There is no rule that says you can’t sell your own. In fact, there are other homeowners just like you who have done FSBO (For Sale By Owner). However, there are several things that need consideration in order 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 worth on the market. Of course, to determine the figures you will need to use the services of a professional appraiser. Their subject matter expertise will be crucial to price your home sufficiently. Not too low that it is below your purchase price and not too high that it is not bought at all.
Marketing: As the sole person responsible for selling your home, you should explore all available advertising channels. Because you are on FSBO, you cannot list your home on MLS. It is available only to real estate agents. You 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 want 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 to their places, but it’s worth a try!
Contract: You must have the contract ready because a buyer can agree to buy your house at any time and at times when you do not expect it. Contracts are difficult to prepare because there are legal issues associated with them. For smooth preparation, a real estate lawyer helps well.
Security deposit: You are putting your house on FSBO because you need funds. When negotiating with a 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 must be a clear agreement on when the security deposit will be returned to the buyer and when it will be forfeited.
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 owed after a successful home sale.
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.
