Selling Your West Bank Home on Your Own?

With so many homes for sale on West Bank of New Orleans, some sellers are opting to go it alone…For Sale by Owner.   While I don’t encourage this (of course not!) there are people who are successful in selling their own homes.

If you have chosen to market your home yourself, here are a few things you need to know:

Pricing Your Home

Price is the most critical factor in your sale.  Too high and no one will even look,  too low and you are reducing the amount of profit you will make.  Remember, buyers shopping for sale by owners know that you are not paying a commission and expect the home to be priced to reflect that fact.

Before you can set a price for your own home, you need to know what your competition is.

• How many other homes are for sale in the neighborhood?
• What are their prices?
• What condition are they in and what upgrades do they have?
• Are they offering buyer incentives such as closing cost assistance, rate buy-downs or payment of the first year of insurance premiums?

Attracting Relocating Buyers

When buyers are moving from another area, they want and need the answers to these questions:

• Where are the local schools, both public and private?
• Are there nearby parks and playgrounds?
• Is there convenient shopping nearby?
• How long will their commute be?

Home Details

By Louisiana law, you must provide a completed Property Disclosure Statement to all buyers. In addition to the questions on the disclosure, you should also know:

• The square footage of your home, both living area and total area
• The age of the home
• Your average utility bills
• The age of all appliances and major mechanical systems in the house
• Are there existing warranties on any items in the home?
• What flood zone are you located in?

Ownership costs

Beyond the mortgage principal and interest payments, potential buyers are interested in other costs as well.

• How much will the property taxes be on the home at your asking price?
• How much will home owner’s insurance cost?  What companies are currently writing policies in your area?
• What are the premiums on flood insurance?

Your Marketing Plan

If you fail to plan, you are planning to fail.  What is your marketing plan?  How will people know that your house is for sale?  Here are some suggestions for advertising:

• Local newspaper.   (A 30 day ad in the Times-Picayune with photos on NOLA.com costs approximately $275)
• Free websites such as Craig’s List.  Over 80% of home buyers begin their search on the internet before they ever contact an agent, a seller or see a home in person.  It is critical that your home be advertised on as many websites as possible.
• Be sure to take multiple photos of your home, highlighting all of its best features, and use them to create full color flyers.  Don’t forget to keep the flyer box full!  Color copies are available at local office supply stores for around 39 cents per copy.
• Provide a phone number that you can be reached at during normal business hours, after hours, nights and weekends.
• Open houses.  If you plan to hold an open house, be sure to check your parish sign ordinances to ensure you are not illegally placing signs on public property.

More Things to Think About

• Have a plan for prequalifying buyers for a mortgage prior to showing them your home
• Don’t forget security issues! 
  • Never tell anyone when your home will be unoccupied and unavailable for showing
  • Keep all valuables stored out of sight when showing your home
  • Have more than one person present when the home is being shown
  • Do not allow potential buyers to view your home without an appointment
  • Do not allow buyers to tour your home on their own…you should accompany them throughout the entire property

When You Have an Offer to Purchase

• In Louisiana, all real estate contracts must be in writing.  Do not accept a verbal offer…it’s not worth the paper that it’s not written on and is not binding to either buyer or seller.
• Verify mortgage approval in writing with the buyers lender.
• You must be present for all inspections.  Common inspections include a whole home inspection, termite inspection, plumbing video inspection and structural inspection.  Have copies of your disclosure statement to provide to all of the inspectors.
• You must be present for the appraisal.
• Be prepared to renegotiate your contract if any defects are found during the inspections.
• Ensure that the buyers are providing all necessary information to the lender in a timely manner.
• Ensure that the buyers obtain their required insurances in a timely manner.
• Coordinate the closing with the buyer’s title company or attorney.

Selling your own home can be done.  If, however, you find that you are in need of professional assistance, please feel free to contact me.  I’ll be happy to help!

Copyright 2007.  Lisa Heindel, All rights reserved.