Selling Your Home as a FSBO: What You Need to Know
There is no rule that says you can’t sell your own. In fact, there are other homeowners just like you who have done FSBOs (for sale by owner). However, there are several things that need consideration for the process to be successful and beneficial on your part.
Home value: You can’t just put a FSBO sign in front of your house without knowing how much your house is worth on the market. Of course, to determine the figures you will need to use the services of a professional appraiser. Their expertise in the field will be crucial in pricing your home sufficiently. Not too low to be below its purchase price and not too high to not be purchased at all.
Marketing: As the sole person responsible for selling your home, you must explore all available advertising channels. Because it is on FSBO, you cannot list your home on MLS. It is available only for real estate agents. You’ll probably have to rely on the power of social media to make noise about your home sale. Free ad posting services are also available like Craigslist. You can make flyers and brochures if you like and leave them in high-traffic places like cafes, bars, restaurants, and parks. But you also need to cooperate with the owners and managers before you can distribute ads on their places, but it’s worth a try!
Contract: You should have the contract ready because a buyer can agree to buy your home at any time and at times when you don’t expect it. Contracts are difficult to prepare because there are legal issues associated with them. For a smooth preparation, a real estate attorney helps well.
Security deposit: You are putting your house on FSBO because you need funds. When negotiating with a buyer, tell him that when he agrees to buy the house and signs the contract, he must put down a security deposit for his intention to buy the house. There should be a clear agreement on when the security deposit will be returned to the buyer and when it will be forfeited to them.
Property taxes: Avoid getting caught in a dilemma after you’ve sold the house. Property taxes are associated costs that come later. Talk to a real estate accountant to determine the taxes due after you successfully sell the house.
These are just four of the many things you need to know about FSBOs. Inspections, buyer qualifications, and title should be discussed as a separate entry.