Seller FAQ
How much does it cost to list my For Sale By Owner home on your website?
Nothing. This is a free site.
How do I add my home’s details?
Click the box to the left labeled “Seller Signup” and complete the form to register as a Seller. Once registered you can “Add a Listing” and input your home’s features. Photos can be added after your initial home details are completed.
How much can I save by selling my home myself, without a real estate agent?
Full service real estate companies often charge between 5 and 7 percent in commission. You may have extra advertising expenses and attorney fees to cover, but generally you and/or the buyer will benefit from most of those savings. With enough marketing exposure, it may be possible to find a buyer willing to pay the same price that a real estate agent could sell your home for, allowing you to capture all of the savings. However, finding that perfect buyer is often harder than it seems. A more realistic goal might be to share the savings with the buyer- by selling the home for less than a real estate agent could get, but still netting more profit in the end. It’s also important not to discount the value of your own time, because selling a home yourself will generally involve more hours of work.
How do I determine the best asking price for my home? You can check out the asking prices of homes nearby, but keep in mind that many sellers are unrealistic with their prices. The most reliable way to determine the value of your home is to look at the final sales prices of comparable houses that have sold nearby recently. Several new websites, like Zillow.com are making this sales information more easily available, but the reliability of the results varies with each region. Many county real estate assessor’s offices have websites that provide useful information like assessed values and recent sales prices.
How do I find potential buyers?
That’s an important question. Without a network of real estate agents to bring the buyers to you, you’re going to have to do some marketing to reach the buyers yourself. Adding your home to HawkeyeFSBO.com is certainly a good start. So is placing a For Sale sign in your front yard with a box of flyers. You can also hold open houses, advertise in the newspaper, post flyers to public bulletin boards, and inform all your neighbors. Often the people on your own street know friends and relatives that might be looking to purchase in your neighborhood.
What do I do once I find a buyer?
You should put your purchase agreement in writing. In Iowa, real estate attorneys are usually involved in the abstracting process so it may not be much more work for you to have an attorney assist with the contract. Some real estate agents will also help with the paperwork for a small fee. Generally the contract will specify how much the buyer will pay for the property, when the deal should close, and a list of contingencies that must be met before closing (like the buyer inspecting the property, getting approved for a mortgage, etc.). The law also requires a number of disclosures you need to provide the buyer regarding the condition of the property, lead based paint, etc. You can read about some of these required disclosures at:
http://www.state.ia.us/government/com/prof/sales/consumer_info.html
What if I am unable to sell the home myself?
You could consider becoming a landlord and renting it out. Sometimes that can make good financial sense, especially if your mortgage payment is relatively low. If that’s not an option, you can always hire a real estate agent. Despite a few bad apples, there are a number of good real estate agents out there. Just keep in mind that both the commission and contract length are negotiable. See if you can find an agent that will give you a break on the commission if you’re willing to help out with open houses, etc. Also see if they’ll list your home for a shorter length to test their services, maybe 60-90 days instead of 6 months.
Buyer FAQ
How do I find the right home for me?
By visiting as many homes as you can. The more homes you see, the more likely you’ll find the home that’s right for you. Also, after visiting many homes you’ll get a good sense of which homes are good values and which aren’t. With a good sense of the market you’ll also be better prepared to act quickly, and before anyone else, if an exceptionally good deal that comes up for sale.
How do I determine what homes I can afford?
You should get pre-qualified for a mortgage. You can usually do this at your bank or with a mortgage broker. They will be able to look at your income and credit history to tell you the maximum you could qualify for. Be sure to ask how much your monthly mortgage payments would be to make sure it’s amount you’d be comfortable paying. Don’t forget to have them include property taxes and insurance into that amount.
How much should I offer for a house I like?
Offer the most the house is really worth to you. If the offer is not accepted you can keep looking. Studies have shown that trying to lowball with an offer much less than you’d be willing to pay usually backfires and ends up costing you more in the final negotiated price. However, there is no shame in making a low offer if that is honestly the only amount you would be willing to pay, or could afford.
How do I make a formal offer?
Your offer should be in writing, and most often accompanied by a earnest money deposit. Verbal real estate contracts are not usually binding. See the Seller’s FAQ above for more help.
How do I find the best mortgage?
Usually speaking to one bank or mortgage broker is sufficient to get pre-qualified while you’re searching for homes. However once you have an accepted offer on a house you should shop around for the best deal. Speaking with a mortgage broker, a local bank, and then a national bank should do the trick. Be sure to have them provide you with a HUD statement that lists all the loan fees you’ll be expected to pay, in addition to interest rate. Some banks lure customers with low interest rates, but add on excessive loan fees and points, so watch out for that.
What should I look for when inspecting the property?
If you need to ask this question, it’s probably safest if you hire a professional home inspector to check out the place.
What if I change my mind about the property after making an offer?
That really depends on what’s written in your contract, and what your reason is.