Here’s the secret to selling your home by yourself. A hundred years ago, when brokers found properties for buyers, they had few guidelines. The greed of some brokers led to many famous stories of deceit and dismay where buyers lost money and their dreams. This led to laws and a new attitude in the real estate business. Codes of ethics were developed and agents organized, reclaiming the name Realtors in 1949.
The professional real estate agent can be a very important part of buying and selling properties. The industry does not stop promoting itself and the many good reasons to hire the services of a Realtor, whether you are a buyer or a seller. However, this does not mean that you cannot sell your property on your own and save yourself the expense of hiring an agent.

Here’s the secret to making the sale. In order to sell your property on your own, you must have two main components.

A. a cash buyer or qualified mortgage applicant
B. a place to close the deal

Solution to A. Buyers usually go to real estate agents to show them properties. You need to attract buyers through your newspaper ad, fsbo signs or online web pages. And then you have to make it easy for buyers to buy.

Solution a B. You will close your deal the same way the vast majority of real estate agents do: at the office of a title company (or less often a real estate attorney). This title company is the key to selling and closing on your home! If you can find the buyer, this company can close the deal.

It also helps to:

1. Be prepared to organize, clean, and show the property to prospects.

2. Find a reputable “title company” now to prepare all the paperwork and close the deal.

3. Prepare a sales flyer with information to “sell” the features and benefits of the property and help your buyer understand and find financing.

4. Qualify your buyers by suggesting that they visit a bank or a bank’s website to pre-qualify for a fixed loan amount. This will cut down on any unnecessary displays you have. Why show your home to someone who can’t afford to buy it?

Since you are the sales “agent,” it helps to learn how to pre-qualify a buyer.

Here are the pieces of the financial puzzle:

– Purchase price
– Annual interest
– Monthly
– Months that the loan will last
– 28% rules

For example, let’s say a buyer makes 3,000 gross per month. 28% is a general rule of thumb for what is allowed for a monthly mortgage payment. So 28% of 3000 = $840. This $840 is approximately the maximum mortgage payment the buyer is allowed. This figure includes the principal of the loan and interest, plus monthly payments for taxes and insurance. Using a mortgage calculator, this payment equates to a purchase price of about $150,000 with annual interest of about 4%.

You can ask if the buyer intends to finance the house. If so, you can tell them in advance what the approximate mortgage payment will be. You can look up current rates on bank sites, such as Bankrate.com.

TIP: The Windows 7 operating system includes a calculator that can help calculate the above estimate for a mortgage payment. Open the mortgage calculator by clicking Start, then type calculate in the search box. With the calculator open, click Viewscroll down to Work sheets and choose mortgage.