Selling Your Home Without an Agent? What to Consider First

Selling a home on your own, often called for sale by owner or FSBO, can be appealing. You stay in control of every decision and may save on some costs. But selling a home is a big project with real legal and financial stakes. Before you plant a sign in the yard, take an honest look at what the process requires.

Do You Have the Time?

Real estate agents treat selling homes as a full-time job because it often takes that much effort. As a FSBO seller, all of those tasks land on you, including:

• Researching comparable sales and setting a realistic price
• Preparing and photographing the home
• Writing the listing and getting it in front of buyers
• Answering calls, texts and emails, often during work hours
• Scheduling and hosting showings and open houses
• Screening buyers to make sure they are qualified
• Negotiating offers, counteroffers and repair requests

If you have a demanding job, young kids or a tight moving timeline, ask yourself whether you can be available when buyers want to see the home. Missed calls and slow responses can mean missed buyers. You will also need a plan for keeping the home show-ready, sometimes on short notice, for as long as it is on the market.

Do You Know the Paperwork?

A home sale comes with contracts and disclosures, and the requirements vary by state and sometimes by city or county. You may need to disclose known defects, flood history, HOA details, lead-based paint for older homes and more. Getting these wrong can expose you to disputes or legal trouble after closing.

Agents are trained on these requirements and have access to standard forms. If you go it alone, plan to hire a real estate attorney or work with a title company or closing attorney who can help you make sure the contract and disclosures are handled correctly. That cost is worth factoring into your savings estimate. You may also be asked about paying a commission to the buyer’s agent, so decide ahead of time how you will handle that conversation.

Screening buyers’ financing

One area that trips up FSBO sellers is evaluating offers. Ask every buyer for a pre-approval letter from a lender, and look closely at contingencies, deadlines and earnest money terms. An offer that looks great on price can fall apart if the buyer cannot close.

Do You Have the Right Connections?

Once you accept an offer, the real work of getting to closing begins. The buyer’s lender will order an appraisal. The buyer will likely schedule an inspection, which can lead to repair requests. You may need a contractor, a surveyor, a pest inspector or a handyman on short notice.

Agents usually have a network of trusted professionals they can call quickly. As a FSBO seller, you will need to find and vet those people yourself, often under deadline pressure. Building a short list of reliable pros before you list can save a lot of stress.

Making the Decision

FSBO can be a good fit if you have time, a flexible schedule, comfort with negotiation and a home in a market where buyers are plentiful. It may be harder if your home is unique, hard to price or in a slower market. Some sellers choose a middle path, such as a limited-service or flat-fee arrangement, so they get help with certain tasks while handling others themselves.

Whichever route you choose, remember that buyers will need financing. If you are selling so you can buy, it helps to know your own numbers too. Use our mortgage calculator or explore your loan options.

Have questions about financing your next home while you sell this one? Talk with a FLO Mortgage loan officer and we will help you plan both sides of your move.

This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.