Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, April 7, 1991 TAG: 9104060296
SECTION: A GUIDE TO BETTER HOMES PAGE: 8 EDITION: NEW RIVER VALLEY
SOURCE: Virginia Cooperative Extension
DATELINE: BLACKSBURG LENGTH: Medium
Do-it-yourself concepts can extend to selling a home, but it is a lot of work, said Virginia Cooperative Extension Specialist Kathleen Parrott.
"Those who have the inclination can invest their time and money to do the things a real estate agent would have done," said Parrott, who is on the faculty at Virginia Tech. "They will save the fee they would have paid to a real estate agent."
They need skills to do the marketing research and negotiation and have good business sense. They also need the financial resources to cover preparation of the house, advertising and legal costs.
The start is to figure the market price of the house. The market price is an estimate of market value and represents a compromise between the price at which the seller will sell and the buyer will buy.
Learning the market price requires some research on the part of sellers. They can look at public records for information on recent home sales in the neighborhood. They can look at the records of prices of homes with similar characteristics that are nearby. They also have to be aware of what is going on in the community's economy.
Then, establish an asking price. The asking or advertising price is affected by local pricing customs, availability of mortgage money, time available for the sale, recent major improvements to the house and the market supply of housing. The seller needs to understand the local real estate market to help determine the asking price.
The third step is to get legal advice. There are regulations and laws covering the sale of a house. The inexperienced seller can easily fail to do something. Being knowledgeable about zoning, titles, taxes and the many other factors involved in selling a house is crucial to a sale.
A lawyer can review and prepare all the documents pertaining to the transfer of the property as well as give advice.
The seller has to prepare the house so that it will look its best. It should be thoroughly cleaned and in good repair.
Redecorating may not be necessary, but replacing worn flooring, carpeting, window treatments or coverings will help the potential buyer see the house at its best.
Repair anything crucial, such as cracked windows or dripping faucets.
"I put fresh cut flowers on display to make my house look good to prospective buyers," said Mary Frank, who used to live in Christiansburg before her house was sold. "But it always seemed as if prospective buyers came just as the flowers started to wilt."
"The marketing step," Parrott said, "includes writing a detailed information sheet about the house, property, utilities, neighborhood and any other factors that could affect the sale."
Advertise it as much as possible, but make sure the advertising is honest, appealing and professional looking. Use whatever methods are available, such as yard signs, newspapers, bulletin boards and flyers. Word-of-mouth is one of the most effective methods.
When advertising is effective, sellers have to be ready to show the house. They need to plan a tour of the house that will show its good features.
"Many sellers find this is difficult," said Parrott. "They don't feel comfortable showing their home. Potential buyers are not always comfortable seeing the home with the owner, either. They feel they are intruding on the family's privacy.
"When this is the case, do-it-yourself sellers sometimes get a friend to actually take the potential buyers through the home," she said.
When the prospective buyer is interested, the negotiation stage has to begin. A prospective buyer should present a written purchase offer and a deposit of "earnest" money.
The "earnest" money typically is 1 percent of the sale price and needs to be held in an escrow account until the sale is complete.
The business of negotiating a sale can be very delicate, Parrott said. Both parties are seeking a "good" deal and they might each change their offers of their acceptance price before the final sale is complete.
When the seller accepts the buyer's price, the purchase offer can become the purchase agreement. The purchase agreement contains full details and timing of the sale, description of items included in the sale and any contingencies, such as inspections or repairs.
The agreement needs to be signed by all parties involved in the sale and have an expiration time.
by CNB