Seller Information

The internet is having a profound effect on real estate marketing. Seller Direct Marketing (aka FSBO) has emerged as a viable marketing alternative.  Sellers have the ability to instantly expose their property to buyers and brokers at a minimal expense in both time and money.

Real Estate Marketing Steps

Seller Direct Marketing should be viewed as a multi-step endeavor that requires a plan and implementation of that plan.

First and Foremost – Appropriate pricing of your property. The number one reason seller direct marketing fails is excessive pricing. The most reliable means to determine a reasonable price is by having a competent fee appraisal done. Appraisal fees vary due to scope of the appraisal process and property complexities. Generally, for non complex properties an appraisal fee will range from $300 to $500. Another method of determining a reasonable price is by doing your own research on recent sales / offerings of similar properties in your immediate market area. Search resources include MLS data bases and Assessor’s records. If Assessor’s value estimates are accurate in your market these may be beneficial in your pricing. Another approach is to ask local brokers to do a CMA (competitive market analysis). Brokers usually do these for free, but you will probably have to listen to their listing presentations.

Automated Valuation Models (online appraisals) – AVMs are computer generated valuation reports offered by several companies online. Most cover the larger urban centers in the country. At the current time we are not aware of any that cover Eastern Oregon. This may change in the future. AVMs are very fast and free, but accuracy varies considerably.

Prepare Your Property for Showings – Use common sense to prepare your property. Make sure your home is clean, uncluttered, and needed repairs are completed. You may want to ask a friend to play the role of a buyer and get their thoughts on how to improve the appearance and marketability of your home.

You may want to have inspections completed before you begin marketing. In Oregon buyers are given an inspection period as part of the sale transaction. Most buyers will request a home inspection. A buyer has the opportunity to terminate the transaction if results of the inspection are unsatisfactory. Other inspections may include well and septic system. If a seller has these done before marketing, potential repair issues can be addressed before a sale agreement is signed.

Market exposure of your property should include a yard sign / flyer box, internet ad, local printed advertising options (newspaper, classified ad publications, etc.). Cost of printed ads can be kept to a minimum by referencing your internet ad location where extensive information is presented (view online at RealEstateEasternOregon.com Ad No. 0000). For those wanting to work with brokers, flyers with commission offered can be e-mailed.

Set up showings to accommodate your schedule and buyer/brokers’ schedules. You may want to schedule all showings on a specific day. Make sure the buyers are qualified by requesting they provide you with a pre-qualification letter from a lender.

Once you find a buyer and agree to price and terms a written sale agreement and other required documents (seller disclosure, lead base paint disclosure) are prepared. A copy of the sale agreement and buyer’s earnest money is then taken to a local title / escrow company. If the buyer is financing the purchase they must deliver a copy of the sale agreement to their lender. If you do not feel comfortable with the paper work, Lilly Real Estate, Inc. offers Broker Assisted Transaction service (BAT). For a flat fee Lilly Real Estate, Inc. will complete all the necessary documents, set up escrow, and coordinate the transaction process to closing (normally all the services a broker provides at this point in a transaction). 

The buyer has the right to have inspections performed following the signing of the sale agreement. The buyer can also waive his inspection rights.

A Title company will issue a preliminary title report. A copy of the report is given to the buyer and to the lender. If there are defects in the title report these issues will need to be addressed and corrected. Usually, the lender or the title company will assist in this area.

If a lender is involved an appraisal will be ordered. If the appraisal confirms the price is at or above market value the appraisal is not an obstacle. If however, the appraiser’s market value opinion is under the sale price, the buyer may have the right to cancel the transaction and/or a revised price can be negotiated. Remember, an appraisal is just one appraiser’s opinion of market value. A 2nd appraisal may conclude a different opinion of value.

The final step in the transaction process is closing. Both parties sign closing documents at the title/escrow company. The buyer takes procession on the date agreed to in the sale contract.

Selling your own home is usually not a complicated process, but does require a plan, time, effort, and commitment. At RealEstateEasternOregon.com we are dedicated to providing you with the tools and resources needed to help you succeed and save $1000s in broker commissions.

Information listed above is for your convenience only. Real Estate Eastern Oregon does not offer any legal, financial, or tax advice.