FSBO: Paperwork nightmare
As a long-time real estate professional, I certainly understand people’s desire to try to sell their home as an Unrepresented Seller, also known as a FSBO.
Having spoken with scores of them, I not only have a keen understanding of what motivates a FSBO, I also see clearly that there are things that they don’t consider when they embark on what appears to be an easy journey that generally is to try to save the cost of a commission.
So over the course of the past dozen years or so, I have put together a 25 page booklet that shares some of this information that FSBOs may not have considered. I not only give them tips on preparing their home to its best advantage, but I also point out some dangers and headaches that they may encounter along the way. I offer them the ability to call me to ask me questions that they might have as they go thru this process.
The following is a list of a few items of PAPERWORK that the FSBO will have to deal with in his/her journey as an Unrepresented Seller:
- Figure out a reasonable price
- Take pictures and design and print brochures
- Write ads
- Figure out where to publish ads
- List of completed repairs you’ve done on your home
- Verify HOA fees and all CC & Rs
- Order twelve months of utility bills
- Provide HOW? Which company?
- Follow up on showings
- Supply reasonable comparables
- Negotiate offer and options with Buyer
- Make sure Buyer is financially qualified
- Write binding Contract
- Write Seller’s Property Disclosure
- Write Lead-Based Paint Disclosure
- Prepare Counterproposal
- Find a Title Company
- Deliver Contract to Title Company
- Document and Deposit Earnest Money
- Order Title
- Get Title to Buyer
- Order mortgage payoff
- Negotiate Notice of Unsatisfactory conditions
- Get repair estimates
- Meet inspection resolution deadline
- Send receipts to Buyer/agent
- Develop closing cost estimates
- Order an appraisal
- Track appraisal
- Check appraisal for any conditions for closing
- Continue to check with lender on loan progress
- Resolve any Title disputes
- Schedule closing
- Make sure Closer has all necessary documents
- Review HUDs
- When do you have to be out?
- What if it doesn’t close?
- Do you continue to show house?
- Can you take another offer?
- Legal Liability for paperwork errors
This is just the tip of the iceberg. Could this be part of the reason that less than 3% of closings are “For Sale by Owner” ? If you would like more information to help you determine whether or not you might want to sell your home FSBO, please call Mimi Foster for a non-threatening discussion on your options.