How to Sell Real Estate Without a Broker

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Real estate brokers vigorously negate the fact that you can sell your house yourself. Obviously, real estate brokering is their bread and butter and they'd never want you to be independent of them when selling or buying a house. They argue that, in fact, they are the ones who know true local home values and real estate laws.

They claim that they will ‘screen' potential buyers for you - saving your time, safety and money. In fact, if you understand how to sell real estate on your own, you will laugh at their claims loudly and feel that these people are actually creating a demand when in truth there is no demand for them.

However, some owners think otherwise. Interestingly, only about 7% of all home sellers decide to go solo according to a 2006 National Association of Realtors study. The fact is that you can save up to 5% in broker fees by selling on your own - potentially with a hassle. In fact, you can save as high as 7% for hard-to-sell properties. So it is important to know how to sell real estate on your own to save some money in broker fees.

So consider the following carefully. If you have decide to take the plunge, here's what you need to know if you're going to act as your own broker and understand how to sell real estate for that matter:

Finding a Buyer

The most important step is pricing your house or property accordingly. There is a risk of loosing money if you charge too little. Asking for too much and you'll ‘go stale,' as real-estate agents put it, making buyers suspicious that something's dreadfully wrong orthat you're simply an unreasonable person trying to coax out as much money for your property as possible. So the point is to properly price your property. That's the first step in understanding how to sell real estate on your own.

How do you arrive at the right price? The short-cut is to hire an independent appraiser. Most of them charge $250 to $500 for the service. Most of the time they have information on any nearby home sales at their fingertips - they buy access to tax-record data bases and multiple-listing information. They also personally inspect your house to take into account all the repairs you have done.

When you're ready to advertise your home, cast a wide net. Because your house won't be included in the multiple-listing service (or MLS, where members of the National Association of Realtors pool their real-estate listings to stimulate sales) you've got to generate traffic on your own. Buy classified ads in all your local papers, including shoppers and weekly alternative publications. Many areas have freebie real-estate newspapers that cater to people selling their own homes. You may also want to list your home online.

Your ad should list the basics such as location, price, number of bedrooms and any unique selling points such as a new kitchen or lake views, advises Larry Lessin, owner of Save 6, a real-estate marketing firm based near Washington, D.C. For $899, the company offers clients selling their own home a display ad in a monthly giveaway, listings on 12 Web sites, including the National For Sale By Owner Network and a wooden sign. "The ads that get the most response have urgency about them," says Lessin. Key words that jump off the page are "seller motivated" or "priced below market." And buyers always seem to circle ads that offer owner financing (when the seller holds the mortgage) or help with closing costs, he says.

Splurge on a sign for the front of your house. The cheap metal jobs from Home Depot look, well, cheap. Visit a local sign company for a large wooden model (usually about $75). "At least half the calls on my house were from people driving by," says Bruce Buchanan, a CPA in Bowie, Md., who sold his five-bedroom Colonial by himself. Try putting the asking price on your sign to help cut down on the number of calls from buyers outside your price range.

And don't forget the original form of advertising: word of mouth. Talk up your home at work, in the gym and at the grocery. Nearly half the sellers we talked with made their deal with an acquaintance. George and Susan Wyper of Darien, Conn., for example, sold their three-bedroom, two-bath home to a friend of a friend who'd been looking in the neighborhood for some time. Meanwhile, another house nearby went unsold for weeks and was finally taken off the market. "The connection really helped because we found out pretty easily that he was a serious buyer," says George Wyper. "Before people rush into a listing agreement, they should definitely check with all their friends."

Independent sellers need to keep in mind that they must comply with many fair-housing laws, which are designed to protect buyers from being discriminated against on account of race, religion, sex or national origin. For more information on these laws call: HUD Housing Discrimination Hot Line at 800-669-9777 or visit HUD's Web site

Muhammad Siddique is Real Estate Investor for  years mostly in commercial real estate specially shopping centers, hotels, motels and recommends TRCBVideos.com to convert aticles into Videos automgaically.

 

You should follow me on twitter here or  go http://twitter.com/siddiquem

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