A good question to ask when you’re selling your house yourself is who fills out the FSBO contract? As the seller, you do, mostly. That’s because you have the most to lose if it’s not done properly. Once you and your buyers have come to an agreement, whether it’s in person, by telephone or by email you need to get all the contracts and state disclosures in order. As the seller you need to do that.
Working With A Real Estate Agent
The buyers agent draws up the contract in a typical real estate transaction involving real estate agents. If you’re willing to work with a buyer’s agent then the agent will do all of the paperwork with legal contracts and disclosures. They will do all the work.
Working with only a buyers agent still saves you half the commission normally paid to real estate brokerages.
Working Without A Real Estate Agent
But, if you aren’t willing to work with a real estate agent, and there’s nothing wrong with that, then you, as the seller, should take on the responsibility of working through the transaction. That means making sure all the FSBO contracts and associated paperwork are completed correctly and fully. It will be your job as the seller to work through the process and keep everyone in the loop. That includes the buyer, title or escrow company and the buyer’s lender if financing.
The contract you use will likely have contingencies written in. Most real estate transactions are contingent on buyers being able to obtain financing, the appraisal, and a home inspection.
As the seller it will be your responsibility to keep the transaction moving forward.
Where does a seller get the necessary FSBO contracts and disclosures? Most tile companies or escrow services will have some form of a contract you can use. The federal required lead based paint disclosure and pamphlet you can find free from the EPA website.
A better option is to find a complete state specific real estate contract package on-line that are drawn up by legal professionals. There are several companies that provide such a service, at a small cost.
You, as the seller, will personally fill out the FSBO contract. The two parties will need to meet and go over everything. This is a good time to collect the earnest money from your buyer. Make sure you let him know to bring the earnest money upfront before the meeting. After you have sat down, gone over the contract and agreed on the terms, you both sign.
And then you’re done. As mentioned above it is in your best interest if you take the reins from here and facilitate the rest of the process through to closing.
It’s really not that difficult.