Sell Property Privately – How to Do it Effectively
During the recent property crisis many home owners found hat selling property through a Realtor got quite expensive and the buyers were not willing to pay the high prices asked for by the sellers, hotel transfers desperate to make a profit.
The recession has indeed changed the landscape but it has not made it impossible for Joe average to sell his property privately. It has become increasingly obvious to many investors and home owners the party is over in real estate and common sense has to prevail over greed; which is how we all ended up in this mess in the first place.
The first requirement is to clean up the property. There is nothing worse than trying to view the potential in a dirty debilitated house; whether it is listed privately or through a Realtor. It will put of most of the soft investors and they are the ones who will readily accept any price; as they have no skills nor any understanding of how to negotiate. The hardened investor will see a very easy way to reduce the asking price and eat into your profits. So clean up, paint and repair everything.
Hiring a professional and reputable accredited contractor will reduce your profits but reduce your risk significantly. Do not forget that screening contractors is a must and will save you untold grief in the near future.
Secondly you need to get your property up to code. Do not leave this to chance as you will regret it and might be forced to reduce your asking price during escrow. Nothing exudes professionalism than up to date levies, wiring, approved building plans and pest control.
Remember, your profit is at stake so do not cut corners. And make sure that the escrow agent clears your house first, if anybody has a lien on your property it could delay your sale and the buyer might just walk away or negotiate your selling price to peanuts.
Thirdly, get professional appraisal. Your bank has a preferred accredited appraiser who will be able to give you a reasonable market value on your property based on location, size and building structure. The best thing about most appraisers is that they have records on which properties in your immediate area were sold for.
Remember, this selling price includes the agent commission which you will be saving on.
Fourth, you need to choose the lowest price to settle for. This amount must be all inclusive and remember to include the taxes applicable in your situation. Do not forget the Capital gains and the deferred property taxes that you accountant helped you make throughout the ownership of your property.