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 in which 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 Realtors name 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 buyer or seller. However, this does not mean that you cannot sell your property on your own and save the expense of hiring an agent.
Here is the secret to making the sale. To sell your property on your own, you must have two main components.
A. a qualified cash buyer or mortgage applicant
B. a place to close the deal
Solution a A. Typically, buyers go to real estate agents to show them the properties. You should attract buyers through your newspaper ad, fsbo posters, or online web pages. And then you need to make it easy for buyers to buy.
Solution a B. You will close your deal in the same way that the vast majority of real estate agents do: 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 home! If it can find the buyer, this company can close the deal.
It also helps to:
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 brochure with information to “sell” the property’s features and benefits and help your buyer understand and find financing.
4. Qualify your buyers by suggesting that they visit a bank or bank website to pre-qualify for a set loan amount. This will reduce the unnecessary visits you have. Why show your home to someone who can’t afford to buy it?
Since you are the sales “agent”, it helps to learn how to prequalify a buyer!
Here are the pieces of the financing puzzle:
– Purchase price
– Annual interest
– Monthly payment
– Months that the loan will last
– 28% rule
For example, suppose a buyer makes 3,000 gross per month. 28% is a general rule of thumb for what is allowed for a monthly mortgage payment. So 28% of 3000 = $ 840. This $ 840 is roughly the maximum mortgage payment the buyer is allowed. This figure includes the principal on the loan and interest, plus monthly tax and insurance payments. Using a mortgage calculator, this payment equates to a purchase price of about $ 150,000 at approximately 4% annual interest.
You can ask if the buyer intends to finance the home. If so, you can tell them approximately what the mortgage payment will be in advance. You can look up current rates on banking sites, such as Bankrate.com.
TIP: The Windows 7 operating system includes a calculator that can help you calculate the above estimate for a mortgage payment. Open the mortgage calculator by clicking Start, then typing calc in the search box. With the calculator open, click Sight, scroll down to Work sheets and choose Mortgage.
