The Offer

Obtain Necessary FSBO Forms
The buyer generally initiates the purchase agreement. But you can be ready with your real estate sales contractand disclosure statement. Many states have taken steps to reduce or removed the need for attorney involvement for the simple real estate sales contract. Remember it it your home you are selling, not the buyers. So you should have a real estate sales contract set up the way you want it. There are 1000's of real estate sales contract out there. You can buy our real estate sales contract kit, which is immediately downloadeable from this sites and includes disclosure statement and other forms or go to a local business supply store to price their real estate sales contract form software.

Define FSBO Offer Terms
The real estate sales contract must include contingencies. Any good real estate sales contract will state contingencies clearly. In other words the FSBO deal is off unless certain things written in the real estate sales contract occur. Example: If the buyer can't finance the FSBO deal within a certain time frame the deal is off. Real estate sales contract forms should give you the ability to edit or change or manipulate paragraphs easily on your computer.

Offer FSBO Components

FSBO Sales Price
The full amount being paid for the property.

Full Names of Buyers & Sellers & Their Martial Status
Full legal names of buyers and sellers and whether they are single or married.

Address & Legal Description of the Property
Complete address and legal description of property.

List of Items Included in the FSBO Sale
List of what will go with the house - appliances, lighting fixtures, window treatments, etc.FSBO

Earnest Money Deposit
The earnest money deposit, also called the good faith deposit, should accompany the offer. Write this into your real estate sales contract. Rule of thumb: the earnest money deposit should be for at least 3-5% of the sales price. It is generally deposited into an escrow account with a real estate attorney or escrow officer after the home and radon inspection contingencies have cleared and all disclosures have been delivered to the buyer and accepted.

FSBO Escrow Company
Find a local title company the has a good reputation.  Call around for the best price.  When you FSBO it pays to check around.

FSBO Settlement Date
Typically you will close at the title company office.  It makes the last minute details of FSBO much more neutral ground and if the title company needs other information they dont have to go back to the office to retreive it.  Write it into the real estate sales contract. 

Proration of FSBO House Expenses
Determine how taxes and utilities should be prorated between buyer and seller. Write it in the real estate sales contract.

• The period of time the buyer has to obtain a "pre-approval" letter, complete with credit and source of funds review. The period of time the buyer has to make a formal loan application, which the buyer agrees to diligently pursue.
• The period of time the buyer has to obtain a FULLY approved loan, complete with an appraisal and all other documentation the lender needs. This final approval is called a commitment letter.

FSBO Home Inspection Contingency
If the buyer chooses to have ahome inspection, the contract should indicate how long the buyer has to complete the inspection. The buyer orders and pays for the home inspection. If the buyer chooses not to have a home inspection, some sellers may wish to include a clause in the contract that the buyer was offered the opportunity to have a home inspection and declined. Then, the buyer cannot later claim that they were denied an opportunity to inspect the house.  In the real estate sales conract.Encourage your buyers to obtain a home inspection. It is very difficult for the buyer to indicate that the seller did not fully disclose problems if they have had a home inspection. Home inspections protect both the buyer and the seller.

Radon Inspection
In many areas of the country, it is common to have a radon inspection completed. If you choose to have a radon inspection, the contract should stipulate how long you have to complete it. The buyer orders and pays for the radon inspection.

Termite Inspection
The termite inspection is generally required by lenders in many areas of the country. This inspection is done by a licensed pest inspector who indicates the current presence of wood boring insects and/or the past damage caused by them. The inspection must be dated within 30 days prior to settlement and is usually ordered by the buyer and paid for at closing. Generally, the lender will require any past pest damage to be repaired prior to settlement. Usually the seller pays for these repairs. You can limit your exposure by agreeing to pay only up to a certain amount in prior pest damage repairs, if any are discovered in the inspection and repair is required by the lender.

Clear Title Requirement
The seller must provide a clear and marketable title to the property.

Home Purchase Contingency
Use if the you have to find a house before you can close. There should be a timeframe for you to locate and put a contract on a new house of your choosing, which you must agree to diligently pursue. The buyer's deposit should be refunded in full if you cannot locate and contract for a new house.

Home Sale Contingency
Use if the buyer must sell another house before purchasing this house. There should be a timeframe for the buyer to sell their old home and settle the closing transaction on that home, if necessary.  

Suggested Timeframes for Completion Financing Timeframe
Pre-approval letter with credit check within 5-7 days after contract ratification, if the buyer wasn't pre-approved when they presented the purchase agreement to you. Application should be made within 5-7 days after contract ratification. Fully approved loan should be obtained within 30-45 days from the date of contract ratification.

Inspection & Disclosure Timeframes
Inspections and delivery of any disclosures should be completed within 5-7 days from contract ratification. The buyer should have 2-3 days after completion to indicate to the seller IN WRITING any problems discovered in the inspection or disclosures. The seller should then have 2-3 days to determine whether and how to fix the problems and respond back to the buyer IN WRITING.

Termite Inspection Timeframe
To be completed prior to settlement. Most lenders require a clear termite inspection within the 30 days prior to settlement. This ensures that the termite inspection is current.

Negotiate the Offer

Interpreting the Buyer's Response Upon receiving the buyer's offer, you will want to estimate your net proceeds to get a sense of what you will potentially take away from the sale. A real estate agent, your escrow officer or title attorney should be able to assist you in this process. Also, check the offer's contingencies and timeframes for acceptability. Does the settlement date fit your schedule? Do the contingency timeframes seem reasonable? Pre-qualify the buyer. Hopefully, the buyer has given you a pre-approval letter with the purchase agreement. If not, then be sure to include in any counter-offer that the buyer must deliver a pre-approval letter to you (within 5-7 days) that includes a credit check and source of funds review.

• Accept the agreement as is, and it then becomes a binding contract. Decline the offer (usually not a productive response).
• Prepare a counter-offer back to the buyer. When you counter-offer, you are opening negotiation again and the buyer has the right to simply walk away.

Counter-Offer
Usually this is done on the same purchase agreement form - the changes are made and initialed by all parties. If you are adding significant language to the purchase agreement, make an addendum to the purchase agreement. Indicate the date of the original purchase agreement, the date of the counter-offer, the names of the parties and the address of the property. Then list the changes that you want to make to the original purchase agreement. Make sure that you put a timeframe around the buyer’s response time. 24-48 hours is usually enough to consider a counter-offer.