FSBO Home School: A How-to For Sale By Owner | Pinellas County | Real Estate Agent
You can successfully sell your home as a "For Sale By Owner", to successfully accomplish this you should have all the tools and knowledge to do so. Watch my video and read below to educate yourself on what you should expect and be prepared when choosing the FSBO process.
As a real estate agent, I’m not a fan of For Sale By Owner, but I’m biased for obvious reasons. However, I have seen it work in some cases.
When a seller identifies how long the process is going to take, how much time they have to dedicate to the sale, and they know each step along the way… they’re happy with the decision.
In all other cases, I’ve seen people waste time only to hire me after much aggravation.
Here are my tips to avoid the headache and yes, I hate to say it, not hire me.
Determine your sales price (10 - 15 hrs)
Pull 20 sales comps
Compare square footage, amenities, location, date of sales, financing for sales, property records for permits, year of property, landscaping, type of materials used in the home, quality of appliances, pools/amenities, HOA fees, Deed restrictions, flood restrictions, zoning, school district, property surveys, neighborhood foreclosures, and general upkeep.
What’s your selling price
What’s your walk-away price (lowest you’ll go)
Determination of financing (5 - 10 hrs of research)
Are you going to accept: FHA, VA loans, Traditional Loans, Non-QM, investment properties, owner-finance, mortgage assumptions, sellers assistance, and/or cash. (Each type of loan has its own set of requirements. Contact your mortgage lender for more information)
Managing all the different types of deadlines depending on the type of financing (We would need another 5 pages to explain all of these)
Determination of pre-appraisal (2 - 5 hrs)
Is it needed?
Who is the appraiser?
How long is the appraisal valid?
Determination of pre-home inspection (2 -5 hrs)
Is it needed?
Who is the home inspector? (make sure they are licensed or its all for not)
How long is the inspection valid?
Determination of professional services (5 - 10 hrs)
Find an electrician
Find a plumber
Find a roofer
Find an HVAC
Pest control
Title company
Attorney
Other requirements you need to understand (2 - 3 hrs)
Wind mitigation report
4-point insurance inspection
Photos (10 - 15 hrs)
Are you going to get professional photos?
How are you going to hire a professional
Deep clean of the property
Landscaping
Stage the house
Determine your advertising budget (2 - 4hrs.)
Digital ads
Social ads
Print Ads
Signage
Direct mail
List your property (note you still have to pay the buying agent if the buyers have an agent, 5 - 8 hrs)
Write a seller’s disclosure
Write a property description
Photo arrangement
Contact details
MLS listing ($500), Zillow Listing, Realtor.com, trulia.com, homes.com, redfin.com, forsalebyowner.com, realestatewitch.com, and reozom.com. (note, each listing has various listing prices from free up to thousands of dollars depending on your ads budget)
Schedule showings (40 to 60 hrs)
Fielding inquiries
Vetting
Screening
Scheduling (1 in 3 cancel)
Walkthrough
Pop-ins
Open Houses
Money Offer (2 to 4 hrs)
Verbal offer
Written offer
Negotiations (5 to 10 hrs)
Furniture
Earnest money deposits and holdings
Terms
Contingencies
Timelines for financing
Timelines for inspections
Surveys
Timelines for responses and termination
Post occupancy
Closing date
Counter offer (you have to document everything!) unknown time sink, some people love to waste your time, 2 - 4 hrs)
Acceptance (at this point you need the lawyer from your determinations of professional services, 2 - 4 hrs)
Earnest money deposits
Terms
Contingencies
Timelines for financing
Timelines for inspections
Surveys
Timelines for responses and termination
Inspections, Financing, and appraisal (you might not be responsible for each of these services, but you will have to make sure you are at the property during the time of the service, 15 - 20 hrs)
Home inspections
Termite inspections
4-point inspection
Wind mitigation
Gas inspections
Title search
Lien search
Appraisal
Negotiations (10 - 20 hrs.)
Guess what, you get to renegotiate everything again. This is when a lot of buyers have remorse.
New Term Sheets (2 - 4 hrs.)
Again same as above, but still a lot of stuff. Get your lawyer involved again.
Timeline management (2 - 4 hrs.)
Termination of services
Financing management
Relocation
Closing time (4 to 6 hrs.)
Get the lawyer one more time
HUD statements
Title company review
CONGRATULATIONS! You are now educated about the entire For Sale By Owner process.
The average for sale by owner spends over 200 hours managing the process to save $5,000 to $10,000. In other cases, they net $5,000 - $15,000 less due to inexperience in the market. And for some, this is time well spent, and a few homeowners that I’ve helped with For Sale by Owner even enjoyed the process.
For everyone else, give me a call, 727.269.2445. I can explain the For Sale by Owner process.
If you are looking for a Realtor who is client-focused, results-driven & situationally aware in all markets; contact me today.