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Free FSBO Tips (For Sale by Owner)

If you are considering selling your home yourself it is important that you follow these free fsbo tips for success:

How do I set the price?

The best way to set a price for your house is by examining comparable sales in your area. It is always a good idea to get a professional appraisal. Many homeowners allow emotions get in the way of their thinking. This causes them to believe they have the best property in their neighborhood and, therefore, they price their home way too high. What’s it worth?  Get a professional opinion.  A Realtor or homes Appraiser can supply you with recent sales in your neighborhood.

How do I let people know my house is for sale?Treat your sales like a birth, engagement, or wedding announcement. You have to get just excited about selling your house for sale by owner as you would about those other happy events. Everyone you know and everyone you come in contact with should know that your home is for sale by owner.  E-mails, personal website, postcards, newspaper ads, yard signs, street corner directional signs, etc…Do I really need a yard sign?

Absolutely!   Potential buyers often drive through neighborhoods they like.   If your house does not have a yard sign those buyers will not know that your property is for sale.   The only time you would answer no to this question is if you are living in the community that restricts for sale signs.

How do I get my house on the Internet?

I can create a home page for your property (see www.524Clayton.com for an example).   Use your domain name in all advertising to steer buyers to the website.

What is the MLS and why can't my home be it?

MLS stands for multiple listing service. In almost every market it is owned and operated by the board or association of real estate agents. It is the real estate industry's way of communicating which properties in the marketplace are listed by the MLS's members.   The only way to have your home listed on the MLS is to sign a listings agreement with a member Realtor.

How do I make sure buyers don't take advantage of me?

Regularly seeking advice from experts is your best defense against getting taken by unscrupulous buyers. Especially when filling out legal paperwork, it is important to be represented by a qualified real estate agent or attorney. Your buyer will likely be represented by some professional.

How do I verify buyer information?

Ask buyers to provide written mortgage approval or find a lender willing to qualify buyers for you.

How much should I get for an earnest money deposit?

There is no set rule of thumb but more is better.   Many feel the larger the earnest deposit the stronger the buyer.   Do not nix an offer because the earnest deposit seems light.   Some very strong and motivated buyers may not have a large cash reserve to draw an earnest deposit from.

Do I have to pay any of the buyers is closing costs?It is very likely.   Many homes are sold with seller paid closing costs.   Offering Buyer Paid Closing costs is an excellent way to entice buyers that may otherwise overlook your home.   When should my buyer be allowed to take possession?

The most cases, the buyers would like to be in the home as soon as possible. Possession is an issue you negotiate and put into a contract. Remember, after closing it is no longer your home.   Each day you remain in the home you are responsible for paying the buyers mortgage costs.   This is often referred to as rent.

Should I let the buyer have a home inspection?

Absolutely! I even suggest that you get a home inspection before you put your home on the market.   It will make you aware of potential problems before they show up unexpectedly and kill a deal later in the process. Hire a licensed home inspector who is insured and bonded.

Should I offer a home warranty?

Yes.  A home warranty is a great sales tool. It is an insurance policy that covers the major systems and appliances in the house. If a furnace or water heater breaks down two weeks after closing, who is responsible for replacing it? Obviously a both parties will feel that the other should put up the money. If there is a home warranty on the property, it doesn't matter who is responsible because the warranty will pay for repair or replacement.

Why should I preorder title insurance?

It is always better to take early steps to ensure that they will be no unpleasant surprises when you have a deal on the table. One of these areas is title insurance. Companies can make claims against your title without your knowledge. Things can be recorded improperly. Many things can go wrong. By ordering your title work as soon as you put your house on the market, you can find out whether or not you have clear title. And if you don't, you can discover what you have to do to clear your title.

What is a transfer tax?

In almost every market around the country there is either a state or county transfer tax. This tax is also sometimes called revenue stamps. The government collects this money, which helps pay for the Register of Deeds office where all real estate transactions are recorded.

Do I have to disclose every defect in the house?

You are required by law to disclose everything you know about the house. After the sale, if the buyer finds some defect which you didn't disclose, you could be forced to pay for the repair of that problem.

Can I buy another house before I sell this one?

If you do buy another property, make sure you can afford to make two mortgage payments, and possibly a bridge loan for an extended payment of time, while you wait for your home to sell.

What if my buyer backs out of the deal at the last-minute?

Meet immediately with your team of advisers and asked them what your options are. These may include you keeping the deposit, suing for performance, or other damages. The most important thing is to resolve the situation as quickly as possible so you can get your property back on the market and sold.

Should I be concerned about lead-based paint?

Yes. If your home was built before 1978, you are required by law to provide your buyer with the lead-based paint disclosure. Failure to disclose property could result in stiff fines and even jail time.

Should I tell my neighbors before I put up my for sale sign?

Before you put your home on the market, go door-to-door with house flyers so everyone in your neighborhood knows what you plan to do. Your neighbors can be one of your best sources for buyers. Give extra marketing materials to those who agree to pass them out to friends, family, and co-workers.

What if I want to keep some attached appliances or fixtures after the sale?

Anything that is bolted or wired directly to the house is considered part of the property. Therefore, if you want to keep it after the sale, you have to make that clear to buyers as they come through the house. If you want to keep something like a ceiling fan or attached dishwasher, the best bet is to remove it before you even show the home to anyone. That way there is no danger of anyone seeing and wanting the item you plan on keeping.