Congratulations, you have just accepted an offer on your home!
- Legal representative
- Showing Your House
- Keep Tabs on the Buyer
- Home Inspection
- Home Appraisal
- Pack up the House!
- Cancel or Transfer Utilities
- Clear to Close
- Closing Date Documents
…What should I do now?
Relax, we’ve got your back! beycome has a complete For Sale By Owner process for what you must do before you hand over the keys. Keep in mind that if you’ve overlooked anything from the list below, you could be in danger of delaying closing or not closing at all, so pay attention.
Legal representative
In a FSBO situation, it’s best to choose a trusted legal representative or real estate attorney to help you through the process. Luckily, beycome has a set directory list of professionals from our resource center in your area. They will be able to walk you through the contracts and give you information on how to best protect your legal rights as a seller.
Showing Your House
Even after you’ve accepted an offer, you can still show your house just in case funding doesn’t come through, or some other unforeseen circumstance prevents a sale. However, you must mark the listing as “CCS”, or “Contingent Continue to Show”. This means any viewers know this is for backup offers only.
Keep Tabs on the Buyer
Of course, both parties want the deal to go through. But ideally, the buyer and/or their representation should keep you up to date of their progress. For example, they should contact you once their mortgage funding is 100% secure. Solid communication and clear deadlines is a great way to ensure there are no issues or setbacks.
Home Inspection
After you accepted the offer, the buyer has about 7-10 business days to schedule a private home inspection. While you don’t have to be present for a home inspection, you will be immediately informed of any known inefficiencies on the property. So if you have a known broken air conditioning unit or an issue with pests, it’s best to get that fixed before the inspection. This is because it may lead to a renegotiation of the sales contract and a drop in the total sale price.
Remember, don’t take off the lockbox or key off your door, they’re still needed for this process! Expect to receive a report of the inspection either way. If any new discoveries are found, you have a certain amount of time to fix them before the sale goes through. These include problems with the foundation, electricity and wiring, or roof, among other things.
Home Appraisal
It’s typical for an appraisal to be ordered by the lender after the contract is signed and accepted. This determines the loan is sufficient to cover the house. If the appraisal does not match the listing price, a new price must be agreed upon. This isn’t common in a FSBO process as long as you have stayed true to pricing around the true market value of the home.
Pack up the House!
Inspection and appraisal go through without a problem? The buyer’s got the mortgage? Excellent! In the negotiations process, you probably offered a few items to leave behind for the buyer. Keep a sticky note on each of these items as a reminder that they stay. For instance, the washer and dryer or refrigerator. As for everything else, box it up. Move out your possessions, and your family’s possessions, in a timely manner before the next family moves in. All uncleared items must be out of the house before the closing date.
Cancel or Transfer Utilities
You won’t want to pay for the new owner’s electricity, so either cancel or transfer all utilities so the best drone buyer can take them all over after closing. This may take some coordination between parties. Consider water, gas, cable and internet, any newspaper or magazine subscriptions you may have, and the security company.
“Clear to Close”
You’ll hear this term when a buyer has met all approved conditions and is ready to close. Most of the time this won’t happen until the day before the closing date or even hours before. That doesn’t necessarily mean something is wrong. If you believe there’s a true issue getting in the way of closing, contact your real estate attorney or representative and they will be able to guide you through it. Again, this is uncommon, so no worries.
Closing Date Documents
Almost there! The last part of a FSBO closing is bringing a cashier’s check for the costs you agreed to pay in the original contract. On this date, you and your representative, as well as the buyer and their representative, will be present. The mortgage and title company rep should also be there to make sure everything is finalized properly.
Don’t forget the following:
- An official government-issued I.D.
- All copies to the keys of the house, including keyless entry
- Codes to the alarm system, if applicable
- The garage door opener
The location is usually set at the lender’s office, or the office of one of the legal reps or title company. It’s best to confirm the location beforehand just in case!
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