Paperwork for Selling a House Without a Realtor
By Adrian Pedraza | July 6, 2024
Did you just decide to sell your home? Well, congratulations! That may be something you can do on your own, without the help of a real estate agent. The vital first step is to get your paperwork in order, as that'll streamline the home selling process.
The end goal of selling a house without a realtor is to maximize the profits made in selling the house. You can save thousands of dollars in profit if you sell your home without a realtor.
What paperwork do I need to sell a house without a realtor? This guide will walk you through the necessary paperwork for selling a house without a realtor and other processes that can give you a leg up. Have an insightful read!
What is “Sell by Owner”?
In a real estate transaction, a realtor usually carries the weight by guiding you through the home-selling journey and providing the necessary resources and information at each step.
When selling your house, you can hire a real estate agent or represent yourself as For Sale By Owner (FSBO).
If you decide to “sell by owner," you'll be selling your home without the help of a professional. So, if you prefer to undertake your home sale independently, the "sell by owner” option is a perfect path to consider.
The National Association of Realtors (N.A.R.) estimates that FSBO transactions accounted for 10% of home sales in 2021. While setting the right price was reported to be the biggest challenge for people who choose to sell a house without a realtor, understanding and preparing the paperwork was also a significant concern.
If you are considering listing your home as FSBO, acquaint yourself with the processes and paperwork involved.
Things You Need to Do to Sell Your Home Without a Realtor
To sell your home without a realtor, you’ll need to:
- Decide on a Price
Typically, a realtor performs a Competitive Market Analysis (C.M.A.) to find the best price for your home. You can do this by researching similar local listings, market trends, and recent sales near you. Make sure you settle for a fair price that isn't undervaluing your home or pushing buyers away.
- Prep and Take Photos
Do a deep clean and repair household items that are worthwhile and inexpensive to upgrade. Fix some decor for aesthetics. Buy some flowers and ensure the lighting is in perfect condition. Then, you can take the photos by yourself or hire a professional photographer.
- Market Your Home
There are many user-friendly websites that are great for marketing your home. Some sites are free, but most will charge a small fee for the listing.
- Hold an Open House
Holding an open house will give you a greater opportunity to close the sale. Inviting potential buyers over can get your listing more attention. Plus, it allows them to experience the home in person and, hopefully, get attached.
- Make the Sale
You've found your buyer here, and it's time to seal the deal. This is where you pay extra attention to details because of the negotiations and paperwork.
If prepping your house for sale seems like a lot of work, then consider a getting a cash offer from The California Homebuyer. We buy houses fast - just the way they are - in as little as 10 days. There's no need to clean and we handle all the paperwork.
Importance of Paperwork When Selling a Home Without a Realtor
Whether you list as FSBO or hire a Realtor, paperwork is a big part of the real estate transaction. Each piece of paper you sign is a legal document proving that you agree to the terms of the sale. The buyer also signs countless estate settlement documents to take ownership of the property.
Different real estate documents need to be signed throughout the home-selling process. Both parties will sign the offer form to agree to the terms and conditions. For example, the buyer may have to sign documents related to a Homeowners Association (H.O.A.) to acknowledge their dues and the rules.
Without these documents, there is no way to prove that the seller willingly entered a transaction with the buyer. The buyer would be unable to prove they are the new rightful owners of the property. Paperwork protects everyone involved – including the house.
Paperwork for Selling a House Without a Realtor
Selling your home without a realtor can be overwhelming. But knowing what paperwork to need to sell your home for cash without a realtor is half the battle. Here are all the necessary paperwork:
1. Residential Property Disclosure Form
A homeowner cannot legally sell a property without disclosing all known issues related to the home. For example, the seller might know that the roof leaks. If they don't disclose that issue, the buyer may buy the home thinking it has a quality roof, only to have to pay to replace it when they move in.
Seller disclosure forms are essential to FSBO paperwork because they prove that the owner is acting honestly and ethically when selling the home. Property disclosure statements vary by state. You can find the right one for your area (and even read up on the California disclosure laws) online.
2. Title Reports and Deed
It's okay if you don't have any title reports and deed information hands-on before you sell your house. Most of the time, the title company keeps these documents until the seller needs them.
Even without a realtor, you must still work with a title agent. They will run a title search to ensure you can sell the house as the owner. They will also prepare the property deed to be transferred from one party to the next.
The title company will have paperwork for both parties to sign and fees to cover their costs. If you are selling your house for cash without a realtor, you may be able to work with the buyer’s agent to navigate the title paperwork.
3. Loan Documents
If you still owe money on the home, pull out your mortgage statement so you can start communicating with your bank. You will need to contact your mortgage lender to receive a payoff quote. That document lists precisely how much you owe the bank and how you can pay that amount and close the account.
This paperwork helps you complete the home sale so you can leave the property. You don't want to keep paying for a house you no longer own.
5. Homeowners Association Agreements
Joining the H.O.A. isn't always optional. If you live in an area with a Homeowners Association, the buyer must agree to follow the rules and pay the monthly dues.
H.O.A. agreements can be several pages (and even chapters) long. The buyer must sign a document stating they read all of these rules. Some of them include:
- Quiet hours
- Street parking
- Pet ownership and responsibility
You will likely get your money back if you paid the H.O.A. fees in excess. Also, if you have any receipts showing your membership fees are due, include them in the agreement, as they're vital.
You may also need to alert the Homeowners' Association about your move, so contacting them as soon as possible is wise.
6. Plans and Permits
Ensure you include any property surveys, permits, blueprints, and other legal documents related to the house improvements. This is crucial if the layout of the property is different from when you bought the house from the previous owner.
Unpermitted work is illegal and dangerous, so you must prove that any improvements are authorized and inspected for safety. Unpermitted work must be mentioned in the seller's disclosures. Otherwise, the buyer could file a lawsuit against you for a misleading and dangerous home sale.
If you've ever done any work on the house that required a permit, you’ll need to include that in your documents for sale. This work could include:
- Fences
- Electrical work
- Decks
- Plumbing
- Extensions
7. Receipts and Warranties
Not all paperwork for selling a house without a realtor is legally binding. Sometimes, you may need to add documents that can help the buyer in their new home.
For example, you can add receipts for recently purchased appliances and include warranties on various items (if they're transferable to the buyer). That way, if a new washing machine becomes faulty when the buyer moves in, they know who to call to repair it.
8. Sales Contract
This legally binding document may also be called the "purchase agreement." It is the final piece of paper that lays out all the points of the sale. In short, the sales contract is drawn up when you're ready to sell your home for cash, and the buyer accepts.
After a buyer and seller agree to a price for the home, they will negotiate the other terms of the sale until they reach a final contract. You can use the original sales contract from when you bought your home as a template to draft the agreement or ask a real estate attorney for a sample document.
This document will guide both parties through the sales process and will include information about:
- Identities: Who is buying and selling the property?
- The property: Everything from the address to the type of house to the parking lot size. You'll also include any information about the home appliances included in the sale.
- Price: How much does the property cost?
- Title: The type of title that's transferred.
- Closing: The date of the sale closing and any closing costs are included.
- Legal terms: Information about the legal consequences if there is a breach of contract.
- Financing: Details about how the buyer is financing the purchase and the amount of their deposit.
- Contingencies: Any conditions that either party must meet before the sale is finalized.
This paperwork becomes useful as soon as you accept an offer, so it's helpful to have a purchase agreement hands-on that you can fill out quickly.
9. Miscellaneous Documents
Every municipality has different rules and regulations. Your town (or area) may have specific documentation that you need to file.
Also, there are a few miscellaneous but essential documents that only apply to certain exceptional cases. They include:
- Water tests: Some localities may require a water quality test and septic system inspection
- Pending litigation: If the property is affected by any pending litigation, you must inform the buyer.
- Government notices: If your home was ever subject to a new tax assessment, annexation, or rezoning, you'll need documentation.
- Estate settlement documents: If you inherited the house, you’ll need the documentation proving so.
- Divorce decree: If a former spouse owned the home, you must prove that you have the right title to sell.
Pros and Cons of Selling a House Without a Realtor
After assimilating all that information about what it takes to sell a house without a realtor, you may be looking for another nudge, and what better than a pros and cons list?
Pros
- You’ll learn a lot about buying and selling a home.
- Since you aren’t paying a realtor, you get to keep 100 percent of the profit from the sales.
- You know your home more than anyone else and may be more successful than a realtor at getting potential buyers to see its value.
- You’ll have more control over how you market the house and how much you sell for.
Cons
- There's a huge learning curve. You'll need to learn a lot of real estate jargon, how to negotiate, how to perform a CMA, and many more.
- Without a realtor to help during negotiations, you may end up selling your home for less money if you are not a skilled negotiator.
- Selling a house without a realtor can be time-consuming. If you have a family or full-time job, putting enough time and effort into making your home sale a success may be challenging.
- Realtors have access to tools and resources to market your home. Without one, your reach will be a bit limited.
Bottom Line
Ensure you have everything you need and weigh the pros and cons of taking on this journey solo. Selling a house without a realtor can be an arduous task. Still, with the proper preparation, determination, and all the essential paperwork for selling a home without a realtor, you will be able to handle it. Once you've determined a price, prepared your house, and listed it for sale, you're ready to close thae deal.
If you're ready to sell your home without the help of a realtor but don't want to go through the hassle of listing, marketing, contacting prospective home buyers, or drafting the necessary paperwork, the California Homebuyer can help.
We are a cash buyer and can provide you with a cash offer within 24 hours and close the property within 10 days. Reach out to us today!
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Adrian Pedraza is a Southern California native with a passion for residential real estate. Since 2016, Adrian has been actively investing in properties across the region. He founded The California Homebuyer, a company dedicated to offering homeowners a quick cash sale option. Adrian's enthusiasm for exploring the diverse neighborhoods and unique pockets of SoCal has made him a local expert in various markets and real estate trends. He has been featured on CNN, U.S.News, Realtor.com, Newsweek, and more.