FSBO’s Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

FSBO’s Master Strategy Guide ( Sell Faster, Easier ) (2019)

 

If you are a For Sale By Owner (FSBO), selling your house can seem a lot harder than you thought.

 

FSBO’s only accounted for 8% of home sales in 2016!

 

How do you become apart of that 92%?

 

We have created this FSBO strategy guide to help you sell faster, easier, and to help you navigate your real estate transaction.

 

According to a report by the National Association of Realtors (NAR), the most difficult tasks for FSBO’s were:

 

  1. Getting the right price – 15%
  2. Understanding and performing paperwork – 12%
  3. Selling within the planned length of time – 13%
  4. Preparing / fixing up home for sale – 9%
  5. Having enough time to devote to all aspects of the sale – 3%

 

This may also be why the typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

To help, we are going to cover ALL 5 of these FSBO nightmares and get you going on the right foot.

 

Part 1 Of

The Most Difficult Tasks For FSBO’s!

 

Getting the Right Price

In order to know that you are getting the right price in the right amount of time for your home, you need to know a couple things.

 

  1. Similar Homes in Your Area
  2. Currently Listed Homes in Your Area
  3. Recently Sold Homes in Your Area
  4. Absorption Rate
  5. Months of Inventory

 

Similar Homes in Your Area

The first step in identifying the right sales price is actually matching your home with other like homes.

 

To the best of you ability you want to match up:

  • Bedrooms
  • Bathrooms
  • Square Footage ( sqft )( + / – 100 )
  • Garage
  • Pool
  • View
  • Amenities
  • Stories
  • Etc…

Is this example we are going to say that our home has the following:

 

Bedrooms – 2

Bathrooms – 2

Square Footage – 1,500

 

Pretty simple, nothing really fancy here.

 

Our area for this is going to be the beautiful Palm Beach Gardens, Florida.

 

If you have a realtor helping you, these next steps will be much more detailed, faster to receive, and easier to understand.

 

You can always call your local realtor and ask for a Comparable Market Analysis ( CMA ) to your property.

 

It would sound something like this: “Hi my name is Joe, I was thinking of selling my house at 123 Main Street and wanted to know if you could provide me with a CMA for it?”

 

Calling your local realtor and asking for this could lead you into listing with them. Most realtors will want you to give them the opportunity to sell your home if they are going to be giving away this valuable detailed information.

 

And rightfully so.

 

But you can always find someone that will provide you with one without a listing. You can always get a no obligation CMA from us. Just visit our website.

 

Now,.. back to the example.

 

We have a 2 bedroom, 2 bathroom, 1,500 sqft home in Palm Beach Gardens, Florida.

 

Now what do we do with that information?

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

No matter where you are sites like Zillow, Trulia, Realtor will show matches for homes in your area. You just have to know how to manipulate the tools.

 

We will use Zillow in this example.

 

Now since I do not have an actual address, I am going to use Palm Beach Gardens as my search result.

 

This is going to give me broad results, normally you want to put your home address into the search bar and work with the homes in your area.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Next you are going to want to begin to narrow down the search results.

 

Do this buy starting with the “For Sale” tab.

 

Uncheck everything except for “By Agent”

 

TIP: You could also check “By Owner” to see what your competition is!

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Then go to the “Beds” tab and put in the number of beds your home has. For us that is going to be 2.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

In the “Home Type” tab, we want to uncheck everything except for “Houses”

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Now, in the “More” tab is where we will get a little more technical.

 

Start with the “Baths”. For us that is going to be 2.

 

For the “Square Feet”, we want to enter 100 below and 100 above our homes sqft. Because our home is 1,500 sqft we are going to enter 1,400 and 1,600.

 

The “Lot Size” and “Year Built”  is not that important. But if you enter a year built put a 5 year younger age and 10 year older age. If you can not go 10 years up then just put the latest year.

 

For example, if the year is 2018 and your house was built in 1990, you could put 1985 and 2000. If your house was built in 2016, you could put 2011 and 2018.

 

Again the age is not incredibly important. I would only use it to narrow down the search results further if you have a lot of comparable properties.

 

For “Max HOA”, which stands for Homeowners Association, I would also not worry about setting anything for this unless you want to narrow down the search results further.

 

“Days on Zillow”, this factor is important and does matter what you put into it.

 

I would start with 6 months, if you have an obnoxious amount of search results then lower it down to 90 days. We used 6 months for our search.

 

Do not go, or try not to go, above the 12 month mark. If your area just does not have enough data and you are only getting 2-3 results for your criteria, then maybe up the amount to 24 or 36 months to get more results.

 

“Keywords”, this is where you will put in the things like; pool, waterfront, garage, and such.

 

I recommend starting off without putting anything in this and then add to it if you need.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Now, normally you would have a smaller area because you put in an address, where I put in a whole city name.

 

You would need to pick the houses closest to your actual house location.

 

For data purposes I am going to use this patch of houses.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

WooHoo!! Give yourself a pat on the back, we have completed Step 1 of finding similar properties in your area.

 

Now it’s time to move to Step 2 and continue our FSBO venture.

 

Currently Listed Homes in Your Area

 

Good news is, we just did this in the last step!

 

If you did not read the last step, I recommend you go back and read it before continuing on.

 

These are the currently listed homes in your area because of the “For Sale” criteria we set.

 

So you found similar homes that are currently listed. Now you are going to take those, add them up, and divide for the average.

 

In our example we have 6 houses listed at said prices:

 

$350k

$330k

$359k

$325k

$335k

$345k

 

The average of these numbers is $340,666.66

 

Well round up and call it $341k

 

Now I have a number that represents what my home should at least sell for.

 

One requirement to this is, your house has to actually be in the same or similar shape to these other houses.

 

If you have some new appliances but need new siding in one room, carpet in the next and molding around the kitchen then you may need to re-adjust your price.

 

Knowing what homes are currently listing at is very important for ensuring you are getting the most out of your current market condition.

 

Recently Sold Homes in Your Area

 

Now, we know how to find similar homes and how to gauge a starting price based off of currently listed homes, but we want to sell our home, not just list it. We need to know what homes have sold for!

 

To do this we are going to continue to use the tool bar at the top of Zillow.

 

It is actually quite easy, just go to the “For Sale” tab you see with the red circle and change it to the yellow “Recently Sold”.

 

Remember to uncheck the “For Sale” box!

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

As you can see, we have quite a bit more of recently sold than for sale, so I tried to take the closest sold homes to where I grabbed the for sale homes.

 

It is important that you stay in the same area when comparing homes. You can not take for sale homes in one area and then sold homes in another!

 

TIP: Even better if you have enough data to stay in your own community or neighborhood.

 

PRO TIP: Crossing major roads or a highway can greatly impact home values. It is best to stay on the same side and in the same community as best as possible.

 

If your search does not populate enough sold homes, go to the “More” tab and up the amount of time from say 6 months to 12.

 

So, in this scenario I got 7 houses in my target area and all in the same neighborhood.

 

These houses were sold for:

 

$353k

$377k

$338k

$328k

$310k

$225k

$320k

 

The average of these being $321,571.42

 

We’ll round and call it $322k

 

So, what do we know…

 

Well we know that homes in our specific area:

 

  • With-in 100 sqft of our home
  • With the same beds and baths
  • And listed or sold in the last 6 months,

 

Has an average home value of $331,500

( Currently Listed Average + Recently Sold Average / 2 = Average Home Value )

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Now do we have to sell at that price?..NO, you do not.

 

I feel very confident about selling my house at that price if I was going to sell and would probably get a buyer with-in the crucial 90 day period.

 

But the decision for you to sell at this price knowing that the average listed right now is $341k is up to a couple of different personal factors.

 

Those being:

  1. Time Frame
  2. Motivation
  3. Market Supply
  4. Market Demand

 

Let’s not move to quick now though. We still have 2 more steps in Getting The Right Price.

 

Absorption Rate

 

**DISCLOSURE ALERT** Their is in fact a better method to analyzing how quick your home can sell than the absorption rate. That method is called “Average Days on Market” ( ADOM ). The reason we will not be going over this is because this is a “How To” blog  for people doing it on your own and without buying software or having access to the Multiple Listing Service ( MLS ). It will be very difficult to collect and analyze this average without doing so.

 

To calculate the ADOM you must take homes in a  specific area and minus their sold date from their list date, this gives you the ADOM. Then add all the numbers together and divide by the total for an average. This would give you the ADOM for that area which you could use to know how long it will take to sell your home.

 

It would look like this:

 

Address List Date Sold Date ADOM

123 Main Street      01/01/2018      01/29/2018 29     

125 Main Street      01/01/2018      01/22/2018 22

127 Main Street      01/01/2018      02/10/2018 41

129 Main Street      01/01/2018      01/31/2018 31

131 Main Street      01/01/2018      02/02/2018 33

133 Main Street      01/01/2018      01/25/2018 25

 

You then take the average of the ADOM and get 30.16.

 

That is 30 days on average to sell your home in this area.

 

You could see why this would be difficult to source yourself because you would need every list date and sold date for every home in your specific area.

 

You can of course get this from a Realtor for free but they will be wanting to know why you are not listing with them. **END DISCLOSURE**

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

So let’s do this the free, by yourself way.

 

First off, what is absorption rate?

 

Absorption rate is the rate at which all available homes are sold in a specific real estate market during a given time period.

 

How is it calculated?

 

It is calculated by dividing the average number of sales per month by the total number of homes available. It is calculated and understood as a months ratio.

 

Why is it important to you?

 

Knowing the absorption rate will give you a broad understanding of how quickly your home is likely to sell.

 

We say broad because again, the absorption rate accounts for all homes in your market, not just your specific community or neighborhood.

 

This will better help you with your own timing and motivation level.

 

Now this is normally where you would need to call on your local real estate agent to get you an extremely detailed market report.

 

But I am going to show you a little trick to calculate absorption rate in your local area using the same free tools we have been using,.. Zillow.

 

For example sake, we are going to zero this into a specific area. Which honestly, you can also do to get an understanding of your specific areas absorption rate.

 

The closer you can hone in the better!

 

Now, because of how the absorption rate is calculated, we need the currently listed and recently sold again.

 

You first need to hone in on your specific area. I am going to use the same area I have been using in the previous examples.

 

Before we do that, we have to change some of the settings.

 

The ones you are going to want to change are the:

  • Beds – 0
  • Baths – 0
  • Sqft – blank
  • Time – Change to 12 months

 

Leave “Home Type” on “Houses” and just keep it on “Recently Sold”

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Now, you want to hone in on your area. Make it large enough to capture your whole community, neighborhood, or if you live in a small community or neighborhood, make it large enough to capture your surrounding area.

 

For most, you will not need to go over a 1 mile radius.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Now, I am only going to take the homes that are in my specific area. So forget those houses out of my yellow box. I want all the houses in the middle.

 

You just need the physical count, so do not worry about gathering prices.

 

I have a total of 139 in my area.

 

Since we need to figure the average number of homes that sell per month. I am going to take 139 and divide it by 12.

 

Which equals 11.58. Let’s call it 12.

 

12 homes sold, on average, in this area per month.

 

Now change the “Recently Sold” back to “For Sale”.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Again, I am going to use the same area that I just counted all those 139 homes in.

 

For “For Sale” I got a total of 23

 

So now we have an average number of homes sold per month, 12, and the current homes available, 23.

 

The Absorption Rate would then equal – 1.91 months

( Average Number of Homes Sold per Month / Current Available Homes )

 

Let’s call it 2 months.

 

Remember, this is on a very narrowed search result. Normally the absorption rate is gathered from all the homes in the entire market. We are narrowing this down to our specific area.

 

So, now we know that if I were to decide to sell that it would probably take about 2 months for my home to get absorbed by the market ( A.K.A a buyer ).

 

Now doesn’t that feel good!

 

You know how much you should sell your home for and about how long you can expect it to take to sell.

 

Ah, that feels refreshing.

 

But you should know what that absorption rate means for you, what kind of power it might give you or the buyer..

 

This leads us to our last step.

 

Months Supply of Inventory

 

Months supply of inventory is a representation of the amount of time it would take to sell all the current supply of homes if no new inventory came on the market.

 

Months supply of inventory is a scale more than a solid number.

 

Typically ranging from 0-10

 

0-4 Signals a sellers market

5-6 Signals a neutral market

7-10 Signals a buyers market

 

Their is a lot of controversy on the numbers but for simple understanding, these work and have served me and my clients very well.

 

So from our calculation in the “Absorption” section, we saw that our absorption rate, which is relative to the months supply of inventory, was 2.

 

Because of this we can be confident that we are in a Sellers Market!

 

PRO TIP: Remember, we only looked at homes in our immediate area. Typically the months supply of inventory is on a much broader spectrum because it looks at all homes in the immediate market.

 

What does this mean for you?

 

This gives the seller the power.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

There is more demand than supply. So buyers will often give the asking or even a little more to secure their first or next home!

 

This knowledge comes in handy during negotiations with both buyers and agents.

 

Agents?

 

That is right. Agents know what the market is demanding and how fast homes will sell in certain areas. If you have a house in high demand you could negotiate with a sellers or buyers agent to only take 2-2.5% instead of 3% commission.

 

Part 2 Of

The Most Difficult Tasks For FSBO’s!

 

Understanding and Performing Paperwork

 

Now because this is such a large and complicated process and can change from city to city or state to state; I am going to give you a basic understanding of the “Contract to Close” process.

 

**DISCLOSURE ALERT** I am not a lawyer, attorney, or in any way practice law. You should always consult with a local real estate attorney for any legal advice. **END DISCLOSURE**

 

Here are the 5 fundamental steps in a real estate transaction.

 

  1. Offer
  2. Inspection
  3. Clear Title
  4. Loan
  5. Closing

 

Offer

 

Once you receive an offer their are 3 main things that could happen.

  1. Accept – Move on to the next step
  2. Reject – Find someone else
  3. Counter Offer – Negotiate

 

This is the beginning stage of your home selling journey and though it might seem very simple you should not take this step for granted!

 

Once you accept an offer your going to have to write it up and begin the contract.

 

*Do not just “Go with it”, if the buyer says he/she doesn’t want to go into a contract or if he/she whips out some weird looking paperwork, say to bad and only use your state legal contracts.*

 

Remember I am not an attorney or practice real estate law. For you protection you should consult with a Realtor, attorney, or specifically a real estate law attorney.

 

A couple terms you are going to want to understand in the paperwork is:

 

  • Earnest money deposit – this is a down payment to you, the seller, from the buyer to show good faith on buying the property. It shows they are serious and want to continue. Payment can range from $1 to an $1M plus, but is usually 1-3% of the home value. This down payment usually counts towards the total payment of the home and is refundable if the deal does not go through. Earnest money should be held with a Title Company!
  • Closing Costs – these are all the miscellaneous expenses and fees usually paid by the buyer, but sometimes the seller also. This could be mortgage fees, recording fees, title insurance, and more.
  • Option Period – this is the amount of time that a buyer will have to terminate a contract for any reason without risking earnest money. If the buyer decides to terminate a contract after the option period, the seller can keep the earnest money deposit if they wish. The buyer can legally terminate the contract if any rising issues come back from an inspection or if the bank will not approve of the loan. Option period is typically 7-14 days.
  • Addendum – these are other contracts that will need to be attached to the main contract. Addendums could be for lead based paint, environmental, third party financing, loan assumption, homeowners association, right to terminate, and many more. Check with your local agent or real estate attorney to make sure you have the legal addendums that your property requires.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Inspection

 

During the inspection 2 main things can happen.

 

  1. Acceptance
  2. Rejection

 

It’s pretty plain and simple, depending on how the inspection report comes back the buyer can either choose to continue or not continue.

 

Clear Title

 

You made it past the two most exhausting parts, but your home still has to clear title.

 

The title company is working their magic to either approve or disapprove the title status of your property.

 

If it does not get the green light, then the buyer is legally out and you are back to square one.

 

Why would this happen?

  • Bankruptcy
  • Child support issues
  • Liens
  • Judgements
  • Co-owners signature
  • And more..

 

If you find your property getting denied for title and you honestly did not realize any of this was going on, you have a bigger issue on your hand and need to get that worked out before you decide to sell again.

 

This is also why you should check title before deciding to sell.

 

A real estate agent will do this for you if you decide to work with one.

 

You can always use us!

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Loan

 

If the title is clear then the loan will begin its final stage of approval.

 

This could also be a deal killer because banks often underwrite twice.

 

When you go to a bank and ask for a loan, they first underwrite you.

 

They decide how much risk they are willing to take depending on your history which equates to how much money they will give you.

 

But this number is not set in stone

 

You can get a pre-approved quote from a bank for $500,000 then go shop a $500,000 property but they may still say no.

 

The second underwriting begins once you actually pick the property you want to use the loan on.

 

They then analyze the property, and you again, and will come back to say what they can do.

 

It is not uncommon for the bank to come back and say “No Mr. Buyer, we now will only give you $480,000 for this property”. Leaving the buyer with two options. Either come up with the extra $20,000 they did not prepare for or exit the deal.

 

And this affects YOU, the seller!

 

This is also why we recommend when you do get a loan offer from a bank, to shop around below that amount.

 

TIP: Ask a prospective buyer how much of a loan the bank is giving them. If they are willing to disclose it, this can be a major indicator of a serious buyer.

 

PRO TIP: If they ask why, say “I have been thinking of seller financing, maybe we could work something out for cheaper terms than what they gave you”. Buyers will love this and it could be a profitable move on your part.

 

Closing

 

Holy crap! You did it! You are at closing!

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

But wait, don’t get to excited

 

You are at closing but there are some very real things that can still happen that can either delay or completely break the deal.

 

  • Errors in documents – this can be anything from incorrect loan amount, misspelled name, or anything or small paper issue.
  • Mortgage delays – you could make it to closing before an actual loan is approved. Especially today with stricter banking rules and regulations.
  • Money Transfer – when you go to the bank and ask for the downpayment to be transferred title or the closing agent. It can either get delayed from system error or completely lost.
  • Title – something can still come up with title, such as a payment that was not made that was supposed to be or maybe they found a lien or lawsuit on the property.
  • Final walk-through – the buyer is doing their final walk-through and they see a hole in the floor that was not their 30 days ago.

 

We hope these do not happen but you should prepare yourself emotionally just in case.

 

Part 3 Of

The Most Difficult Tasks For FSBO’s!

 

Selling With-In The Planned Length of Time

 

Selling with-in the planned length of time does not require a complicated formula or long dragged out calendar schedule.

 

To make the process that much easier and stress free though, we have compiled a list, with details, of what you should be doing.

1. Make The Decision – You have to start here. If you are on the decision border of selling or not selling, it is best to pick a side and commit.

2. Know Your Market Timing – Remember that little analysis we did to figure out the average time it would take to sell your house if you decided to sell? I think it was called “Absorption Rate”! Yeah, good because that will come in handy here.

TIP: Remember to match “Absorption Rate” with the “Months Supply of Inventory” to know who has the negotiation power in the transaction.

3. Know Your Market Price – Again, that work we did on the front end is going to help. The price we calculated in the previous notes is going to help you determine what you should at least be selling your house for.

4. Does The House Need Repairs – This is going to be important for a couple reasons. Consider the questions below and what kind of time and energy they will add to the overall time frame and take away from you.

  1. Do you have the budget?
  • If not, your price will need to represent the need for repairs.

2. Are the repairs necessary in order to sell?

  • Roof, A/C, Kitchen, Bathroom, Locks, Holes, Electrical…

3. Are you going to do the repairs or hire someone?

  • This is a timeline question you need to answer. How fast do you want to sell and move? I have come across many homeowners who started the repair project but life just got in the way and in the end they hire the job out; wasting time and most times costing more than just hiring the job out right away.

5. Choose Your Path – Are you going to take the home selling venture on yourself, or recruit some help from a local Realtor? This is also going to play into your timing and motivation to sell.

6.Set A Exit Strategy – How long are you willing to list by yourself? How long are you willing to list with a Realtor? What if your home goes over the expected time frame? What if you get consistent offers below your list price? These and many others questions you need to write down in advance, with simple answers, and then follow it! Take a look at this example:

  1. How long am I willing to do this myself – 90 days
  2. How long am I willing to list with a Realtor – 90 additional days
  3. What if I go over the total expected time – stop selling and reevaluate
  4. What if I get consistent low offers – consider time frame readjust price
  5. If I get a cash offer 20k less than list price – accept
  6. What if I sell sooner than 30 days – move in with uncle Robbie until new house is ready

7. Stay On Path – Now it is time to put everything in motion and commit!

 

The most important part here is to ensure you are not being over demanding to the market.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

If you see the average price for similar homes in your area are going for $300,000 then do not try and list at $350,000; or even $325,000.

 

Stay with-in a 5% range. So $315,000 max!

 

Don’t kid yourself that because you put top of the line everything, that you have a better view, or that you are the only house with nice flowers that your house is different. You will be hurt to find out that people do not care.

 

Now I do want to put a note in here that with luxury homes or waterfront homes these factors just may make a big dollar difference. But if you have an everyday home, just stay with the neighborhood trend.

 

Second, if you see the ADOM is 90, do not think just because it is your home that it will be sold in 30. Plan for the average but better yet plan for the worst.

 

Part 4 Of

The Most Difficult Tasks For FSBO’s!

 

Preparing / Fixing Up Home For Sale

 

When getting ready to sell and you become flooded with the designer and contractor with-in yourself; …Stop!

 

Now sure we do want to feed those inner personalities a little, practically every home needs some touch up or repair when it comes time to sell.

 

But you really need to sit back, think, and ask yourself, “What matters?”.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

You first need to think about the big 3

  1. Front Lawn
  2. Kitchen
  3. Master Bedroom

 

These set the biggest impressions on home buyers.

 

All 3 work cohesively together.

 

The front lawn draws them in to see more. The front lawn sets the tone for what they might see moving forward.

 

No vegetation, closed blinds might insinuate a dark and dull home. On the opposite spectrum it could speak to those DIY’ers who want a project.

 

The kitchen is usually and should be close to the front door. This is the second impression and usually what a buyer will walk straight to once they enter a home.

 

The kitchen has become an open, engaged, and family center of every house. People want open kitchen floor plans to the dining or living room. The kitchen is where, for most, a lot of time will be spent and family moments will be shared or made.

 

The master bedroom is your final impression and could honestly win over a buyer even if the first 2 are off.

 

The master bedroom is a place of privacy, vibrancy, relaxation, romance; it is the domain of the homeowner(s).

 

If possible, big floor space is best, large walk-in closets, and a beautiful crafted bathroom will win the hearts and minds of your buyer.

 

The master bedroom is where they will imagine themselves relinquishing after a long day of work, receding to for privacy, making love, and watching Netflix.

 

The master bedroom should be inviting and comfortable at the least.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

Besides these top 3 areas, you need to next consider the backyard, laundry room, and work room.

 

The backyard is where events may be had, BBQ will be burnt, and kids may play. Make this space about more than one is the rule of thumb.

 

The laundry room is overlooked but very important! A lot of time will be spent here, especially for those bigger families.

 

For those hard working and very clean mom and women out there, nothing can steal a heart quicker than a bright, maneuverable, working spaced, white glove clean laundry room.

 

The work room is a place of business and with more and more jobs becoming work at homes jobs, this is a big plus to some home buyers. In the least it is a place of organization and check and balances.

 

Can’t do all this? It’s okay.

 

Focus on this at the least:

 

  1. Front lawn – make it presentable
  2. Paint – solid colors, try not to use more than 3 different colors.  
  3. Cosmetics – make sure there are no holes in walls or roof, trim that is cut off, flooring that is cracked or warped, or windows that have cracked glass.

 

After worrying about those 3 see if you can handle any of this:

 

  1. Appliances – the newer the better.
  2. Features – A/C, heating, ventilation.
  3. Green Packages – solar panels, green house, energy star appliances.  

 

After figuring out “What Matters?”. It’s time to get a plan in place.

 

Now you have two options, DIY or HIO ( Hire It Out )( Lol I’m not sure if we just made that up ).

 

DIY

 

  • Set a budget
    • $5,000

 

  • Compile a list
    • New interior paint
    • Flowers and mulch
    • New fridge
    • Kitchen sink
    • 2 new bathroom sinks
    • Wood flooring in carpet rooms

 

 

  • Set a schedule
    • 01/01/2018 Go to stores and buy flooring, paint, and fridge
    • 01/02/2018 Take out old fridge and paint wall that it was covering then install new fridge
    • 01/03/2018 Tape and paint the kitchen walls
    • 01/04/2018 Tape all walls in house for painting
    • 01/05/2018 Start painting all the walls clockwise starting from the kitchen
    • 01/19/2018 Clear 1st room to prepare to take out carpet
    • 01/20/2018 Take out carpet
    • 01/21/2018 Start installing flooring
    • 01/24/2018 Clear 2nd room to prepare to take out carpet
    • 01/25/2018 Take out carpet
    • 01/26/2018 Start installing flooring
    • 01/27/2018 Second trip to store to buy bathroom sinks, flowers, and mulch
    • 01/28/2018 Do the first bathroom
    • 01/29/2018 Do the second bathroom
    • 01/30/2018 Did holes and plant flowers
    • 01/31/2018 Lay mulch

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

HIO

 

  • Set a budget
    • $5,500.

 

  • Gather bids
    • From at least 3 different contractors

 

  • Compile a list
    • Itemized list for contractors

 

  • Manage contractors
    • Pay schedule
    • Timing
    • Completion

 

There are various strategies to selecting and managing contractors.

 

If you would like a detailed blog post on that very subject please leave a comment in the comments section at the end.

 

Remember, when taking all this into consideration you need to think about your home marketing strategy, selling timeline, and motivation.

 

Do you want to start to market the home at the end of the repairs or before?

 

How much time will this project add to your overall timeline?

 

Do you have the budget to do this?

 

Most important, do you have the motivation to do this? If not, just adjust your price for the next buyer.

 

If you decide to leave it up to the next buyer, it is smart and valuable, to get a contractors bid to present to the buyer  on all repairs.

 

Part 5 Of

The Most Difficult Tasks For FSBO’s!

 

Having Enough Time To Devote To All Aspects Of The Sale

 

Even though this was last on the list of “The most difficult tasks for FSBO’s”, it is the one task that properly assessed upfront will be the biggest time and headache saver.

 

To know if you have enough time to devote to all aspects of the sale we recommend making a simple time chart.

 

First, we need to actually know what is a good amount of time to have devoted?

 

We recommend 2 hours a day, 7 days a week.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

So, 14 hours a week. Super manageable..for some.

 

This is also the at least amount we recommend. Know that you can easily consume 28-35 hours a week.

 

Okay, let’s make a chart.

 

We’ll say it’s a married couple with 1 kid and that both work the same time.

 

Activity                                               Time Total                              Hours

Sleep                                                     2200-0600                                   8

Morning Routine                              0600-0730                                 1.5

Bring Kid To School                        0730-0800                                   .5

Drive To Work                                    0800-0830                                   .5

Start Work                                           0900-1700                                   8

Drive Home                                        1700-1730                                   .5

Change, Relax, Play With Kid     1730-1830                                   1

Dinner                                                  1830-1900                                   .5

Relax, Complete Work, Kid         1900-2100                                    2

Relax, Complete Work                  2100-2200                                    1

Go To Bed                                                2200

 

So it looks like from our normal day we have 4 main opportunities to handle the sale.

 

Activity                                               Time Total                              Hours

Sleep                                                     2200-0600                                   8

Morning Routine                              0600-0730                                 1.5

Bring Kid To School                        0730-0800                                   .5

Drive To Work                                    0800-0830                                   .5

Start Work                                           0900-1700                                   8

Drive Home                                        1700-1730                                   .5

Change, Relax, Play With Kid     1730-1830                                   1

Dinner                                                  1830-1900                                   .5

Relax, Complete Work, Kid         1900-2100                                    2

Relax, Complete Work                  2100-2200                                    1

Go To Bed                                                2200

 

A total of 4.5 hours a day to devote to the sale of your home.

 

But your human and you want to eat dinner, change, relax, and play with your kid.

 

So now you have 3 hours to devote to the sale.

 

Unless of course you can figure out a way to leave work during lunch for showings.

 

But you made the cut, you met the 2 hour minimum, and trust me your time will be used up.

 

FSBO Master Strategy Guide ( Sell Faster, Easier ) ( 2019 )

 

What are some things you can expect to handle in your devoted homing selling time?

  • Showings – we recommend to block out 1 hour each day. Do this so it’s no surprise when it does happen. Plan for it and life will be easier.
    • Try and make it the same time each day and advertise your showings for that. For example, make them every week day from 1730-1830 and every weekend from 1000-1100.
  • Reviewing phone calls, voicemails, emails, and any other contact from a potential buyer.
  • Marketing your property on free sources like Craigslist or Zillow.
  • Planning the move.
    • Talking to moving services and storage services.
  • Repairs / upgrades.
  • Paperwork.
    • Title.
    • Survey.
    • Loan.
    • Etc.

 

So you have 3 hours a week to devote to the sale, maybe you have some left over time each day. You should be in the clear.

 

All you have to ask yourself is, “Is it worth it?”.

 

Would you rather not worry about doing any of the things involved with a real estate transaction except maybe the repairs, or do you not mind taking the time and energy out of your day to do these things.

 

If the answer is the later, then give it a shot.

 

Recommendations For Married Couples

  • Work
    • Split days to take showings. Talk to each other about work schedules and see who can take what days for showings during the week.
    • Example: Bob takes Monday, Thursday, Friday, to leave work at lunch to show if needed and Sally takes Tuesday, Wednesday to leave work at lunch to show if needed.
  • Repairs
    • Two is faster than one and some are better than others. Figure out strengths and weaknesses before starting any projects.
  • Kid(s)
    • Drop-off and pick-up from school, homework, and play time. Do not neglect your kid just because you are selling your home.

 

Having enough time to devote to all aspects of the sale is simply about the level of work you can handle and how much you are willing to do.

 

If you are, for the most part, a hands off person or would rather spend your time elsewhere; it is probably best to hire someone on your behalf.

 

If you have the time, do not mind spending the energy, and can navigate all aspects of a real estate transaction yourself; then try and go it alone!

 

Conclusion

 

The sale of a home is something that takes time, commitment, strategy, and knowledge.

 

For the For Sale By Owner, it is not impossible. With some foresight, research, and proper planning selling your home can be easy, stress free, and possibly enjoyable.

 

We hope this Master Strategy Guide was informative, answered questions, brought up new questions, and helps in the long run.

 

For any questions you might have concerning a real estate transaction, reach out to me.

 

If you need help selling or buying your next home in Palm Beach County, give me a call or shoot me an email and me and my team will see what we can do for you

 

561-722-9779

mindymheilman@gmail.com

 

The Heilman Team 561-722-9779. www.theheilmanteam.com. Luxury property site at www.heilmanteamluxuryproperties.com

 

Blog created by: Zachary Alexander

Zachary Alexander is a representative of The Heilman Team and works as Marketing Manager. This blog was not sourced or made from a 3rd party vendor.

 

For blog corrections, content share, website linking, or anything relating to the information contained in this blog please email zach@theheilmanteam.com

 

For partnering opportunities please email sarah@theheilmanteam.com

 

 

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