What to Expect When Selling FSBO

Understanding the calls, the offers, and how to stay in control.

Selling your house For Sale By Owner (FSBO) can feel empowering — until your phone starts ringing off the hook.

The idea is simple: skip the agent, save the commission, handle it yourself. But what a lot of sellers don’t expect is how fast the noise starts. The calls, the texts, the pitches. Some of it is legit. A lot of it is confusing. And if you’re not prepared, it can get overwhelming fast.

This post is here to help you cut through the chaos. We’ll talk about who’s calling, what they want, and how to protect your time, your money, and your sanity.

What Happens When Your FSBO Listing Goes Public

So, you found a yard sign at Home Depot or Amazon, snapped some photos on your phone, used ChatGPT to craft a snappy listing description, and posted your FSBO on sites like Zillow, ForSaleByOwner.com, and Facebook Marketplace — what happens now?

Once your FSBO property hits the internet, you can expect a flood of calls, texts, and emails — but who’s actually on the other end of the line?

According to the National Association of REALTORS® (NAR) 2024 Profile of Home Buyers and Sellers, 88% of homebuyers purchased their homes through a real estate agent or broker, demonstrating the continued importance of agents in the home-buying process.

That means most real buyers aren’t scrolling FSBO sites — real estate professionals are. They’re looking for deals, listings, or opportunities to profit — not to buy your home as-is, for full price, with no strings attached.

Trust me — the only non–real estate professionals replying to your Facebook Marketplace ad are usually asking if you’ll owner finance... with zero dollars down.

So, if nearly 9 out of 10 buyers are using agents… who’s really browsing FSBO listings and blowing up your phone? Spoiler: it’s mostly not buyers. It’s professionals — wholesalers, investors, and agents — each with their own agenda.

What’s Their Agenda?

Let’s break down why these professionals are calling — and what they’re really after:

• Wholesalers
  Wholesalers are looking to get your home under contract at a discount so they can sell that contract to another buyer (usually a cash investor) at a higher price. Their profit comes from the spread between what they offer you and what their end buyer is willing to pay — not from buying your house themselves. And they will regularly sell houses for 20k-50k over what they agreed to "buy" it from you for. 

• Investors
  Investors are often looking for properties they can flip or rent out. They offer speed and convenience — cash deals, quick closes, “as-is” condition — but their goal is to buy below market value so they can profit later. It’s a trade-off: less hassle for you, more equity for them.

• Real Estate Agents
  Agents see FSBO listings as leads. Some truly have buyers, but many are calling to earn your business — hoping you'll give up the FSBO route and list with them instead. They’ll pitch you on their marketing tools, network, and how they can “get you more.”

Breaking Down the Offers: What to Watch For

Understand this: to a real estate professional, a FSBO listing is like blood in the water. Not all of them have bad intentions — some truly offer helpful solutions. But many will say whatever it takes to get you to sign on the dotted line.

Here are a few of the most common offer terms and clauses FSBO sellers in Texas should watch out for:

Common FSBO Offer Terms to Watch For 

1. Earnest Money
This is a buyer’s deposit that shows they’re serious. In Texas, the buyer typically has 3 days after the effective date of the contract to deliver earnest money to the title company. If they don’t submit it on time, the contract may be voided — but only if you enforce it.
Red flag: Low earnest money (e.g. $10 or $100) shows weak commitment — it’s easy for the buyer to walk away with no consequences. 1% of the sales price is generally considered a respectable Earnest Money deposit.

2. Option Period
A set number of days where the buyer can back out for any reason (in exchange for a small fee). In Texas, this is called the Option Period and usually lasts 5–10 days. Wholesalers use this time to find a buyer to assign the contract to — they’re not doing inspections, they’re shopping your deal.
Red flag: Long option periods with low or no option fee can mean the buyer isn’t truly committed. Be cautious of anything over 10 days.

3. Assignability Clause
This gives the “buyer” the right to assign your contract to someone else before closing.
Language to look for: “Buyer may assign this contract without Seller’s consent.” "And or Assign" by their name on the contract.
Wholesalers depend on this — it’s how they make their profit.
Pro Tip: If you're not okay with someone reselling your home before they’ve even bought it, this clause needs to be removed or restricted.

4. Special Provisions: Marketing Rights
Some contracts will include a clause allowing the buyer to market the property (even on the MLS) before they close.
Language to look for: “Buyer has the right to market the property for sale including on MLS prior to closing.”
Why it matters: You’re essentially giving them permission to resell your house — while you're still the legal owner. THAT'S RIGHT! YOUR HOME COULD BE LISTED ON THE MLS WHILE YOU STILL OWN IT.

Pro Tip: You don’t have to say yes on the spot. Take time to review the offer. Better yet, have a professional take a look if anything feels off.

How to Stay in Control of the FSBO Process

Here’s how to keep your head above water:

• Screen your calls: Use a Google Voice number or a dedicated line. Ask pointed questions like “Are you the end buyer?” or “Is this offer contingent on anything?” You don’t owe anyone a callback or explanation.

• Set boundaries: Limit when and how people can contact you. Don’t give out personal information like your schedule or whether the house is vacant.

• Know your terms: Learn the basics of real estate contracts — especially earnest money, option periods, contingencies, and assignability. These details matter.

• Compare more than just price: A higher number on paper doesn’t always mean a better deal. Look at timeline, contingencies, and proof of funds. The best offer is the one that actually closes.

• Use support when you need it: You don’t need to list your home to get help. Many professionals offer one-time consults, contract reviews, or basic guidance for FSBO sellers. A little support can save you a lot of stress.

Avoid Scams and Lowball Tactics

• Fake Cash Buyers: Claim to be ready to close fast but can’t provide proof of funds or ID. They often disappear when asked to verify anything.

• Earnest Money Tricks: Some buyers send fake or bounced earnest money checks — or just never send it at all. If the deadline passes and you don't enforce it, they stay in the deal for free.

• Long Option Periods with No Option Fee: A wholesaler tactic. They lock you in and spend 10–14 days trying to resell your contract — if they can’t, they walk away, and you’ve wasted valuable time.

• MLS Listing Without Permission: Some contracts allow the buyer to list your property on the MLS before they even own it. This can confuse buyers and misrepresent the sale.

• “And/or Assign” Language: If a buyer signs as “John Smith and/or Assigns,” they’re telling you they plan to flip the contract, not buy the house themselves.

• High-Pressure Lowball Offers: Watch out for language like “this offer expires in 24 hours” or “take it or leave it.” These are meant to push you into making a fast, poor decision.

• Phishing Scams: Spoofed emails pretending to be from your title company can request wire transfers or sensitive info. Always verify wiring instructions by phone using a number you trust — not one from an email.

• Requests for Personal Info: Never give out banking details, your Social Security number, or remote access to your computer. Legit buyers don’t need that info.

Final Thoughts

Selling FSBO takes confidence, hustle, and a willingness to learn as you go. If you’ve made it this far — you’re already ahead of the curve. Just remember: staying informed and setting clear boundaries is the key to protecting your deal and your peace of mind.

And if things ever start to feel a little too overwhelming, I’m here as a resource. Whether you need help reviewing an offer, understanding contract language, or just want a second opinion — I’m happy to chat. No pressure, no obligation — just honest insight when you need it.

House Flipping 101: Running the Numbers for Success

One of the questions I get asked most—by new investors, wholesalers, and even curious friends—is how I evaluate a property for a quick resale. I have this conversation all the time, especially with wholesalers trying to pitch me investment deals. And there’s a good reason for that: when it comes to flipping houses, the money isn’t made when you sell—it’s made when you buy.

If your numbers are off from the start—whether it’s the ARV, repair budget, or holding costs—what seems like a great deal can quickly turn into a costly mistake. That’s why I take the time to run the numbers carefully and follow a system that removes emotion from the equation. In this article, I’ll walk you through exactly how I analyze a flip, the formulas I use to calculate potential profit, and the key numbers and terms you need to understand if you’re serious about flipping houses and making consistent returns investing in real estate.

Step 1: Determining the ARV

ARV stands for After-Repair Value—this is the price you expect the property to sell for after all the necessary repairs and updates are complete. Some investors refer to it as the resale value. To determine this number accurately, you’ll need to run a Comparative Market Analysis (CMA). This means looking at recently sold homes in the area that are similar in size, condition, age, and location. When someone says they’re “running comps,” this is exactly what they’re doing: analyzing comparable sales to estimate what your property will be worth once it's fully renovated.

The absolute best way to run comps is through the local MLS. It’s one of the many advantages of working with a knowledgeable real estate agent who has direct access to the most accurate and up-to-date data. If you’re not working with a licensed agent, don’t worry—there are still other options. Websites like Zillow and Redfin offer free tools that allow you to see which homes have sold in the area, what they sold for, and even let you view photos that were used to market the property. While they’re not as precise as MLS data, they’re a good starting point for getting a rough idea of local values.

🆚 MLS vs Zillow/Redfin: Pros & Cons of Running Comps

📌 MLS (Multiple Listing Service)
✅ Most accurate and up-to-date data
✅ Includes sold, pending, and active listings
✅ Access to detailed property history and agent notes
✅ Helps identify cash vs financed sales, seller concessions, and more
❌ Only accessible through a licensed real estate agent or broker

📌 Zillow / Redfin
✅ Free and easy to use
✅ Great for quick overviews and photo comparisons
✅ Useful for spotting trends in a neighborhood
❌ Data may be outdated or incomplete
❌ Can miss off-market sales or show incorrect price estimates

Step 2: Estimating Renovation Costs

After establishing the ARV, the next step is determining your renovation budget. This is the amount of money you’ll need to invest into the property to bring it up to the resale value you're targeting. This number is often referred to as the repair estimate or rehab cost.

Renovation costs typically fall into two main categories: major repairs (the “majors”) and cosmetic updates (also called “finish-outs”).

The majors refer to the critical structural and mechanical components of the home that affect safety, functionality, and financing eligibility. These include:

• Foundation

• Roof

• HVAC (Heating and Air Conditioning)

• Plumbing

• Electrical systems

These repairs usually come with a higher price tag and can significantly impact the home's value—and what type of financing a future buyer can use.

Cosmetic updates, or finish-outs, include the visual and surface-level improvements that make the home desirable to buyers. These often include:

• Paint

• Flooring

• Cabinets and countertops

• Tile

• Bathtubs and showers

• Light fixtures and hardware

While cosmetic items tend to cost less than major repairs, they are just as important when it comes to buyer perception and final sale price. For example, a home with new plastic laminate countertops may function the same as one with granite—but granite can dramatically increase appeal and value in a buyer’s eyes.

It takes a solid understanding of current material and labor costs to accurately analyze repairs and assign a realistic budget. This is another reason why partnering with a licensed real estate agent—especially one experienced in investment property acquisitions—can be a powerful asset. Additionally, working with a reliable general contractor (GC) can add tremendous value for both new investors and seasoned flippers looking to scale their operations.

A general contractor typically oversees the renovation project by hiring and managing skilled laborers, also known as subcontractors, to complete the work. These subcontractors include specialists like plumbers, electricians, roofers, carpenters, and HVAC technicians. GC’s usually have established relationships with these professionals, which helps streamline the process and maintain quality.

Once you’ve completed a few projects and built up your own network of subcontractors, you may be able to save money by managing the rehab yourself. But early on, having a knowledgeable GC in your corner can prevent costly mistakes and keep your project on schedule.

Step 3: Other Factors to Consider

This is where I see a lot of people miss the boat—and then wonder why their investment didn’t make as much money as they expected. Buying and selling real estate comes with a number of hidden costs, and if you don’t factor them in from the beginning, they can eat away at your profit fast.

Here are the key “other costs” you should always include in your flip analysis:

1. Holding Costs

These are the expenses you’ll pay while you own the property. They include:

• Loan interest (especially if you’re using hard money)

• Property taxes

• Homeowner’s insurance

• Utilities (electricity, water, gas, etc.)

Even a short delay in the renovation timeline can drive these numbers up—so build in a buffer and don’t underestimate your timeline.

2. Closing Costs (Title & Escrow Fees)

Whether you’re buying or selling, there are closing costs involved. These include title company fees, escrow fees, transfer taxes, and possibly lender fees. These can range from 1% to 3% of the purchase or sale price, depending on your market.

3. Agent Commissions

If you’re using a real estate agent to list and sell the property (which I highly recommend to get top dollar), expect to pay around 5% to 6% of the sale price in commissions—often split between the listing and buyer’s agents.

These estimates can vary depending on several factors—like your location, current interest rates, the number of days the property sits on the market, and unexpected delays or repairs. Because of this, these numbers aren’t set in stone—they can (and often do) fluctuate.

If you want to be as precise as possible, you can create a detailed, line-item breakdown of each cost. But for quicker analysis—especially when reviewing multiple deals—you can simplify it by estimating these additional costs as a percentage of the ARV. A general rule of thumb is to set aside 10–12% of the ARV to cover holding costs, closing fees, and agent commissions.

Step 3: Determining Purchase Price

Okay, so you’ve done your homework—you’ve estimated the ARV, created a realistic rehab budget, and accounted for the additional costs that come with buying, holding, and selling the property. Now it’s time to bring it all together and figure out the most important number of all: your Maximum Allowable Offer (MAO). This is the highest price you can offer on a property while still leaving enough room for a profit. There are a few variations of this formula, but here are two simple, effective ways to calculate it:

The first—and most widely used—method for determining your purchase price is called the 70% Rule. This rule is a quick way to estimate your Maximum Allowable Offer (MAO) on a flip property. It suggests that an investor should pay no more than 70% of the After Repair Value (ARV) minus the cost of repairs.

The 70% accounts for all your additional expenses: holding costs, closing fees, agent commissions, and your target profit margin. While it’s a simplified model, it’s surprisingly effective for quick deal analysis—especially when reviewing multiple properties at once.

Here’s the formula:

ARV × 70% – Repair Costs = MAO

For example, if the ARV is $250,000 and repairs will cost $50,000:

$250,000 × 70% = $175,000
$175,000 – $50,000 = $125,000 MAO

That means your top offer should be no more than $125,000 to stay within safe margins.

While the 70% Rule is great for quick estimates, I personally prefer a method that focuses directly on targeting profit instead of just percentages. This approach is a little more intentional—and flexible—because it builds your desired profit right into the equation.

Here’s how it works:

First, I subtract 12% of the ARV to account for holding costs, closing fees, and agent commissions. That leaves me with 88% of the ARV as my adjusted starting point. From there, I subtract the estimated rehab costs, and finally, I subtract the profit I want to make on the deal.

The formula looks like this:

ARV × 88% – Rehab Costs – Desired Profit = MAO

This method lets you reverse-engineer your offer based on how much you actually want to walk away with.

📌 Example:

Let’s say:

• ARV = $250,000

• Rehab Costs = $50,000

• Target Profit = $50,000

$250,000 × 88% = $220,000
$220,000 – $50,000 (rehab) = $170,000
$170,000 – $50,000 (profit) = $120,000 MAO

So, your maximum offer should be no more than $120,000 if you want to hit your profit target.

💡 Pro Tip: A good rule of thumb is to aim for a profit equal to your rehab budget. If you’re investing $50,000 into the property, try to walk away with at least $50,000 in profit. This keeps your risk-reward ratio in balance.

Conclusion:

Flipping houses isn’t just about spotting potential—it’s about knowing your numbers. Whether you use the 70% Rule for speed or the profit-first method for precision, having a clear system keeps you from making emotional decisions and helps you stay profitable. The goal is simple: buy smart, renovate right, and sell with confidence. Stick to the math, trust your process, and you’ll set yourself up for consistent success in real estate investing.