NOTE: Don’t miss my companion article on difficulties DIY sellers face. Know what you’re getting into before you start!
I developed these tips based on extensive surveys of successful DIY sellers. I keep it generally applicable whenever possible, but details vary by locale and change over time. Confirm everything below with local advice from people you trust, whether it be escrow officers, lawyers, agents, or your house-flipping uncle. Get the latest edition of this book by Nolo Press, which serves as a great reference for the mechanics of the sale process.
1. Don’t miss your window of opportunity by ignoring market prices.
Buyers watch your asking price history closely for clues. In active markets, your listing gets the most attention on its first four days. Buyers are unlikely to hassle with new listings they consider overpriced, and suspect problems if homes remain unsold for longer than average. If you drop your price later, you might attract “vultures” who respond with an even lower offer.
By opening at market price, you engage potential buyers all at once. This sets buyers up to compete for your property instead.
Most sellers overvalue their own properties. Since sellers without traditional agents have a reputation for overpricing, prepare to defend your price with the steps below.
- Make a list of “comparable” recently-sold homes — Use an online pricing tool, or make your own spreadsheet. Start with homes sold in the past three months, within six blocks, with similar square footage, and with the same number & types of rooms. Relax these criteria as needed to include at least four “comps.”
- Adjust for remodeling & views — If you have a large enough set of comps, restrict them further to those with similar remodeling and/or views.
- Study your competition — Beware of what’s for sale now in your area and how long they’ve been on the market.
- Study your online valuations — While your Zestimate & other online estimates may be misleading, they affect expectations.
Get Help — If you’re not entirely confident about your price, get an appraiser to back you up. Appraisers see more transactions than anyone else. Their business mostly comes from lenders, so they know what prices lenders are approving. Find appraisers certified by the ASC, AI, or ASA. An typical appraisal might cost $300–400.
2. Don’t leave personal items in view.
Put all your stuff away to appeal to the widest range of buyers. Cleaning & decluttering are vital. It usually also pays to landscape & paint.
Dress up your property so buyers can imagine their life in the home. Check out nearby listings or an open house for ideas on staging. In some neighborhoods, sellers may move out completely, just to move in rental furniture to make rooms look larger & more modern.
Should I hire a pro? — Most sellers stand to get thousands more by hiring a stager. A stager’s sense of what styles appeal to local buyers may prove valuable. However, you can replicate most of a professional’s work yourself by following a good checklist. Enlist a trusted friend with great design sense to help, as it may take a fresh eye to notice your own clutter.
Get Help — Find cleaners and storage services on Yelp & Angie’s List. When evaluating stagers, ask for addresses of recently sold homes they staged. Staging “consulting” might cost $300–500, while a full-service makeover with furniture rental may start at $3,000.
3. Don’t scare off buyers with sloppy photos.
Studies show good photos increase viewings to your listing from 61% to 139%, leading more buyers to your showings & more offers for your property. As the MLS is full of awful, awful photos, you will stand out with good photography.
Make sure your front curb shot looks great, even at thumbnail size. This encourages buyers to click on your listing. Ace your kitchen & bathroom shots to get buyers calling.
What makes photos great? — Great real estate photos make your rooms look bigger, brighter, & more airy. They highlight the most marketable features of your property, & minimize deficiencies. They play off soft room lighting.
If you decide to shoot your own photos or enlist a friend, learn the basics on forums like PFRE. Get your staging done beforehand, as if your buyer were coming to the photo shoot.
Get Help — There is really no match for a wide angle lens & an external flash to make rooms look big and bright, but one home sale may not justify buying & training yourself with such tools. If you hire a photographer, ask about their experience in real estate. Read reviews by agents on Yelp, see affiliations on PFRE, REPAI, or find those who’ve worked for Airbnb, Obeo, or Circlepix. A photographer might charge $150–300 for a home shoot.
4. Don’t shut out mainstream buyers by not listing on MLS.
Studies show that houses listed on the MLS sell for 17% more. This is because 85% of buyers still won’t buy a home without using an agent. Most buyer agents show only MLS-listed homes because their commissions are clearly stated there.
Buyers are most likely to report buying a home they saw on Realtor.com, which mirrors listings on the MLS. Even as “open” sites like Zillow and Trulia now lead in web traffic, MLS mirror sites are considered more credible. MLS listings tend to be more up-to-date because only licensed agents can become members and list there. The MLS can enforce rules to make sure their members take down old listings.
How should I pick an MLS listing service? — Make sure the service:
- actually includes MLS listing. Many listing sites lure sellers with a cheap non-MLS option, hoping to upgrade them later.
- subscribes to premium placement on the major search sites. This ensures that your listing place as high as possible in search results, increasing its exposure to buyers online.
- is active & responsive to your needs. Make sure you’ll have an opportunity to ask questions & review your draft MLS listing, so you can make sure it looks exactly as you wish it.
5. Don’t kill your credibility by not disclosing problems.
Your buyer can sue you if they claim defects with your property after they move in. So, disclose every issue that comes to mind. That builds trust with buyers and their agents, encourages them to make offers, & minimizes buyer inspection surprises which jeopardize offers.
What forms do I need to fill out? — Remember the stack of disclosures when you bought your property? State law actually mandates only a few forms for most sellers to complete. The Transfer Disclosure Statement (TDS) is the key one. Realtor associations have developed a series of questionnaires to prompt sellers to disclose if any of dozens of conditions exist. You will satisfy most of those disclosures by presenting a third-party property report to buyers. A local title company might even give you one for free in return for your business.
Another reason to engage a title company early is so they can alert you to additional local disclosure rules & preconditions of sale not discussed here. Ask for a free preliminary report, since it may identify conditions need to be disclosed, such as whether your property is subject to private transfer fees.
If selling a condo, ask your HOA for these documents.
Get Help — Many of these disclosure questions are quite technical. For example, the TDS asks you to certify that smoke detectors & water heater bracing are to code. If you’re not sure, consider hiring an inspector to help get those forms right. That’s the best insurance you can get! Get a pest inspection also, since some loans require sellers to supply one. Read inspector reviews on Yelp, see affiliations on BBB, CREIA, and ASHI. General inspectors are not licensed, but pest inspectors are.
6. Don’t hover over your visitors.
Give your visitors space to imagine themselves living at your property. Encourage them to explore, and don’t follow them from room to room! Open houses are a great way to generate competitive excitement for your property. While most visitors might be curious onlookers, take everyone seriously as anyone might know someone looking for a place like yours. If you’re nervous, or emotional about the prospect of leaving, leave the home & ask a trusted friend or relative to host instead.
How do I run an open house? — Visit a local open house. Note the customary open house times in your neighborhood. Capture buyers with signs at strategic intersections. Have a stack of color printouts of your listing handy, and a binder with your disclosures for all to see. Maintain a sign-up list, and follow up with visitors to answer any questions. By treating everyone you meet seriously, you encourage offers with your professionalism.
Get Help — Read the Realtor Guide for ideas on making your open house a success. It takes a lot of prep work to run a successful open house, so recruit your friends to help or hire out as much work as you can.
7. Don’t take things personally. Stick with the facts during negotiations!
Many buyers will negotiate by pointing out problems with your property, or worse, your financial troubles or anxiousness to move. Don’t get caught up in the game. Justify your price with comparables, keep your dialogue open with as many buyers as possible, and split the difference when needed to get the deal done. Do whatever you can to set buyers up to compete. For example, if you’re anticipating multiple offers, it may make sense to keep your asking price relatively low but announce an offer submission deadline after your last open house.
How do I ensure a smooth closing? — Ask buyers for a loan pre-approval letter from a bank or proof of funds in conjunction with any offer. Offers should also be accompanied by a deposit check payable to a title or escrow company.
Buyers with agents will use an offer form by the state or local Realtor Association. You can find training on Youtube that explains such forms in detail. When reviewing offers, look for contingencies (particularly loan or inspection), and make sure you’re okay with the timeframes specified. You can accept an offer as-is, or respond with a counteroffer form to change the price or any other term. Once you accept an offer or your buyer accepts your counteroffer, that becomes your contract and is submitted as transaction instructions to the title or escrow company. At that point, have the buyer sign your disclosures or any inspection reports to certify they’ve read them.
Get Help — While only agents who belong the Realtor Association have access to Realtor forms, you can draft your own counteroffer form by modeling this. If you find a need for forms covering more specialized situations, take a look at vendors like First Tuesday, True Forms, or Nolo.
Disclaimer: I am not marketing any service here and don’t know about your specific situation. Seek out local and/or legal advice before starting!
