Ways of Selling Your Home
There are various ways of selling your home. Hopefully, if you bought at or below market price, you should have some equity in your home now that it’s time to sell it.
There are many different ways of selling your home. Some of these ways you will be familiar with, others possibly not.
Real Estate Agents/Brokers
As a Real Estate Agent myself, I am partial to selling through an agent or broker. There are many advantages to going this route. When you list your home for sale through a Realtor, you have set in motion a very powerful selling machine.
The first thing a Realtor will do, is go over your home with you to reveal the good, and the bad aspects. They will make recommendations for you to be sure it is safe, sanitary, and looking as good as possible for the upcoming showings.
Your Realtor may tell you to fix what is needed, declutter areas, clean areas, and update/upgrade, if that is in your budget. Once they know your home’s strengths, they will include them in the Multiple Listing Service, or MLS, along with all of the other features of your home.
They will price your home according to comparables of recent home sales in your neighborhood/area, and what the real estate market is showing. Having your home listed in the MLS will expose it to every real estate agent in the area, and is the go-to source for any agent looking for homes for their buyer clients.
By being listed in the MLS, you will also get advertising through many online real estate websites, which many buyers look to when in the market for a home. Realtors also do open houses, put up for sale signs in your yard, and neighborhood, and may advertise in real estate magazines, and online.
They also have a network of fellow agents, and other professionals in the industry, whom they will make aware of their listing. They will also take care of all the showings, handle any offers, coordinate inspections, lenders, title companies, and other agents in the selling,and/or closing process.
Although this service will cost you between approximately 6%-7% of the selling price, a good realtor will help your realize a higher price, and sell your home more quickly than you could on your own, or using most other selling methods.
Among other ways of selling your home is auction selling. Selling by auction can be a very effective way to get a good price for your property. The key to a successful real estate auction sale is to advertise it vigorously, and allow enough time for a sufficient amount of potential buyers to learn about it.
There are 2 main types of auctions. Silent auctions or sealed auctions, and verbal auctions.
A silent or sealed auction is where all of the bids are kept secret or sealed. None of the other bidders know what the other bidders have bid. Only the property owner, or designated person knows the results of the silent/sealed auction.
HUD, the Department of Housing and Urban Development utilizes the silent/sealed auction to sell their properties. They post the listing on the HUD website, and the MLS through their Asset Managers, and set a bid deadline date.
Any bids are placed online for the interested buyers through a HUD approved broker/agent anytime prior to the bid deadline date, and the home is awarded to the highest bidder on the first business day after the bid deadline date, assuming the highest bid is above HUD’s acceptable minimum bid.
The advantage of a silent/sealed auction is there is no auction company or auctioneer to have to pay a percentage of the selling price to. Sometimes too, this type of auction will force prices higher, as the bidders may overbid to ensure they win the bid, and are awarded the home.
A verbal auction is the same as with most other auctions for cars, livestock, estate sales, some government auctions, and many other products, and commodities.
In a verbal auction, all of the bids are announced by the auctioneer, so the other bidders know immediately what price they need to bid in order to either move the bid along, or win the property.
An auctioneer starts the bidding at a certain price, and takes bids until the bidding is exhausted. The highest bidder is then awarded the home, assuming that the highest bid has met or exceeded any reserve price that may be set on the home.
The advantage of a verbal auction is that often a buying frenzy is created by the competitive atmosphere surrounding it. This buying frenzy can drive prices up quickly, and at times, a higher price is realized for the home than the market says the home is worth, or what would have been realized using other methods of selling.
Sell Straight to Investors/Builders
Other ways of selling your home include selling straight to Investors/Builders. You have seen the ads, We Buy Ugly Houses, or We Pay Cash for Your Home, or any of dozens of others like it. These are investors/rehabbers looking for deals that they can either flip and make a quick profit from, or fix up and rent out.
You will likely have to discount your property enough to make the deal attractive to the investors, however. If you have enough equity built in, or if you just need cash in a hurry, this can be a good way to go.
One other type of investor that I have had good selling experiences with are builders. I was the listing agent for 2 different homes located in a nice, in-demand area. The homes were older, and not very large, but would make nice starter homes for a young couple or a good down sizer home for an older person or couple.
I knew that a certain builder had purchased homes in the neighborhood, and had leveled the structures, and built larger, more upscale homes on the lots.
I found out who the builder was, contacted the builder company owner, and told her that I had homes for sale in the same area where they had built homes recently.
She was very interested, and ended up paying me full price for the homes. My buyer clients were both very happy, as I got them a top dollar price, and closed quickly.
I know the builder was also happy as she made a small fortune when she sold the homes that were built on the lots that I sold her, and I made nice commissions as the agent, so it was a win win win situation. Everybody was happy.
So, before you put your home on the market, you may want to contact the investors/builders in your area, or have your agent contact them, and see if you can sell your home directly to them.
That is, if the idea of having the home you just lived in demolished, and a new home built in it’s place.
Sell to Rental Property Owners
Rental property owners, also know as landlords, like to buy properties in markets that are depressed. Depressed markets make it harder for would-be buyers to qualify for loans, as lenders have stricter standards based on properties not holding their values.
This condition also tends to push rental prices higher, as the would-be buyers become renters. With more renters, the supply of rentals goes down, bringing the demand for rentals up, along with rental prices.
This combination of lower home sales prices, increased rental demand, and increased rental prices, presents a very appealing scenario for rental property owners/buyers.
If you happen to have a multi unit property such as a duplex, or a four plex, in a decent or better area, this would be better yet.
Even in a level, or slightly up market, if the home is offered at the right price, a landlord may still be interested in buying from you. It is surely worth a few phone calls to find out.
Sell your home yourself – For Sale By Owner By Owner- FSBO
A for sale by owner property or FSBO, prounced Fizz Bo, is a property that the homeowner puts on the market him or herself, without the professional help from a Realtor.
A small percentage of homeowners believe that they can cut out the real estate agent, and thus net more profit from the sale of their home by selling it themselves. Approximately 5% of homeowners choose this route in an attempt to sell their home.
Although selling your home yourself is certainly an option for you, it can be an exercise in being penny wise, and pound foolish. You will have to take on all expenses of selling your home such as advertising, and signage which, if done right, can be expensive.
A Realtor will charge commissions of between 5%-7%, but can normally sell for a higher price, and sell your home much quicker than you can on your own.
A FSBO can only cover about 10% of the buying market, where as a home listed on the MLS through a realtor will bring in a whopping 90% of ready buyers.
You will also have to learn the ropes of real estate selling paperwork, and other legal matters, which can be overwhelming, and present liability problems to the uninformed.
There are also safety concerns, as well as many inconveniences of having to show your home whenever someone knocks on your door.
What are the best ways of selling your home? These are some of the most effective ways. Hopefully, your decision will be easier now than it was before reading this article.
You can go through Realtors/Brokers, sell at auction, either online or offline, sell direct to investors/builders, sell direct to rental property owners, or go the do it yourself route with a For Sale By Owner – FSBO.
There may be other ways of selling your home, so be open to other ideas. Don’t be afraid to get creative.