You may feel like beginning the home sale by owner process by planting the “for sale” board outside your patio. The reality is that it is only the first step into the process. Negotiating and showing your home to the potential buyers, hosting open houses, getting the property ready for the market, and setting the appropriate price are all vital steps on the road of home sale by owner process. However, the most important step is the first step i.e. identifying your major goal and taking the solid decision to sell the property. You must answer the following six questions before moving ahead:

  1. One of goals is to make profit on the sale of the house?
  2. How much repair work or preparation does my house need before it gets ready for sale?
  3. Is there a time limit on selling this particular property?
  4. Can I afford to sell?
  5. What benefits can I enjoy in the new home over this property?
  6. Why do I want to sell?

Remember that the selling process is a blend of common sense, solid reasoning and research. And you can do it on your own without taking assistance of an agent by following the steps:

Gauge Your Finances:

Remember that selling a house can affect your net wealth and home budget. Therefore, review your general financial situation. Estimating the new rent or mortgage, including homeowners insurance, changes in property taxes, and down payment) after moving from this house is vital. The reason for doing this assessment is that your monthly budget will be greatly affected by your new living situation either saving or costing your money. Having a good idea of the financial impact before committing to sell this house and move to a new one is a critical strategy for successful financial deal.

After assessing the overall financial position, evaluate the net equity of your house. It includes determining the competitive market price and the current value of your house. You can either do it yourself or hire a professional appraiser for this purpose.

Your current mortgage bill and other relevant documents will give you the amount owed by you to the lenders. To determine the total equity of your house, you must subtract this amount from the total worth of your house.

For example, you will have equity of $130,000 if the total worth of your house is $365,000 and you owe $235,000 to the mortgage lender. It is done by subtracting the amount owed from the total worth of your property.

The next step is to figure out the net equity of your house. It is determined by subtracting the expenses that you will be paying during the process of selling the house from the total equity of your property. These expenses include;

  1. Title insurance and other charges
  2. Appraisal fee
  3. Listing fee in case of selling the house yourself
  4. Agent commission in case of selling the house through him
  5. Home repairs and improvements

Determining the net equity of your property is a critical step in deciding the selling price of the house. You must put this financial figure alongside your goals and hopes based on this particular property. It will provide you a good base to move forward with the sale process of your house.