Questions for Potential FSBOs, Part I

In a down economy, people are looking to cut costs wherever they can.  Paying an agent 6% of your home’s selling price may not sound like a lot, but if your house lists for thousands, you can end up shelling out a decent amount.  There are plenty of FSBO Web sites that, for a nominal fee, give your home a decent amount of online exposure. Even after you factor in the $20 it’ll cost to put a sign up in your front yard and a few more for a classified listing in your local newspaper, and still saving a stack of money.  Taking matters into your own hands may seem like a good option, but before you decide to go the FSBO route, you should ask yourself a few questions and make sure this is an option you’re ready for.

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.)Have you checked the assessment and assessor’s records?
4. Did you complete proper disclosure forms per state law?
5. 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…)
6. Have you obtained an updated Certificate of Occupancy?
7. Did you review existing financing to determine whether it can be assumed?
8. If yes to #8, have you contacted the lender to determine what to do to complete the transaction?
9. Do you know your equity in the property?
10. 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?
11. What factors will you use to set an asking price?
12. Did you leave room for negotiation in your asking price?
13. Do you have access to area comps (comparable properties)?
14. How familiar are you with the local property sales market?
15. Can you be unbiased about your home’s faults?
16. Will you attempt to add into the home’s market value either what you’ve “put into it” or “need out of it?”
17. Do you know which legal documents to prepare for a home sale?
18. Where can you obtain said documents?
19. Will you need assistance filling those documents out?

If any of this sounds confusing, we may be of use to you.  We know our way around the paperwork you’ll need to have handy, and have helped hundreds of people like you unload homes fast.  As the greater DC area’s largest home buying agency, we’re the people to talk to if you have a home you need sold.  Keep reading next week when we continue down the list.