Selling Your Home As FSBO – What You Need to Know2 min read
There is no rule dictating that you can’t sell your own by yourself. In fact, there are other home owners like you who have done FSBO (for sale by owner). However, there are several things needing consideration for the process to be successful and beneficial on your part.
Home Value: You can’t just put an FSBO sign in front of your house without knowing how much your house is valued in the market. Of course, determining the figures will need you to avail the services of a professional appraiser. His expertise on the matter will be crucial to price your house enough. Not too low to be below than your buying price and not too high for it not to be purchased at all.
Marketing: As the sole person in charge of selling your home, you need to explore all advertising channels available. Because you’re on FSBO, you can’t put your house in MLS. It’s available to real estate agents only. You probably have to rely on the power of social media to make a buzz about your house being sold. Free ad posting services are also available like Craigslist. You can make flyers and brochures if you want and leave them in high-traffic spots like cafes, bars, restaurants, and parks. But you also need to cooperate with the owners and managers before you can distribute ads in their places, but it’s worth trying!
Contract: You should have the contract ready because a buyer can agree to purchase your house any time, and at times when you won’t expect it. Contracts are hard to prepare because there are legal matters associated to it. For hassle-free preparation, a real estate attorney helps well.
Security Deposit: You’re putting your house on FSBO because you need funds. When negotiating with a buyer, tell him that when he agrees to purchase the house and signs the contract, he should make a security deposit for his intention to buy the house. There should be clear agreement as to when the security deposit will be returned to the buyer and to when it will be forfeited in your favor.
Property Taxes: Avoid being caught in a dilemma after you have sold the house. Property taxes are associated costs that come after. Talk to a real estate accountant to determine the due taxes after successfully selling the house.
These are just four of the many things you need to know about FSBO. Inspections, buyer qualifications, and title should be discussed as a separate entry.