For Sale By Owner (FSBO) Pitfalls...

Most Seller's understand the benefits...what about the concerns?

Remember all the Seller's obligations in a Real Estate transactions. 

• Who will handle the Escrow and Title services for the transaction.
• Who will prepare the Agreement and the required Disclosures.
• Who will negotiate possession and the real estate tax prorations.
• Did you have a Home inspection and/or list the defects and repairs.
• In a Buyer's market you may need to spend more on unique advertising.
• Do you understand the difference between Pre-Approved and Pre-Qualified.

As a Direct Lender I can PRE-APPROVE potential Buyers! 

Ask me how to enlist the services of a local professional...

Frequently Asked Questions

The difference between "pre-qualified" and "pre-approved"?

Pre-Qualified, means a mortgage professional has rendered an opinion regarding the home price the potential buyer can afford. Their opinion considers the potential buyer's down payment, debts, income, credit rating, and a lender's underwriting guidelines. Being pre-qualified is only an opinion from a person who will not actually lend the money to purchase your home.  Pre-Approved means a lender has verified all the above and more.  Broker's need to foward the information to a lender.  The lender's opinion is more valuable since it is the lender who will lend the money. When a potential buyer is pre-approved, the seller can be more confident the buyer can close the deal. A seller should always ask potential buyers to provide a pre-approval letter.

What closing costs might a buyer pay?

Closing costs are various charges paid to different entities associated with facilitating real estate transactions. Some of the closing costs a buyer might encounter include: application fee, appraisal fee, credit report, transfer tax, discount points, notary fee, documentation fee, title and escrow fees, loan fees, mortgage insurance, origination fee, title insurance premium and others. Closing costs are negotiable between the parties.

When a buyer makes an offer to purchase your property, they will need to provide an earnest money deposit as a sign of good faith. The earnest money deposit becomes a part of the purchase price and is held, or deposited into a trust or escrow account until there is full acceptance of the offer and the transaction closes. The earnest money deposit can vary by local custom from as little as $1000 to as much as 3 to 5 percent of the offer amount. In a FSBO transaction, the buyer should make their earnest money check payable to the escrow company.

What is title insurance?

Title insurance protects the buyer and seller.  It is an insurance policy issued by a title insurance company and specifies, among other things, what liens are recorded against the subject property.  Public records can be incomplete and contain errors regarding the history of ownership of a property (chain of title).  It's critical that an owner receive undisputed, marketable title to the property.  Title insurance was developed to attest to the reliability of the chain of title, and compensate people in the event problems arise and someone contests the sale transaction.  There are different levels of protection offered by different types of title insurance.

Professional Property Inspections

Unless your home is relatively new, consider getting a professional home inspection. Many buyers will order inspections if they suspect potential problems. A buyer will use any excuse to justify offering you less than you'd like. A professional inspection can help support your property value.

A professional inspector can accurately assess the condition of your property, and know when to call upon the expertise of others if required. An inspector should evaluate the condition of the exterior: roof, vent pipes, gutters, chimney, siding, masonry, foundation, exterior grounds, (structures, stairs, walkways, driveways, outbuildings, drainage, etc.) Interior inspections should be performed systematically from top to bottom: from the attic to the basement or crawl space. Functionality of doors, windows and storm sashes should be checked. Bio-hazards (lead-based paint, asbestos, etc.) should be noted. The home's infrastructure should be inspected and/or tested: electrical, plumbing, ventilation systems, heating and cooling, water pressure, etc. In the event a structural engineer's opinion may be required, a professional home inspector should recognize and alert you to that need. An engineer's advice might be sought when there are questions about physical conditions, which may potentially threaten the structure and the safety of occupants.

Is VA or FHA financing unfair to sellers?

FHA and VA loans provide purchasers the opportunity to buy homes with minimal cash investment and at lower interest rates. These loans require the lender or seller to pay for certain closing costs and loan fees that a buyer would normally pay with a conventional loan. VA and FHA have stricter appraisal and home inspection requirements. All repair work must be done prior to closing the sale. Offering your home and allowing VA/FHA financing increases the number of buyers that may make an offer on your home. You always have the right to compare these offers to other offers with conventional financing.