FOR SALE BY OWNER (FSBO) TIPS (Continued)


When thinking about the worth of your property, avoid two price traps:

  1. Avoid injecting emotion into your list price determination. Your warm memories and sentiments will have little impact on a buyer who can purchase a nearly identical property for a lower price.
  2. Beware the siren song of a no contingency cash buyer. Pricing on the hope of finding such a buyer is not a recipe for successful selling. Though it is true in the end that a property is worth what a buyer will pay, most buyers will not rush to purchase even the most desirable properties without some value research.

 

2. Ask yourself - WHAT WILL IT COST ME TO SELL?

Generally, you will pay a portion of closing costs and you will have to pay off existing liens (mortgages, etc.). We can help with a calculation of costs. If you believe that your cost of selling exceeds the value of your property, you may be a candidate for a short sale.

  ♦ Short Sales

When approaching a list price from this direction, you may want to consider adding a buyer’s agent commission to your calculation. Buyer’s agents are typically paid a percentage of the total commission due a seller’s agent (a co-op fee). In other words, the seller pays the buyer’s agent. Local media outlets, signs and the internet are all good marketing tools, but the most effective tool may be real estate agents working with buyers. And although a buyer may be willing and able to pay his or her agent for services rendered, it is not common. Unified Title Company believes you will increase showings (and sale prospects) by offering a buyer’s agent commission.

 

UNDERSTAND THE PURCHASE & SALE CONTRACT

The Colorado Real Estate Commission has promulgated a standard real estate purchase and sale form used by real estate agents across Colorado. Though the contract form you use may not and need not incorporate all of the terms of the CREC contract, the standard form can be instructional because it addresses many of the common elements of real estate transactions. Familiarity with the CREC form will help you understand many of the contingencies involved in a purchase offer and as a result, you will be better prepared to review and evaluate the offers that you receive.

 

BRING YOUR SIGNED CONTRACT TO UNIFIED TITLE COMPANY

Consummating a sale transaction may be as simple as a deed for dollars exchange. Or not… There are many reasons to seek our assistance once you are under contract:

  • A title insurance owner’s policy will shield you from future liability that can arise under deed warranties.
  • Your buyer’s lender may insist that the transaction close with a title company (lenders usually want a loan policy to protect their security interest).
  • You may be unsure about preparation and processing of appropriate closing documents.
  • You may want a neutral third party to handle the receipt and disbursement of closing funds.

 

So… whether by necessity or by choice, Unified Title Company should be among your first “I AM UNDER CONTRACT!!” calls.

 

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