Selling FSBO
When selling your home on your own, there are many items you will need, that are not explained to you when you go through a local FSBO company. Some companies will provide you with the forms, others will not. Most do not explain the importance or the legal issues associated with selling your property. When you use a Realtor to sell your home, he or she assumes an expert role, and guides you through the legal maze. Your realtor also as afiduciary duty to uphold. Let’s look at the required forms, to cover your legal responsibilities in the sale:
1. Property disclosure form. This form requires you to reveal all known defects to your property. This form is required to disclose all known problems with your property. If you do not disclose something prior to the sale, the buyer can come back and sue you for non-disclosure.
2. Sales contract. The agreement between you and the seller on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.
3. Sales contract waiver of conditions. Most buyers need to get financing to complete the purchase. There is normally a list of available conditions that you can agree to. Once all the conditions are met, the seller must provide you with a copy of the waiver of conditions. This makes the deal firm. These conditions are normally one or more of:
- Financing
- Inspection
- Condo Doc Review
4. Items you must provide your buyer – and have handy right away:
- Real Property Report
- Current Condo Docs
- Copy of Title – showing any restrictive covenants, what they involve and all or any caveats
Seller’s Checklist
- Real estate lawyer
- FSBO Company Agreement
- Advertising online and other venue’s
- Sales documents, contracts, waivers, etc.
- Lawn signs
- Copies of permits (if any were used to renovate or alter you home in anyway)
- Request a Mortgage Payout Statement from your Lender: Make sure your mortgage balance can be paid off fully as well as any penalties with the proceeds of the sale
If you are considering or are buying another home with the balance of the proceeds from the sale of your home, you may want to consider porting your existing mortgage to your new purchase, or paying out the penalty and getting a whole new mortgage. With today’s low rates, that may be the way you want to go.
Remember, buying a home with a Realtor does not cost you any money. Working with a licensed Realtor is more than just using a middle man, you are working with a person who has expertise that you do not.
Open Houses for FSBO’s
An open house can be a great sales tool, but it also exposes you to numerous unfamiliar people for the first time. Stay safe by practicing these guidelines.
- Check your cell phone’s strength and signal prior to the open house. Have emergency numbers programmed on speed dial. Carry an extra, fully charged cell phone battery.
- Determine several “escape” routes that you can use in case of an emergency. Make sure all deadbolt locks are unlocked to facilitate a faster escape.
- Turn on the lights and open the curtains. These are not only sound safety procedures, but also great marketing tactics.
- Make sure that if you were to escape by the back door, you could escape from the backyard. Frequently, high fences surround yards that contain swimming pools or hot tubs.
- When prospective buyers begin to arrive, jot down their car descriptions, license numbers and physical descriptions.
- When showing the house, always walk behind the prospect. Direct them; don’t lead them. Say, for example, “The kitchen is on your left,” and gesture for them to go ahead of you.
- Notify a friend or a relative that you will be calling in every hour on the hour. And if you don’t call, they are to notify the police immediately.
- Inform a neighbor that you will be showing the house and ask if he or she would keep an eye and ear open for anything out of the ordinary.
- For the safest possible open house, make sure you have someone else with you. The more the merrier. Safety is a reality that Realtors face every time they do an open house. The dangers of exposing yourself and your home to strangers is real. Protect yourself accordingly.
