Published by: PD Admin - 10/4/2024
Selling your home as a For Sale By Owner (FSBO) can be a rewarding experience, but it is necessary for sellers to be prepared. One of the most important ways to be prepared is to ensure you have the right paperwork in order. Having the necessary documents ready will not only streamline the transaction but also build trust with potential buyers and minimize delays. Here's a comprehensive list of the 20 most common documents sellers need for FSBO home sale.
The current deed is perhaps the most crucial document in a home sale. This official paperwork serves as proof of ownership and will be transferred to the buyer during closing. Without it, you cannot legally transfer the property.
Sellers can use real estate marketplaces like My Real Estate Guru to list homes for sale.
The purchase agreement you signed when you bought the home will detail the terms of your original acquisition. While this document may seem like ancient history, it's important to have on hand to show any discrepancies or to refer to for tax purposes.
If you have a mortgage, you'll need a payoff statement from your lender. This document shows how much is required to settle your existing loan. Once your mortgage is paid off, a release of mortgage will be issued, demonstrating that the lender has removed their lien on the property.
To ensure that your property taxes are up to date, gather recent tax bills and proof of payment. Buyers will want assurance that they won't be inheriting any tax liabilities.
Providing a copy of your current homeowners insurance policy and any claim history related to the property will give buyers insight into the property’s condition and insurance status. This information can be critical when assessing risks and finalizing the deal.
A survey report outlines the property's boundaries and any structures that sit on the land. This document ensures that there are no disputes over property lines and can help with any potential zoning or legal issues that could arise.
If your home is part of a homeowners association (HOA), be sure to provide the buyer with the HOA bylaws and rules as well as recent HOA financial statements. This will allow the buyer to understand the community guidelines and their potential financial obligations.
Most states require sellers to provide a seller’s disclosure that lists any known defects or issues with the property. Additionally, if your home was built before 1978, you’ll need a lead-based paint disclosure, informing buyers about potential lead hazards.
If you’ve completed a pre-listing inspection, share this report with potential buyers to provide transparency about the home's condition and any recent repairs or upgrades.
Keep records of all repairs and maintenance, including receipts and warranties. Buyers often appreciate knowing how well a home has been cared for, and having this documentation readily available can help you justify your asking price.
Buyers often ask for recent utility bills to get a sense of monthly operating costs. Providing copies of your electricity, gas, and water bills can help them budget for the future.
A preliminary title report from a title company shows the status of your property’s title, including any liens or encumbrances. This ensures that there are no legal complications before closing the deal.
At closing, both parties will receive a HUD-1 or closing disclosure that itemizes the costs and credits involved in the sale. This document clarifies the financial breakdown and confirms the sale price, fees, and final amounts owed.
You’ll need a new purchase agreement between you and the buyer outlining the terms of the sale. This legal contract is critical as it lays out the specifics of the transaction, such as the purchase price, closing date, and contingencies.
If you’ve had an appraisal done, provide the appraisal report to potential buyers. This document reflects the property’s estimated market value and can be a useful tool during negotiations.
A title search ensures there are no unresolved claims on the property. This document can help prevent any legal issues related to ownership during the sale.
Closing on a home requires personal identification, such as a driver’s license or passport. Be sure to have ID proof ready for the final stages of the sale.
Before closing, obtain final utility readings to ensure that all bills are settled, and there’s no confusion over unpaid utility costs when the buyer takes over.
If the move-out date isn't specified in the purchase agreement, a separate move-out agreement will help clarify when the property will be vacant.
If you plan to stay in the home temporarily after the sale, a rent-back agreement should outline the terms of this arrangement, including rent and duration.
By organizing these essential documents in advance, you'll make the FSBO process smoother, reducing the risk of delays or legal complications. Plus, being prepared shows buyers that you are serious, organized, and ready to close the deal!
