How Do I Protect Myself As A FSBO Seller?

How Do I Physically, Emotionally, And Legally Protect Myself When Selling My Own Home?

Introduction

I wrote this article to serve as a guide for those embarking on their FSBO journey. I have over 20 years of experience as a residential real estate broker, and created Project FSBO as a resource to help those people who want to sell their own home. 

I willingly share my expertise and insider knowledge with you.

“Safety” means many things, ranging from personal safety to
your property, finances, and even your emotional wellbeing. 

In the realm of For Sale By Owner (FSBO), as you take on the
roles traditionally held by real estate professionals, it’s paramount to be
armed with knowledge and resources to shield yourself from these potential
hazards.  With over 50 year of combined professional experience as a real
estate brokers, the team at Project FSBO has seen it all.  We learned
these lessons over the course of thousands of transactions, and we’re passing
this experience on to you. 

The information that follows is dedicated to making your
FSBO experience not just successful, but also secure and empowering, ensuring
you are fortified on every front as you work towards selling your property.

What are the negatives you take on when selling your own home?

It’s prudent to consider all possibilities, good and bad, before undertaking something as important as selling your own home.  It’s not supposed to be a dangerous thing, but nevertheless you should be aware of some things that you’re unlikely to consider on your own without benefit of years of experience.  . 

“In preparing for battle I have always found that plans are useless but planning is indispensable.”  – General Dwight D. Eisenhower

This isn’t a battle of course, but here are three things you should plan for before getting started.

Risks of For Sale By Owner (FSBO)

1. 1. Physical Risk Exposure.  You will be having strangers walking through your home.  You will want to guard against theft. 

1. 1. Legal Exposure.  You must be sure that you’re doing everything “by the book” and that your buyer is also being above board with what they’re doing as well.

1. 1. Emotional Exposure.  This is your home, and you have emotional currency invested in your own home.  It can be difficult to hear criticism and suffer the highs and lows of deals that go south. 

Physical Risk Exposure: What to Watch Out For

Theft and physical danger are extremely rare occurrences.  You shouldn’t be frightened, but you should be aware of potential risks and take basic steps to remove temptation.  The “biggest” and most common “threat” you will likely face is small children picking up toys and shiny objects!

Nevertheless, you must remain vigilant.  Several years ago, there was a couple who attended open houses in my area and stole valuables from the homeowners.  They dressed well, only went to high end listings, and one of them would distract the agent while the other would be “looking” in the bedroom.  They were quickly identified and arrested, but the lesson is to be sure no one is completely unattended in your home. 

Here are some home safety tips:

Remove Temptation

When it’s time to bring potential buyers into your home for the first time, be sure to safely store all your valuables and remove anything particularly sentimental, delicate, or fragile that is important to you.

PRO TIP:  It’s not at all unreasonable for buyers to open cabinets, closets, refrigerators …etc. when touring your home.  Common courtesy would imply that one doesn’t open dresser drawers, but you can safely assume that some people will open everything.  (Not out of malice, but benign curiosity)

Where to Hide Valuables

Pick a storage place that you can safely secure without unnecessarily restricting buyer’s access to viewing the home.  This place should not be in your bedroom.  While we all view our bedrooms as our most intimate inner sanctums and private places, they’re not.  They’re just rooms – and people with itchy fingers know this. 

Good places for valuables are file cabinets, basement storage, the trunk of your car, the highest shelf in a hallway closet, or any other out of the way place unlikely to draw any attention.  This is not meant to be a impenetrable defensive security measure, but simply something less obvious than your dresser drawer, yet still convenient to you, the homeowner, to access quickly and without too much hassle. 

What to do on a “Permanent” Basis While your Home is for Sale.

• • Remove valuables that you don’t use on a day-to-day basis.  For example, if you have a valuable collection of figurines, miniature spoons, baseball cards, or gold coins, now is the time to permanently put them away out of sight. 

• • Walk through your home with an eye towards identifying small, valuable things that could tempt someone to walk off with them.  Remove those items. 

What to do Before a Showing:

• • Have a routine.  Start in your bedroom.  Collect jewelry, watches, expensive handbags, and other valuables and put them in a bag or knapsack dedicated to this purpose.  Go room to room and collect any portable, valuable items that may be tempting like iPads and laptops.  Put the valuables in your hiding place.

• • Have the kids put away their toys.  This is less of a “value” proposition, but one of “little kid appeal”. 

• • Turn off computers and put away any valuable or personal documents that are out in the open.

• • Use your own common sense to put away anything else that is important to you that may be easy to walk away with. 

What to do During a Showing, and how to Protect Yourself.

• • If you’re hosting an open house, you should read the full discussion of that HERE.

• • Have a sign-in sheet for open houses and insist that all attendees sign in.

• • Have the full name, email address and phone number of all buyers who make an appointment

• • If you’re showing one group of buyers, you should be sure that you control the showing.  Don’t let them wander. 

• • Don’t be paranoid, but trust your instincts.  Husbands and wives usually stick together.  Kids tend to want to explore on their own. 

• • Make sure a family member or friend is aware of your showing schedule including who is there.

• • Keep your cellphone on your person as you escort people through your home

Legal Risks and Exposure

There are a lot of moving parts in residential real estate transactions.  You want to be sure that you are not doing anything wrong, nor are you omitting something that you should be doing. 

If your locality requires that an attorney be part of the process, you should be safe.  He or she knows the law and every aspect of the process.  Just be sure to hire a lawyer that has demonstrable experience with real estate transactions in your area and with properties just like yours.  Do not under any circumstances hire your hairdresser’s best friend’s cousin’s boyfriend who just graduated law school and is defending violators of the motor vehicle code in traffic court.

If your locality does not require a real estate attorney, no problem.  Hire one anyway. 

This is probably the largest single financial transaction of your life.  It’s no time to save a few buck by passing on solid legal advice.  ALWAYS work with a qualified real estate attorney representing your interests. 

Emotional Risks and Exposure

Do you like stress and criticism?  You’re likely to face both of these along your path to selling your own home. 

Even as a seasoned real estate professional, I am not immune to stress.  We, as brokers, care about our clients, and we want them to achieve their goals.  Everyone feels the stress in some deals.  It’s not that as a FSBO seller you shouldn’t feel stress, it’s knowing how to deal with it that helps you get through it. 

Different people react differently to stress and criticism.  This may not be a problem for you.  If you feel you are more fragile and will take it more personally, you should prepare yourself.  Unfortunately, I am not qualified in helping you deal with stress, but I can point out some of the common sources of it.

Common causes of stress when selling your home

• • Criticism of your home.  Nothing appeals to 100% of the population.  Typically, 10% of buyers will LOVE it, 10% will HATE it, and the other 80% fall somewhere in the middle.  Don’t argue with or defend yourself from this kind of criticism.  For some buyers it’s a ham-fisted way of “beating down the price” of something they really want.  For the true haters, thank them for their feedback and wish them luck.

• • Criticism of your wardrobe, décor, pets …etc.  Same as above.  Let it go and move on.

• • Not showing up.  Having buyers not show up for appointments is stressful – especially when they don’t even call.  This is never fun, but it happens.  Don’t take it personally.

• • Stress of negotiations.  Negotiations can often be stressful.  Your best way of dealing with this is to know your numbers and know what you want to accomplish.  Project FSBO offers advice, tips and resources to help you with negotiations.

• • Meeting and dealing with strangers.  You will (hopefully) encounter many new people when you begin showing your house.  Some people are more comfortable than others when dealing with strangers.  One thing to keep in mind is that they are there for the house, not for you to keep them entertained with small talk.  You need not feel pressure to be “charming”. 

One thing to note is that if you continue to get criticism about the same thing over and over, maybe you should look at it through the lens of a stranger to see if there’s merit in it.

Conclusion

This shouldn’t be a big deal or cause you to be scared of what may happen.  Guarding your physical, legal, and emotional wellbeing is really about the application of common sense and knowing what the potential risks are beforehand.  Knowledge is power, and just knowing some of the things to be aware of should be enough to ensure that you have a pleasant, trouble-free experience.

Taking the next steps

Do you want to find out more about if FSBO is right for you?  Circle back to the main article for this topic: Expert FSBO Guidance and Education for an Anxiety-Free Home Sale.

You can return to the previous article in the series “Is FSBO right for you?” HERE.

Or jump ahead to the next article in the series: The FSBO Timeline: How Long Will It Take to Sell My Home?.

Frequently Asked Questions (FAQ’s)

What are the main financial risks I should be aware of as a FSBO seller, and how can I mitigate them?

The main financial risks include undervaluing your property and potential legal issues due to contractual misunderstandings. To mitigate these, conduct a thorough market analysis for pricing and hire a real estate attorney to handle the legal aspects of the sale.

What steps can I take to ensure my personal safety when showing my home to strangers?

Always schedule showings during daylight hours, inform a friend or family member about the showing, and ensure you have a means of communication on hand. It’s advisable not to conduct showings alone; have someone else present if possible.

How can I protect my home and belongings during showings?

Remove all valuables and sensitive documents from sight. Secure small, portable items and use sign-in sheets for all viewers. Also, accompany potential buyers at all times during the showing to monitor their activities.

Are there any legal requirements or standards I should be aware of while selling my home myself?

Laws vary by location, but generally, you must provide full disclosure about the property’s condition and comply with fair housing laws. Hiring a real estate attorney will ensure you meet all legal requirements and standards.

How can I handle the emotional stress of selling my own home?

Be prepared for criticism and rejection, and try not to take feedback personally. Consider engaging a support network or a professional counselor to discuss your feelings and concerns during the selling process.

What should I do if a potential buyer wants to visit my property when I am not available?

Avoid leaving your property unattended. If you’re unavailable, reschedule the showing, or have a trusted friend or family member present during the showing.

How can I protect myself legally during the sale process?

Engage a real estate attorney to oversee the transaction, review all contracts, and ensure all legal procedures are correctly followed. This legal assistance will provide you with essential protection throughout the selling process.

Can dealing with negotiations add to my stress, and how can I manage this?

Yes, negotiations can be stressful. Stay informed about your property’s worth, real estate trends, and be clear about your limits. Practicing calm and strategic negotiation techniques can help reduce stress.  Finally, do your best to not take things personally.  The buyer is only trying to get the best deal possible.