For Sale By Owner. How To Protect Yourself When Selling Your Home

In Texas, selling your house without a real estate agent is possible, and it could save you a lot of money in agent commission fees. The average realtor commission rate in Texas is 4.50% to 6.00%.  Without a listing agent, you can cut commission expenses in half, and you’ll have more control over the sale. But because of added responsibilities, such as setting a listing price and negotiating with buyer’s agents, selling without an agent, also known as for sale by owner (FSBO), is often only a viable option for experienced home sellers willing to put in the time and effort.

Selling FSBO has risks. Research shows that FSBO homes typically sell for about 6% less than those listed with agents. You’ll also still have to offer a competitive buyer’s agent commission — usually 2.5–3% of the sale price. You’ll be responsible for all the work of a trained realtor, so if you have other obligations, such as a job or a family, selling FSBO might not be for you. Here are a few things you can do to ensure a smooth, seamless process.

Be completely honest on your seller disclosure

The seller’s property disclosure statement details the state of your home, like whether it’s suffered any fire or water damage. It might be tempting to gloss over certain events that have occurred in your home when filling out your seller disclosure, after all, you want to make your home seem as appealing as possible, right? But this is a mistake that you can’t afford to make. If something is discovered during the inspection, or even after you’ve already sold, then you could potentially face legal action for withholding that information. This is one of the most serious responsibilities a seller has, so disclose, disclose, disclose! After all, you want to be worry-free once the deal closes. Find an example of what a typical seller disclosure statement looks like here.

Put everything in writing / have a legal Real Estate contract

Even if you feel confident and trust your buyer, make sure all changes, agreements and deals are in your purchase agreement. You’ll be glad you went by the book if your buyer comes after you for keeping the playset when they mentioned wanting it over coffee. You can use a state approved contract (TREC) or have an attorney generate a purchase agreement and any addendums.

Only allow preapproved buyers to see your home

Showing your home is a time-consuming ordeal. Why make that sacrifice for those who aren’t even in a position to make a serious offer yet? Make sure your agent properly vets potential buyers to ensure they’re serious about buying and are in a position to do so by having a preapproval letter in hand. Only letting serious buyers to see your home will save you time and convenience.

Clear away personal and valuable items

Thanks to third-party sites, when your home is on the market, anyone with internet access will potentially be able to view photos of it. In the interest of privacy, you should remove any personal items for the photo shoot and while showing your home. Remove prescription medications from medicine cabinets and don’t leave any valuables in plain sight. Take down all family and personal pictures as well. An added bonus is fewer personal items displayed will allow your potential buyer to envision it as their future home!

Provide a home warranty for your buyer

A home warranty is a relatively inexpensive way to boost your home’s attractiveness to potential buyers. If you have a long occupancy period, and you continue to live in your home after it closes, it will safeguard you against having to replace costly items like a furnace or refrigerator if either were to fall into disrepair. Learn more about home warranties here.