper ad, fsbo signs, or online webpages. And then you must make is easy for buyers to buy.
Solution to B. You will close your deal in the same way as the vast majority of real estate agents: in the office of a title company (or less often a real estate attorney). This title company is the key to selling and closing your house! If you can find the buyer, this company can close the deal.
It also helps to:
1. Be prepared to organize, clean, and show off the property to prospects.
2. Search now for a reputable “title company” to prepare all paperwork and close the deal.
3. Prepare a sales flyer with info 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 set loan amount. This will reduce the unnecessary showings you have. Why show your house to someone who can’t afford to buy it?
Since you’re the sales “agent” it is helpful to learn to pre-qualify a buyer!
Here are the pieces to the financing puzzle:
– Purchase Price
– Annual Interest
– Monthly payment
– Months the loan will last
– 28% rule
For example, say a buyer makes 3000 a month gross. 28% is a rule of thumb for what is allowed for a monthly mortgage payment. So 28% of 3000 = $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 around $150,000 at about 4% annual interest.
You can ask if the buyer intends to finance the home. If so you can tell them up front approximately what the mortgage payment will be. You can look up current rates at bank sites, such as Bankrate.com.
TIP: The Windows 7 operating system includes a calculator that can help in figuring the above calculation for a mortgage payment. Open the mortgage calculator by clicking Start, then type in calc in the search box. With the calculator open, click View, the scroll down to Worksheets and choose Mortgage.