For Sale By Owner
Expert Tips from a Vermont Real Estate Broker
A nickel’s worth of free advice from Brian Steinmetz
The road to a successful sale may not be as straight and beautiful as this scene...
Selling your home on your own—commonly called “For Sale By Owner” (FSBO)—can be rewarding but also challenging. Without an agent, you’ll take on responsibilities that professionals typically handle, from pricing and marketing to legal paperwork and negotiations. This guide outlines the key steps to a successful FSBO sale and offers practical advice based on years of experience in Vermont real estate.
Understanding Market Value & Pricing Strategically
One of the biggest challenges FSBO sellers face is pricing the home correctly. Price it too high, and you risk sitting on the market without interest. Price it too low, and you may leave money on the table.
How to Determine the Right Price
• Comparative Market Analysis (CMA): Look at recent sales of similar homes in your area, focusing on location, size, condition, and features.
• Active & Pending Listings: Your competition matters—buyers compare your home to others on the market.
• Market Trends: In a seller’s market, buyers may be willing to pay more. In a buyer’s market, pricing competitively is crucial.
• Professional Appraisal: Hiring an appraiser for a pre-listing valuation can provide an unbiased price estimate.
Common Pricing Mistakes to Avoid
• Overpricing Based on Emotional Value: Buyers don’t see personal memories; they see square footage, updates, and comps.
• Relying on Online Estimates Alone: Automated valuation models (like Zillow’s Zestimate) can be inaccurate, sometimes by tens of thousands of dollars.
• Ignoring Seasonal Trends: Spring and early summer are peak times for selling, while winter may require pricing adjustments to attract buyers.
Preparing Your Home for the Market
Homes that sell quickly and for top dollar are well-prepared before being listed. Buyers expect move-in-ready properties unless they are searching for a discount.
Essential Steps to Get Your Home Ready
• Declutter & Depersonalize: Remove personal photos, excessive décor, and unnecessary furniture to make spaces feel larger and more neutral.
• Deep Clean & Minor Repairs: A fresh coat of paint, fixing leaky faucets, and updating outdated light fixtures can make a big difference.
• Curb Appeal Matters: First impressions start at the curb—trim landscaping, repaint the front door, and ensure exterior lighting is functional.
• Consider Professional Photography: High-quality photos help your home stand out online. Poor lighting and angles can make even a great home look unappealing.
You don’t want to end up looking like this:
Images from terriblerealestatepics.com
Navigating Negotiations & Offers
Once a buyer is interested, you’ll receive an offer in the form of a Purchase & Sale Agreement. This contract outlines the price, contingencies, and closing terms.
Key Points to Understand in an Offer
• Purchase Price & Deposit: The initial offer price and the amount of earnest money (a good-faith deposit).
• Contingencies: Common ones include financing, home inspection, and appraisal.
• Closing Timeline: Buyers often request 30-60 days for financing approval and title work.
Marketing & Finding Buyers
Without access to the Multiple Listing Service (MLS), FSBO sellers must rely on alternative marketing methods to reach buyers.
Effective FSBO Marketing Strategies
• List on FSBO Platforms: Websites like Zillow, ForSaleByOwner.com, and Facebook Marketplace allow you to advertise your home for free or at a low cost.
• Use Social Media & Local Groups: Posting in local Facebook groups and Nextdoor can help spread the word in your community.
• Yard Signs & Flyers: Traditional marketing still works—an eye-catching yard sign with clear contact information can attract drive-by buyers.
• Host Open Houses & Private Showings: Make it easy for buyers to see your home. Be prepared to answer questions about features, property history, and the neighborhood.
Challenges FSBO Sellers Face in Marketing
• Limited Exposure: The MLS is the primary tool used by agents and buyers, and FSBO listings don’t automatically appear there.
• Less Buyer Trust: Some buyers hesitate to work with FSBO sellers due to concerns about negotiating directly or missing key disclosures.
• Handling Inquiries & Showings: Be ready to respond promptly to calls, schedule showings, and follow up with interested buyers. Most agents in Vermont and around the country use automated showing services for ease-of-use and less back-and-forth.
How to Handle Counteroffers & Negotiations
• Be Ready to Negotiate: Buyers may ask for concessions like covering closing costs or making repairs.
• Understand Inspection Requests: Buyers will likely request repairs after the home inspection—decide in advance what you’re willing to fix.
• Don’t Take Low Offers Personally: Buyers often start lower to test negotiation flexibility.
Legal & Paperwork Requirements
Selling a home involves legally binding contracts, and Vermont law requires specific disclosures and documentation.
Essential FSBO Paperwork
• Purchase & Sale Agreement: The formal contract outlining the sale terms.
• Seller’s Property Disclosure: Vermont requires sellers to disclose known defects or issues with the home.
• Lead Paint Disclosure (if applicable): Homes built before 1978 must include a lead-based paint disclosure.
• Title & Deed Transfer: You’ll need a real estate attorney to handle closing paperwork.
Common Legal Pitfalls to Avoid
• Incomplete or Incorrect Paperwork: Missing details in a contract can cause delays or legal issues.
• Failure to Disclose Property Issues: Vermont law protects buyers from undisclosed defects—failing to disclose known problems can lead to liability.
• Delays in Closing: If the buyer’s financing falls through or inspections uncover major issues, the sale could be delayed or fall apart.
Final Thoughts: Is FSBO Right for You?
Selling your home FSBO can work well if you:
• Have experience with pricing, contracts, and negotiations.
• Are comfortable handling showings and buyer inquiries.
• Have time to manage the entire process from listing to closing.
However, if you find yourself overwhelmed by pricing, negotiations, legal requirements, or marketing, working with an agent can often lead to a smoother sale and a higher net profit—even after commission.
Does it make sense to work together?