For Sale By Owner Planning

Before you market your home as being 'For Sale By owner', there are legal, financial and structural matters to be considered.

• The legal position. State, Federal and local laws should be checked with reference to the various requirements regarding the disclosure of any known defects in the property. Many disputes arising after a sale has concluded, are as a result of defects in a property that had not been disclosed by the seller before the sale completed.

Would you knowingly buy a property with a collapsing roof or damaged foundations? Of course not. So you need to ensure that you disclose to any potential buyer any relevant aspects of the condition of your home that could affect their decision to purchase from you.

You will also need to check whether there are any liens, restrictive covenants, easements or private agreements that affect the sale of your home. If there are, you should consult your legal representative for advice.

• Financial. Are there any financial restrictions imposed on the selling of your home? If there are, will they hamper your efforts to sell or are they manageable?

Can you afford the modest outlay necessary to sell your home yourself? If you find that any serious structural work needs doing, will you be able to budget for it. I know this is a 'how long is a piece of string' question - you're going to have to check out your property's faults, if any, first - but if your budget is very tight at the outset, and there is major work to be undertaken, is it affordable?

• Structural matters. Do you know of any renovations that should be done to the property prior to putting it up for sale. Any work that will affect the selling price?  Cracked walls, for example, or dry rot or rising damp. Are there any improvements that you have been putting off? What general refurbishment and redecoration ought to be considered to spruce your home up before marketing begins?
  
  If a buyer finds a defect in your home that you were unaware of, then not only could it stall that potential sale, but also any that follow, if the defect is not remedied. If you know of any structural jobs that need to be done, then it would be advisable to get them done before you start to market the house. You could of course, point out the defect in your particulars, if it wasn't that serious, and amend the selling price accordingly. If remedial work is substantial, however, the defect would most likely put off a lot of would-be buyers and damage your efforts to sell.

More information about Planning The Sale

Should House Sellers Arrange a Home Inspection?