Basic Steps for Selling Your Home:

1. Set your price right! It's definitely not good when you your home is on the market for a long period of time and that usually is the result of a bad pricing job.

So should I buy or use an appraisal? Appraisals may show what your home is valued at however, many times that price is too high for current market conditions. Also, some lenders will only allow appraisals from an approved lender list so you might not be able to sign it over to a future buyer. Many people who just use appraisal prices end up having their home sit on the market.

The best source for setting value is going to be through a Realtor and you can for free. A Realtor can give you what homes have been selling in the area comparable to yours and can show you what homes currently on the market as well.

2. Prepare Your Home. This is where many sellers make costly mistakes, if your home isn't going to "show well," the buyers wont buy your home unless it is a "killer deal." Be sure to make sure your home shows well!

3. Market Your Home. Now this can be a tough one. There is a chance that someone will drive by your home or even see it in a newspaper and therefore you may just maximize your profits and minimize your costs in selling your home. That's a small chance though, and here are some statistics on real estate transactions: 75% of buyers buy through a real estate agent. 14% buy through a builder. Approximately 5% buy from their relative. And approximately 4% buy from a "for sale by owner". You can see where the odds lie. So if your not in a hurry to sell, let's take a look at your marketing vehicles:

A. Internet - 75% of all homebuyers are looking on the internet for their home. This can be extremely expensive so find a website that has a web presence already.

B. Magazines - Go to your local Grocery store and see what magazines are in the rack. Compare prices and distribution and advertise in the one of your choice.

C. Newspaper - Now this has proven to be not very effective at all. However there is a chance you will sell via this method.

D. Neighbors! Sometimes your neighbors will either buy your home or know a buyer who will (this is the main way for sale by owners sell their home). So you have a couple of options. First, you must have a sign in your yard, (just go to local Home Depot or other store and buy a sign) Second, you must create a flyer, three you might want to distribute flyers to all your neighbors. Again, the flyers to all your neighbors could be costly and time consuming.

E. Post your sign! Be sure to post sign after you've completed all the above steps.

F. Post a phone number in all your marketing where people can get a hold of you no matter what time of day it is...be sure to have voicemail just in case.

5. When people call what to do -

A. Answer any questions they have, get their name and phone number, and ask them if they are pre-qualified with a lender. Many buyers calling you may not be qualified with a lender....this just wastes your time. If they leave a voicemail be sure to call back ASAP or they might buy something else... this can happen quick!

B. If they are pre-qualified go ahead and show it.

C. If they aren't pre-qualified just ask them this "before I show you the property I have someone who I want to call you and pre-qualify you first. Is it okay if I have someone call you and ask you a few questions before I show you the property?"

D. Keep their names and numbers for feedback and to call them back later just in case you reduce the price.

E. Obtain Feedback. This may be sensitive talking directly to the potential buyer trying to find out why they didn't like your home. So you might want to call them and see if you can fax them a feedback sheet or even mail one out. The point is, you need feedback as to what would make your home sell!

F. Ask them if they would like to make an offer and if they do you will you have the paperwork to write it up.

6. Now they want to make an offer. First of all, have them do it in writing. Second of all, make sure it accompanies a pre-approval letter from a lender! Don't do an offer unless they have a pre approval letter from their lender.

7. Drawing up the offer. When drawing up an offer earnest money is usually deposited. Earnest money usually is deposited into a trust account. (You can deposit this with the title company you are going to use.) Earnest money can be any amount of money. Banks and HUD homes usually ask for $1000.00.  However, depending on the price of the home this may range from $250 on up. Now this money will go towards the buyers down payment. However it may be given to the seller as damages in the event the buyer decides not to buy the home at the last minute.

Read through the offer carefully as you will set deadlines that each party needs to adhere to.

8. Contact the Title Company. Title companies conduct the closing of your homes sale. Now you can close where the buyer's lender wants to close or you can both close at a place of your choosing. Just look up "title companies" in the yellow pages. When you call the Title Company you will need to order a preliminary title report for the buyer. You will be paying for an insurance policy that covers your hide and the buyers hide in case any body in the future has a claim against your property unknown to you.

9. Follow through with Deadlines and with the buyer's lender.

Be sure to follow through with your deadlines and have the seller follow through with theirs. Also, keep in contact with the lender and buyer so that you know when closing will be. One reason why a lot of for sale by owner homes don't sell is because the buyer doesn't ever obtain an approval for a loan. This is why it's important to have someone constantly in contact and following up with the lender so that you don't wait around for nothing to happen.

10. Close the deal! The Title company will take care of all this. You will just want to take a close look at the final sheet called "HUDS".  This final closing statement shows where all the money in the sell of your home is allocated. Its nice to have someone who knows these documents and have look over them with you.

11. When to let them move in and you move out. The safest time to let them move in is when your transaction has funded and recorded. This isn't after you sign the documents. It could be a few days after that. This means that you have your money and you are paid off and the title company proceeded with recording the sale of your home at the county. It is possible that if you let them move in before funds transfer that they might get denied a loan - yes, denied a loan even after you all signed papers. Then you are stuck with buyers in your home and you still own it! So be very careful and clear as to when the buyers can move in. After the Title Company records the sale at the county its official, it's the buyer's home.

12. The Best Advice. Remember, your home is only worth what someone is willing to pay for it. By working with a qualified real estate professional, you can ensure that your property will receive the needed exposure to attract interested parties who are willing to make an offer.