How to Sell Your House Yourself

Selling your house yourself can save you 5 to 7 percent on brokerage commissions. It's not a simple process, and it's not always successful, but the lure of saving money causes many people to at least try. You're going to need to familiarize yourself with prices in your neighborhood, invest money in advertising, develop or brush up your negotiating skills, understand real estate marketing, and completely understand all aspects of closing on a house. You'll need to coordinate with the title company, bankers, and if possible, the buyer's real estate agent.

Before you decide to go ahead with selling your house yourself, study all the legal requirements in your state. There are disclosure agreements that must be gone over with the buyer. If the buyer later claims they didn't understand the disclosure statements, they can sue you and void the sale. Review all contracts with a lawyer. There are a variety of resources both online and offline to help you understand the complexities of selling a house. These aren't difficult concepts to understand, but it will take some time to become familiar with them.

Pricing your Home

One simple mistake many people make when selling their own home is setting the price too high. People tend to overvalue their homes. You must emotionally detach from your house. Visit your county's public records and learn what comparable homes in the neighborhood sold for. Be sure to attend open houses in your area so you can get a look inside other homes for comparison purposes. You can also pay for an appraisal. This may be the best way to approach the problem, since it can be a bargaining tool when a buyer makes you an offer. If you have a valid price from a legitimate appraiser in your area, it may be hard for the buyer to argue your price.

Marketing

Depending on the state you live in, you may be able to list your home on the Multiple Listing Service used by licensed real estate agents. There are kits for sale to help you with marketing. These can run several hundred dollars. There are even "For sale by owner" real estate firms that will help you market your home for a flat fee, usually right around $1,000.  Unless you are experienced with real estate marketing, it may be in your best interest to take advantage of some of these services.

Your First Open House

It's almost needless to say, but before your first open house, make sure your house is in perfect shape for showing. Clean everything. Fix little things, such as loose door handles. Mow the lawn and pull the weeds. You should leave at least a couple days for your first cleaning and minor repair session. During the open house, send the kids off to grandma's or the neighbors and take the pets to the kennel. Escort your potential buyers through the house. Remember, these people are strangers. Nothing of great value should be left out. Open houses are a marketing tool, not necessarily a sales tool. You will hopefully get leads and call backs, but you probably won't sell your house during an open house.

Negotiating a Price

Remember, the buyer will know you're selling your own home and thus saving money on commissions. Don't be surprised when they try to offer you well below your asking price. Try to stay emotionally detached from your house. You should have a bottom line figure going into negotiations. If you can't get it, move on. If you can't find a buyer on your own, that may be a sign you need the help of a professional real estate agent.