How to Sell Your Home on Your Own in Virginia
By Alex Mikoulianitch on June 26, 2024
An all-important question appears when it’s time to sell your home in Virginia: How do I make the most out of my sale?
Seller closing costs in Virginia can cut into your profits, especially if you choose the traditional route of selling your home via a real estate broker. Although this option frees you from most of the responsibilities and work of selling a home, it can carry a hefty commission to be paid to your listing agent and possibly to a buyer’s agent. Offering a competitive buyer's agent commission is crucial, as it can impact the pool of potential buyers and your overall proceeds.
How do you avoid it? By selling your home on your own.
Selling your home for sale by owner (FSBO) is a well-known strategy that bypasses one of the most expensive closing costs for sellers - real estate agents. But taking on the weight of marketing your property, considering offers, and handling all the paperwork can be a lot to handle if you aren’t well-prepared.
Below, the team from Prevu Real Estate will guide you through everything you need to know about selling your home on your own in Virginia. We’ll explain what this entails, how you can prepare for the process, and important things to consider before you choose this route.
How to sell your home on your own in Virginia
- Understanding how to price your home
- Getting organized
- Decluttering and staging
- Marketing your home
- Organizing property tours and open houses
- Preparing to receive offers
- Accepting an offer
- Handling negotiations
- Alternatives to selling on your own
Understanding how to price your home at fair market value
Setting the right price can quickly attract potential buyers, while an over- or underpriced home can linger on the market or leave money on the table. Understanding how to price your home accurately requires research, analysis, and some strategy. It's essential to consider the fair market value, which reflects the value of your home in relation to surrounding home values, location, age, condition, and other economic factors.
Begin by researching recent sales in your neighborhood. Look for comparable properties in size, condition, and location to your home. Pay attention to the final sale prices of these homes, as they provide a realistic benchmark for what buyers are willing to pay in your area.
Setting a fair market value is crucial to attract buyers and ensure your home is priced reasonably.
Consider the current market conditions. In a seller’s market, where demand exceeds supply, you might be able to price your home slightly higher, while in a buyer’s market, you may need to price your home more competitively to attract interest.
Evaluate your property’s unique features and upgrades. Does your home have a newly renovated kitchen, a spacious backyard, or energy-efficient windows? These factors can add value and justify a higher asking price. Conversely, if your home needs significant repairs or updates, you may need to adjust the price accordingly to attract buyers who will account for these additional costs.
While it involves an upfront cost, getting an appraisal provides an objective, third-party assessment of your home’s value. This can be particularly useful if you’re unsure about the accuracy of your own research or if your home has unique characteristics that make it difficult to compare to others. The appraisal will also help in determining the right purchase price, ensuring that the home is neither overpriced nor underpriced.
Getting organized
Begin by gathering all necessary documents related to your home. This includes the deed, past property tax bills, mortgage information, homeowners association (HOA) documents (if applicable), and any home improvements or repairs records. These documents will be essential for a smooth selling process down the line.
Next, prepare a comprehensive plan of action. Start by deciding on your timeline. When do you want to list your home, and how quickly do you hope to sell? Establishing a timeline will help you stay focused and on track. Break down the process into manageable steps, such as setting the asking price, staging your home, marketing, and scheduling open houses or private showings.
Consider having your home professionally inspected before listing it. An inspection can identify any issues that might deter buyers or affect your asking price. Addressing these problems upfront allows you to make necessary repairs and present your home in the best possible condition. This proactive step can prevent last-minute surprises that delay or derail a sale.
Decluttering and staging
It’s important to make your property as neutral as possible before showing it to potential buyers.
This will allow them to more easily imagine themselves living in the home and how they would decorate it or potentially renovate it. The more stuff you have lying around, the harder it is for buyers to envision themselves making it their own.
Start by decluttering every room in your home. Remove any unnecessary items, personal belongings, and excess furniture that can make spaces feel cramped or cluttered. Focus on creating a clean, open environment that allows potential buyers to envision themselves living in the space.
Once the decluttering is all set, it’s time to stage your home.
Staging involves arranging furniture and decor to highlight a home's best features and make it more appealing to buyers.
Arrange furniture to maximize space and create a coherent flow. For example, arrange seating areas in the living room to highlight a focal point like a fireplace or large window. Ensure that there is enough space for easy movement and that each room serves a clear purpose. In smaller rooms, consider using mirrors to create the illusion of more space.
Marketing your home
Begin with high-quality photography, as the first impression buyers often have of your home is through online photos.
Hiring a professional photographer specializing in real estate can make a significant difference. High-resolution images with good lighting can highlight your home’s best features and make it stand out in listings.
Up next is creating a detailed listing description. Highlight key features such as the number of bedrooms and bathrooms, square footage, recent upgrades, and unique selling points like a spacious backyard, modern kitchen, or proximity to local amenities.
Once those items are complete, explore major online real estate portals to post your listing for-sale-by-owner and generate visibility. Each comes with its own rules and features (i.e., a limited number of photos, verification you are the owner), so you’ll have to explore as many as possible to find which will work best for you.
Only real estate agents have access to certain marketing tools and the MLS, which can be crucial for visibility.
Though it may feel like extra work, don’t hesitate to utilize social media to amplify your reach as well.
Share your listing on your personal profiles and ask friends and family to share too. Consider creating a virtual tour or video walkthrough of your home to give potential buyers a chance to see the property more dynamically than photos.
Networking within your community can also be beneficial. Spread the word about your home sale through word-of-mouth. Tell neighbors, friends, family, and colleagues that your home is on the market. They may know someone looking to buy or can help spread the word within their networks.
Organizing property tours and open houses
If you want to sell your home independently, you’ll have to get familiar with property tours and open houses.
The biggest challenge is having a flexible schedule. Consider your availability and try to set aside specific days or blocks of time to show your home.
Weekend mornings or afternoons are typically the most convenient for potential buyers and can attract more visitors. Try to group property tours together whenever possible. If multiple buyers want to view your home, schedule their visits back-to-back. This approach minimizes disruptions to your schedule and makes the process more convenient.
Additionally, virtual tours can be valuable for accommodating interested buyers who cannot attend in person.
This allows buyers to get a detailed view of your property at their convenience and can generate interest from those who may later want to schedule an in-person visit. However, keep in mind that you're putting out a detailed view of your home out in the open without the support of a dedicated real estate team. Review the video multiple times to ensure you aren’t posting anything that could generate a security risk.
Preparing to receive offers
One of the more exciting parts is starting to review offers, but it’s essential to differentiate serious buyers from curious window shoppers and stay organized throughout the process.
Start by creating a dedicated email address and phone number for selling your home. This will help keep all communications related to the sale in one place, making it easier to manage inquiries, schedule showings, and follow up on offers. It will also ensure that your personal and professional communications remain separate, reducing the risk of missing important messages.
As interest in your property grows, be prepared to handle various calls and emails, not only from potential buyers but also from listing agents marketing their services. While some agents may genuinely have buyers interested in your property, others may simply be seeking your business.
Identifying serious buyers can be challenging, but there are tell-tale signs you can keep an eye out for.
Serious buyers are typically pre-approved for a mortgage and ready to decide. When you receive an inquiry, don’t hesitate to ask for a pre-approval letter or proof of funds if they are paying cash. This step helps vet that the buyers who visit your home and make offers are financially capable of completing the purchase.
It’s also helpful to prepare a system for tracking offers. Create a spreadsheet or use a dedicated tool to keep track of each offer’s details, including the buyer’s name, offered price, contingencies, and any deadlines.
Handling negotiations
Negotiations may be a daunting prospect if you don’t have any experience with them. But it’s all about doing the right research and having a plan of action.
Having an experienced real estate agent to handle negotiations can ensure a smooth process and provide expert assistance.
First, approach negotiations with a clear understanding of your priorities. Determine what aspects of the offer are most important to you, such as the sale price, closing date, or contingencies. Knowing your non-negotiables and where you have flexibility will provide a strong foundation for discussions with potential buyers.
When you receive an offer, review it thoroughly. Consider not only the offered price but also the terms and conditions. Some buyers may offer a higher price but include numerous contingencies, while others may offer a lower price with fewer conditions. Be courteous and acknowledge receipt of the offer, but don’t feel pressured to give away any specific reaction or valuable information that could give the buyer’s party the upper hand in negotiations.
Be prepared for multiple rounds of negotiations. It’s common for buyers to respond to your counteroffer, and the process may involve several back-and-forth exchanges before reaching an agreement. Stay patient and focused on your priorities throughout this phase.
In addition to price, pay close attention to contingencies and other terms. Common contingencies include home inspections, financing, and selling the buyer’s current home. While contingencies can protect the buyer’s interests, they can also introduce uncertainties. Evaluate each contingency carefully and consider its potential impact on the sale. You may negotiate to limit or remove certain contingencies to ensure a smoother process.
Accepting an offer
Once you accept an offer, let the buyer know you’ve agreed to the terms.
The next step is to contact a title company to open an escrow account. The title company acts as a neutral third party that holds funds and documents until all conditions of the sale are met and ensures all title-related matters are in order.
It’s also highly recommended to work with a title company that has access to a real estate attorney to potentially help review the purchase agreement, especially if you’re working without the aid of an expert agent. Real estate attorney fees are part of the typical closing costs for sellers in Virginia, and investing in the services of an experienced attorney can minimize legal and financial risk.
The attorney can help meet all legal requirements, assist with any legal issues that may arise during the closing process, and ensure that the transfer of ownership is legally sound.
Once the offer is accepted and escrow is opened, the buyer typically deposits earnest money into the escrow account. The earnest money will be applied to the buyer’s down payment or closing costs at closing.
Remember that the buyer will likely conduct due diligence during escrow, including a home inspection, appraisal, and securing financing. Be prepared to cooperate with the buyer’s requests for access to the property for inspections and appraisals, if applicable. Also, address any issues that arise from the inspection report by negotiating repairs or adjustments to the sale price.
Once the inspection is complete and both sides are satisfied, you can prepare for closing by gathering all necessary documents and ensuring that any agreed-upon repairs are completed. Consulting a Virginia real estate attorney at this stage can ensure all legal aspects are covered.
The title company will then help you coordinate the final steps to transferring the necessary funds, after which you can proceed with signing closing documents. At closing, the title company will disburse the funds to you, and the title will be transferred to the buyer, completing the sale.
Alternatives to selling on your own
It’s not uncommon for home sellers to get overwhelmed when attempting to sell their house on their own. Using an experienced real estate agent can make the process smoother by handling complicated transactions and keeping emotions out of the sale.
The challenges that accompany the process can be tedious and complex, so don’t feel like you’ve failed if you decide to backtrack and reconsider your approach to selling your home sale. Licensed real estate agents can provide invaluable assistance, such as posting on the local MLS and offering pricing guidance.
There are still various alternatives to traditional brokers that can help you save money, even if it means not avoiding a real estate commission altogether.
Discount brokerages, flat-fee brokerages, and flat-fee MLS websites all offer a chance to receive professional support for your home-selling journey without making you commit to a traditional real estate brokerage. These alternatives can offer varying degrees of assistance, so make sure to know what services are offered before you proceed.
Remember that you can negotiate with local brokers to lower their commission rate to win your listing. Negotiating the commission is always possible, which is one of the best ways to get expert advice for a fair fee. However, selling FSBO has potential drawbacks, such as the risk of financial loss and the need for professional assistance like legal oversight.
