Step-by-Step Guide to Completing a FSBO Real Estate Transaction

Phase 1: Property Preparation

1. Evaluate Your Property

• Conduct a thorough property inspection
• Document all features and improvements
• Take high-quality photos from multiple angles
• Create a detailed property description
• Gather all relevant property documents

2. Determine Pricing

• Research comparable properties in your area
• Review recent sales data
• Consider getting a professional appraisal
• Factor in any needed repairs or updates
• Set a competitive but profitable price point

3. Prepare Documentation

• Property deed
• Previous survey documents
• Tax records
• Utility bills
• HOA documents (if applicable)
• Maintenance records
• Property disclosure statement
• Lead paint disclosure (if pre-1978)

Phase 2: Marketing

1. Create Marketing Materials

• Professional-quality photographs
• Detailed property description
• Property specifications sheet
• Virtual tour or video walkthrough
• Floor plans
• List of recent improvements
• Neighborhood information

2. List Your Property

• FSBO websites
• Social media platforms
• Local classifieds
• Community bulletin boards
• Real estate websites that accept FSBO listings
• Yard sign with contact information

3. Prepare for Showings

• Create a showing schedule template
• Prepare property information packets
• Clean and stage the home
• Develop a system for tracking interested buyers
• Create a sign-in sheet for open houses

Phase 3: Buyer Interaction

1. Screen Potential Buyers

• Request proof of funds or pre-approval letter
• Use a buyer questionnaire
• Track all inquiries and follow-ups
• Maintain showing schedule
• Document feedback from showings

2. Negotiate Offers

• Review all offers in writing
• Understand contingencies
• Calculate net proceeds
• Prepare counteroffers if needed
• Keep track of all communications

3. Accept an Offer

• Sign purchase agreement
• Collect earnest money
• Open escrow account
• Schedule inspections
• Coordinate with buyer’s lender

Phase 4: Due Diligence Period

1. Facilitate Inspections

• Home inspection
• Pest inspection
• Radon testing (if required)
• Well/septic inspection (if applicable)
• Other requested inspections

2. Handle Repair Requests

• Review inspection reports
• Obtain repair estimates
• Negotiate repairs or credits
• Document all agreements
• Complete agreed-upon repairs

3. Support Appraisal Process

• Provide access for appraiser
• Supply list of improvements
• Share comparable sales data
• Address any appraisal issues
• Negotiate if needed

Phase 5: Closing Preparation

1. Gather Required Documents

• Title insurance commitment
• Property survey
• HOA documents
• Home warranty information
• Repair receipts
• Certificates of completion
• Municipal inspection certificates

2. Complete Pre-Closing Tasks

• Schedule utilities transfer
• Arrange final walkthrough
• Clear any title issues
• Complete required repairs
• Prepare home for transfer
• Gather all property keys and controls

3. Review Closing Documents

• Settlement statement
• Deed
• Affidavits
• Transfer tax forms
• Loan payoff statement
• HOA documentation
• Property tax information

Phase 6: Closing and Transfer

1. Attend Closing

• Bring required identification
• Review all documents carefully
• Sign closing documents
• Provide property access items
• Transfer utilities
• Cancel insurance (after confirmed closing)

2. Post-Closing Tasks

• Confirm recording of deed
• Verify mortgage payoff
• Cancel utilities
• Forward mail
• Transfer security systems
• Provide documentation to tax assessor

Important Tips Throughout the Process

Legal Considerations

• Consider having an attorney review documents
• Understand state-specific requirements
• Comply with all disclosure laws
• Maintain copies of all documents
• Follow fair housing laws

Financial Management

• Track all transaction-related expenses
• Maintain accurate records for tax purposes
• Understand tax implications
• Calculate net proceeds accurately
• Plan for closing costs

Communication Best Practices

• Document all communications in writing
• Respond promptly to inquiries
• Maintain professional demeanor
• Keep detailed records of all interactions
• Follow up consistently

Safety Measures

• Verify buyer identities
• Show property by appointment only
• Have another person present during showings
• Secure valuables during showings
• Maintain property insurance

Resources and Tools Needed

Essential Documents

• Purchase agreement template
• Property disclosure forms
• Lead paint disclosure
• Showing feedback forms
• Buyer information sheet
• Settlement statement template

Professional Contacts

• Real estate attorney
• Title company
• Home inspector
• Appraiser
• Insurance agent
• Mortgage lender
• Escrow company

Online Resources

• FSBO listing websites
• Property valuation tools
• Document templates
• Local market data
• Legal resources
• Real estate forms