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Advice for For-Sale-By-Owner (FSBO)
Although not by any means
exhaustive, this list covers some of the issues that Pittsburgh homeowners
should consider when electing to sell their home without a Realtor
®
Tips on How to Price Your
Home
Consider comparables. What have other homes in your
neighborhood sold for recently? How do they compare to yours in
terms of size, upkeep, and amenities?
Consider competition. How many other houses are for sale in
your area? Are you competing against new homes?
Consider your contingencies. Do you have special concerns
that would affect the price you’ll receive? For example, do you want
to be able to move in four months?
Get an appraisal. For a few hundred dollars, a qualified
appraiser can give you an estimate of your home’s value. Be sure to
ask for a market-value appraisal. To locate appraisers in your area,
contact The Appraisal Institute (www.AppraisalInstitute.org) or ask
a REALTOR ® for some recommendations.
Ask a lender. Since most buyers will need a mortgage, it’s
important that a home’s sale price be in line with a lender’s
estimate of its value.
Be accurate. Studies show that homes priced higher than 3
percent over the correct price take longer to sell.
Know what you’ll accept. It’s critical to know what price
you’ll accept before beginning a negotiation with a buyer.
6 Forms You’ll Need to Sell Your Home
Seller Disclosure Form. This form requires you to reveal
all known defects to your property. Check with your state government
to see if there is a special form required in your state.
Purchasers Access to Premises Agreement. This agreement sets
conditions for permitting the buyer to enter your home for
activities such as measuring for draperies before you move.
Sales Contract. The agreement between you and the seller on
terms and conditions of sale. Again, check with your state real
estate department to see if there is a required form.
Sales Contract Contingency Clauses. In addition to the
contract, you may need to add one or more attachments to the
contract to address special contingencies—such as the buyer’s need
to sell a home before purchasing yours.
Pre- and Post-Occupancy Agreements. Unless you’re planning on
moving out and the buyer moving in on the day of closing, you’ll
need an agreement on the terms and costs of occupancy once the sale
closes.
Lead-Based Paint Disclosure Pamphlet. If your home was built
before 1978, you must provide the pamphlet to all sellers. You also
must have buyers sign a statement indicating they received the
pamphlet.
Is Your Buyer Qualified?
Unless the buyer who makes an offer on your home has the resources
to qualify for a mortgage, you may not really have a sale. If
possible, try to determine a buyer’s financial status before signing
the contract..
1. Has the buyer been prequalified or preapproved (better) for a
mortgage? Such buyers will be in a much better position to obtain a
mortgage promptly.
2. Does the buyer have enough money to make a down payment and cover
closing costs? Ideally, a buyer should have 20 percent of the home’s
price as a down payment and between 2 percent and 7 percent of the
price to cover closing costs.
3. Is the buyer’s income sufficient to afford your home? Ideally,
buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).
4. Does your buyer have good credit? Ask if he or she has reviewed
and corrected a credit report.
5. Does the buyer have too much debt? If a buyer owes a great deal
on car payments, credit cards, etc., he or she may not qualify for a
mortgage.
Adapted from REALTOR® Magazine Online by permission of the
NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved.
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