Selling my house on my own, questions on price and down payment.

[elcodfish]

Houses in my neighborhood go pretty quickly and sell between $90-$100 a square foot. My home is in great condition, Windows less than 5 years old, with a 50 year warranty, 10 year warranty on a roof put on in 2012, constant upkeep. So my question is, I feel like I will get close to the $100/sq foot but I don't really want to fuss with a bunch of back and forth so how close to the $100/sq foot do I go? At that price it would sell for $227,000, so do I list at $240, or do I just start at $230?

Also, what is a reasonable amount to ask for a down payment? My house is paid for, no mortgage, I don't know if that affects anything.

We ideally want to be out of the house in August or September and are debating when we should list. I am assuming a 60 day closing and currently planning on listing my house in April/May. Any other insights would be wonderful!

 

[Eureka]

I am not that experienced with houses, but do you even get a say about a down payment? I mean, wouldn't the buyer need to secure a mortgage the same way they would if they were buying through a real estate agent? In that case, what they put down through the bank is not in the seller's control. I am just curious. If you want to be out of the house soon, I'd say price to sell but if you have more time/patience, probably start a little higher than you'll take so you have some room for possible counter-offers.

 

[BadgerGirl84]

Are you sure you know enough about this process to do this on your own? Are you hiring an attorney or going through some kind of flat-fee FSBO service?

I've bought two homes and sold one...I never saw price per sq. ft be an accurate regarding a home's worth or resale value. Obviously a 3000 sq ft home right next to a 2000 sq ft home will almost always sell for more, but the same isn't always said for a 2225 sq ft home vs 2600 sq ft home. Is one better maintained? Does one have a better floor plan? Does one have a big finished basement that is accounting for a lot of that extra square footage? Square footage is not the be-all-end-all and I don't think you'd be acurately pricing your home if that's all you went by.

Also, what do you mean asking for a certain down payment? Are you assuming that you are going to finance the home for the buyer? I really wouldn't recommend that unless it was a son or daughter buying the home. A buyer will likely already have a pre-approval from a lender for a mortgage and it's up to them and the bank if the down payment is 5% or 20%.

These couple of things illustrate that perhaps you aren't a real estate expert. I would suggest one of the following.

1) Find a real estate agent who will do a fixed amount or low % commission. We did this when we sold our first home...everyone else in the area was asking for 6% (3 for buyer's agent 3 for our agent). We found a great realtor who did it for $500 to list and $500 at closing, plus if the buyer had an agent we had to pay them their commission.

2) Find a flat-flee real estate company in your area and set up a consultation. They could answer a lot of your questions. They also can get you the yard sign, lock box, MLS listing, etc.

3) Speak with an attorney no matter what if you are going to do this on your own.

 

[pigget74]

I think the down payment he is referring to is the Earnest Money. It is what they put down if they want to buy the house. That way if they back out they do not get that money back. It covers any fees that had to be covered on the selling process. When we sold our house we requested $500. I know that is not a lot.

 

[jgreco]

I will give my suggestions based on how things are done in FL.

I would ask for at least $2500 earnest money due at signing the contract and another $2500 after inspection and appraisal. The last thing you want is someone to walk after you've had the property off the market for weeks. They need to have skin in the game.

Make sure your contract clearly states how many days (usually 10) they have for an inspection, whether or not you will allow contingencies for financing which (will then be based on the appraisal). Whether you will accept conventional and/or FHA loans. PS- FHA appraisals "stick" to the property for up to 6 months, so if your home under-appraises or your buyer walks, the next FHA buyer will be held to the appraisal price whether your home price increases or not.

Who will be responsible for closing costs? Title Search?

Will the home be sold "as is"? I highly recommend this... This is important or you can be held responsible for up to 3% of any repair costs whether big or small. A home sold "as is" can still be inspected and the buyer can choose to walk if the inspection reveals a problem or you can choose to renegotiate based on the findings.Or, you can say "too bad, take it or leave it".

You can look at homes on zillow.com to see what they recently sold for and what it originally listed for.

I would start at around $245-$250k (if your market conditions support that )and you want to net $225,000. Also look at your competition and see that you are appropriately priced.

You may also want to pay for an independent appraisal to show buyers the home's true worth and price it just under the appraisers figure. This can also help avoid any unpleasant surprises for you if you have overpriced the home and the appraisal for the buyer comes in too low.

 

[Praying Colonel]

Houses in my neighborhood go pretty quickly and sell between $90-$100 a square foot. My home is in great condition, Windows less than 5 years old, with a 50 year warranty, 10 year warranty on a roof put on in 2012, constant upkeep. So my question is, I feel like I will get close to the $100/sq foot but I don't really want to fuss with a bunch of back and forth so how close to the $100/sq foot do I go? At that price it would sell for $227,000, so do I list at $240, or do I just start at $230?

Also, what is a reasonable amount to ask for a down payment? My house is paid for, no mortgage, I don't know if that affects anything.

We ideally want to be out of the house in August or September and are debating when we should list. I am assuming a 60 day closing and currently planning on listing my house in April/May. Any other insights would be wonderful!

First, the rule.

Second, my "insight" would be that if you need to be out by a date certain and have never sold your own property before, you should hire a realtor. They can be invaluable on the questions you raised, and so much more.

 

[elcodfish]

I did mean Earnest Money, not down payment. I am meeting with a real estate attorney this week.

 

[seashoreCM]

Down payment is different from earnest money.

Down payment is the amount of the purchase price that will not be covered by the mortgage loan. In general the larger percentage of the purchase price is as a down payment, the easier it is to get the mortgage approved. You the seller typically have no say in this, except that a few sellers analyze the buyer's finances and turn down an offer with too small a down payment because of the perceived likelihood that the mortgage will not be approved.

The earnest money is a deposit made by the buyer to hold the house so you stop taking offers from other possible buyers. You can specify how much you want this to be. Savvy sellers ask for at least 2% of the selling price with a minimum of $3000.

 

[lost*in*cyberspace]

OP, after reading your query, I would highly recommend that you do not attempt to sell your home yourself. At the very least, you should at least interview a few real estate agents and considering using them to sell your house. You can get into a lot of trouble if you don't know what you're doing.

 

[a1tinkfans]

Houses in my neighborhood go pretty quickly and sell between $90-$100 a square foot. My home is in great condition, Windows less than 5 years old, with a 50 year warranty, 10 year warranty on a roof put on in 2012, constant upkeep. So my question is, I feel like I will get close to the $100/sq foot but I don't really want to fuss with a bunch of back and forth so how close to the $100/sq foot do I go? At that price it would sell for $227,000, so do I list at $240, or do I just start at $230?

Also, what is a reasonable amount to ask for a down payment? My house is paid for, no mortgage, I don't know if that affects anything.

We ideally want to be out of the house in August or September and are debating when we should list. I am assuming a 60 day closing and currently planning on listing my house in April/May. Any other insights would be wonderful!

with all due respect, really...the questions you are asking are very basic questions that If you were really able to sell on your own, you'd not be asking KWIM?
A negotiation on a home can become quite involved and you can be mired in mud and be stuck waiting, or holding on longer than you ever anticipated. Your home and money can be tied up, complications can arise, fees, escrow, bank dealings, mortgage issues, qualification issues (people easily walk in homes, act interested, and yet they cant afford it, cant get a mortgage in your time frame...the list is endless) all this while you are stuck....waiting..
Negotiation itself is necessary so that both parties feel invested and want to proceed to conclusion....it really should be done by someone that is familiar with the procedure and is experienced. If your true goal is to get what the home is worth, in the quickest time and be as painless as possible, please consider (interviewing/speaking) with a realty specialist....when they MLS your home, have a realtor open house, etc the widest group of people will see it and it can move faster than your ad, fliers etc.
And no I am not a realtor...and I have actually purchased and sold our prior home..but our atty was a family member...and the the other qualifications were covered.
Id just hate to see you waste time, energy and your money and be disappointed, especially when it seems you have definite time frame plans.
Can a person sell on their own, get the correct price and have it go easily, sure, but the odds are not in your favor.
Best of Luck with whatever you decide.....but if you go forward on your own, be prepared for speed bumps!

 

[TBMommy]

I would highly recommend hiring a real estate agent.

Based on your questions, I don't think you know enough about the selling a home to do it on your own. Also, real estate transactions vary greatly by area. There are different laws and standards, for example some states require attorneys to transfer real estate while others use escrow companies. Earnest money also varies by area, in my area it is rarely more than a couple hundred dollars while I know others are much more. You also need to be prepared to pay commission to any buyer's agents, pay your attorney an hourly rate for work normally done by an agent, and have all your required disclosures about the property available to buyers when they look at your home.

 

[Jenny3]

OP, after reading your query, I would highly recommend that you do not attempt to sell your home yourself. At the very least, you should at least interview a few real estate agents and considering using them to sell your house. You can get into a lot of trouble if you don't know what you're doing.

I agree with this. Especially that you have a specific time frame that you wish to move. Contacting a Realtor is your best course of action - unless you plan to seriously educate yourself on all of the processes, rules and regulations involved in selling a home, including sellers disclosure laws, title searches and transfers, mortgage and appraisal guidelines and regulations, inspection contingencies, etc.

 

[shoney]

I think it just depends on where you live.
Real estate agents in this area just list the house on MLS, maybe show it (I found buyers came with their own), host open houses.

Once a price is settled upon, the attorneys do everything!

The amount due at signing of contract was quite high at 5%, that was standard at that time, not sure if things have changed.

I know plenty of people that have sold without a real estate agent. Here it just meant that they had to advertise their own home and show it to buyers.

We sold our home 9 years ago. It was sold in 5 days. The real estate agent didn't do anything but list it on MLS. He called when we had an offer. When we accepted, he forwarded our attorney info to the buyers real estate agent who forwarded the info to their attorney.

I didn't see him again until closing, so he could collect his check!

 

[Jenny3]

I think it just depends on where you live.
Real estate agents in this area just list the house on MLS, maybe show it (I found buyers came with their own), host open houses.

Once a price is settled upon, the attorneys do everything!

The amount due at signing of contract was quite high at 5%, that was standard at that time, not sure if things have changed.

I know plenty of people that have sold without a real estate agent. Here it just meant that they had to advertise their own home and show it to buyers.

We sold our home 9 years ago. It was sold in 5 days. The real estate agent didn't do anything but list it on MLS. He called when we had an offer. When we accepted, he forwarded our attorney info to the buyers real estate agent who forwarded the info to their attorney.

I didn't see him again until closing, so he could collect his check!

In my area, real estate attorneys are very rarely used. The Realtors do all the work from marketing the home to negotiating the offers to attending inspections, collecting deposits, overseeing the buyer's mortgage to handling conveyencing (including municipal requirements, tax certifications and mortgage payoffs) to closing. Typical commission in this area is 5-6% - paid at closing - and split between the Buyers and Sellers agents.

 

[shoney]

In my area, real estate attorneys are very rarely used. The Realtors do all the work from marketing the home to negotiating the offers to handling conveyencing to closing. Typical commission is this area is 5-6% - paid at closing - and split between the Buyers and Sellers agents.

That the ironic part...commissions are that high here as well. The attorney fees are very low and they do all the work!!!!


i think this is why some people choose to list their house themselves.

 

[Jenny3]

That the ironic part...commissions are that high here as well. The attorney fees are very low and they do all the work!!!!


i think this is why some people choose to list their house themselves.

Best if the OP finds out what is typical in her area. Here in PA, the vast majority of FSBOs (For Sale by Owner) end up listing with an Realtor after trying it on their own. The rules, regulations and legalities are vast and can be complicated - especially if the owner is not knowledgeable on the procedures.

 

[pocomom]

Houses in my neighborhood go pretty quickly and sell between $90-$100 a square foot. My home is in great condition, Windows less than 5 years old, with a 50 year warranty, 10 year warranty on a roof put on in 2012, constant upkeep. So my question is, I feel like I will get close to the $100/sq foot but I don't really want to fuss with a bunch of back and forth so how close to the $100/sq foot do I go? At that price it would sell for $227,000, so do I list at $240, or do I just start at $230?

Also, what is a reasonable amount to ask for a down payment? My house is paid for, no mortgage, I don't know if that affects anything.

We ideally want to be out of the house in August or September and are debating when we should list. I am assuming a 60 day closing and currently planning on listing my house in April/May. Any other insights would be wonderful!

As far as a listing date that you should go by your region- list too early you lose a lot of new listing traffic, so you want to list when the market starts up. A lot of that is weather and region dependant. Here houses go on the market in early June.
If you have a deadline that you want/need to sell by you need to be more careful with your pricing/ I know you say houses are selling "pretty quick" but make sure you know how long they took versus pricing. 200,225, and 250 are natural cut off points for people looking. People looking on their own on say realtor.com are going to not go over budget as much as a realtor assisted buyer does.

 

[shoney]

Best if the OP finds out what is typical in her area. Here in PA, the vast majority of FSBOs (For Sale by Owner) end up listing with an Realtor after trying it on their own. The rules, regulations and legalities are vast and can be complicated - especially if the owner is not knowledgeable on the procedures.

I agree...they need to find out how it is done in their area.

I was just pointing out that real estate agents are not essential in all parts of the US.

 

[scrapquitler]

Houses in my neighborhood go pretty quickly and sell between $90-$100 a square foot. My home is in great condition, Windows less than 5 years old, with a 50 year warranty, 10 year warranty on a roof put on in 2012, constant upkeep. So my question is, I feel like I will get close to the $100/sq foot but I don't really want to fuss with a bunch of back and forth so how close to the $100/sq foot do I go? At that price it would sell for $227,000, so do I list at $240, or do I just start at $230?

Also, what is a reasonable amount to ask for a down payment? My house is paid for, no mortgage, I don't know if that affects anything.

We ideally want to be out of the house in August or September and are debating when we should list. I am assuming a 60 day closing and currently planning on listing my house in April/May. Any other insights would be wonderful!

Downpayment is not up to you, unless you are planning to hold the mortgage for the buyer (which is a WHOLE other thing). The buyer and the mortgage lender will figure out the downpayment among themselves.

The price per square foot might be kind of irrelevant depending on the upgrades your house has. To really know the price that your house will sell for you need to look at RECENT sales of similar houses, which include similar upgrades, # of bathrooms, lot size, etc.

I think you should contact a real estate attorney to help you. There is no way in the world I would sell (or buy) a house without the help of an attorney. One wrong thing along the way could doom the sale or cost you $$$$.

 

[threeboysmom]

??

Maybe it's different in New England, but I recently purchased a condo and neither of us (buyer or seller) used a real estate agent.

It was not complicated at all. We negotiated a price via email (back & forth and back & forth, lol). Downloaded the required papers from the internet and met after work to sign papers. Gave them a check for $1000 for earnest money, set a closing date, and the attorney handled it from there.

There was no need for a realtor on either side. Honestly, I'm not sure what a realtor could have done for either of us, lol.