For Sale By Owner?

[TedH]

We are trying to buy a new home out of town that has some acreage. Never thought I'd be able to buy a place like this, but I think it's a good deal, and the seller is motivated. I have my financing lined up, but I need to sell our current home and net enough on the sale for the down payment on the new place, which is substantially more than our house here. If I sell with a Realtor, I'm going to be short on the required down payment, so I need to sell it myself and save the commission.

We have it listed a couple places on the net, and local papers, etc. Have had a few folks call and come by for a showing already in the first week, but I'm not having a good feeling that anything is going to happen soon. Time is of the essence here.

If anyone has had success stories, or has any tips for a seller, I'm all ears.

[1894c]

prayers sent...

[7.62 Precision]

You are not looking to use a down payment from one for the down payment on another, but looking to use the sale price from one for the downpayment for the other? If so, then you are looking for someone to buy using traditional financing?

Do you still owe on the first home?

If you owe on the first one, is the loan assumable?

You don't qualify for a VA loan, do you?

You may consider something non-traditional, like a bridge loan. there are advantages and disadvantages, and you will still need a down payment, but you might be able to work out something creative on it.

[TedH]

You are not looking to use a down payment from one for the down payment on another, but looking to use the sale price from one for the downpayment for the other? If so, then you are looking for someone to buy using traditional financing?

Do you still owe on the first home?

If you owe on the first one, is the loan assumable?

You don't qualify for a VA loan, do you?

You may consider something non-traditional, like a bridge loan. there are advantages and disadvantages, and you will still need a down payment, but you might be able to work out something creative on it.

I still owe on our current place. I need to use the money we net from the sale of this place as the down payment on the new place. I have the best mortgage guy, he's very helpful in exploring every possiblity, and doing what's best for us, not just getting another loan for his company. It's all set up, execpt for getting this place sold and netting enough for the down payment on the new place. If I pay a realtor's 6% commission, I'll be short on the down payment, that's the only reason I'm trying to sell myself.

[7.62 Precision]

I assume you will be using an agent to represent you in purchasing the new property? Perhaps that agent would be willing to offer some suggestions to help you move your current property quicker.

[TedH]

That is correct. He has been quite helpful in getting the house ready to sell, but where we really need the help is where they make their money, the exposure. Most people find homes to look at on sites like Realtor.com, and by having an MLS number, which obviously I can't do myself.

[EdinCT]

Ted, I used to build a house every few years and we never paid the agents a full 6%. We offered them 4-5% and they always warned us that it could effect sales. Also that other agents wouldn't be as interested because they would get less with the commission split. Well we always had a nice home for a fair price and they sold quickly.
If you can work a deal where you could have enough for the next place its a option. After all he needs you to sell to make a sale.

[Udy]

"For Sale by Owner" I believe is a franchise business, but not 100 percent sure on that. Look around your area and see if you can find a store. They are there to help you in your situation. Its not free of course, but for a comparable small fee as oppose a broker you get some legal advise, A rented sign post for your yard, flyers for the sign post, legal documents to make the transaction happen as it should, and your exposure as listed print in weekly magazine adds labeled for sale by owner that you should be able to find at safeway, fredmeyer or what ever your major grocery chains are in the are for free pick up to people interested in purchasing a home. The add sizes are sold by what ever your willing to pay for the space. At least that's how it works here. I would be surprised if there is nothing like it in your area. Good luck.

[Rusty]

Realtor's commission can often be negotiated.

[Bearhands]

Ted, Some things to consider: (caveat: I am a realtor)

1. Realtor's commissions are ALWAYS negotiable

2. Maybe a realtor can sell your home for 6% more than you are asking because he/she will multi-list/realtor.com/zillow/trulia your property thus exposing it to many more people than an owner can on his own.

3. A realtor also has access to relocation referrals, plus he/she is obligated to bring you a QUALIFIED buyer and can show your place without bias (often a neutral party is a better salesman/negotiator than a "proud owner").

4. Different ways of financing properties can bring more buyers to the plate. Thankfully you seem to have a good "mortgage guy" but he can't negotiate the sale of your home unless he is licensed to do so.

5.Hang up flyers (as you already have), tell EVERYONE you know, visit internet sites that are local to your area and make an announcement about your home. I hope this helps a bit and I wish you the BEST OF LUCK!

[Ysabel Kid]

Hi Ted -

I sold my first house on my own without a realtor, which enabled us to put down what we needed to for the second house. Similar situation. With me though, I sold it to a co-worker who had been bugging my wife and I for a year to sell it to him. So we had a buyer already when we decided to move.

I sold my second house as part of a relocation. Third house using a traditional realtor. Like anything else, using a professional does have a lot of advantages. Still, when we sold our first one the internet essentially didn't exist. Lots more resources available today. Good luck in selling your house. The big thing I've always seen, from both a buyer's and seller's standpoint, is that staging is everything. A properly-staged room looks bigger than one without anything in it. A lot of realtors recommend depersonalizing one's home, but I don't think that really matters that much. Pictures just make a home feel like a home. That being said, you don't want to advertise your hobbies from a security standpoint. Declutter of course - that will make the house look bigger too. Kitchen and bathrooms sell homes, so anything you can do to make them look larger and newer helps you get what you want out of the house.