How To For Sale Owner in California (FSBO)

Any property owner can sell their home or real estate by owner. This is referred to as a “for sale by owner” or FSBO (pronounced FIZ-BO) for short. Each state has different laws regarding seller disclosures and responsibilities. As long a sellers are very careful to make sure that hey have fulfilled all their legal obligations, they can easily sell their home or real estate by owner. The following is a list of what a home seller needs to do to sell their property without a real estate agent.

  • List on MLS or Find a Buyer

    Many FSBO sellers already know the buyer that wants to buy their home. However, some don’t. A seller can certainly put a sign out front, but that is a weak strategy. The vast majority of real estate is sold through the MLS. When a property is listed on the MLS is is syndicated to sites like Zillow, Realtor.com, and Redfin. These sites are where all the buyers are looking.

  • Draft a Purchase Agreement (Offer)

    If the buyer has their own real estate agent or buyer representative then that buyer can have their agent draft a residential purchase agreement. If there is no agent involved then the parties can sit down and draft their purchase agreement together. We are available to offer expert support if the parties need help drafting their real estate purchase agreement.

  • Select a Title Company

    The title company is  the neutral 3rd party that will make sure their are no issues with the property title report. This is where escrow will be conducted. The escrow process cannot be circumvented, it is 100% required on real estate transactions.

  • Buyer Performs Inspections and Appraisal

    During the first part of the escrow period, the buyer should be performing a property inspection and termite inspection. This is to understand the condition of the property and the amount of work that need needs to be done. If the buyer is obtaining a mortgage then an appraisal is done that this time too.

  • Repairs are Negotiated

    The buyer can ask for repairs, a seller credit for repairs, or a reduction of the sales price – or not ask for anything at all. But this is the time when contingencies should be removed and the deposit should become non-refundable.

  • Close of Escrow

    Once any repair are negotiated, the home sellers and buyers are waiting on the mortgage lender to fund the loan. Once that’s done, or if it’s a cash purchase, the parties can tell escrow they are ready to close. Once the county records the deed, the buyer becomes to the new homeowner and escrow can close.

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