When it comes time to sell your home, many people in Indiana do so with the use of a real estate broker or agent. However, others will choose to sell their home on their own, through a process referred to as “for sale by owner” (FSBO).
While a FSBO transaction can save the costs associated with a real estate agent or broker, if a person chooses to pursue an FSBO transaction, they assume all legal risks and responsibilities associated with selling the home.
The FSBO process
There are some tasks that must be completed in a FSBO transaction that the seller is responsible for. First the seller must determine the asking price for the home based on the property value of comparable homes in the area.
Second, the seller must place the home on the market. Some ways to do this is advertising in the local paper, placing the listing online and distributing brochures and fliers.
In a FSBO transaction, the seller is responsible for scheduling showings of the home to potential buyers.
After an offer on the home has been made, and the seller accepts the offer, the seller and the buyer need to agree upon a price for the home, and the seller must put in writing the conditions of the sale that were negotiated and agreed upon by both parties. The seller must also draft all legal documents associated with the transaction, including the bill of sale.
Then, after all contracts are signed by both the seller and the buyer, the sale must be closed upon. Then, the seller will transfer the deed to the property to the buyer and the sale is complete.
FBSO transactions have risks
However, it is important to note that a FSBO transaction has risks. If the seller is unfamiliar with the process and makes mistakes, it can be harder and more costly to sell the home. There are also legal risks. If the correct paperwork is not legally sound or issues with the property are not properly disclosed, it could lead to legal liability. For these reasons, even if you have decided to sell your home on your own, you may still want to seek legal advice, to avoid any potentially costly pitfalls.