By Elliott Topkins, Esquire
6/16/11
We are living in an era when every penny counts. The excesses of the early 21st century no longer exist. People in all situations are trying to save money. That being the case, it is no wonder that many people have made a determination that there is no reason for them to engage a Realtor to sell their homes. They will do it themselves.

You will see a lot of signs around town and in the real estate listings captioned “For Sale by Owner.” FSBO’s, as they are popularly known in the real estate profession, have been around for a long time. I do not have the statistics as to what percentage of FSBO’s turn into sales. I do know that once a property is a FSBO, the homeowner can count on a rather steady diet of solicitations from Realtors still trying to discuss listing the property, and I know, from time to time, that Realtors do take over FSBO’s and bring them to the finish line.

That being said, there are homeowners who are able to sell their homes by themselves. The exercise requires discipline, and a plan, and this post is designed to provide some “do’s” and “don’ts” for those of you making FSBO your desired avenue to sell your home.

Do
1. Set realistic time frames to effect your sale. Make a commitment to yourself, or your spouse, to take the FSBO for a finite period of time. Be ready to adjust your goals as the process continues.

2. Engage the services of a qualified real estate attorney early in the game. (I know this sounds like self-promotion, but this is an important step in the process.) You do not have a Realtor, at your side and by your side, with all the necessary forms. Once a seller signs an offer, the seller is bound to sell the property to the buyer. There are issues of holding the good faith deposit and the final, larger purchase and sale deposit. All of these, and many more things which come up, can be handled by a real estate attorney. Without one, the FSBO process can become a nightmare.

3. Think through carefully the methods you will employ to show your home. Open houses are different in the FSBO mode. Having a lot of people in your home may promote chaos. There is also theft of personal property as a risk. Have all prospective buyers bring photocopies of their driver’s license to the open house. I know of situations where FSBO sellers retain the drivers license while the potential buyers look at the house. Consider showing your home “by appointment only.”

Don’t
1. Make verbal claims about your home you cannot document. If the roof was not replaced two years ago, do not make a claim that it was. If you are asked about a condition that apparently needs attention, respond by saying you would be willing to address same once you have a bid or proposal from a licensed professional.

2.Show your home to anyone who cannot present a “pre-approval” for a mortgage of a suitable amount to complete a sale. There is an old aphorism “buyers are liars.” People will waste your time looking at your home without the remote chance of being able to complete the sale. Work only with qualified buyers.

(Mr. Topkins is an attorney with Topkins & Bevans, Braintree Executive Park, 150 Grossman Dr., Braintree, MA 02184. His blog can be found at http://realtorsresourceblog.com. His e-mail address is etopkins@topbev.com.)