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PUBLISHED IN CPAMERICA'S OF REAL VALUE  NEWSLETTER, SPRING 2005

       Many real estate investors choose to sell their properties themselves rather than list them with a realtor. Eliminating the commission could mean substantial savings. For example, the standard listing fee in Murfreesboro, Tennessee, is ten percent of the sales price on undeveloped land and six percent on all other properties.

       Unfortunately, undeveloped land, multi-family dwellings and commercial real estate can be difficult to sell. Single-family homes can move slowly if they're in communities where people are moving out due to layoffs and such. Tenant-occupied homes present a challenge when tenants keep the premises messy or are uncooperative in letting people view the property. Any property can be difficult to sell if it's overpriced, you're unable to fix it up before selling it or it's in a rural area or an undesirable location. In these situations, you might be better off paying the realtor's fee to increase your chances of selling the property quicker.
 

       On the other hand, if you have a single-family home located in an area where the real estate market is good, you might be able to save that commission. While the for-sale-by owner alternative could be a big headache, here are eight tips to help make it less painful:

       Educate yourself. Read a couple of books on the subject to help you learn from other owners' mistakes. Read the real estate section of your local newspaper to learn about your competition and the housing market in your area. Attend open houses and study what makes a house appealing and what turns off prospective buyers.

       Get your property into shape. Tour the house and yard and look at them from a buyer's perspective. If you see anything that is broken, dirty or unattractive, repair or replace it. Using expensive products is not necessary; the goal is to make the house attractive enough to get it sold.                                       

       Make sure the plumbing, water heater, appliances, doorbell and heating and air-conditioning systems function properly and the roof doesn't leak.  

       Eliminate clutter from rooms, closets, cabinets and other storage areas to make them look more spacious. Don't forget the garage, entrances, swimming pool, patio, yard and mailbox. They also need to look clean, clutter-free and well maintained.

       If there are valuables in the home, remove them. Don't assume that all your prospective buyers will be honest.

       Set the right price. Hire a professional appraiser to tell you how much the home is worth. To sell it quickly, you must have it priced right.

       Hire an attorney. Your attorney can tell you what home inspections your state requires, and draw up a seller's disclosure statement for you. Later, when you have a buyer, your attorney can hold the buyer's security deposit, draw up the sales contract, clear the title, prepare the deed and handle the closing. Although you could perform most of these functions yourself, an attorney would save you time, protect your interests and make sure you avoid potential legal problems later.

       Get mandatory inspections out of the way. If city-code or termite inspections are required in your location, get them ahead of time. Any problems the inspectors find probably will have to be repaired before closing the sale anyway, so it's best to get them out of the way to avoid potential delays later.

       Arm yourself with the facts. Before you show the home to prospects, be ready to answer their questions about:

§ the amounts of the property tax and utility bills for the past year

§ where the boundary lines are

§ the dates of major repairs, replacements or remodeling

§ the names of public transportation and utility companies

§ what school district the house is in

       Have copies of mortgage qualifying charts available to give to prospects who might be unsure about whether they would qualify for a loan.

       Decide in advance what personal property you're willing to include in the sale to avoid being put on the spot during negotiations.

       Weed out non-prospects. To avoid wasting time on uninterested or unqualified buyers, make sure that your ads contain, at a minimum, the price, square footage, size of the garage and number of bathrooms and bedrooms. Do not, however, include the address of the property in your ads. Doing so could invite robbers as well as buyers.

       Understand the purpose of an open house. Open houses are for real estate agents, primarily new ones, to build a client base. Holding an open house would most likely be a waste of your time.

       You should apply these eight tips before you show the property to the first prospect. The better prepared you are, the quicker your property will sell, and the fewer problems you will encounter.

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