Skip the Agent:

How to Save Thousands by Selling Your Own Home

By Luke Gunkel
Table of Contents:

Before you sell

1. Skipping the agent
2. Understanding the market

Prepping the sale

3. Valuing the house
4. Writing the listing
5. Staging and photographing the house
6. Marketing the house

Selling the house

7. Showings and Open houses
8. Receiving and evaluating offers

Closing
9. The closing process
10. The inspection process
11. The appraisal process
12. Closing the deal
13. Afterword
1. Skipping the agent

Real estate agents can cost you a lot of money. A standard brokerage charges between 4% and
6% of the final sale price of your home. Considering the average home sale price in the United States
was $396,800.00 in 2021 (according to the Federal Reserve Bank of St. Louis), the real estate agent’s
cut of a single average sale can be as much as $23,800.00!
As you can imagine, real estate sales is a lucrative industry. Many brokerages across the country
do a great deal of marketing to keep business coming through the door, and many agents pay a
significant amount of money to join a national association of ethics to further build trust among their
clientele. Real estate brokerages plaster their logos on shopping carts, in newspapers, on TV, on bus
stops, and anywhere else they can get their hands on. They host radio shows, donate to community
organizations, and even get involved with local governing bodies. Across the board, there is a massive
push by real estate professionals to convince homeowners that hiring a brokerage to sell your home is
not only effective, but essential to ensuring a smooth sale process. Horror stories abound of home
owners who ventured to list a FSBO (for sale by owner), only to end up on the wrong end of a raw deal
that left them in heaps of trouble that could have been easily avoided if only they had hired an agent
from the biggest and flashiest brokerage in town.
Now don’t get me wrong, there are many benefits that a real estate brokerage can provide. They
can absolutely make the home sale process much smoother, and they are able to spot many red flags
that the average homeowner may not know to look for. They are often knowledgeable in marketing and
have many contacts that can help your home sell faster. However, are those services really worth
thousands of dollars when you can do many of the same things yourself for free?
Here’s the truth – you can absolutely sell your home on your own and save thousands of dollars
doing it. Real estate isn’t rocket science. Tens of thousands of homes are sold every year without
incident, and the processes are streamlined and consistent. With a little bit of training, you can learn the
ins and outs of selling your own home in today’s market.
I was a licensed real estate agent for several years and worked specifically in residential home
and land sales, and I wrote this guide to pass along the knowledge you need to sell your own home
successfully. The information I’m about to give you will walk you step-by-step through the whole
process and give you the tips you need to save money by selling your home yourself.
One quick note before we begin – this guide was written to give a detailed overview of the
process and to provide general advice on how to complete the sale yourself. However, it should not be
taken as specific legal advice for details unique to your transaction. Please consult a legal professional
if you have any further questions about your real estate deal.
Let’s begin!
2. Understanding the market

When I talk about selling your home “successfully”, I mean that you’re selling it at market
value in a timely manner. To do this, you first need to understand the basics of the real estate market
and how it works.
Let’s start with the term market value. Real estate home values are a tricky business, because
there are many factors that can influence the value of a home. At its most basic level, the market value
of a home is the price a buyer will pay for it. Buyers can be finicky – this ultimately means that there
are many factors that influence a home’s value, and that they won’t necessarily affect all homes the
same. While there are many things that affect the value of a home, here are some of the standard factors
that play the greatest role in determining market value

 Location: The location of a home has a major impact on its market value. Consider the
desirability of physical part of town, accessibility to public transportation (if that is a
valued part of your community), the rating of the school district, county or township
policies and/or taxes, HOA policies, the noise level, and possible disturbance from
nearby uses. All of these factors can greatly improve (or lower) your home’s market
value.

 Curb appeal: Many potential buyers make a gut decision about a home at very first
glance, and that decision stays with them throughout the entire showing. Homeowners
that take the time to make their homes clean, tidy, and well-maintained will consistently
sell at a higher market value than those who don’t. This doesn’t necessarily mean that
you need to put thousands of dollars into remodeling your home, but your market value
will go up if you touch up the interior and exterior paint, clean the roof and gutters, and
intentionally maintain the landscaping.

 Highest and best use: Another major factor that buyers (and their banks) consider is
whether or not the property is being utilized to its “highest and best use.” This is a real
estate investment term which considers if there is any additional value to be had from
using the property in a different way. If your property has extra land that can be
subdivided, if the zoning allows for adding an apartment, or if the zoning allows for
commercial use as well as residential use can all have an impact on the market value of
the property.

 Interest rates: Interest rates for residential mortgages have a noticeable impact on the
market value of homes. If the interest rates are low, more buyers can afford the monthly
payments to purchase a home, thus driving up demand and market value. Inversely, if
interest rates are high, less buyers can afford monthly payments, which will lower
demand and market value.
  Supply and demand: The number of similar homes on the market in your area also
plays a role in determining the market value of your home. If there are many homes that
are similar to yours in location, curb appeal, and highest and best use, the market value
may go down since potential buyers have a large supply to choose from. The inverse is
also true – the fewer similar homes that are available, the higher the market value can
be.

These factors are some of the most common that will affect the market value of your home, and they
are good topics to consider when you begin researching real estate trends in your area (a topic we’ll
discuss in much more detail later in the guide).
The second aspect to selling your home successfully is doing so in a timely manner. From a
real estate perspective, this does not necessarily mean selling your home quickly – rather, it means
selling your home within the same time frame as other similar homes in your area. Selling in a timely
manner is closely related to selling at market value – if your home sells quicker than others, it could
mean it was priced below market value. The most successful sale is one that achieves the best price for
your home in a reasonable amount of time. That is the target that I aimed for as a real estate agent, and
it’s the target I’ll reference with the tips in this guide.
3. Valuing the house

Once you’ve decided to sell your home, one of the first steps to take is to determine its market
value. From there, you can decide on your asking price and determine approximately how long it will
take to sell. There are a few specific reasons to value your home accurately:

 You don’t lose money: with an accurately valued-home, you can feel confident that you’re
making the most money out of your home sale.

 You are more informed as a seller: It is critical to properly evaluate offers from potential
buyers if you have a well-supported valuation on your home.

 There is less of a chance of losing the deal in closing: If a buyer is purchasing your home
using a mortgage, their bank will require an appraisal. An appraisal is a professional, data-
driven home valuation report that is completed by a licensed real estate appraiser. In most cases,
a bank will not loan a purchase amount higher than the appraisal. If the appraisal comes back
lower than the agreed-upon sale price, most sales contracts allow the buyer to re-negotiate the
price or back out of the deal. Pricing your home properly will minimize the chance of the buyer
backing out after the bank appraisal process. (There will be more details about this process later
in this guide.)

When a real estate agent begins the home sale process, one of the first things they will do is produce a
Comparative Market Analysis. This analysis includes a deep-dive into local real estate data to properly
estimate the value of the home they are listing for sale. In this chapter, I will walk you through how to
create your own analysis to estimate the market value of your home.

Before we get started, I must stress that the absolute best way to value your home is to hire a real estate
appraiser yourself. They have access to a large amount of data and use specific metrics based on
continual area research to arrive at their estimated market value. This data will be extremely helpful to
you as you research the real estate market and negotiate with buyers. The cost for an appraisal can be
steep, but it is often money well spent. It truly is the most accurate way to value your home, and I
highly recommend it especially if you have a unique property or struggle with finding other
comparable homes to yours during your research.

That being said, let’s get started with developing a Comparative Market Analysis. Below, I’ve posted a
simple analysis report as a sample. We’ll reference this figure as we walk through the process together.
Fig. 1: Sample Comparative Market Analysis

Subject Property Comparable 1 Comparable 2 Comparable 3

Address 1234 Subject St. 834 Maple Ave. 1129 Scott St. 8799 Robin Ln.
Dist. From Sub. 0/Same 0.25 miles 0.20 miles 0.50 miles.
List Price N/A 375,000.00 395,000.00 350,000.00
Sale Price N/A 370,000.00 385,000.00 350,000.00
Assessed Value 365,000.00 365,000.00 378,000.00 340,000.00
DOM N/A 35 41 84

House Sq Ft 2,000 sf. 1,850 sf. 2,050 sf. 2,200 sf.

Lot Sq Ft 12,000 sf. 14,000 sf. 10,000 sf. 15,000 sf.
Beds 3 3 3 4
Baths 2 2 1.5 2.5
Year Built/Rem. 1992 1990 1985

Int. Condition N/A Similar Similar Similar

Ext. Condition N/A Superior Superior Inferior
Prop. Condition N/A Similar Superior Inferior

Overall Rating Similar Superior Similar

Notes Garden shed. Nicer windows. Similar house size, Extra bedroom and
Fenced yard. Slightly larger lot. slightly smaller lot. larger house and
Smaller house. ½ bath instead of lot. Offset by
Fenced yard. full. Landscaped rough exterior
front yard and new condition.
siding last year.
Estimated Value $375,000.00

To properly value your home, you’ll want to create a comparative market analysis similar to the
one shown in Figure 1. The analysis shown is basic, and includes what I would describe as the “bare
minimum” to get an estimated value. As you begin to research comparable homes in your area, feel free
to add additional categories that you feel affect the value of homes nearby. We’ll walk through how to
create and analyze each of these sections one at a time.
 1. Picking comparable sales: The first step to creating a comparative market analysis to find
several recently-sold properties to compare yours to. These are listed in Figure 1 as “Comparable
1,Comparable 2, and Comparable 3.” Real estate agents are able to access this information using the
MLS (Multiple Listing Service) database, but you can also access much of this information using a
common real estate website such as Zillow. Many of these sites allow you to search sold listings, from
which you can pull the data to create your analysis. If you are not able to find any sold listings, you can
still create an analysis from currently-listed properties, though it won’t be as accurate of a market value
estimate as from a sold property.

There are several specific things to consider when picking comparable properties, the first and foremost
being find properties that are as closely similar to yours as possible. There are several aspects of
similarity to consider when picking comparable properties, which I will list below:

 Location: If possible, find comparable sales within your same neighborhood. The closer
they are to your location, the more comparable they are to your property. If you cannot
find three properties within your same neighborhood, expand your search to within a
half a mile. If you need to expand your search beyond that range, ensure that they are in
a location with similar characteristics to yours.

 Year built/year remodeled: The age of a home has a large impact on its market value,
as it can heavily relate to the types of building materials, the construction methods
utilized, and the required maintenance on items like the heating system, roof, and
interior wear-and-tear items. Pick comparable homes that are within 5 years of your
home if at all possible.

 Date Sold: The real estate market is constantly changing. The market value of your
home can change by the day! Because of this, it is very important to pick comparable
sales that took place within the last 6 months. If you need to fudge on some of the other
criteria (such as bedrooms and bathrooms or the year built), you should do so in order to
get sales that are within that time frame. If you can’t access sold home data on websites
like Zillow, focus on actively-listed homes that have a wide DOM (days on market)
range to get a better feel for what the market is doing.

 Square footage: The interior square footage of the home plays a large role in the market
value of the home. Do your best to find comparable sales that are within 300 square feet
of your home. Anything larger than that will require valuation adjustments that are better
made by an appraiser. The square footage of the entire property also plays a role in the
market value, although the role is typically smaller because the usage of the property
also comes into play (for example, if a comparable sale has a smaller lot than yours, but
more usable space, it might be superior in value even though it’s smaller. On the flip
side, if a comparable lot is unusually large for the area, it can also be superior in value
 due to the additional space.) The best rule of thumb regarding property square footage is
to find comparable sales with property sizes within 3,000 square feet of your property if
possible.

 Bedrooms, Bathrooms, and Other Rooms: It’s best to find comparable sales that have
the same number of bedrooms and bathrooms as your home. The number of bedrooms
and bathrooms does have a role in the valuation of your home, the degree of which will
vary based on your location. The best rule of thumb is to spend some extra time
researching and comparing sold homes within your area. As you spend time researching,
you’ll begin to get a general sense of how much an extra bedroom or bathroom might
affect the price of a house, and you can adjust your own market value from there. That
being said, it’s much easier to pick comparable sales that have the same number of
rooms as your home does.

 Additional features: Many homes have additional features that set them apart. These
can include garages, sheds, pools, exceptional landscaping, hot tubs, fenced yards, etc.
These items are hard to factor in to a simple comparative market analysis without doing
a great deal of research in your area, so I highly recommend finding comparable
properties that closely match yours in terms of additional features.

2. Entering data: Almost all of the physical data (such as sales price, square footage, and room
count) found on the sample analysis in Figure 1 can be found on real estate listing websites such as
Zillow. If you can’t find the assessed value (we’ll discuss this term in more detail below) on the listing
website, you can probably find it in a database on your local assessor’s website. Don’t enter in your
comparisons on condition or your final valuation yet – we’ll do that down below.

3. Comparing conditions: After the data is entered, it’s time to compare the conditions of the
property. Remember, curb appeal has a big impact on the market value of a home – this is where we
enter that into our evaluation. When comparing conditions, we use three standard terms: “superior”
when a property is better than our subject, “similar” when a property is similar to our subject, and
“inferior” when a property is not as good as our subject. Spend some time looking through the listing
photos on each of your comparable properties, then let’s go through each comparison individually:

 Interior condition: In this category, we’re looking at all of the things that make the
interior of a house “nice” or “fancy.” Here are some of the factors to consider:
◦ Flooring: is it old or new? Hardwood (superior) or carpet (inferior)? Often the ad
will list if there is new flooring – if so, take note of this.
◦ Kitchen: How recently were the kitchen cabinets, appliances, and countertops
updated? Are they newer than yours or not?
◦ Light fixtures: does the comparable home have modern or traditional lighting?
Modern recessed lighting is superior in value to traditional fixtures.
 ◦ Bathrooms: How recently were the fixtures, tiling, and vanities updated? Are they
newer than yours or not?
◦ Heating/cooling system: was the heating/cooling system replaced recently? What
type of system is present in the home? Is it superior or inferior to yours?

 Exterior condition: In this category, we’re looking at all of the things that make the
exterior of a house sturdy and attractive. Here are some of the factors to consider:
◦ Roofing: Is it old or new? Is it metal (often superior depending on your climate),
shingle, or tile? Often the ad will list if the roof was replaced recently – if so, take
note of this.
◦ Siding: Is it cracked or peeling? Do the trim or gutters need new paint? How do they
compare to your home?
◦ Doors and windows: Do they appear newer or older than yours?

 Land condition: In this category, we’re looking at all of the things that make the
property usable and attractive. Here are some of the factors to consider:
◦ Yard space: is the front and/or back yard bigger or smaller than yours?
◦ Landscaping: is the property more professionally landscaped than yours, or less?
This can include flower beds, rock features, garden areas, and shade trees.
◦ Parking: is there more off-street parking available than your house or less? Is there
additional parking for boats, trailers, or RVs?
◦ Additional uses: are there additional uses (such as farm-related uses or space for an
additional dwelling unit or apartment) that are possible with the property? How do
those opportunities compare with yours?

As you consider all of the factors listed above, mark each section of each subject property with a
“superior”, “similar”, or “inferior.” We will go over how these determine the final value of the home
below.

4. Finalizing the estimate: Once you have entered all of the data into your analysis table, you
can then determine the estimated market value of your home. To put it simply, your goal is to generate
an average across the comparable sale data in order to decide on an estimated value. Because of the
nature of the data, there won’t be a specific numerical average that you come to – rather, it will be a
subjective average based on your best interpretation of the information on the form. Here are some
basic steps you can follow to help you determine the market value:

1. Work through each comparable sale one at a time.

2. Count the number of “superior”, “similar”, or “inferior” ranks in the comparable

property. Note which is the most common rank.
 3. Count the number of bedrooms and bathrooms. If the number is greater than your
home, consider it “superior.” If the number is the same, note it as “similar.” If the
number is smaller, note it as “inferior.” Factor this note with the one you took in step
two.

4. Compare the square footage of the property and the home, using the same metric
described in step three. Note the ranking, and factor that note with those you took in
steps three and two.

5. Consider any other improvements to the property and rank using the same metric
described above. Note the ranking, and factor that note with the others listed above.

6. By now, you should have a clear sense of whether the comparable property is
superior, similar, or inferior in value. Enter this ranking on the analysis chart. Repeat this
process for each comparable sale.

Once you’ve ranked each comparable sale as superior, similar, or inferior, compare each ranking with
the final sale price of the property. If you cannot find that information, then compare each ranking
with the final listing price of the property. You can use this comparison to determine if the listing price
of your comparable property is superior (higher), similar (the same), or inferior (lower) than the market
value of your property. Using this metric, you should be able to arrive at a reasonable estimation of the
market value of your home.

Before we move on, here are few final thoughts regarding the comparative market analysis:

“Bracketing” your home: it's best practice to find comparable sale properties that “bracket”
your home’s estimated value. You can do this by using one property that’s superior to your home, one
that’s similar, and one that’s inferior. While this is not necessarily required, it will serve to give you a
more accurate estimate of your home’s value.

Assessed value: every property has an assessed value that is placed on it by the local
government for the purpose of collecting property tax. Assessment values are public information and
can be found on most assessor’s websites through an online database or GIS mapping platform. An
assessment value is generated much in the same way an appraisal is, although it is typically done
without certain pieces of data (such as interior condition data). Because of this, assessed values can
(and often do) vary from market values. That being said, because assessment values follow a fairly
standardized generation process, you should see a fairly consistent relationship between selling (or
listing) prices and assessment values. (For example, in Figure 1, the assessed values are approximately
$5,000 - $10,000 less that the sale prices.) You can use these observations to help you determine the
estimated market value for your home.
4. Writing the Listing

Once you’ve completed your comparable market analysis and determined the estimated market
value of your home, you can write your listing! While this may seem like a simple process, writing
your listing is an incredibly important part of selling your home, especially as a FSBO. The listing is
where buyers get a true first impression of not only the features of the home, but also of you as the
seller. The way you describe the home, the information you include (and omit), and the quality of the
writing can drive buyers away just as easily as it can pull them in. Consider these three examples:

Example 1:

FSBO, a 3 bed, 2 bath house. 2000 sq.ft. Nice home, big yard. Kitchen recently updated, along
with floors. Asking $395k. Make an offer.

Example 2:

We love how the light shines through the big windows of this 3 bedroom, 2 bath ranch home! At
2,000 square feet, the floor plan is great for entertaining guests or having a family game night. This
lovingly-maintained home was built in 1992 and boasts central heating, laminate floors, and new solid-
surface countertops in the kitchen. Let your pets roam in the large fenced yard on the 10,000 square
foot lot! Listed for $375,000. Call for a private showing. Open House on Saturday, 12/1 from 11:00am
– 2:00pm. Buyers agents welcome.

It’s easy to see that Example 2 has much more potential than Example 1. However, when I look
through FSBO ads, I see so many Example 1’s out there!

Many people who sell their own homes seem to take a similar approach to writing real estate ads as
they might with a used car ad. Short, simple, to the point, no frills, no “bs.” While this approach may
appeal to some, consider that buyers will be comparing your listing to many, many others written by
real estate professionals. It’s just not that appealing to buyers if you go with Example 1!

Writing an ad like Example 2 is much easier than it seems, and you don’t have to be incredibly creative
to do it. There are two particular things that you’ll learn in this chapter: the five essential components
of a real estate ad, and a foolproof listing template.

Let’s start with the five essential components of a real estate ad:

1. Be genuine, but professional. Many people can spot a “sleazy salesman.” While some real
estate agents tend to garner that kind of reputation, you certainly don’t need to take on that persona
when selling your house. In this day and age, home buyers appreciate a seller who is genuine, and
professional. They want to buy a home from a seller who they can connect with, who they feel is not
“ripping them off”, yet who is confident in the home they’re selling and all of its positive qualities.
Because of this, I should say right away that you should never lie in your advertisement. Not only is
that unprofessional, but it can set you up for a lawsuit in the future. Instead, keep a positive and
confident tone in your ad, while avoiding pushy phrases like “act fast!”, “worth the price!” or “this is a
great deal!”

2. Include the essential details. Now that you’ve done the comparative market analysis, you
should have a strong grasp on the essential details that buyers are seeking to know about a home. In
your ad, you need to include:
 The number of bedrooms and bathrooms
 The address of the property
 The square footage of the home and size of lot
 The age of the house
 Major recent updates to the house
 The listing price
 Any location-specific selling points (such as the school district or proximity to transit) if
helpful.

3. Visualization: when potential buyers consider a home for sale, they are not simply looking at
the details on a fact sheet – they’re looking for their life within the space. Help them visualize what life
is like in your home by providing visual statements along with the home details. Instead of saying
“large kitchen with new appliances”, say “enjoy prepping meals with friends and family in the large
kitchen, recently outfitted with brand-new appliances.” These visual statements can help the buyer see
potential for their own lifestyle within the space, and makes the advertisement much more appealing.
Be careful not to overdo it, though! Otherwise, the ad can begin to sound cliché.

4. A thoughtful asking price: One of the single greatest mistakes I see with FSBO listings is a
misunderstood approach to the listing price. Taking the wrong approach with your listing price can
drive buyers away faster than any other mistake in the advertisement. Many people who try to sell their
home approach the process as if they’re selling a used car – they’ll identify the price they want to get
for their house, and then they’ll set the listing price significantly higher because they expect buyers to
make lower offers. What they don’t realize is that this approach backfires almost every time. Home
buyers often have a set amount from the bank that they’ve been pre-approved for. Because of this, they
rarely search for homes that are listed above that price range. In fact, many of them will even filter out
higher priced homes during their search, so that they don’t even show up in the search results! So many
FSBO sellers miss out on finding buyers because they don’t realize that they’re unintentionally driving
buyers away with their pricing.
Instead of driving buyers away, use a thoughtful approach to your asking price. At this point
you’ve done the research, so you know what the market value of your home is. If you’ve entered in
data for all of the sections of the comparative market analysis, you also know a general average of how
long homes are on the market before they sell. Zillow even includes a “price change history” on many
listings, which can give you valuable information on if listings have lowered their price over time or
not. Because of this you have a great deal of information at your disposal to help you set your asking
price.
Consider this: in a market where the demand is high and the supply is low (a “seller’s market”),
buyers will often have to compete with each other to get an offer accepted. This often results in sellers
being offered asking price (or higher!) for their homes. This might lead many to list their home for
higher than the market value, to entice higher offers. However, if the buyer is using a bank mortgage to
buy the home, the home will still need to go through the appraisal process, at which time it will still
appraise for at or around market value. In some circumstances buyers will still agree to pay the extra in
cash, but more often than not they re-negotiate for market value anyway or walk away from the deal
altogether. So, in the long run, you’re still most likely to get market value for your home, even when
you try take advantage of the market by selling at a higher price.
Alternatively, in a market where the supply is high and the demand is low (a “buyer’s market”),
houses may sit on the market for a longer time, while buyers aren’t feeling pressured to make
immediate offers while they weigh their options. This often results in sellers being offered less than the
asking price for their homes. In this case, it can be tempting for sellers to list their home for less than
market value in order to entice buyers to act fast. While it might work, you’re shorting your profits as a
seller! As you now know, market value is determined by comparable sales, which means that other
homes similar to yours have recently sold for market price. If you did your comparative market
analysis correctly, then you should have a legitimate opportunity to sell your home at market value in a
reasonable amount of time given the market conditions.
In both of the scenarios listed above, it works best to set the asking price for your home at, or
slightly above, market value. Remember, you can always recalculate your market value if you’re not
seeing results later on. My recommendation is to list the asking price for your home at no more than
$5,000 over the estimated market value.

5. Showing details. There are several showing details that you can include in your
advertisement that encourage buyers to view your property. The first thing you should always include is
the date of your first open house (which we’ll talk about later in the guide). You should also include
any other pertinent information about who to contact for a showing. Be sure to make yourself as
available as possible to respond to inquiries in a timely manner – I would recommend including your
phone number and email address in the advertisement to ensure easy access from potential buyers.
One thing that I would not recommend is placing any barriers to buyers viewing your home. I
have seen many FSBO advertisements list statements like “only pre-approved buyers may view the
home.” While this might be more convenient for you as a seller by limiting showings only to serious
buyers, the reality is that it comes across as closed and unwelcoming. Remember, buyers want to
interact with a seller who is genuine and professional – do everything you can to be that way!

Another note: This is a bonus component that is not required, but can make a big difference in
helping you sell your home. Many FSBO ads include a line that describes their willingness to work
with buyer’s agents. What this really means is that you as the seller are agreeing to pay a percentage of
the sale price as a commission to a real estate agent who brings a buyer to the table. This percentage is
typically 1.5% - 2%. While many FSBO sellers immediately reject this idea to save money (which I
can understand – it’s why I’m writing this guide!), consider that the vast majority of real estate buyers
are likely working with real estate agent. It often costs buyers nothing to hire an agent (since the seller
pays the commission), so very few tend to operate without one. These real estate agents are scanning
new listings every day to find homes for buyers they’re working with. If there’s no financial incentive
for them to show your home to their clients, they are much more likely to skip it as an option and show
other homes that offer a commission instead. If you don’t offer to work with buyer’s agents, you run
the risk of greatly reducing the number of interested buyers that will visit your property. Keep this in
mind as you work through listing your home!

Now that you’ve learned the essential components of a real estate advertisement, lets put it all
together in a template that you can use to sell your home. You certainly don’t have to use this template!
But, if you’re not sure where to begin, it might help you out.

Real Estate Listing Template

1: Visualization of defining space in the home, list bedrooms and bathrooms and age.

2: Visualization of home layout, list square footage and key spaces like kitchen, den, or TV
room.

3: Descriptive list of major recent updates to the home.

4: Visualization of property, to include size, features, and potential uses.

5: Showing details. Asking price.

Visualization statements: (Feel free to plug-and-play these statements as they fit)

 “Throw a party...”
 “Cozy up with a book...”
 “Set up a game in the backyard...”
 “Prepare a feast...”
 “Watch the game...”
 “Watch the sunset...”
 “Wake up to birds singing…”
 “Step outside to everything you need...”
 “Enjoy life in the heart of it all...”
 “Snuggle up by the fire...”
 “Store all of your toys in...”
5. Staging and Photographing the House

Once you have you ad written, the next step is to stage and photograph the house. As you can
probably imagine, quality photos sell houses. If a buyer isn’t “wowed” by the photos, they won’t bother
scheduling an appointment to see the home! One of the biggest things that sets an FSBO listing apart
from a brokerage listing is the quality and quantity of the photos. There are several things that buyers
are specifically looking for when scrolling through photos of their next potential home, and I’ll detail
those for you below. Once you finish reading this chapter, you’ll have all of the knowledge you need to
take quality photos of your home for the listing.
Before we get into it, please note that real estate photography is a growing business, with many
photographers specializing in the area. A good quality real estate photographer will bring professional
gear and lighting into your home, and produce truly beautiful photos for your listing. Many skilled real
estate photographers will charge a significant amount of money for their services, but if it fits into your
budget, it can be a wise investment, especially if you are not particularly skilled at taking photos or
don’t have proper gear.
Let’s get into how to take photos of your home! To begin, let’s go over the primary things that a
buyer is looking for in a real estate photo set:

Quality: One of the first things a buyer will notice when reviewing photos of a property is the
quality of the photos. Most people will notice right away if the photos haven’t been edited or framed in
a professional manner. This creates an immediate, even subconscious sense of distrust in a buyer,
particularly when they are looking at a FSBO property. When you’re taking photos, you need to strive
for excellent color grading and composition.
Color grading is the editing you do to the photos after you’ve transferred them to your
computer. You can do this using any photo editor that you have available on your computer. Most
computers come loaded with a basic photo editor, which will be able to do everything you need for
basic color grading. The first step to good color grading is to take good photos! The best real estate
photos are taken when it’s bright and well-lit with natural light both inside and outside the home, but
without direct sunlight that causes a glare or major shadows on any objects that you’re photographing.
Following these tips will make your photos turn out much better.
To color grade a photo, open it in your photo editor. There are two basic functions that you are
going to use: “exposure” (sometimes called “brightness”) and “contrast”. First, find a white-colored
object in your photo. Then, adjust the exposure so that the object appears bright white in the photo, but
no other objects are washed out in the process. Then, find a black-colored object in your photo. Then,
adjust the contrast so that the object appears truly black in the photo, but no other objects are overly
darkened in the process. While this is a very simple edit that only touches on the absolute basics of
color grading, it is enough to ensure that your photos have a professional edge to them.
One important thing to remember is that you can only enhance a poor quality photo so much.
Small edits make all the difference, and over-edited photos can make your advertisement look too
stylized, as if you as the seller are trying to hide something. Don’t go overboard trying to edit a photo
that isn’t great quality. Instead, retake the photo!
 Composition is the way the objects in the photo are arranged. The composition has a major
impact in how buyers view the size and livability of your space. A photo with poor composition will
make a space feel small and cluttered, whereas a photo with great composition will make a room feel
airy and inviting. Real estate photography composition comes down to a few specific rules to keep in
mind when taking your photos:

 Most smartphones are appropriate for real estate photography, though a professional DSLR
camera is the most appropriate.

 The best real estate photos are taken using a wide-angle lens or a wide-angle setting. This is
the best way to capture the full breadth of a room in a single image.

 Take your images at shoulder or eye level – this is the height that a standard person will
view the room when they walk in, and it’s the height they expect to see in real estate
photography.

 Take each photo from as close to the corner of each room as you can, unless the space
dictates otherwise. This will allow you to capture as much of the room as possible in one
shot.

 Take time to adjust the settings on your camera so that you take the best quality photos
possible.

 If you’re using a smartphone, take all of your pictures in “landscape” (flat) format instead of
“portrait” (vertical) format.

 Make sure everything is in focus!

Quantity: In this day and age, with the rise of the internet as a primary real estate marketplace,
buyers will spend a much greater length of time reviewing property photos before, and after, the
showing. In fact, some buyers may even spend more time looking at photos then at the actual property
in person! Because of this, your photos need to “show” the buyer the property as completely as
possible. To do this, you need to take a lot of photos! In particular, you should have photos of of each
of the following things:

 All exterior sides of the home. Don’t just take photos that are “straight on” - include
photos that show two sides of the home at once.

 The yard. Include at least two angles if it’s a large yard with landscaping features.

 Any additional parking spaces or storage sheds (only if they’re clean and tidy!)
  All main living spaces of the home (Living room, dining room, den, study, etc.) Include
at least two angles of each of these rooms.

 The kitchen. Include at least two angles of the entire kitchen, and close-ups of any high-
quality upgrades (like an above-average range or new quartz counters.)

 Each bedroom – at least one photo that shows the whole room (including the closed
closet door.)

 Each bathroom – at least one photo that shows as much of the room as possible.
(Because these spaces are small, it’s sometimes difficult to get everything in one photo).
Include extra photos of custom showers, jetted tubs, or walk-in closets.

 The garage and/or utility closet (ensure they are clean and tidy!)

If you include all of these things, you should have between 15 and 20 photos of your home. This should
be considered the minimum – the more photos the better!

Livability: as we’ve discussed earlier in this guide, buyers are more attracted to homes that
they can visualize themselves living in. Because of this, staging the house can be a very useful tool in
attracting buyers. Staging is the process of decorating the house with enough furnishings to appear
“homey”, but not so much that it appears cluttered or disorganized. Before you take your photos, be
sure to do the following things to stage your home:

 Pick up the clutter! If you have things stacked on the floor, table, or other surfaces, put
them in a closet. All of your surfaces should be clear of any items that are not
decorative, and all of your floor space should be clear of any items that are not furniture
or decorative.

 Simplify the kitchen by keeping as few appliances, utensils, and food items on the
counter as possible. Items that are decorative in nature (such as glass jars or a statement
fruit bowl) can be left out in small quantities.

 Make each bed, fluff any throw pillows on couches and chairs, and adjust rugs and
drapes so that they are wrinkle-free.

 Vacuum, mop, and dust. Dirty surfaces will show up in your photos!

 Clean up any undue clutter or “junk” in the garage. Buyers expect this space to be used
for storage, so you don’t need to move everything out of the garage for your photo. But,
make sure it is clean and tidy in appearance.
  Clean up the landscaping on your property by mowing the grass, trimming and/or
pruning any bushes, raking leaves, and power-washing any driveway, deck, or patio you
might have.

 Consider placing any family photos or valuable personal belongings in storage, to

protect your privacy and your home from potential thieves.

Believe it or not, I have seen many FSBO listings (and even some brokered listings!) fail to follow the
staging rules above. As a result, the homes they are advertising look shabby and cluttered, and turn
potential buyers away. Don’t make the same mistake!
6. Marketing the House

Now that you have your market value estimated, your advertisement written, and your photos
taken, you’re ready to start marketing your property!
I’ll say this straight away: marketing a FSBO property comes with some more challenges than
listing with a brokerage. Simply put, real estate agents have access to a local MLS (multiple listing
service) which acts as a continually-updated database of all locally listed property. A home on the MLS
is automatically available for all agents to see, and therefore market, to their clients. Unfortunately, you
as a private seller do not have access to the MLS, and thus you’ll be competing against it to win market
attention. That being said, there are plenty of ways to successfully market your home. Let’s go over
them now:

Online listing websites: There are several popular real estate websites that receive a large
amount of traffic from agents and buyers alike. Private sellers are able to post their advertisements and
photos on these websites as FSBO listings. This will be your most likely source of traffic from potential
buyers. Here are the most popular websites that you should post your home on:
 Zillow.com: This is one of the most popular and widespread real estate websites, and is
easy to use for FSBO listings.
 Forsalebyowner.com: While not as popular, this website does specialize in FSBO
listings all across the country.
 Area-specific sites: There are several paid websites that are area-specific that might
include a listing on the local MLS. These are worth checking into if they fit your budget.

Online classifieds: The second most likely source of traffic that you’ll get for your
advertisement will come from online classified ads. The most popular website for this is Craigslist.
Craigslist has classifieds pages for localities nationwide, and is used by a great number of people to sell
all sorts of items. Each Craigslist page has a “housing” category and allows users to post a home for
sale by owner. Other online classified options include Facebook/Meta Marketplace, and any local
Facebook/Meta groups related to real estate or “buy/sell/trade.”

Local classifieds: Depending on your locality, these sources may not generate as much traffic
as the online platforms will. But, it certainly helps to post your real estate advertisement in a local
newspaper or classified publication. These typically require you to select 1-2 pictures and greatly
simplify your advertisement, so be sure to include the most important information: the square footage,
the number of beds/baths, and any unique features to the home.

The sources listed above are general sources that are available in nearly every locality for
advertising your home. However, there may be others that are specific to your area. The general rule
with advertising real estate is to market your property anywhere you possibly can! The more exposure
you get, the more potential buyers you may have.
 A sign: Don’t forget to put up “For Sale By Owner” signs! Pick large signs with easy-to-read
colors. Put some basic information about the house (similar to what you would include in the local
classified ad) on the signs along with your contact info. Display the signs prominently, one attached to
the front of the house facing the street, and one on a stand near the street facing up and down the road.
7. Showings and Open Houses

It’s taken you a lot of prep work to get to where you are now! But, if you’ve put in the time to
make a high quality advertisement and to price your home at fair market value, then you’ll soon be
getting calls from interested buyers!

How to talk to buyers: Just like I’ve mentioned earlier in this guide, potential buyers want to
purchase a house from a seller they can connect with and trust to be professional. Keep this in mind as
you take phone calls and emails from potential buyers. Whether you’re communicating via email, the
phone, text, or in person, always strive to be genuine, kind, confident, and not too pushy!

How to answer tough questions: One of the first things you’ll run into when speaking with
buyers is that you’ll usually need to answer a host of random questions about your home. You may take
these in stride because you know your house well, but there also may be many things you simply don’t
know the answer too. That’s okay! Be honest with your potential buyers – if you don’t know an answer,
don’t make it up. Let them know that you’ll find out and get back to them. This is not only
professional, but it will also keep you out of potential legal trouble later. If a buyer assumes something
to be true about the home because you told them so, they may have grounds to file legal suit against
you if it later comes out that you intentionally misled them. Be honest always!

How to show your home: When you’re walking potential buyers through your home, I’ve
found it’s always best to let them “lead the tour” themselves. Walk with them and answer any questions
they have, and feel free to point out particular items of interest. However, don’t feel the need to play the
“salesman.” Most buyers don’t want to feel as though they are being forced into purchasing a home,
and a pushy seller will drive them away. Of course, that doesn’t mean that you should stay quiet and
aloof either – just stay present, helpful, honest, and genuine. Your buyers will appreciate you.

How to work with other parties: Sometimes, buyers will ask to bring other parties to a
showing with them. These folks can include construction contractors, real estate agents, business
partners, inspectors, and many more. These people are often invited because the potential buyer may
feel insecure in their ability to evaluate a house by themselves. It can seem intimidating to have a buyer
show up with other professionals, but I recommend treating them with kindness and courtesy as well. If
you are hesitant to allow other professionals to see the home, it may appear as a red flag to the buyer.
That being said, there are a few boundaries you should set for yourself as the seller. First,
remember that this is ultimately your home and you can deny a showing at any time if anybody is
making you feel uncomfortable. It’s normal for a potential buyer (or a trusted professional) to do a
quick visual inspection of a crawlspace, attic space, and utility closet. However, there’s no need for a
buyer to hire a professional to do any type of in-depth, invasive inspection of the home until an offer is
made. (We’ll talk about that later in the guide.)
If a potential buyer brings a real estate agent with them, you’ll usually know ahead of time (in
fact, you’ll probably be talking to the real estate agent more than the buyer anyway.) Treat the agent
just as you would the potential buyer, and allow the agent and potential buyer space to discuss the
home privately during and after the showing. You may even find that the agent wants to lead the tour
themselves – this is perfectly okay to allow. Feel free to chime in with any pertinent details along the
way.
You may find that an agent wants to show the house without you home. This is common
practice among agents when showing a house listed by another brokerage, as there are rules in place
that require certain etiquette and safety procedures when showing homes that are listed professionally.
Many of those rules will be extended to FSBO homes as well, but you should only allow this if you feel
comfortable doing so. There is nothing requiring you to leave your home with a buyer’s agent, and you
can always deny a showing if the buyer’s agent insists on showing your home without you there.

How to leave an impression: There are a few things you can do to leave a positive impression
with potential buyers. First, have several printed copies of your advertisement available as handouts
that the buyer can take with them. Include your contact information on the handout. Second, find a
generic “real estate property disclosure form” on the web and fill it out. These forms are fairly
standardized and provide a way to create a detailed list of facts about the house, along with any known
defects. Filling out this form can be tedious, but including a finished copy with the advertisement in
your handout will add a great deal of transparency and professionalism to your showing. Finally, take
the time to have a simple business card printed at your local office supply store or print shop. The card
should have a picture of the home, the address, your name, and your contact info. Hand these out to
everybody that comes to see your home – it’s one more way to remind them of your place, help them
find your number if they lose it, and to add a level of detail to your showing.

Conducting an Open House: One great way to attract buyers to your home is to host an open
house. These should be well-advertised in your listing with the date and time. Your open house should
occur on a Saturday, and should last for about three hours. On the morning of the open house, post
some additional signs advertising the open house on your home, and on the major intersections leading
to it (similar to how you would advertise a yard sale). Use professionally-made signs if at all possible!
Open houses function slightly different than showings. As the seller, you are there to welcome
potential buyers and answer questions about the home, and it’s best practice to allow sellers to tour the
home independently. On a small table near the front door, have a stack of your handouts and business
cards available for potential buyers, along with a sign-in sheet to capture names, email addresses, and
contact information for the guests (this is useful for following up after the open house if you choose,
and also for keeping a record of all who visit in case something gets broken or stolen). It’s always a
nice touch to bake a couple trays of cookies before guests arrive as well!
8. Receiving and Evaluating Offers

The ultimate goal of showing the home is to get an offer, and if you’ve followed the instructions
so far, the chances are high that you’ll get one! (Or more!) The purpose of this chapter is to give you
the information you need to understand the components of a real estate offer and how to evaluate if it’s
a good offer or not. Please note that this chapter is not meant to serve as specific legal advice for
contract writing – you should ultimately evaluate any information from any offer with input from a real
estate lawyer if you do not understand the terms and conditions of the agreement or need help writing
legal clauses within a contract. This chapter is meant to serve as an explanation of what you should
expect to see in an offer, and my advice on how to evaluate if an offer is a good deal.
Real estate offers can come in different formats when you’re selling a home on your own. A real
estate agent might give you a 10-page document with tons of legal fine print and some complicated
vocabulary, while somebody else might simply walk up to you and say “would you take 350?” That
being said, there are several components a legal and binding real estate offer needs to have. Let’s go
over them now.
Before we continue, note that a real estate offer isn’t technically called an “offer.” Instead, a
potential buyer fills out their portion of a “Purchase Agreement” and gives it to the seller. This is a
document that details the agreement to purchase the home. The seller then reviews the document and
either signs it or revises the terms and sends it back as a counter-offer. It becomes legal and binding
when the sellers and buyers willingly and knowingly sign the document – that is if they are of legal
age, have the legal right to buy or sell the property, and list the compensation for the property in a clear
agreement. The purchase agreement has several key components:

The legal description of the property: the purchase agreement needs to include the full legal
description of the property, as it’s described on the current title. This information can be found with the
local recorder’s office, or the local assessor’s office.

The consideration: Also known as the purchase price, the consideration is the full amount paid
for the property. This should be listed numerically ($350,000.00) and in written form (three hundred
and fifty thousand dollars and zero cents.) This section should also include the method of payment
(cash, mortgage with bank information, or other), and the amount of earnest money being given to the
seller. (Earnest money is an amount that is given to the seller to show that the buyer is serious about the
offer. It remains with the seller if the buyer breaks the purchase agreement without cause.)

The closing date: This is the date the property sale is expected to be finalized. At this point, the
ownership of the property would change hands, and the new owner would have immediate full
ownership rights and access to the home. It usually is 30-45 days after the sale of the home. This date
should be written as an estimation, with allowances for 1-2 weeks of flexibility due to scheduling with
all of the parties involved in closing a home sale. However, there should also be a clause stating that no
party should prevent closing without undue cause. This portion also often includes the name of the title
company which will be used to process the sale.
 The closing cost share: This is a description of who is paying the closing costs. Most offers
state that the buyer and seller will split the closing costs, although contracts can vary widely on this
point. Make sure the costs for all elements of closing are covered here – these can include title
insurance, escrow fees, recording fees, etc. A complete list of these fees can be obtained from the title
company you and the buyer agree to use.

Contingencies: Often, an offer will be listed as being “contingent” upon other factors. This
means that if those factors aren’t satisfied, the buyer is legally free from their obligation to purchase the
home and is entitled to their earnest money. Here are the contingencies most often found in an offer:

 Contingent upon the sale of another home: this means that the purchase agreement is only
valid if the buyer sells the home listed. The contingency must include the address of the
contingent property.

 Contingent upon an inspection: this means that the purchase agreement is only valid if the
results of a home inspection report are approved by the buyer. This is a standard
contingency in almost every offer, and is usually explained in more detail in an “inspection
addendum” or in an inspection clause. The standard components include a period of time to
conduct the home inspection (typically 20 days), the name of the inspector who will
complete the inspection, and the agreement of who will pay for it (typically the buyer). It
should also list the negotiation stipulations after the inspection is completed, such as the
number of days the buyer has to submit a request for repairs.

 Contingent upon an appraisal: this means that the purchase agreement is only valid if the
results of an appraisal are approved by the buyer. This is a standard contingency in almost
every offer, and should include a clause stating that the buyer and seller can negotiate in
good faith if the appraisal comes back lower than the purchase price.

Personal Property Addendum: Purchase agreements should also spell out the personal
property items that are included in the sale of the home. These will typically include kitchen and
laundry appliances, ceiling fans, wood stoves or oil heaters, storage sheds, hot tubs, curtain rods and
blinds, and any other items that could otherwise be removed from a home before the sale is finalized.

Escalation clause: Some purchase agreements may include an escalation clause, which is a
statement that automatically increases the purchase price up to a certain amount if there are other
competing offers. These are typically only seen in strong market periods when there are multiple
competing offers on properties that are for sale.

Expiration date: Most purchase agreements include an expiration date which states how long
the unsigned agreement is valid for. Essentially, this dictates how long the seller has to respond to the
offer before it is withdrawn and becomes void. Take careful note of this date – it’s typically 24-48
hours after the offer is submitted.

Signatures: Once all parties agree to the terms of the purchase agreement, they must sign the
document for it to be valid. Signatures need to be obtained from all selling parties who are listed as
legal owners of the property, and from all buying parties who wish to become legal owners of the
property.

Every purchase agreement should include the elements listed above. If it doesn’t, you run the
risk of potential conflict and legal risk when you enter into the sale process. Many generic purchase
agreements can be found on the internet which include these items. If a potential buyer submits an offer
that doesn’t include all of these elements, find a purchase agreement template that does and ask them to
write a new offer using that template instead – this will protect both you and them throughout the
course of the sale.

Once you’ve received an offer, you have three choices – you can accept the offer as is by
signing the contract, you can reject the offer by not signing the contract and letting the potential buyer
know, or you can make a counter-offer (I’ll explain how to do this later in the guide). To proceed, you
need to evaluate the terms of the offer to determine if it’s a good offer or not. These are my tips on
evaluating an offer:

Consider the purchase price: The first step in evaluating an offer is to consider the purchase
price and how it compares to your asking price. If it’s lower than your asking price, consider how long
your home has been on the market and how much interest you’ve had recently. If your home has been
listed for less than the average DOM (days on market) for your area, or if you’ve had significant
interest (or other offers) from other parties, you may want to come back with a higher price on the
counter-offer. If the offer is higher than your asking price, the buyer must think that there will be
significant interest in the property and wants to buy it quickly before another buyer does. In this case,
you might consider asking for a longer expiration date or working to get more offers by calling other
interested parties to let them know an offer has been submitted. If the offer is right on your asking
price, it might indicate that the buyer wants to be competitive. Before accepting this offer, consider
how the local market is moving and ensure that your home is priced correctly. If no competing offers
come in and your home is priced at market value, you can feel confident accepting this offer.

Consider the purchase terms: The method of payment is important to consider. Homes are
typically bought with a mortgage, a cash sale, or an owner-finance sale.
Most homes will be bought with a mortgage. This is very standard, but there are some
additional factors that come up during the closing period that can complicate the sale. First, a purchase
with a mortgage introduces a third party to the sale – the bank. This naturally makes communication
more complicated, as there are requirements and timelines that the bank brings to the table to approve a
mortgage for a home sale. Second, a mortgage sale requires a home inspection and an appraisal. Each
of these contingencies provides an opportunity for renegotiation or, worst case, an opportunity for the
sale to fall through. Finally, additional documentation needs to pass between the bank, the buyer, and
the title company, which can add extra time to the sale process. Again, these factors are normal and
thousands of mortgage sales happen every year without a hitch. However, when evaluating an offer that
is funded by a mortgage, keep these factors in mind and be sure to ask for a pre-qualification letter
before you accept the offer! This letter will prove that the buyer has actually applied for the mortgage
before making an offer.
Sometimes, a potential buyer might make an all-cash offer. This offer is superior to any other
type of offer, as it is the simplest type of real estate transaction to process. All-cash offers might still
include an inspection addendum or appraisal addendum, but buyers are not required by a bank to have
those done. Some choose to have no contingencies at all. If you are evaluating multiple offers at once,
consider the ease of an all-cash sale as you make your decision. If you choose to accept an all-cash
offer, ask for proof of funds first! This can be in the form of a document such as a bank statement, and
it is proof to you that the buyer truly has the money to follow through on the deal.
Another common method of payment is an owner-finance transaction. In this deal, the buyer
will pay the seller a large down payment and monthly payments at a set interest rate over a period of
time (typically several years) for the property. These transactions typically occur when the buyer is not
able to secure a loan through a bank; this often happens because of their own financial history or
because the property is not in financeable condition. Owner-finance sales benefit the buyer as they
provide greater flexibility, and they can benefit the seller by helping to sell an otherwise not-
financeable property to a wider range of buyers. However, an owner-finance transaction brings more
risk. It means that the seller will not get the full purchase price of the property until the terms of the
agreement are fulfilled (although they will earn interest on the overall purchase price), and there is the
possibility that the buyer will default on the payments. To mitigate this risk, if you choose to accept an
owner-finance offer, do so with a local bank or credit union as the mediator. Many local financial
institutions offer to manage these deals with accounts specifically created for owner-financing, which
greatly reduces the risk for the seller.

Consider the earnest money amount: The earnest money is a payment given to you by the
buyer at the time the offer is made. This money acts as an assurance to you that the buyer is serious
about making the deal. If the buyer breaks the contract without cause, you get to keep the earnest
money. However, if the contract is voided due to a contingency spelled out in the purchase agreement,
the earnest money is returned to the buyer. When the sale is finalized at closing, the earnest money is
applied to the purchase price or closing fees. When evaluating the earnest money amount, consider how
much it is. Most buyers will offer approximately 1% of the purchase price as earnest money, although
some localities utilize a set amount for each transactions (such as $1,000.00). For your purposes, I
would recommend not getting too hung up on the earnest money amount – just ensure that it’s an
amount sizable enough to ensure the buyer is serious, and be leery of accepting any offer where there is
no earnest money put down on the property.

Consider the closing date: The estimated closing date should be 30-45 days from the date the
purchase agreement is signed. This typically allows enough time for the closing process to take place.
Ensure that the closing date fits with your timeline for moving out of the house – as the seller, you are
expected to hand over the keys to the house on the date of closing!

Consider the closing costs: The purchase agreement should clearly state how all of the closing
costs will be paid between the buyer and seller. They can be paid entirely by one party or the other, but
are often split evenly between the parties. There are several costs associated with closing on a home
sale. Before you accept a purchase agreement, ask your local title company for a complete quote of all
of the costs associated with closing on a house. That way, you know what fees you’ll be expected to
pay at the time of closing.

Consider the contingencies: It is normal for an offer to include an appraisal and inspection
contingency. However, be sure to read through the details and ensure that they make sense. An
appraisal contingency should explicitly state that it is to be paid for by the buyer, and the terms for
renegotiation after the inspection is complete. An inspection contingency should explicitly state that it
is to be paid for by the buyer, and it should stipulate a time frame for the inspection to take place
(typically 20 days). It should also list the name of the inspector the buyer wishes to use, and the terms
for renegotiation after the inspection is complete. Ensure that these terms are acceptable to you before
you accept the offer.

Consider the fine-print: Often, a purchase agreement will come with several clauses of “fine
print” which stipulate particular aspects of the sale in more detail. Ensure that you read each of these
very carefully, as they will become legally binding if you accept the offer.

Consider the personal property included in the sale: Be sure to read the list of personal
property included in the sale. Sometimes, buyers may ask for specific items to be included that you
may otherwise want to keep. Alternatively, buyers may also intentionally leave specific items out (like
a hot tub) that may be difficult for you to move out of the home.

Consider the expiration date: Finally, consider the expiration date of the offer. Buyers will
often push for a short expiration date to make the seller feel pressured to take the deal – don’t fall into
this trap! If you have other interest in the property, and expect other offers to come in, it is acceptable
to ask a potential buyer to extend the expiration date of their offer.

Once you’ve evaluated the offer, it’s time to decide how you’ll proceed. As I mentioned above,
you can choose to accept the offer as written, you can reject the offer completely, or you can make a
counter-offer. There are several acceptable ways to make a counter offer:

1. Write a single page document titled a “counter-offer addendum” (you can find generic
copies of this document on the internet). On this document, list each item of the
purchase agreement that you wish to change as separate line items. Then, add a place for
you and the buyer to sign at the bottom. Ensure that the original purchase agreement has
a line stating that you are signing per the terms of the attached counter-offer addendum
before you sign it. Then, give both documents back to the buyer to evaluate and sign.
 2. Using a document editing application, strike through items on the purchase agreement
that you wish to change and type in the change you wish to make. Put your initials by
each changes, then send back to the buyer without signing the purchase agreement. If
the buyer agrees to the changes, they should also initial by each change. Then, you can
sign the purchase agreement to finalize the sale.

3. Communicate your counter-offer terms to the buyer verbally or through email, then ask
them to write a new offer with the terms listed. This is the least recommended option,
but it can be acceptable if you trust the buyer.

Now you know the basics of how to read and evaluate real estate offers. As you can probably
imagine, there are some negotiation skills that can be utilized in this process. Here are some negotiating
tips that you can use as a seller:

 If you get an offer, call other interested parties and let them know that you’ve received
an offer. Be sure to tell them when the offer expires, though don’t give them any other
info (such as who it’s from, or how much it’s for). This might prompt others to make an
offer as well.

 Make a counter-offer before you reject an offer, even if the counter-offer is for the full
asking price of your home. Often, potential buyers will intentionally offer less to see
what your “bottom dollar” is.

 Don’t let yourself feel bullied by potential buyers or their real estate agents. Until you
sign a purchase agreement, you have the power to simply say “no” and choose to work
with another buyer, even if it means losing a potential sale in the process.

 As you evaluate an offer, try to include a line in the offer that the buyer will provide the
seller with copies of inspection and appraisal reports. This will be very helpful to you
later on in the closing process.

As stated above, please consult with a real estate lawyer when writing legally-binding contracts.
The advice I’m giving here is meant to educate you on the steps taken when evaluating a contract, but I
am not a legal professional. You should not take only my advice when writing specific contracts of
your own.
9. The Closing Process

Once you’ve accepted an offer, it’s time to begin the closing process! In this chapter, we’ll go
through an overview of the whole process. We’ll dive into each step in more detail in the upcoming
chapters. Here is a step-by-step overview of the closing process:

1. The purchase agreement is signed by the buyer and seller.

2. The purchase agreement is used to open a file with the title company (initiated by either the
buyer or the seller).
3. The buyer and seller complete initial paperwork for the title company (either online or in-
person).
4. The buyer schedules the home inspection.
5. The home inspection is completed, and the follow-up repairs are negotiated.
6. If the terms are approved, the seller completes the necessary repairs, which are inspected
again to ensure compliance.
7. The appraisal is scheduled by the buyer (if it’s a cash or owner-finance sale) or the buyer’s
bank (if it’s a mortgage sale).
8. The appraisal is completed. The price may be renegotiated.
9. If the terms and appraisal are approved, the title company is formed that the sale is ready to
close (initiated by the bank if it’s a mortgage sale, or by either the buyer or seller otherwise).
10. The buyer and seller review any necessary paperwork and complete documents for the title
company. The official closing date and time is also set.
11. The buyer contacts utility companies and sets the utility transfer date (seller should verify
that this took place).
12. The buyer is entitled to a final walk-through before closing. The seller should have all
personal belongings out of the property, and it should be ready to change hands.
13. The buyer and seller sign closing documents at the title company. Funds change hands, and
the sale is recorded and finalized.
10. The Inspection Process

Part of the closing process involves the home inspection. This is a standard contingency that
nearly all buyers wish to utilize as part of the sale. Many buyers wish to have a potential purchase
evaluated by a skilled home inspector to ensure that there are no health and safety risks to the property,
and you should be open and willing to allow these inspections to occur. Let’s talk about the basic
procedure of a home inspection, the follow-up process, and some tips on negotiating during this
process.
A home inspection may take anywhere from 30 minutes to two hours, depending on the size of
the home and the efficiency of the inspector. While some buyers (or their real estate agents) might
request that you are not present for the inspection, you are entitled to be there and should attend, as it is
helpful for you to see what the inspector points out. The inspector will do a complete walkthrough of
the home (both inside and outside), checking as many items as possible for health and safety risks.
They will want to see in the attic and crawlspace (if you have one), so be sure that those access points
are clear and easy to use. Often, the inspector will take photos of items that they notice for their report.
The inspector’s job is to be thorough, so don’t be surprised if they seem “nit-picky” or overly
particular. They are responsible for noticing as many things as possible – that’s what they’re paid to do.
Once the inspector is complete, they will provide the buyer with a copy of the home inspection
report. If you stipulated in the purchase agreement that you will also get a copy of that report, the buyer
is obligated to give you a copy as well. Even if you didn’t stipulate that fact, be sure to ask for a copy
of the inspection report anyway. It will be very helpful for you to review the report during this process.
The inspection report will include several specific items: safety issues of immediate concern
(such as code violations or immediate hazards), caution issues that are not immediate needs but should
be dealt with soon, and general notes about each item that was inspected in the home. Take the time to
review each of these points in depth, and feel free to ask the buyer to contact the inspector for more
details (you can also try to contact the inspector yourself, though they might not communicate with you
as the buyer is their paying client).
Once the buyer has reviewed the inspection report, most purchase agreements allow for a period
of negotiation regarding repairs needed on the home. Because the home inspection is typically written
into the purchase agreement as a contingency, the buyer has the right to nullify the contract and get
their earnest money at this point. However, most of the time the buyer will instead make a request for
repairs on the home. The purchase agreement will set the amount of time allowed for a buyer to make
their request (typically around 7 days). The buyer’s request will typically come in the form of an
addendum to the purchase agreement, where they reference specific repair items listed in the inspection
report and ask that the seller either pay a licensed professional to repair those items, or take a set
amount off of the purchase price of the home to cover the repairs. It is not uncommon for buyers to
begin negotiation by asking that every item in the inspection report be addressed by the seller.
Once you have received this request, it is your responsibility to respond in a timely manner. You
can respond either by agreeing with the request, refusing the request, or countering the request with the
methods described in the “counter-offer” section of this guide. Remember that unless you factored
needed repairs into your market value calculation, the market value of your home is based on the
assumption that the home is in good condition. Thus, it is reasonable for the buyer to expect that
immediate health and safety issues be addressed before the sale is complete. I would recommend that
you be willing to fix the critical issues listed by the inspector, and negotiate with the buyer on the
cautionary issues based on the estimate cost to you to get them fixed.
Once you have come to an agreement with the buyer on how you will address the repair request,
it is your responsibility to fulfill the repair request in a timely manner. Construction contractors can be
busy and hard to get a hold of, so I would recommend reaching out to a local handyman instead. Make
sure that they’re licensed, bonded, and insured, and get two or three quotes to ensure you’re getting the
best deal. Above all, ask the handyman to commit to a quick deadline – within 1-2 weeks if possible.
The sooner the repairs are completed, the sooner you can close on the house!
Once the repairs have been completed, the buyer will reach out to the inspector to schedule a re-
inspection. The re-inspection will focus on just the items that were addressed. Once the inspector has
re-inspected the items, they will issue a re-inspection report which states if the repairs have been
completed satisfactorily. If they have, you are ready to move on to the next stage of the closing process!
11. The Appraisal Process

The appraisal process is very similar to the inspection process. The appraisal will be ordered by
the buyer or their bank. The appraiser will come to your house for an inspection, though they will take
a more general walkthrough of the home than the inspector did. They will often take many photos and
measure every room to generate a floor plan of the home for their report. Once they have finished the
inspection, they will write an official appraisal report and give it to the buyer and/or their bank. If you
have stipulated in the purchase agreement that you should also get copies of the necessary documents,
ask for a copy of the appraisal for yourself.
The appraisal is a more formal version of what you did in your comparative market analysis –
the appraiser will be using their data to make a formal market analysis and deliver a data-supported
market value for the home. The figure they come up with is important, as it is a figure that the buyer’s
bank will use to determine the loan amount they qualify the buyer for. If the buyer isn’t using a bank to
purchase the home, but still asked for an appraisal contingency, the figure will tell them exactly what
the home is actually worth.
Because the appraisal figure is so important to the buyer and/or their bank, an appraisal
contingency will typically allow for a period of renegotiation considering the purchase price of the
home. This period of renegotiation does not allow you to raise the price of the home due to the
appraisal (this is why accurately determining the market value of your home when you list it is so
important) – it only allows the buyer to renegotiate for a lower price or walk away from the deal with
no penalty. To do this, the buyer will submit to you a contract addendum requesting a change to the
purchase price based on the appraisal. If this happens, you can choose to accept it, reject it, or counter
with a new purchase price. If you choose to reject the price or counter with a new price, please note that
the buyer will often walk away from the deal at this point, either because the bank will not finance
more than the appraisal price (thus requiring the buyer to make up the difference in cash), or because
they are unwilling to pay more than the market value for the home. I recommend only doing this if the
market is teeming with buyers who are bidding up the purchase price of your home, as that is the only
way to be truly confident that you can sell your home above market value. If you accept the price
negotiation, the deal moves forward.
As you can see, pricing your home correctly is incredibly important because of the appraisal
contingency found in many sales. If your home is priced at or near market value, the buyer will often
not choose to renegotiate the price, thus making a the closing process smoother overall. If you’re
selling your home on your own, consider getting an appraisal before you begin!
One final note on the appraisal process – an appraiser can also call out safety issues or repairs
needed with the home. If they call out these issues in their appraisal report, a bank will not provide
financing until those issues are fixed. If this happens, the negotiation occurs in the same way that the
inspection repair negotiation happens, as described earlier in this guide.
12. Closing the deal

Once the appraisal process has been completed, the title company needs to be notified that the
home is cleared to close. If a bank is financing the sale, then the bank will typically make this
notification. Otherwise, it should be done by either you or the buyer. The title company will go through
a process to ensure that the title of the home is clean and cleared for sale. Then, they will issue a first
draft of the closing documents for you and the buyer to review.
One of the most important documents in this packet will be the settlement statement. This
statement is a chart that shows how all of the funds for the transaction are being moved. The funds will
be broken down into multiple categories, and will typically be grouped as “debits” and “credits.” Be
sure to read through this statement very carefully to ensure that you are receiving the correct amount
for your home, that all of your preexisting loans on the home (if there are any) are being satisfied, and
that each fee associated with the transaction is being paid for by the correct individual. Also check to
ensure that the earnest money has been allocated into the funds correctly. Because title officers have a
busy job, it is easy for them to make a mistake on the settlement statement – again, be sure to read it
carefully before you agree to it!
After both parties have agreed to the statements, the title office will set up a time to sign the
documents and close the sale. Both you and the buyer will go to the title office and sign the documents.
At this point (unless otherwise agreed upon), the buyer will be the legal owner of the home. At that
time, you will hand the buyer all of the keys (including garage door openers) to the property. As I’ve
mentioned before, this is a good time to ensure that all of the utilities have been switched into the
buyer’s name.
13. Afterword

Just like that, you’ve sold your home! I know that the process is not easy, and many of these
steps can seem daunting. But, I also hope you realize that it is well within your power to save yourself
thousands of dollars by selling your own home, without a real estate agent. Please remember that the
information I gave you in this guide is standard advice about each step of a by-the-book real estate
deal, and some elements of a real estate transaction can vary based on your specific location. Always
consult with a licensed professional if you have any questions on the specifics of your sale.
Good luck to you! I hope this guide has served you well.