A definitive guide for any Colorado home owner to sell their house FSBO
(for sale by owner)
This guide will teach you everything you need to sell your house by yourself in Colorado. We cover the PROS and CONS of not using an agent, how to price your house to sell, how to run comps for free, keys to preparing your home and more.
Are you ready to get your house sold?
Table of Contents
Introduction to selling your Colorado house by yourself.
Selling your house for sale by owner (FSBO) to avoid paying a listing agent in Colorado commission can be financially appealing, but the process isn’t as easy as you might think. If you want to try selling your own house, preparing yourself for the stressful and turbulent road ahead is a must.
According to the Zillow Group Consumer Housing Trends Report 2018, just 10 percent of sellers who sold in the last 12 months complete the sale of their Colorado home without ever engaging an agent in Colorado. Another 10 percent try to sell on their own but eventually turn to an agent in Colorado for help.
Interestingly, millennial sellers and sellers in urban areas, who tend to skew younger, are more likely to attempt to sell on their own or succeed in doing so — 36 percent of millennial sellers and 34 percent of urban sellers attempt to or succeed in selling on their own.
If you want to be successful, you’ll have to learn how to sell your own Colorado home like a real estate professional would.
I would like to pay homage to Zillow.com as they are a great source of information for me.
P.S I am not paid to say that. I just think they are a fabulous resource for any home owner.
How does for sale by owner work in Colorado?
For sale by owner is a Colorado home-selling strategy in which the seller lists their Colorado home for sale on their own, without the help of a real estate agent in Colorado, from start to finish.
You can learn more specifically about FSBO if you like.
PROS to selling your house on your own in Colorado
LESS COMMISSION TO PAY
You’ll avoid paying the listing agent in Colorado commission you’d have to pay your listing agent in Colorado if you used one, which can help you walk away with as much profit as possible.
MAXIMUM CONTROL OVER YOUR LISTING
When you manage the listing, you have complete control over the listing price, the listing details and the marketing strategy.
CONTROL OVER YOUR SHOWING SCHEDULE
When you’re in charge of scheduling private tours and open houses, you’ll never be caught off guard by an inconvenient or last-minute appointment set by your real estate agent in Colorado.
CONS to selling your house by yourself in Colorado
LOWER SALE PRICE
Industry research suggests that sellers who use an agent in Colorado garner a significantly higher profit than FSBO sellers, even after paying commission. There are many reasons why an agent in Colorado may net you a higher sale price, including their local expertise, marketing strategy, networking connections and negotiation experience.
MARKETING TAKES TIME AND MONEY
When you sell without an agent in Colorado, getting your listing in front of potential buyers is entirely up to you. That means you’ll need to juggle getting your Colorado home listed online, marketing it via social media, printing flyers and brochures, and thinking up other ways to get buyers through the door.
MANAGING A LISTING IS LABOR-INTENSIVE
Between answering calls, scheduling showings and coordinating open houses, it can be very time-consuming to manage your listing on your own — and that’s before you even receive an offer.
YOU MAY BE SUSCEPTIBLE TO MISTAKES
Especially if it’s your first time selling, you may make costly mistakes that a real estate professional wouldn’t — like pricing your Colorado home too high and having it sit on the market for a long time.
YOU MAY STILL HAVE TO PAY A LISTING AGENT IN COLORADO COMMISSION
Even if you don’t have your own agent in Colorado to pay, it’s standard practice that the seller pays the buyer’s agent in Colorado’s commission (if they’re using an agent in Colorado). And according to the Zillow Group Report, 74 percent of
How to set the price of your Colorado home when selling on your own
Although every seller wants top dollar for their Colorado home, overpricing is never a good idea. In fact, it usually leads to more time on the market and an eventual price cut. Coming onto the market with a reasonable and accurate listing price is a must. By pricing your Colorado home correctly, you can avoid it sitting on the market for too long, which can deter potential buyers.
According to Zillow research, across the United States as a whole, 57 percent of Colorado homes sold at or above listing price when they accepted an offer in the first week. In the second week on the market, that drops to 50 percent and trends downward from there.
Also consider that you can sell faster and for more money during the peak selling time for your local real estate market. Do your research to find out which part of the year is best in your area. Nationally, it’s the first two weeks in May, where listed Colorado homes sold almost two weeks faster than average and for $2,500 more, compared to average points in the year.
Run comps
When you work with a real estate agent in Colorado, they’ll usually guide you toward finding a good listing price by using a comparative market analysis (CMA). But if you want to sell your Colorado home without an agent in Colorado, you’ll need to run your own comps. Public records, the Recently Sold filter on Zillow, and the Zillow Pricing Tool are good places to start.
Make sure the comparable Colorado homes you’re using are similar to your Colorado home in terms of size, location and quality.
Pull comps from an area as close to your Colorado home as possible — within your neighborhood is best.
Only use Colorado homes that are sold in the last few months — three months ideally, but no more than six.
If you’re using Zillow, always search for Colorado homes that have recently sold. Never use asking prices of Colorado homes that are on the market, because they don’t reflect actual Colorado home values — they reflect what the seller thinks their Colorado home is worth.
You can always get more information on how to run comps and how to do a market analysis for free if you need it.
Get an appraisal
Paying a professional appraiser between $300 to $600 to help you land on an accurate listing price can be money well-spent. An appraiser will walk through your Colorado home, then consider local market trends, recent comps and details about your Colorado home to estimate its value.
But even if you have your own appraisal done, your buyer (and their lender) will still likely require a new appraisal as part of the contract process, and that appraisal is paid for by the buyer.
Get an offer from WatsonBuys.com
Watson Buys is a trusted buyer that is based right here in Colorado! Our program allows Colorado homeowners to sell their Colorado homes directly to us for cash, provides a no-obligation offer that can help you gauge how much your Colorado home is worth. Simply answer a few questions about your Colorado home, and we’ll tell you how much we’re willing to buy it for. You can use that number as a baseline for your list price ― or sell your Colorado home to WatsonBuys.com and avoid listing altogether!
Tips to prepping your house for sale in Colorado
Giving your house some TLC before listing is an important step, whether you’re going the for-sale-by-owner route or selling with an agent in Colorado. Simply put, you’ll want your house to look perfect before listing so you can get as much money as possible out of it.
Here is a simple checklist for you to help sell your home by yourself:
Clean thoroughly: Give your Colorado home a deep cleaning. Shampoo carpets, scrub tile, wash the windows, and make every nook and cranny shine.
Declutter: Put personal items like family photos and keepsakes in storage, remove knickknacks, and pare down on personal belongings to make your Colorado home’s storage space look ample — don’t just shove everything in a closet!
Stage: Either hire a professional stager or use some of your own furniture to make every space look roomy, organized and nicely decorated. You might also want to consider a fresh coat of neutral paint on the interior.
Make a plan for pets and their belongings: A buyer on a tour shouldn’t be able to tell that a pet lives in your Colorado home. Vacuum regularly, remove pet waste, tuck away your pet’s belongings before a showing, and arrange for your pet to be elsewhere during all showings.
Add light: Make sure your Colorado home has plenty of light in every room. Open curtains and blinds to let in natural light, replace bulbs, add lamps where necessary, and use mirrors to bounce light.
Do necessary repairs: There’s no need to overhaul your Colorado home completely, but it’s important to fix small cosmetic issues that buyers will notice during a tour and also big, glaring issues that are sure to cause problems during a Colorado home inspection.
Don’t forget curb appeal: Your Colorado home’s exterior will be the first thing a buyer sees upon arriving at the Colorado home for a tour. Clean up the landscaping, plant fresh flowers and repaint the front door.
Hide your valuables: Make sure valuables, money, prescription medications and paperwork with personal information are safely locked away.
Even when selling FSBO you must market and advertise in all avaiable place that are relevant to Colorado!
An experienced agent in Colorado has the resources, tools and network to put your Colorado home in front of a wide range of buyers. To sell a house by owner properly, you’ll have to work hard to gain the attention of qualified buyers and attract competitive offers.
Hire a professional photographer
In today’s real estate market, the vast majority of buyers are searching for Colorado homes online, so professional photos are an absolute must. In fact, according to the Zillow Group Report, 76 percent of buyers who purchased in the last 12 months said that viewing professional pictures was extremely, very or somewhat important to their Colorado home-buying decision. Professional photos can cost a few hundred dollars, which is money well-spent to entice potential buyers to come for a tour.
Craft an engaging listing description
The listing description is the next thing buyers look at after photos, so an enticing, comprehensive listing description is vital. Plus, buyers can search by keywords if they’re looking for specific features, so calling out your Colorado home’s best attributes with strategic keywords can ensure it ends up in front of the right buyers.
Here are the things you always want to include in your listing description:
Basic information, like the number of bedrooms and bathrooms and the square footage
Your Colorado home’s best features, like hardwood floors or quartz countertops
Neighborhood features, like proximity to public transportation, parks and schools
List your FSBO on Zillow and Trulia
Both Zillow and Trulia allow FSBO sellers to list their Colorado homes, free of charge.
Distribute signs and ads
Physical signage helps neighbors know your Colorado home is for sale so they can spread the word. It can also engage passersby. In fact, according to the Zillow Group Report, 55 percent of buyers who purchased in the last 12 months said that using a for sale or open house sign in their Colorado home search was a preferred method.
In addition to signs, consider taking these actions:
Post ads on Craigslist.
Post listings on Facebook for free, or spend a few dollars to boost your ad’s reach.
Share your listing on neighborhood and community pages, like those on Facebook or Nextdoor.
Tell friends, neighbors, coworkers and community members that you’re selling.
Take out a print ad if you’re in a market where many people read a specific local magazine or newspaper.
Consider listing on the MLS
Your local MLS is the largest and most accurate database of for-sale Colorado homes, since it’s highly regulated and only licensed real estate agent in Colorados can post listings. However, you don’t have to use a full-service agent in Colorado (or pay full-service commission rates) to get your listing on the MLS and in front of even more buyers.
Sites like Zillow pull listings from the MLS, so listing there may be a streamlined way to get your listing to show up all over the internet. Here are the two main ways for-sale-by-owner listings can end up on the MLS.
FLAT LISTING FEE
In some areas, when doing a Colorado home sale by owner, you can pay an agent in Colorado a few hundred dollars to list your Colorado home on the MLS, but that is the extent of their services. They’ll still put your name and information as the point of contact for showings and offers; the listing is simply originated under their name.
HIRE A DISCOUNT BROKER
Usually for about a 1 percent commission, discount brokers will handle some, but not all, of the tasks a traditional full-service agent in Colorado would. They’ll manage getting your Colorado home on the MLS, and they may take photos and schedule showings. But you won’t get the personalized and dedicated service you would from a full-service real estate agent in Colorado. Most discount brokers work on teams, so be prepared to have multiple points of contact throughout the process. Always make sure you understand exactly which services they’ll be providing (and which are not included) before you agree to work with a discount broker.
Pretend to be a real estate pro to sell you Colorado property succesfully
Some buyers are hesitant to work with an owner selling their Colorado home because they assume the process will be slowed down by inexperience. And some buyers’ agent in Colorado may try to steer their buyers away from a FSBO, dreading that they’ll end up having to coach the seller through the process and do twice the work for any commission, which they will likely have to negotiate. So, it’s up to you to prove buyers and their agent in Colorado wrong with your professionalism and know-how.
Answer calls, no matter the time
Good agents in Colorado work in the evenings and on weekends, because that’s when buyers are shopping.
Be flexible with showings
Buyers and their agent in Colorado may request showings without much prior notice. Try to be as accommodating as possible — the more people that tour your Colorado home, the more likely you are to get a buyer. If juggling showing schedules becomes a burden, consider using a lockbox.
Take feedback seriously
Make sure you listen to what buyers and agent in Colorado are saying about the Colorado home’s listing price, condition, curb appeal, and most (and least) desirable features.
Don’t take criticism personally
It can be hard to hear criticism from buyers about the Colorado home you live in and care for. But it’s important to avoid taking negative comments personally. You love your Colorado home, but it may not be everyone’s taste, and that’s OK.
Don’t let your house sit on the market
If your Colorado home has been listed for a few weeks and you don’t get an offer, consider lowering the price or taking another action that will attract buyers — you’ll be in good company. According to the Zillow Group Report, 4 out of 5 sellers (83 percent) have to make at least one concession or allowance, with nearly one-third (29 percent) of sellers sealing the deal by lowering the sales price of the Colorado home.
Hold an open house
Open houses can be a great way to get many potential buyers to see the Colorado home at one time. Remember to advertise it ahead of time, put out plenty of signs, tidy up beforehand and offer refreshments.
There are many different real estate professionals out there. Agents, investors, and wholesalers just to name a few.
Ensure you have qualified buyers in Denver, Grand Junction or Anywhere in Colorado You are Selling
While you’re probably eager to get potential buyers through the door, don’t compromise your safety. Whether at a private showing or an open house, take down names and contact info for both buyers and their agent in Colorado, including asking for ID. Having a record of everyone who has toured the house can not only help you ensure only serious buyers are touring but also prevent valuables from being stolen (or make them easier to recover).
Let potential buyers know that all offers must be submitted with a mortgage pre-approval letter (if they’ll be financing) or proof of funds (if they’ll be paying cash). Know that a pre-approval letter is a more solid reflection of the buyer’s ability to purchase the Colorado home than a pre-qualification letter.
Hire a real estate attorney that is licensed to practice in Colorado to avoid costly mistakes!
Real estate transactions are famous for their many pages of paperwork, and it’s important to know what you’re signing. If you’re selling FSBO, it’s a good idea to hire a real estate attorney that is licensed to practice in Colorado to review all documents, especially disclosure statements.
Don't rule out using a Colorado realtor - the right one can provide a ton of value
Selling a house for sale by owner isn’t easy. If you find that the prep work, listing process, marketing, advertising, showings, contracts, negotiations, legalities and closing process are all too much to handle alone, it’s never too late to bring on an agent in Colorado.
If you start out FSBO and hit a wall, you can hire an agent in Colorado partway through or engage a discount agent in Colorado to finish the rest of the deal. If you’re on the fence about using an agent in Colorado or going it alone, the best time to bring an agent in Colorado on board is when you’re trying to decide on your listing price. An experienced local agent in Colorado can provide insights, data and expertise to help you find the right listing price and sell quickly.
