FAQ
For sale by owner FAQ
Short answers to the questions sellers and buyers ask most about for-sale-by-owner homes.
What does "for sale by owner" mean?
It means the owner sells the home without a listing agent. The owner handles pricing, marketing, showings and negotiation, and usually uses a title company, escrow agent or attorney for the closing.
Read more: How to sell your house by owner
Is it legal to sell my house without a realtor?
Yes. You can sell your own home in every US state. Contracts, disclosures and closing steps follow state law, so many sellers use a real estate attorney or a title or escrow company to handle the paperwork.
Read more: FSBO checklist
What disclosures must a seller give?
It depends on your state, which sets its own rules and forms. Under federal law, sellers of homes built before 1978 must also give a lead-based paint disclosure, the EPA pamphlet and a chance for the buyer to test for lead.
Read more: EPA lead disclosure rule · Seller disclosure guide
Can my FSBO ad say who I prefer to sell to?
No. The federal Fair Housing Act bars ads that show a preference based on race, color, religion, sex, national origin, familial status or disability, and the ban covers owners who place ads. Many states protect more groups. Describe the home, not the buyer.
Read more: HUD fair housing advertising
How do I price my home?
Compare recent sales of similar homes nearby and adjust for differences in size, condition and location. For an independent opinion, hire a licensed appraiser; you can check their license in the federal National Registry.
Read more: Selling 102: pricing your home
What is earnest money?
Earnest money is a good-faith deposit the buyer pays with an accepted offer. A neutral escrow, title or attorney office usually holds it until closing, when it counts toward the buyer's costs. The contract decides when it is returned or kept.
Read more: Virginia Housing: earnest money
Do I still pay a buyer's agent?
Only if you agree to. Whether the seller pays any part of the buyer's agent fee is negotiable, and any agreement should be in writing in the contract or a separate signed document.
Read more: Selling 101: your options
What is owner financing?
The seller lends part or all of the price to the buyer, who signs a promissory note secured by a recorded mortgage or deed of trust. Federal and state lending rules can apply, so both sides should get legal advice first.
Read more: Owner financing basics
Should a buyer get an inspection on an FSBO home?
Yes. An independent home inspection can reveal problems before closing, when you can still ask for repairs or a credit, or cancel within your contingency period. Choose and pay for your own inspector.
Read more: The inspection in escrow
Does this site list homes for sale?
No. HomesForSaleByOwner.net is an independent guide. We do not list homes, and we are not a real estate agent, broker, lender or law firm. We explain the steps and link to the official rules.
Read more: About us