FSBO Advice for Sellers in Northern Virginia

Think it's time to cash out? As a recent (partially) successfull FSBO on two properties I have been asked about my experiences. I will summarize here the stuff I found important.

Get Informed

• First understand yourself and whether you feel like you are the kind of person who likes to do things themselves. Have you ever changed your own oil might be a good place to start? Selling you own house does not have to be that difficult, but you will have to get your hands a little dirty. The big difference between changing your oil and selling your house is the price! If you change your oil, you might save $20, if you sell your house, you might save $20K, that's a lot of free oil changes!
• Understand your property. This is where you have a major advantage over a seller's agent (A recurring theme you will find). Afterall, you have probably lived in the place, you know it better than anyone else. Only you fully understand the great qualities that made you buy it in the first place. You also know its problems which gives you a leg up making sure that they don't get in your way.
• Understand your comps. This can be broken down into two sections, your current comps and your previous comps.
• Understand your current comps, drive/walk around your neighborhood, see whose selling their house. Find out what they are selling it for?

Stuff to know:

• Get your HOA package early, even if you get it well before you get a contract you will be fine. If the buyer wants a more recent one, they can get an update.
  Info: this package is a state mandated package which sellers must provide to buyers. It is a racket for which the HOA may charge you up to $100 + shipping costs. Buyers have 3 days from the day that they receive it to cancel any contract for free!
• List your property. List it on craigslist for free and list it on the MLS. To list it on the MLS you can contact a local broker (search for one on the internet) who will agree to list it for you at a flat fee. We did it for $500.
• If you list it on the MLS, offer a buyer's agent's commission. Afterall, a buyer's agent has brought you a buyer. A seller's agent could just list it and wait for buyer's agents to bring someone. You can do that, why pay someone else to do that?
• Ask for a reasonable deposit. The current house prices are so exorbitantly high that people may not actually have the money to buy your house even thought they really want it. We had people offer us $1000 on a $450K contract. Anywhere from 1 to 3% is reasonable.
  Remember if they cancel the contract, what kind of plans are you going to have to change? Are you leaving the area, have you quit your job maybe? Have you put a deposit down on another purchase, or a rental deposit? You don't want to be left hanging for a mere $1K!
• Ask for a reasonable price. You have to do your research and know your comps and what you have that is easily identifiably different than them (good or bad).
  Look at things from a buyer's perspective (it is well worth shopping yourself before you start!) They will look at your house and look at other houses that have sold in the neighborhood. If you have $50K worth of improvements to your house, how does the buyer know that the other house did not have similar improvements? Thus the importance of easily identifiable differences.