Final FSBO Checklist, Before You Sign Anything

This is your last stop before you commit. Use this checklist to confirm the buyer is real, the offer is clean, the deadlines make sense, and you are not signing yourself into a problem you could have avoided.

Why this chapter exists

Signing a contract is the point of no return.

Most FSBO sellers do not get hurt because they got a bad buyer.
They get hurt because they signed something they did not fully understand, and then the buyer used the contract to control the deal.

So this chapter is not here to scare you.
It is here to keep you in control.

Print this out or keep it on your phone.
Run the checklist before you sign anything.

Part 1, the buyer reality check

Before you fall in love with the offer, confirm the buyer can actually close.

1) Confirm their pre approval, not just a “letter”

Ask for:

• Pre approval letter with loan type, amount, and address (once available)
• Lender name, phone number, and email
• Proof of funds for down payment and closing costs

Simple message you can copy and paste:

“Just so we keep everything clean and simple, can you send your pre approval letter and proof of funds for the down payment and closing costs. You can black out account numbers, I just need to confirm the funds are available.”

2) Confirm they are not guessing on the timeline

If they say “we can close in two weeks,” ask:

• “Is your lender already through underwriting, or is this a standard timeline”
• “Have you already submitted docs and had credit pulled”

Fast closes are real.
Fast closes with zero paperwork usually are not.

3) Confirm who is actually buying

Are both names on the offer the people applying for the mortgage.
If the buyer is an LLC, confirm who is signing and how they are paying.

Part 2, the offer breakdown checklist

This is what you review line by line.

4) Purchase price

Easy. But do not stop there.

5) Earnest money deposit

• How much
• When is it due
• Who holds it
• When can the buyer get it back

A stronger deposit usually means a more serious buyer.

6) Down payment

• How much are they putting down
• Is any of it gift funds
• Do they have reserves after closing

7) Closing costs and who pays what

This is where FSBO sellers get surprised.

Confirm:

• Are you paying any closing cost credits
• Are they asking for seller concessions
• Are they asking for repairs AND credits

If the offer is high but the credits are heavy, the “net” might not be that high.

8) Appraisal terms

If the appraisal comes in low, what happens.

Look for:

• Appraisal contingency
• Any language about appraisal gap coverage

9) Inspection terms

• Inspection deadline
• What inspections are allowed (general, termite, structural, septic, well, etc)
• What happens if they find issues

Make sure the contract is clear on the timeline so it does not drag.

10) Financing contingency

This protects the buyer if they cannot get the loan.

Confirm:

• Deadline for loan approval
• What happens if the loan is denied
• Whether the buyer must show a denial letter

11) Home sale contingency

If it says they need to sell their current home first, that is a bigger risk.

Not always a deal killer.
But you should price that risk in, either with a higher deposit, stronger terms, or a backup offer plan.

12) Included items

Confirm what stays:

Appliances, fixtures, window treatments, cameras, shed, anything attached.

If you want to keep something, put it in writing now.
Do not rely on “we talked about it.”

Part 3, protect yourself on the paperwork

13) Make sure your contacts are ready

Before you sign, make sure you already know who you are using for:

• Title company
• Attorney (if used in your state)

If you wait until after signing, you lose time fast.

14) Make sure the contract is fully filled out

No blank lines.

No missing initials.

No missing pages.

If anything is “TBD,” you are setting yourself up for drama.

15) Make sure all communication is in writing

Texts are fine. Email is better.
But anything important should be documented.

If it is not written, it did not happen.

Part 4, the final “should I sign this” test

Ask yourself these five questions.

1. Do I understand every deadline
2. Do I understand how the buyer can cancel
3. Do I know exactly what I am paying for
4. Do I believe this buyer can actually close
5. If the inspection or appraisal gets rough, do these terms protect me

If any of those answers is “no,” do not sign yet.
Fix the terms first.