Sell Your Own House

101 Tips for selling your own home ... without resorting to property managers or real estate agents!

Property Selling Tip #95: This covers just about everything

When settlement details are finalized, a contract is drawn up.  The contract must include the following details:

• Amount/location of property
• Timing of the sale
• Transfer of funds
• Items included in, and excluded from, the sale
• Conveyance of title
• Apportionment of fees to be paid
• Insurance matters

And other such things that are typically part of a sale contract for private property.  If there are any clauses that you don’t understand, have your lawyer explain them to you.  Ask questions until you’re satisfied that everything is crystal clear.

Property Selling Tip #96: Can we change this a little bit?

Be prepared for requests from the buyer to modify parts of the contract.  Don’t verbally agree to anything until your lawyer confirms that the requested changes are in order. 

This part of the exercise may take longer than you expected.  Lawyers are shrewd creatures and will make every attempt to get the most for their clients.  They’re only doing their job, and they’re doing what they’re best at – arguing and haggling. 

It is up to your lawyer to defend your interests so hopefully, the lawyer you hired is as sharp and shrewd as your buyer’s lawyer. 

When contract discussions are going on, ask your lawyer’s opinion as to the advantages and disadvantages of agreeing or disagreeing with a particular clause.  Discuss potential consequences and how changing a clause could jeopardize your rights as a seller. 

And if you do agree to change a clause, ensure that all changes are put in writing either within the body of the contract or as an addendum.

Property Selling Tip #97: About that money…

Ask your lawyer about asking for a down payment from the buyer.  Some contracts require it to protect the seller:  This down payment will usually make the buyer live up to his commitment to buy the property within a reasonable amount of time. 

This down payment is called “earnest money” by some people.  It morally obliges the buyer to finalize a mortgage with his bank, to have the property inspected within a reasonable period and to be prepared to settle by a certain date. 

This down payment is not refunded back to the buyer should the sale not take place.  Down payments may range from $1,000 to as much as 10% of the purchase price and is kept in escrow by your settlement agent.

Property Selling Tip #98: Crossing the t’s and dotting the i’s…

As soon as all paperwork is final and parties are ready to sign the contract, the settlement (also called closing in some parts of Canada) takes place in either of the following places:  the settlement agent’s office, bank, insurance office, or anywhere where you and the buyer and your respective agents agree to meet and sign papers. 

This is the day you will probably get the biggest cash windfall in your life, and when someone else takes ownership of your house. 

You can start breathing normally again when that check lands on your hands, and you and your personal effects are physically out of your house!

Property Selling Tip #99: What, you’ve changed your mind?

Expect last minute surprises.  A deal can be called off because:

• The buyer could not get financing and has no money of his own,
• Something went wrong with the title search or an insurance detail was not dealt with,
• Someone suddenly is afraid and wants to back out, or
• Some personal emergencies – like a sudden death in the family or terminal illness – are forcing the parties not to go through with the deal.

Whatever happens, just make sure you’re not walking up the path towards financial ruin.

Property Selling Tip #100: You’re willing to pay more for my house?

When you put an ad for your house, and the price looks reasonable to the pool of buyers that are out there, you’ll get end buyers.  

End buyers are buyers who are looking to buy a house to live in. 

You’ll also get professional buyers – they include real estate brokers looking for homes to buy, builders specializing in remodeling and reselling homes or developers who want to buy the property because of the land. 

Don’t be afraid of the professional buyers, because they know the true value of your house.  They’ll push the bidding price higher because they know what they’re doing, and by pushing up the price, they weed off the end buyers who eventually drop out because the price is beyond their budget. 

If a professional buyer offers you a price for your house that will make you happy, then by all means, go with the professional buyer.

Property Selling Tip #101: Weeding out the curious.

If after you place your ad, you get 100 calls, don’t let that make you comfortable thinking that your house is going to be sold immediately. 

The truth is, of those 100 calls, less than half are serious buyers.  Or half of them want your home but don’t have the means to buy it. 
Of that bunch, there is only 1 truly qualified buyer, and that qualified buyer is the one who can deliver the cash when it’s time to deliver it.  The other 99 are just “probably” buyers.

Selling Your Own House - Conclusion

These tips have served as your starter kit. You’ll now need to make a decision about whether you still want to go solo.  Many have done so; and after they’ve sold their first house, they wouldn’t hesitate to do it again!

Knowledge is power, that’s how the classic adage goes.  And it’s more meaningful when you’re selling your house.  Soldiers don’t go to combat without orders, plans, maps and guns. 

Entrepreneurs don’t create businesses that will one day flourish without prior knowledge of the product or service they want to peddle. 

Surgeons don’t go into the operating room without knowledge of their patient – his disease and the drugs he’s taking. 

As a first time seller, these 101 tips are your ammunition, your basic knowledge. And it’s up to you to use them to your advantage.  You want this experience to be a win-win situation. 

After all, part of your worth as a human being is tied to your house. Your property is a reflection of the long years of hard work and savings you’ve put into it.

If you’re about to sell your house and the market is still hot – like it has been in the last 5-7 years – you’ll have that cash windfall you’ve always dreamed of.  Your house will make you rich.  So we hope you’ve taken good care of it.  When you sign those settlement papers, it’s your house’s turn to take care of you. 

Good luck!

The article "Sell Your Own House - 101 Tips For Selling Your Own Home" concludes on this page.

For more information, tips and strategies on selling your own home, please visit the "resources" section of this web site.

(click on the image above for more details)

The information contained on this website is for information purposes only. See our disclaimer for full details.