For Sale By Owner San Diego

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.