There’s no rule that says you can’t sell your own. In fact, there are other homeowners like you who have done FSBO (sold by owner). However, there are a few things to consider in order for the process to be successful and beneficial for you.
House Value: You can’t just put an FSBO sign in front of your house without knowing how much your home costs in the market. Of course, to determine the number, you need to use the services of a professional appraiser. His expertise on this subject will be very important to determine the price of your home. Not too low to be below your purchase price and not too high not to buy at all.
Marketing: As the sole person in charge of selling your home, you need to explore all available advertising channels. Since you are using FSBO, you cannot place your home in MLS. It is available to real estate agents only. You may have to rely on the power of social media to create rumors about your home being sold. Free ad posting services are also available such as Craigslist. You can create flyers and brochures if you want and place them in high-traffic places such as cafes, bars, restaurants and parks. But you’ll also need to work closely with owners and maintainers before you can distribute ads on their premises, but it’s worth a try!
Contract: You should prepare a contract because the buyer can agree to buy your home at any time, and when you least expect it. Contracts are difficult to prepare because there are legal issues associated with them. For a hassle-free setup, real estate attorneys are a great help.
Bail: You put 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 provide 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 lost to your advantage.
Property tax: Avoid getting caught in a dilemma after you sell your home. Property tax is a related expense that comes after. Talk to a real estate accountant to determine the taxes to pay after successfully selling the home.
These are just four of the many things you need to know about FSBO. Inspections, buyer qualifications, and property rights should be discussed as separate entries.