Selling Your Home as a FSBO – What You Need to Know
There’s no rule that says you can’t sell your own on your own. In fact, there are other homeowners like you who have done FSBO (for sale by owner). However, there are a few things to consider to make the process successful and beneficial on your end.
Home Value: You can’t just put a FSBO sign in front of your house without knowing how much your house is valued on the market. Of course, determining the numbers will require you to use the services of a professional appraiser. His expertise on the matter will be crucial to adequately value your house. Not too low to be below your 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. Since you are a FSBO, you cannot list your house on the MLS. It is only available to estate agents. You should probably rely on the power of social media to get the word out about selling your house. Free ad posting services like Craigslist are also available. You can make flyers and brochures if you like and leave them in high traffic places like coffee shops, 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 a contract ready because the buyer may agree to buy your house at any time and at times when you least expect it. Contracts are difficult to draft because there are legal issues involved. A real estate attorney helps with trouble-free preparation.
Deposit: You are listing your house for FSBO because you need funds. When negotiating with the buyer, tell them that when they agree to buy the house and sign the contract, they must put down a security deposit for their intent 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 you.
Property tax: Avoid getting caught in a dilemma after you’ve sold the house. Property taxes are associated costs that come after that. Talk to a real estate accountant to determine the taxes owed after a successful house sale.
These are just four of the many things you need to know about FSBOs. Inspections, buyer qualifications and title must be discussed as a separate listing.
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