FSBO Helpful Tips

If you've chosen to sale your property, "For Sale by Owner", here are some tips and tools to help you.

Property Disclosures
The state of California requires that sellers give buyers one or more property disclosures.  Disclosures typically deal with the condition of the property or facts about its location:

• The age of the home and its components
• Whether problems exist with any component
• Whether you (or a neighbor) have built something that extends past property boundaries
• If the house is in an airport flight path,  in a flood zone, or on an earthquake fault
• Other issues important to your specific location
• Lead Paint Disclosures (houses built prior to 1978).  You must give your buyers a lead paint pamphlet, which is available free online from the EPA.

Contact the Department of Real Estate (DRE) Consumer Help Division at (916)227-0864 or visit the DRE website, to find out which disclosures you are required to make.

Fair Housing Laws
Individual sellers aren't subject to as many fair housing guidelines as real estate agents are, but it's smart to follow all fair housing laws, just to make sure you don't encounter legal problems later.

Tips for Showing the House
Be Available: Same-day and even last-minute requests for showings are not uncommon.

Be Flexible: Don't get too excited if your buyers are a little late.

Make the Buyer Comfortable: Open cabinet and closet doors to make Buyers feel more at home. Answer their questions, but don't hover over them. Buyers will appreciate some space to wander on their own.

Don't Get Too Personal: You never know when a buyer will be turned off by your mood or by a statement you made. Buyers are there to look at the house. Be friendly, but limit talk to the house.

Make Sure House Shows Well:
1.  Disassociate Yourself With Your Home - Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.

2. De-Personalize - Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted.

3. De-Clutter! - People collect a lot of stuff. If you haven't used it in over a year, you probably don't need it. 

4. Rearrange Bedroom Closets and Kitchen Cabinets - Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out!

5. Rent a Storage Unit - Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage.

6.  Remove/Replace Favorite Items - If you want to take window coverings, built-in appliances or fixtures such as chandeliers with you, remove them first, before showing the house.

       Make Minor Repairs.

• Replace cracked floor or counter tiles. Patch holes in walls.
• Fix leaky faucets. Re-caulk tubs, showers and sinks.
• Fix doors that don't close properly and kitchen drawers that jam.
• Consider painting your walls neutral colors
• Replace burned-out light bulbs.
• Make the House Sparkle!
• Wash windows inside and out.
• Rent a pressure washer and spray down sidewalks and exterior.
• Dust furniture, ceiling fan blades and light fixtures. Clean out cobwebs.
• Wax floors.
• Pay special attention to the bathroom: Polish faucets. Bleach grout. Hang fresh towels.
• Clean out the refrigerator, stoves, and vents.
• Vacuum daily.  Replace worn rugs.
• Clean and air out any musty smelling areas. Odors are a no-no.
• Go outside and open your front door. Do you want to go inside? Does the house welcome you?
• Linger in the doorway of every single room and imagine how your house will look to a buyer.
• Mow the lawn and trim your bushes.
• Paint faded window trim.
• Plant yellow flowers like Marigolds, or group flower pots together. Yellow evokes a buying emotion.
• Make sure visitors can clearly read your house number.

Be Safe: A for sale by owner seller should do everything possible to stay safe:

• Get as much info as possible about a buyer before the showing, then confirm the data (such as making a return call to the phone number or email address provided).
• Have at least one other person with you for showings.
• Let buyers enter a room first, while you stay by the door to make a quick exit if necessary.
  

Control Your Pets : Pets should be out of the house during showings. Remove any pet odors.

Pre-Qualifying Home Buyers

As a FSBO, you'll deal with many people, those who are qualified to buy a home and those who are not. People who know they cannot qualify for  conventional loan,  sometimes think that for sale by owner homes offer a better opportunity. They're hope is to find a seller who will finance the transaction.

Ask these questions to get a better feel for someone's buying power:

1.        Have you been pre-approved by a lender for an amount in this price range?

2.        Can you buy a house now, or do you have to sell your current home first?

It's a good idea to require home buyers to submit written proof of pre-approval with any offer. If your buyer can't buy until he sells, you'll have to decide whether or not you want to wait for that to happen.

Contract Forms
You can write a contract yourself on a piece of paper, but it wouldn't offer much protection for either of you. The forms you use should be written specifically for your state's real estate laws and cover all issues that are important for your location. Visit the California Department of Real Estate (DRE) website for information. Stationary stores also offer real estate purchase contracts at affordable prices.

If you aren't contract savvy, have a real estate attorney review any offer before you sign it. Don't cut corners here, neglecting to get advice from an attorney or other knowledgeable person will cost you money, not save it.

The Buyer's Deposit
The contract should spell out the buyer's deposit money, also known as earnest money. A minimum of $500.00 is required to open escrow with Cimarron Escrow, Inc., however the deposit may be higher, the contract should state the agreed upon amount. Once in escrow, the deposit money is neither the seller's nor the buyer's, the funds become neutral. Should escrow cancel, mutually agreed upon Cancellation Instructions are required to release the deposit.

Real estate laws and customs differ in nearly every state in the US, so it's essential that you do some research on a state and local level to be sure you are complying with all laws associated with the sale of your home.