57 Questions to Ask Yourself Before Listing FSBO

Listing your own home as a For Sale By Owner (FSBO) is a mighty attractive option when you consider most real estate agents charge a 6% commission.

Why not save some money?

There are plenty of FSBO Web sites that, for a nominal fee, give your home online exposure. Add in the cost of a $20 sign for the front yard and a bit more for a classified listing in your local newspaper, and you’ve potentially saved a whole heap of money.

Before you take that plunge as a novice realtor, ask yourself these questions. You may find you are not prepared to go it alone!

1. What is the condition of the current title?
2. Are any deeds required from prior owners? (This is common when the previous owner financed the current seller.)
3. Are there unpaid liens or special assessments due for collection upon sale? (Municipal improvements like new sewer, paid over years, is typically due in full upon closing.)
4. Have you checked the assessment and assessor’s records?
5. Did you complete proper disclosure forms per state law?
6. Are there factors that would make the property difficult to finance with typical lenders? (Examples are older homes, substantial acreage, private water and sewer, numerous out buildings…)
7. Have you obtained an updated Certificate of Occupancy?
8. Did you review existing financing to determine whether it can be assumed?
9. If yes to #8, have you contacted the lender to determine what to do to complete the transaction?
10. Do you know your equity in the property?
11. Is the property governed by a Home Owner’s Association? If yes, are there limitations on the property’s use that should be conveyed to potential buyers?
12. What factors will you use to set an asking price?
13. Did you leave room for negotiation in your asking price?
14. Do you have access to area comps (comparable properties)?
15. How familiar are you with the local property sales market?
16. Can you be unbiased about your home’s faults?
17. Will you attempt to add into the home’s market value either what you’ve “put into it” or “need out of it?”
18. Do you know which legal documents to prepare for a home sale?
19. Where can you obtain said documents?
20. Will you need assistance filling those documents out?
21. Do you know an appraiser?
22. Did you budget to pay for an appraiser?
23. Did you realize that you must pay a title search company to prepare documents and other forms?
24. Do you have a real estate lawyer to review all documentation?
25. How are you at negotiating? Are you prepared to balance offers and counter offers?
26. What contingencies might arise? Can you deal with them like a third party could?
27. How comfortable are you with allowing strangers to tramp through your house and peer into your closets?
28. Without an agent, how will you screen for serious buyers?
29. Do you understand the difference between prequalified and preapproved?
30. What ID will you ask from strangers who want to see your home?
31. Is your time flexible for showings?
32. Do you know where to advertise for the best response?
33. Do you know what a Conditional Loan Approval letter is?
34. What are your state’s disclosure laws for termite problems?
35. What are your state’s disclosure laws for leaky roofs? (This knowledge can help prevent being sued later on.)
36. What are your state’s laws about revealing ghost tales or crimes linked to the property?
37. Can you help a prospective buyer obtain a mortgage?
38. Can you help that buyer understand the differences between fixed, adjustable, or balloon mortgages?
39. How will you prequalify a potential buyer?
40. What happens if you receive an offer from someone that cannot afford your home?
41. Do you know an appraiser to recommend?
42. Do you have a termite inspector?
43. What title insurance did you buy?
44. Are there building permits for improvements?
45. Do you have a copy of the Lead Paint Disclosure form?
46. Do any environmental disclosures apply such as hazardous waste or Superfund sites?
47. Do you have a CLUE report available? Do you have a clue what a CLUE report even is?
48. What closing costs will you have to pay?
49. Do you have a property condition disclosure statement?
50. Do you have a legal purchase document?
51. Do you have a legal description of the property?
52. Is there a contingency clause addendum?
53. Does your state carry risks when a seller agrees to “carry back” a note from the buyer? Did you know those risks can cost you thousands of dollars?
54. Did you realize your good credit rating can be ruined by your buyer’s default? (This can span months, even years, after that buyer “assumes” your loan.)
55. Have you heard that a clever buyer could stay in possession of your property for months after defaulting on the contract, and in effect, live for free at your expense?
56. Were you aware that most buyer complaints involve alleged damages of less than $10,000, but it can cost you thousands in attorney’s fees to defend the claim?
57. If you’ve read this far, you might be wondering why get into this mess? Are you up for all the paperwork, the legal liability, the showings, multiple fees, and quite frankly, the headaches?