Selling a House on Your Own -- Precautions

Aside from the expenses of selling one's home on one's own, FSBO (for sale by owner), there are some very important cautions that people need to be aware of. Where a seasoned agent knows about these from training and experience, people who aren't in the real estate business should be very aware of what to do and what not to do in the process of trying to sell their home.

When the house goes on the market, certain things will take place. Calls will come in, appointments will have to be made, showings done, contract offers made and negotiated, banking approval completed, inspections and repairs accomplished, and final closing preparations with the closing attorneys and the banks.

Ask some pertinent questions either when people call to ask about your house or at the end of showing it if they are interested in more showings with their families. Find out if they've been pre-approved at a bank or mortgage company. It doesn't cost them a thing and doesn't take long, but at least it will give them and you some indication of how much they can afford to pay for a house if they want to make an offer. Ask politely if they are ready to purchase soon or if they're just looking for later. They usually won't mind revealing this and at least it will give an idea of how many people may be competing to purchase the property soon.

Make sure that at open houses, there is more than one person who will be there to watch the people as they go through. Hide any prescription medications away. Don't let people have ready access to closets with expensive furs or jewelry. Put these out of sight somewhere else. Many people go to open houses either to steal outright or to "case the joint" for a later burglary. Take the names and phone numbers of the seriously interested parties if they're willing to give them to you, to be able to give them information that they ask about later on by phone.

When an offer comes in make sure to have an attorney to work with, who you trust. It should be an attorney whose primary business is real estate. He or she can be able to help with some of the negotiations on a limited basis. Be sure that all the proper disclosure papers are signed both by you and by the purchaser. Lead-based paint and mold are just some of these legally required by many states on any closing unless the property is being bought "as is." Even then, consult with the attorney about what is needed in addition to conduct a legal and binding contractual purchase agreement.

Make sure to have all repairs done and a final inspection conducted, if that is part of the contract to purchase. The FSBO company you're working with should have all the papers necessary to supplement the main contract. They will also have materials guiding people on the process. Read all the information available and keep good records of names, contact numbers for the buyer's bank or mortgage company, the bank's appraiser, Title Company, and the Escrow Company. At this point, keeping to a schedule for everything and coordinating events is so important. Just make sure that both parties, buyer and seller, are clear about times agreed to for everything.

The closing should be a very happy event, but it's all the care and attention to details contributing to making it successful that will determine if it actually is. If all these details I've mentioned are taken care of, then any FSBO should be able to accomplish his or her goal. It's not easy, and most of it is not any fun, but if done right, it may save quite a bit of money.