What is the MLS?

The term MLS stands for “Multiple Listing Service” and is a database of properties currently on the market in the area. It’s only available to Realtors and not to the public. The MLS allows participating Realtors (which includes virtually all Realtors in the area) to list their homes for sale and agree to share in the sales commission of the properties.

The MLS feeds data to many sources including Realtor.com, most broker and agent websites, and many large franchise sites like remax.com. The exposure your FSBO home will get with our service will increase your chances of finding a buyer faster. And remember, the faster the better. Buyers are less likely to make a low offer on a newly listed home that’s price right for the current market!

This also means that if I list your property on the MLS with our Flat Fee service, and an agent finds a buyer for your house, that buyer’s broker is entitled to a commission at closing. With our MLS Flat Fee program, you set the selling commission up front, so the buyer’s agent always knows how much they are earning to sell your home.

It’s important to note that the MLS is not the same as Realtor.com. The MLS is what Realtors use to list homes and can only be accessed by licensed Realtors, while Realtor.com is the public website used by consumers to search for homes.

The big advantage to you, as the seller, is that every single broker and agent participating in the MLS has an incentive to sell your home. This effectively puts every agent in the area to work selling your home! The first place a buyers agent looks is always the MLS. There is simply no better way to gain instant and widespread exposure for your home than listing it on the MLS.

Preparing to Sell

Preparing to Sell Your Home

Making the Commitment to Sell by Owner. Preparing to sell FSBO takes more than just getting the home ready; YOU need to get ready. Recognize that if you are to be successful, you must understand the process and develop realistic expectations.

Be unemotional about the sale. Your home has meant a lot to you over the years but your buyer is not looking at the purchase through your eyes. Once you decide to sell your home, it simply becomes a business transaction and you must take the emotion out of it.

Here are a few of the “Must Do’s” that have been suggested by many successful FSBO’s over the years.

• Educate yourself on how long similar homes in your area are on the market before they sell. You must be realistic or you can become prematurely disillusioned when you think your house should sell in a matter of days, when in fact the market dictates that it will take two to three months. If you should sell sooner than expected, wonderful.
• Price the home at its true market value, not what you just think it’s worth. Pricing should be based on market conditions, not emotion.
• Prepare to spend some money on advertising. You must let the market know your home is for sale.
• Understand that you will spend time answering phone calls, setting appointments and showing the home. Your rewards are well worth it.
• Be prepared to handle real estate agents. Know ahead of time whether or not, and to what extent, you will cooperate with agents. You may decide that you will want to offer a “half” commission (typically 2.5 -3.5%) to an agent if they bring a buyer to see your property who ultimately ends up purchasing it.
• You must recognize that the successful sale of your home depends on you.
• You must coordinate the process and see it through. Most of the effort requires no more than making a few telephone calls.

Develop a Marketing Plan

GETTING THE HOME READY

A potential buyer should have a good impression of your home. Chipped exterior paint, loose gutters, overgrown shrubs and lawn, marred interior walls, cluttered closets and counters, and stained or dirty carpets are simply unacceptable to home buyers. These are all examples of problems that are easily resolved with very little expense. The objective should be to get your home in good condition with minimal expense. Make the decision of what must be replaced or repaired and get it done. Painting some, or the entire interior, is usually necessary and should always be done. Fresh paint is clean and clean is mandatory. Clutter must be eliminated because clutter, whether it’s in the closet, on the counters or on the walls, closes-in space and will make any space look smaller. In some situations, it can be advisable to even remove some furniture. If you’re selling your home because you need more space, then chances are you have more furniture than the home can really accommodate and probably, more clutter. The feeling someone should have when they enter your home is that it’s well maintained, spacious and clean.

Getting your home ready to market does not mean renovating. In fact, it’s probably the worst thing you can do because you most likely will not recoup the expense of renovation. The most recent national figures provided below indicate the cost vs. resale value for various home remodeling projects.

If you decide that remodeling a certain area of the home is absolutely necessary to achieve a sale, then make sure that the job conforms to the home and the neighborhood… in other words, don’t over-remodel. Homes that overachieve in their neighborhoods often underperform on the resale market.

MARKETING THE HOME

You’ve got a house to sell and it’s time to let the world know it. First determine your budget. Recognize that you may well spend $500 to $1,000 advertising your home. Next, target your market. Answer the question: “Where do people find homes for sale in my price range”? Don’t waste time, effort and money advertising in a local shopping paper when you’re trying to sell a $400,000 home… it’s not where your buyer is looking.

SIGNS
First and foremost, have a professional, easy-to-read yard sign. The sign should clearly say that the home is for sale by owner and should have the owners phone number in large bold print. Do not go to your local hardware or discount store for signs. Presenting your home in an attractive professional way is essential and the typical red and black “house for sale” sign found in stores is not the answer. The sign should also say that the home is shown “by appointment only”. There are many reasons for this. You should always be prepared for a showing and setting appointments is the only way to be properly prepared.

Some buyers find a home simply by riding around in the neighborhood where they would like to live. Many homes are sold as a result of signage alone and its value should not be underestimated.

ADVERTISING

FOR SALE BY OWNER PUBLICATIONS
Many cities around the country have for sale by owner magazines and publications where individuals buy space in the publication to advertise a property. Information about these publications can be found on this web site and you should definitely consider using their services. This is very targeted marketing. The publications are broadly distributed in high-traffic locations such as local grocery, department and discount stores, as well as banks, restaurants, etc. Ads in the publication usually have pictures and allow ample space for a description of the property. The cost for advertising in these publications is usually substantially less than advertising in the local newspaper for the same period of time. Many of these companies offer other services from professional signs, fact sheets, blank sales contracts, Internet listings, appraisal, and even closing services. Using the services of such a business will substantially minimize the amount of time you would spend seeking these services on your own.

NEWSPAPER
You must consider this a primary source for advertising. Be careful that you get your moneys worth. If the newspaper offers photographs in the ad, do it. Do not advertise on a holiday weekend, rates are cheaper but there’s a reason. Provide the basic information especially price. Many sellers think they will generate more interest if you don’t put a price in your ad… all you generate is more phone calls from people who probably aren’t interested once they learn the price. Target your market by including all pertinent information about your home. You do not want people calling you who either can’t afford your home or who want something you don’t have.

INFORMATION SHEETS/PHOTO FLYERS
These are a must. They should be in a tube or box attached to your yard sign for prospective buyers driving in the area, as well as having them available inside the home. Providing these can substantially eliminate unnecessary phone calls. Again, if you don’t have what a buyer wants, you really don’t want to even hear from them. Information sheets are inexpensive but vital. They should provide a photograph and a complete description of the home.

OPEN HOUSES
This type of marketing can be very successful for a builder with a new subdivision but with existing, owner-occupied homes, it’s questionable. First of all, if a prospect has driven by the home, seen it in a FSBO publication or the local newspaper, chances are they would prefer a private tour. They already know the price and the amenities of the home. Generally they want to ask questions and get very detailed responses. Also private showings allow you to ask questions of your prospect that you probably would not ask during an Open House. Last but not least, you can lose control in an Open House. What if thirty people show up and start heading in different directions? You must control showings and you want feed back. It just doesn’t happen with an Open House.

It’s interesting that different parts of the country view Open Houses differently. In some major Midwest cities, for example, Open Houses are expected if you’re going to sell but in similar size cities in the South, having an Open House is the exception rather than the rule. Therefore, you may need to adjust your marketing strategy to local custom. If having an Open House is expected in your market, then by all means, do it.

INTERNET
Advertising your home on the Internet in today’s world is not something you need to think about, you just do it. You do need to make the decision where on the Internet you should advertise. Creating a home page and putting your home “out there” should not be an option. Your ad, and your home page, will simply get lost. Advertise on a site that has hundreds of other homes for sale. The best approach is to go to the various search engines, i.e. Yahoo, Netscape, Internet Explorer, Snap.com, etc. and search “for sale by owner homes”, “FSBO”, “homes for sale by owner”, etc. Find the sites that have the most merit. Visit the sites and maneuver around in them. If they’re difficult sites to find and they’re difficult to navigate once you’re on the site, then you don’t want your home to be there. Prospective buyers will have the same feeling and will simply “click off” the site and go somewhere else.

HomesByOwner is convinced that this is the site where your home should be advertised. It’s easy to navigate and displays the home exceptionally well. Internet ads should be the same as your other ads, complete with photograph and a full description.