"You can get rid of the broker, but you cannot get rid of the broker's work" is an old caution for those who intend to offer their homes "For Sale By Owner."
Selling your own home requires a significant amount of time in order to understand your obligations and to do some of the complicated work that a real estate agent would normally do for you.
Below are some major pitfalls to avoid:
As a personal safety measure, only show your house to individuals with whom you've made a prior appointment and make sure that someone else is with you while you are showing it.
Don't price the house so low that it sells too quickly - pay for a market value appraisal by an experienced appraiser.
Hold out for a buyer with written pre-qualification from a lending institution.
Find out your legal obligations.
If you are selling your own home, it is a good idea to be represented by an attorney who specializes in real estate transactions. Your attorney will help you create the sales contract, be present at the actual closing to protect your interests, and will help you determine the following:
- The sale price
- What is included in the sale price
- The amount of the down payment
- The date of settlement and possession date
- Contingencies to the sale--inspections, required improvements, legal review of the contract
- The amount and length of the mortgage loan, interest rate, and time limits
- Determining which closing costs are to be paid by the buyer and which by the seller
- Tax Implications