- EDUCATIONAL: You Decided to Buy or Sell as For Sale by Owner (FSBO).
- ...Now what? Part 1
- Once you The Seller have decided to sell a home as a "For Sale By Owner" (FSBO) in Nevada, you need to think about marketing it. There are several options available to you are the internet such as Redfin, Zillow, Trulia, newspapers and yes, even the MLS. There are companies all over the US who, for a small fee, will list your home on the MLS, provide a yard sign, a lockbox but will not require you to have them represent you (The Seller). Once on the MLS, your phone will start ringing from Realtors wanting to represent you but others will be interested in the house. Once you have found someone that prequalifies to purchase the property (The Buyer), You are now acting as your own Realtor. The following is what is needed to do in order to open an Escrow. See: The Team Marketing Flyer
- 1) Get nearby housing market comparisons or "Comps" on your properties neighborhood. Many can run it (such as a Realtor). It is important for you to know and understand what the property is really worth. If you expect "more" money from the sale than "comps" may allow, be prepared to justify the difference with the appraiser and the Buyers Realtor. Example: "My property has the only structure with stucco on the block or perhaps the only pool."
- 2) Request a copy of the "prequalification letter" from the Buyer. It was provided to him/her by their Loan Officer. If they don't have one, then they have not yet been pre-approved for a loan and dont yet need to see any property not just yours.
- 3) Avoid showing the property alone to those whom are also not using a realtor. Remember all Realtors will have their own key to your lock box. The FSBO Seller should expect to receive a few unrealistic offers and or conditions. It is the opinion of many that if the Seller is not willing to pay commissions for a realtor of their own, they may also be desperate and or greedy.
- 4) Both parties (Buyer and Seller) need to complete and sign a Residential Purchase Agreement Contract This dictates how the escrow will proceed as agreed upon by both the Buyer and Seller.
- 5) You need to complete the purchase agreement contract on your own or seek advice from a licensed Realtor or a lawyer. The Title Company or its employees cannot advise you on the completion of the Purchase Agreement.
- 6) You must perform your own negotiations on the terms within the purchase agreement contract with the seller and or their Realtor. Avoid any "hand shake" after close deals. All agreements should be in writing. Who pays for the Home Warranty and the Termite Inspection?
7) Before the 1970s, household paint often contained lead. As lead paint ages, it can chip or crumble into dust. Exposure to lead-paint dust or chips can cause serious health problems. You will need to complete a Lead Paint Disclosure Form for homes built prior to 1978
- 8) Make sure you (Seller) and the Buyer read everything at least twice to make sure you didn't forget anything such as typical fees normally seen in an escrow.
- 9) If there is anything you read but don't understand in your purchase agreement contract, consult a licensed Realtor or a lawyer for your own protection.
- 10) Please, be sure to read: "What Both Buyers and Sellers Need to Know about Escrow and Title."
- 11) Once the purchase agreement contract has been completed, submit by hand, or FAX the purchase agreement and deliver any earnest money for deposit into the escrow account (opened by the escrow officer for the Buyers Lender. Once both are received, the title search will be ordered for any potential property liens issues to be resolved.
- a) The Buyer should provide upfront, the Lender information if they are getting financing or the 1031 Exchange information if that is the case to escrow.
- b) The escrow officer will need the seller's payoff information and their Social Security number to order the payoff demands plus any Homeowner's
- Association (HOA) information.
- 12) The Nevada Escrow Officer (EO duties and responsibilities) work with the buyers loan officer and Realtor and take over from there (for more information on what Nevada a Realtors and Loan Officers do, please read these two documents on Realtor Responsibilities and Mortgage Loan Officer Responsibilities.
13) Escrow HoldBack Agreement: These are funds held in escrow that are set aside to guarantee that seller or buyer will complete an expected variety of work or other obligations per the purchase agreement contract. This is usually required by the lender. Example: It ensures the seller will fix damages to a pool or repair electrical issues as promised in the contract etc.
14) Please review the following for additional supplemental information to be more versed in the escrow and FSBO process.
If you still have further questions, please consider consulting a Realtor or a lawyer