For Sale By Owner San Diego

How to Sell For Sale By Owner in San Diego 2019

We are experts in How to Sell a House For Sale By Owner. Selling a house using the “for sale by owner method” is very easy. In San Diego many people chose to sell without a realtor to save money and time. “FSBO” sales are handled the same exact way but just with no real estate agents involved.

Once a buyer and seller agree on price all they need to do is go to any escrow company and they will prepare the legal paperwork that protects both parties. Escrow will have a Title Insurance Policy prepared also for the sale.

Selling a house For Sale By Owner is easy as far as the transaction goes. The paperwork involved is actually reduced to a minimum when you remove real estate agents from the transaction. The State of California governs Realtors and their transactions through Department of Real Estate. Over the years this bureaucracy has become so bloated that they have piled hundreds of pages of disclosures onto a sale. Many of the forms are very redundant and it keeps getting worse. You can write a contract on a napkin and bring it escrow to sell your house without a realtor!

Some of the problems to watch out for when selling without a realtor would be making sure the buyer of your house is qualified and you do not waste time with him if he doesn’t have the ability to get a loan. You can prequalify any potential buyer by asking them for a loan preapproval from a direct lender or bank. It is a one-page letter saying that the bank has reviewed the borrower and finds them capable of getting a loan.  



Agree on Price and Terms and Open Escrow

If you make a deal with a buyer for the sale of your home, the other terms to discuss would be when the sale closes and how much earnest money deposit they will be putting down. It is standard in California for buyers to put down 3% as a good faith deposit. This deposit goes to escrow with the signed contract. The closing date should be set 30-45 days to allow for the bank to do the loan. If the buyer is paying cash the transaction can be done very quickly in 5-7 days.

When a buyer is using a bank loan to buy your house there will be an inspection and an appraisal. If the inspection comes back with repair items (and they all do), it is to be negotiated on what you as the seller agrees to fix. Lenders use third party appraisers to give an opinion of value. They don’t want to lend more than it is worth for obvious reasons. If your appraisal comes back undervalue, the lender will not loan money to the buyer. In some cases in San Diego, we have seen the buyer make up the difference if they really want the home.

Who Pays For Closing Costs in California?

It is customary in San Diego for a real estate transaction to have buyer and seller each pay their own closing costs. This is wording commonly found on the contracts “Each Pay Their Own.” Everything is negotiable though, we as cash buyers always pay both sides of an escrow transaction when we purchase a for sale by owner home in California. Escrow charges cost around $2000.00 total but vary slightly from company to company.

A Title Insurance Policy is another big expense to get the deal closed. This protects the buyer by insuring the home has no liens or clouds on title. It is similar to giving a car title when selling a car but since a house is more expensive and banks are usually involved, an insurance company gets involved to issue this mini title policy. It is customary in most states, including California, that the Seller always pays for this Title Policy. Expect to pay around $1500-$2000 for this policy. Like I said before, this is negotiable. We always pay both Escrow and Title for all houses we buy direct from homeowners. Other fees include document Transfer Tax and doc prep charges but these are small fees.

How Does Escrow Work when Selling FSBO in San Diego?

The Seller gets to chose what escrow and title company gets used when realtor are involved. If you are selling to a cash buyer like us, we already have relationships who have our company information on file and this will make the transaction faster and easier. Once you sign a contract and open escrow, the buyer puts down his deposit the work begins. Title is pulled by a Title Company and sent to Escrow. The Title Report is called the Preliminary Title Report or “PR” for short. It will list any liens, or bank loans. Escrow will call banks to get the prorated loan payoff. Escrow will also get the property tax prorated as to the day of the closing.

Once everything is prorated Escrow will prepare closing documents. The seller will need to sign and notarize these escrow closing documents. If the seller is out of town, a mobile notary can be used or you can overnight the docs back and forth. Once buyer ans seller have signed docs, the buyer sends his funds to escrow. Then, escrow closes by recording the grant deed. The following morning funds get dispersed to the seller.


How To Find a Buyer for your Home in San Diego For Sale By Owner

  • Newspaper Ad – You can publish a for sale ad in the local newspaper for a few hundred dollars.
  • Online – You can post you home for sale online using several for sale by owner sites, craigslist and even Zillow Make Me Move.
  • Sign in the yard – Post a sign in your yard to let everyone know the home is for sale. Sometimes neighbors might be interested or even know friends who want to move into the area.
  • Contact Cash Home Buyers like us. We can make the process very easy and even pay all escrow costs.


for sale by owner san diego

Some Common Reasons To Sell FSBO in San Diego: 

✔ Dislike agents

✔ Privacy

✔ Home needs work



✔ Save Commissions

✔ Save time

✔ Want Fast Sale