FSBO FAQ’S

Q - Am I legally allowed to sell my home in Florida by myself, without a realtor?
A - Yes. You are legally allowed sell your own home by yourself if you want to.

Q - What transaction expenses am I as a seller REQUIRED to pay?
A - Florida law does not REQUIRE one side or the other to pay for any particular expense. EVERYTHING is negotiable, and you can put whatever you want in a contract, provided of course that the other side has to agree.

Q - OK then, what expenses are sellers generally EXPECTED to pay in central Florida “customarily”?
A - In this region of Florida, sellers customarily pay for the title insurance for the new Buyer (.0039 x sales price if you have owned the home less than 3 years and .0055 x sales price if you have owned the home more than 3 years) and documentary stamp taxes on the deed (.007 x the sales price), plus title search and closing fees totaling around $500-750. Also, “pro-rations” (credits) for things like HOA dues and property taxes are ALWAYS allocated to the party who would be responsible for those payments based on the change of ownership date. However, “pro-rations” are NOT considered “expenses” and one party virtually NEVER agrees to pay the other party’s pro-ration credits.

Q - Can I make the Buyer pay for “customary” Seller expenses?
A - Yes, you can negotiate anything you like, but it probably won’t net you as the seller any more money, and it probably isn’t a good idea. There is no “free lunch”. It’s usually a false economy to try to shift customary expenses. Here’s why: In the same way that you assume that the price of a car includes wheels because that is typical and customary in the market (even though it’s not legally required), buyers, realtors, appraisers and banks all assume that seller will pay for customary regional expenses, and that assumption is already “built in” or “cooked in” to home values. Therefore, if you try to make a buyer pay for things that buyers don’t customarily pay for in this marketplace, the buyer is likely simply get that money right back by giving you a lower offer for your home. For example, if you try to sell a home that appraises at $100,000, and require a buyer to pay for $1,000 worth of expenses customarily paid by sellers in this region, the Buyer is simply likely to deduct that $1,000 of customary seller expenses from the offer and instead offer you $99,000 for the home. It therefore ends up being a “wash” to you - you gain nothing. On top of that, it may actually annoy or alienate some potential buyers (and their realtors) who think it is unfair/underhanded/disreputable to make buyers pay for things that sellers are “supposed” to pay for, so you may be making your sales task harder for no good reason. You are likely much better off deciding how much money you want to NET from your sale, and working backward from that number to arrive at a your desired sales price that gets you the net you want while still paying the customary and typical seller expenses. That is MUCH smarter.

Q - What professional services are needed to help me complete or “close” the transaction?
A - The transaction will ALWAYS require a separate, professional escrow agent / title agent / settlement agent to hold deposits, conduct title searches, issue title insurance for the buyer (and usually for buyer’s lender as well) collect all the documents and all the buyer’s money, and finally “disburse” the transaction. A seller can in theory hold their own deposits from buyers, but very few buyers are going to hand over deposits directly to sellers. And a seller can in theory just tell a buyer to wire the purchase price directly to the seller, whereupon the seller will hand over a deed, but almost no buyers will agree to do anything so ludicrous, and if the buyer has a lender (which is most of the time), that’s impossible anyway. And no seller can issue their own title insurance. So you will need a law firm or title company to handle these services for you. You cannot do these things yourself.

Q - Who picks the law firm or title company?
A - Typically, the party that pays for the owner’s title insurance picks the title agent (makes sense, right?), although that is not required by law, and the parties can negotiate something different if they want to. This is another good reason why sellers in central Florida, even FSBO sellers, are advised to agree to pay for title insurance, so you can pick a law firm or title company you are comfortable with. Also, when you get an offer from a buyer, you won’t have to wait until a buyer finds the law firm or title company; you can get right to work right away with deposits and processing your deal.

Q - What’s the difference between a law firm and title company doing my closing?
A - Well, this answer is being prepared by a law firm, so you can probably guess we will strongly suggest a Law Firm rather than an ordinary title company. A Law firm can do everything a title company can do, PLUS a lot more. Law firms can answer a wide range of legal and real estate questions, draft contracts for you, and advise your or represent you if things go bad. In the case of Oliver title Law, our fees are generally no more than those of an ordinary title company, so why not get the additional services and peace of mind of an attorney, all at no extra charge? It’s a “No Brainer”.