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missouribound

FSBO process?

10 years ago
last modified: 10 years ago

We need to sell by owner in order to pay for our next home. I've been through the process many times before with a realtor so never really knew what happened after the contract. Is there a guide that tells the steps? For instance, do we need to talk to a title company before we even list the house? Our last escrow check was made out to a title company, so I assume they usually deal with that? That sort of thing.

Another thing we have been discussing is when to actually list the house. Our area is moving fairly fast, at least right now. We don't close on our new place for another 5 months, but don't want to miss out on the hot summer market. I have looked around for short term rentals and there just aren't any. Dh says we'll deal with that when it happens and he is sure we can find something. I'm equally sure we cannot and will end up living in our tiny travel trailer, so the less time in there the better. Would you list now (or soon) or wait until August?

Comments (9)

  • 10 years ago
    last modified: 10 years ago

    List now. Also realize most people come with a RE agent so are you willing to give a RE agent the 3% they would normally get? In fact many people won't see a FSBO for lots of reasons.

  • 10 years ago

    Two of my neighbors did rent backs. Seller has more ability to negotiate this if there are multiple offers. Sometimes people are eager to get into a new house but there are other times where they are happy to rent it back at market rate for a few months. Doesn't hurt to try that approach.

  • 10 years ago

    You have to have access to all of the appropriate documents, also.


    You will need your local forms even if you do go to the Title Company without an attorney: Condition and Lead Paint Disclosure forms, Purchase Agreement, Counter-offer forms, Addendum forms, Release form (if necessary).


    You will need to acquire pre-approval forms once you have an offer and make sure they are properly vetted, not just throwing pre-qual forms at you, where no credit checks have actually been done. You will need to know how to tie down the contractual dates - including time to provide a pre-approval from from a legitimate source - so that the buyer can't just extend indefinitely. Our local form has large holes that allow endless delays, so we make sure to tie up all those ends. You will need to hustle everyone through to closing. Trust me, that is a full time job in itself, and takes me hours every time I sell (and usually, when I buy). You will need to know what repairs need to be done in your jurisdiction, and how to decline all others with some language such as "Seller extends a credit at closing of $500 in lieu of any repairs" (all done on the proper forms).


    If you don't have Dot- Loop or some signing program online, you will need to copy and email every document.

  • 10 years ago

    We just sold FSBO. We used a transaction-only realtor (also called a flat fee realtor) though, which was well worth it. There are lots of big sites that offer this service...skip them. They generally want a commission that is still super high for what they offer. We googled the crap out of it until we found a relatively local realtor who offered transaction services through her website. It was ~$300 upfront, and she used her license to list our house on the MLS for our area (included unlimited photos and a 6 month term on the MLS). (Make sure you get listed on your regional MLS...you need this in order to get visibility for your house.) We never met her in person and she never saw our house. We took the pictures, created the listing text, received the phone calls from realtors asking to show it, did the showings, etc. Our phone number went on the MLS listing for the contact number. We did include on the MLS listing a 2.6% commission available for the buyer's agent, because without that, realtors will not show your house. It is your choice what to set that number at.

    Part of the contract with the transaction-only realtor was that she handled "the transaction." So she reviewed the offers that came in, drafted counter-offers etc., providing the required disclosures to the buyers, and made the arrangements with the title company for closing. She did not negotiate for us but did make sure that the process proceeded as legally required. She also advised me a lot over the phone because I had so many questions haha. (First timer!) At closing, we paid her 0.2%, which again, was worth it IMO.

  • 10 years ago

    We just sold a house using a local flat fee service. Like Delighted above, I took the photos, wrote the description, made flyers, and showed the home. I had an inexpensive but professional looking sign made for $12.

    The flat fee realtor simply posted my listing to the MLS (and hundreds of other sites including Realtor.com and Zillow) no other services offered with this plan though the realtor's office staff seemed very helpful. The cost was was $99 for 6 months. I offered a commission to the buyer's realtor.

    Because the sale was not technically a FSBO I was not approached by any realtors to list the house and no one tried to lowball. The house sold, full asking price, in 4 days! I will definitely use this method next time.

  • 10 years ago

    Interesting. I do all of that because I want to, but my Flat Fee agent will do much of the things others apparently do not do, for those who need it. The Realtors bring people and go in through the lockbox (always check every time one leaves) so she only shows the property if she has a person who wants to see it.

    I got all kinds of service. She sent all documents to me, collected signatures from everyone, addressed every single question that arose, and also negotiated via phone where appropriate. Mostly it was through documents, which is pretty much all you need in a sales transaction.

    Same experience. Virtually full price offer in a single day last time.

  • 10 years ago

    There were other plans I could have chosen with more involvement from the flat fee listing broker but the basic plan was all I needed. I too had a lock box for the convenience of buyers' realtors and I was available to show the property for those who were not working with a realtor. I held an open house the first weekend it was listed but it was a holiday so I expected only a slow and gentle start to the sale. In fact the traffic was pretty good, up to 3 groups at a time, with a high level of enthusiasm for the house that was very gratifying. It sold that first weekend.

    I know that handling negotiation and all the documentation would not be for everyone but it works for me. In fairness I also have to say that the title company could not have been more helpful and were a great resource when I had questions.