How to Sell Your Home Privately

01Exposing Your Home to the Market
Once you have decided to sell your home you have two main ways that you can expose your home to the market. Exposing your home to the market means deciding how to let the buyers know that you have a home for sale.

The two ways to expose your home to the market is by using the services of a real estate agent or selling your home privately.

Real Estate Agent

Using a real estate agent can be costly because of the high real estate commissions but sometimes it is the best and only option depending on your situation.

In this case, Soldplicity has outlined how to choose the right real estate agent for your needs so the seller has a positive experience selling with the right agent.  However, in these tough economic times, and depending on your circumstances, the other option in selling your home is to do it privately.

Selling Privately

There are two ways to privately expose your home to the public and they are by using the Fee Based For Sale by Owner Services or by using the FREE advertising site Soldplicity.

According to the Canadian Real Estate Association, "there are more than 145 steps to complete a real estate transaction.  It requires an organized, step-by-step approach that many home owners just don’t have the time, skill or experience to carry out."

Selling privately may be the only option for some sellers. Soldplicity was created to support and educate the private seller on every aspect of selling privately by sharing detailed information that every seller needs to know be successful in selling their home privately.

There is enough free information provided within this site that it is not necessary to purchase anything.  Should any purchases be made, sellers will enjoy easy to-understand instructions and will appreciate exceptionally valued packages offered at a very low prices allowing every budget to afford them.

 

02Using the Services of a Real Estate Agent
The services of a real estate agent can be very beneficial to any seller who needs to sell quickly or finds themselves in special circumstances.  Some special circumstances may be a divorce, death, rental property, vacant property or job transfer.

a) A Divorce

A divorce is an emotional time for the sellers and selling their home privately is usually the last thing they are thinking.  Agents are hired to show neutrality and no emotion when getting the matrimonial home sold to help finalize divorce settlements.

b) When Someone Dies

When a loved one passes away and there may be a home that needs to be sold which is part of the estate, the Will might dictate that the services of an agent be used.  An agent's services are very beneficial at this time as they are experienced in dealing with emotional family members and they know how to meet the legal requirements of the Probate process.

c) Rental Property

Another circumstance is with a rental property.  Sometimes, if a rental property still has tenants renting it, the time and energy it takes to set up every showing is too big of a hassle, and best left to an agent who is very experienced in these situations and has the time to devote.

d) Vacant Property

When a property is vacant and the seller needs to pay additional monthly expenses such as mortgage, taxes, and utilities, this can become very costly very quickly.  Every day that the home doesn’t get sold it is costing the seller money that he may not have.

e) Employment Transfer

With a job transfer, sometimes the employee's benefit is that the new company will pay for all real estate commissions but they might dictate which real estate company gets hired.  You may not have a choice in which agent you get to use and one will be hired for you.

Many times it is cheaper to hire a professional real estate agent and pay the commission then to try and sell it privately.  These are a few examples why it is best to hire a real estate agent.

If you find yourself in a position needing the services of a good real estate agent, try using the Preferred Agent Directory to see which one may best suit your needs.

Brokerage Options to Choose From

Today the consumer can enjoy the services of listing with a Full Serviced Real Estate Brokerage or they can use the services of a Discount Brokerage.

A discount brokerage will list a seller's home for a very low flat rate commission.  This is a great option to pay next to nothing in commission and still enjoy the exposure of a multiple listing system.

But be warned, you get what you pay for.  You may not get much customer service from the brokerage or the agent but just the privilege to be listed on the MLS and that is it.

The services that real estate agents provide vary greatly from agent to agent.  The best way to understand what minimum service requirements that most agents provide is by asking questions and interviewing numerous agents. Then you will know if the agent is providing exceptional customer service or very poor client care.

 

03Selling Privately using 'Fee Based For Sale by Owner' Services
Approximately ten years ago, a new service catering to the private seller was born.  It is called the 'fee based' for sale by owner service. The fee based for sale by owner services websites came into effect when the consumers wanted to sell privately but still needed assistance and consumers were willing to pay a reduced amount for that assistance.

The purpose of the For Sale by Owner websites was to give the consumer another option as opposed to listing with a real estate agent and allowing the consumer to save on paying high real estate commissions.

How Much does Fee Based For Sale by Owner Services Cost?

The price that the fee based For Sale by Owner charges range between $150 and $1500 dollars depending on the company and on the services they provide.

The prices that for sale by owner companies charge is dependent on the services that are rendered.

The purpose of the For Sale by Owner websites was to give the consumer another option as opposed to listing with a real estate agent and allowing the consumer to save on paying high real estate commissions.

Fee Based For Sale by Owner Services have NO Code of Ethics

When you buy or sell your home in Canada using the services of a real estate agent, it is important to know that agents are governed by a Code of Ethics.

The Canadian Real Estate Association and the Real Estate Council protects the interests of the Canadian consumers by providing Standards and a Code of Ethics that real estate agents must follow.

Fee Based For Sale by Owner Companies are not governed by any Code of Ethics.

These private companies offer so many services such as measuring your home, providing pricing evaluations, taking pictures, creating feature sheets, putting up a sign, and doing online advertising, one would think that they should have an Industry Standard, or Code of Conduct or Code of Ethics.

Warning About Some Fee Based For Sale by Owner Sites

Some of these sites discriminate against real estate agents from using the site and, by doing this it limits the amount of exposure and participation that may be needed to sell your home.

In doing research on the 'fee based' for sale by owner sites, Soldplicity learned that a few of these sites will not let their clients who use their services advertise anywhere else.

Specifically in their Terms of Use you will find that they "reserve the right to withdraw any listing if you put your home on the MLS or any other competing site."

Also, some will give you a 'Money Back Guarantee' but if you read the Terms of Use you will find that there is no such thing and "no returns will be given under any circumstances."

Therefore, it is very important that before you sign up with a fee based for sale by owner site you must read the Privacy Policy and their Terms of Use very closely.

If you are paying a company for minimal support and some internet exposure then you are basically paying to be a 'For Sale by Owner'.

Be cautious of sites that limit your advertising exposure.

If you are paying for their service shouldn't you be able to advertise your property with anyone else if you choose and by whatever medium you choose to?

 

04Selling Privately - using 'FREE For Sale by Owner' Services
With the economic conditions changing within our market place, and consumers tired of paying top dollar for little information, another popular new service has been born. It is that of a FREE For Sale by Owner Services for the private sellers and it caters to their need for more information.

More and more Sellers are successfully selling their own homes by gaining knowledge through trial and error and experience. Sellers want to have full control where they are able to advertise, want to enjoy the best free marketing exposure and do not want to be restricted in anyway.

There are other free sites such as Kijiji and Craig's list but they do not specialize in the real estate industry nor do they provide any specific content rich information that sellers need to successfully sell their home.

Now, a new revolutionary site which is a FREE Real Estate advertising source finally catering to the needs of private buyers and seller has been launched.

The name of this site is Soldplicity, which means Sold with Simplicity or Sold Simply in any City!

Why was Soldplicity Created?

Soldplicity.com is a real estate web site revolutionizing the Real Estate Industry by empowering consumers with a vast amount of content rich information on How to Sell or Buy Privately.

Soldplicity was designed to collect information willingly shared by the public to be able to grow a data bank of all sales within the real estate industry and making it publicly available at no cost.

Soldplicity was designed for the public and to be freely used by the public.

What are the Benefits to Using Soldplicity.com

The benefit to using Soldplicity is to advertise your home for free for an unlimited amount of time.

Soldplicity collects and grows a database of all the sold comparables within the site and makes it publicly available at no cost to the consumer.

Soldplicity empowers the consumer with a vast amount of content rich information on how to sell or buy a home privately.

Soldplicity does not discriminate against anyone from using it and Soldplicity separates all collected data received from private sellers and from real estate agents.

Because it is a FREE source of advertising the amount of public exposure will be similar to that of a co-operative listing network.

 

05How to Sell Your Home Privately with Soldplicity

1.  Expose your home to the market

Before you expose your home to the market you must first begin by picking the right price for it.

This is one of the first critical components in being successful in selling privately.  Then you must create excitement and peak the buyer's interest by writing a successful ad so your phone will ring off the hook with buyers who want to see your home.

In order to get top dollar for your home you must be able to objectively see your home as if you were looking through the eyes of a buyer.

Knowing how to prepare your home  for viewings will put your home in the showing condition that is needed to ultimately get it sold.

2.  Getting showings

There is a lot that goes into privately showing your home to a buyer but there is nothing more important than you and your family's safety. It is imperative to know that safety first starts with being able to know exactly who is coming into your home by learning how to qualify your buyers.

In today's market, sellers need to know how to qualify buyers and they do this by being prepared with a very strong set of dialogue techniques for dealing with buyers.

If sellers would possess these tools then they would no longer feel unsure about what they need to do or what they need to say when buyers call to see your home.

3.  Open Houses

Most sellers do not like hosting open houses because they don't know why it is important to have them.

It is important to hold an open house because it is one of the most effective ways to expose your home to the maximum amount of potential buyers in the shortest amount of time.

Learning how to host an open house will show you how to do it safely and will help you sell your house quicker.  You will be able to sell your house quicker because you will learn to recognize the buying signals of a buyer.

Understanding the buying signals will allow sellers to feel more confident in the selling process.

The seller's confidence will help the buyers feel more comfortable and reassures the buyer who wants to buy privately, that the seller knows what they are doing.

4.  Offer

After you have shown your home and you have found a buyer who likes it, enough to write you an offer, please remember a couple of things.  Now is not the time to get greedy, some sellers get over confident.

Just because a buyer likes your home and is willing to write an offer it doesn't mean that they are willing to pay any amount for it!  Be careful here, this is the time that most deals are lost due to emotion and if the emotions cannot be controlled it is unlikely that a successful business transaction can take place.

If an Agent  brings you an offer, then be prepared by having some scripts and an understanding of the Dialogue for Dealing with Agents. This is a very powerful tool that helps private sellers feel more comfortable and less intimidated when they need to step outside of their comfort zone and deal with an agent.

If you aren't a natural born salesperson you may need a little help knowing what to say.  Selling privately and saving thousands of dollars in commission can be very liberating but it can also be very stressful if you are not equipped with the right tools.

5.  Negotiations

When dealing with a real estate agent, understanding the relationship duties that a real estate agent may owe you are important.

According to the Canadian Real Estate Association, 'The Code establishes a standard of conduct, which in many respects exceeds basic legal requirements. This standard ensures that that the rights and interests of consumers of real estate services are protected.'

Therefore, understand the relationship you are entering into and know that anything you may say to an Agent may not be held in confidence and told to their buyer.

Understand very clearly what you are signing, if you do not understand it, get further clarification. When dealing with a private buyer, knowing what you need to disclose and what you don’t have to disclose is called Latent and Patent Defects.

If there was any work or renovations done to the home with or without proper building permits then this should also be disclosed to a buyer.  You can avoid a law suit by knowing what defects need to be disclosed to a buyer by understanding your obligations as a seller and knowing your liabilities.

6.  Offer accepted with some conditions

Once both the buyer and seller agree on a price and the possession date (moving date) they also must agree on some terms and conditions.

The Terms and Conditions of an Offer are just as important as the price that is paid; the terms and conditions must be clearly understood and agreed to by both parties.

One example of a 'condition' is that the buyers will choose a home inspector to inspect your home so they may get assistance in learning about the integrity of your home.  This will minimize any potential problems for the buyer after they move in.

Upon both parties agreeing on price, possession, terms and conditions you will now have an 'Accepted Offer'.

7.  Removal of Conditions

Within the accepted offer, the agreed upon terms and conditions must be completed or your deal cannot go forward.

When the buyer and seller respectively meet all the agreed upon terms and conditions and both are ready to go ahead with the deal then it is time to remove the conditions.

This is an area where most of private sellers get very frustrated because the buyers are in control and the sellers don't really know what is happening.

The key to minimizing frustrations is to stay in close communication with the buyers and check periodically with them on their progress on removing the conditions.

Now is the time to choose a lawyer and take the last step to selling your home and closing the transaction.

8. Moving Day or Possession Day

This is a very hectic day for both parties.  The utilities need to be transferred and if there is an alarm system have the Installers LockOut Code easily visible so the new buyers can see it.

The home should be vacant and cleaned for the buyers to move into and kindly leave any manuals and warranty cards for all the appliances.

Remember to forward the mail, have all keys to house ready to hand over and complete all transfer papers with your lawyer or notary.

Congratulations on a successful sales process!

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