PROPERTY TYPES IN LONG BEACH ISLAND, NJ
For Sale By Owner on LBI
Tips For Selling Your Home By Owner on LBI
Selling a home for sale by owner (FSBO) on Long Beach Island can be challenging, but with a few simple steps, the process can be rewarding. One of the most important things to do is understand the LBI real estate market and the strengths and weaknesses of your property. Reflect on what attracted you to the home when you purchased it, as well as any concerns you had—these are likely the same factors other potential buyers will consider. Be sure to evaluate the age, condition, and location of your property to set a realistic price and highlight its best features.
Marketing is Key to Selling a Home in the LBI Real Estate Market
Take a “business” approach to selling your property on Long Beach Island. You will have to spend money to advertise the house, especially in this challenging market.
Use a range of advertising venues keeping a mix of Internet & traditional methods.
Avoid terms like “Hispanic Area” or “Christian Household” in your advertisements as they are viewed as discriminatory and are therefore illegal.
Attitude is Important
Try to be as objective as possible when considering pricing and marketing.
Be positive but firm when dealing with buyers. Remember, you are representing yourself with nobody between you and the buyer so a professional attitude is best.
Prepare Your Home
Remove personal items such as family photos.
Keep rooms open and spartan so others can better visualize themselves in the home.
Check Your Buyers & Use Professionals
Make sure your buyers are per-qualified for the house before you commit to them.
Hire a real estate attorney and other licensed professionals to represent you in the sale and handle the closing documents.
Understand How Your Property Fits the Local market
Ask me for a Comparative Market Analysis so you can have an idea of where your property fits in the LBI real estate market. A well priced house will attract more buyers and will typically net more than an overpriced listing that has been reduced.
Try to preview similar properties that are currently listed for sale. This will give you a good baseline when speaking with potential buyers.
Fix What Needs to be Fixed
Peeling paint, weeds in the yard, etc can discourage buyers from a property. It is best to address aesthetic & structural items that need attention before you list.
Have some friends walk through your property to give you an objective opinion of items that concern them. Then take the steps needed to fix them.
NJ law requires sellers to disclose problems they are aware of (for example, a leaking roof). To avoid potential legal issues down the road, be sure to comply. This is very important after Hurricane Sandy.
It can be helpful to have a home inspection done prior to listing the house so you are aware of any potential issues and can plan accordingly.
Staging Your Property
Staging has become an important part of the listing and sale process with an entire industry developing from it.
The basics of staging your property include: removal of all personal items (family photos, etc), removal of excess furniture so the rooms appear large and open, opening up windows and removing drapes to allow more light in the room, repainting rooms to neutral “shore” colors and using rooms for their intended purpose (example: Don’t call a bedroom an office-leave it as a bedroom.)
Have Your Team In Place
Don’t wait until the last minute to line up professionals to help you with the sale.
Speak with an attorney before you list the house so you can have a reference point in case a question arises or you are unsure of wording for an advertisement.
Speak with a mortgage professional so you can double check the qualification of any potential buyers. The last thing you want is a buyer committing to the sale and not being able to purchase the property.
Negotiating the Sale
While this is a Buyer’s Market, there are many opportunities for sellers. You as a seller can benefit from a large pool of qualified buyers. Therefore, if your house is priced and staged correctly, you should be in a strong position to negotiate.
Refer buyers (or their agents) to your CMA and/or similar properties listed for sale. If your house is priced correctly, you are in a position to make the buyer feel THEY have something to lose from not dealing with you on your terms.
If you are not comfortable with the offer or terms, explain this to the buyer and offer a compromise. Both parties want to accomplish the same goal and keeping this in mind often helps work through difficult situations.
Contracts
It is customary for a buyer (or their agent/attorney) to write the initial contract of sale. Once you have a contract, I suggest reviewing the contract with an attorney who handles real estate law and will close title for you.
Before committing to the contract and the sale, make sure the buyer is qualified to purchase the property.
Inspections
Most buyers will have a licensed inspector preform a full home inspection (even if the house is sold “as is”). In most cases, the buyers will request certain items to be addressed or a credit given prior to closing. Typically, the seller is responsible to correct structural and safety issues (for example: termite damage).
Inspection issues can be handled in two different ways: the seller can (A) fix the problems with the house or (B) offer a credit at closing. I suggest a credit be given as it eliminates the possibility of the fix running over budget and also eliminates the possibility that the buyer may not be satisfied with the work being done.
Closing
Closing is usually held at the office of the buyer’s attorney or handled by mail.
Your attorney will review the total costs with you, but be prepared to pay pro- rated taxes, utilities, etc., the attorney fee (usually around $1,500), NJ Transfer Tax (about 1% of the sale on a sliding scale), and a Non NJ Resident Tax if applicable.