How to Screen Potential Buyers for Your FSBO Home

26 December 2025

Selling your home For Sale By Owner (FSBO) can be both exciting and nerve-wracking. You save on agent commissions, but you also take on the responsibility of vetting buyers yourself. The last thing you want is to waste time with unqualified buyers who aren’t serious—or worse, get scammed.

So, how do you make sure you’re dealing with a legitimate, financially capable buyer? Let’s break it down.

Why Screening Buyers Is Essential

Imagine hosting multiple showings, answering endless questions, and negotiating back and forth, only to find out the buyer can’t secure financing. That’s a nightmare scenario for any FSBO seller. Screening buyers early helps you:

- Weed out time-wasters
- Avoid fraudulent buyers
- Protect your personal and financial information
- Ensure a smoother closing process

By filtering out unqualified buyers right from the start, you’ll save yourself time, energy, and unnecessary frustration.

Signs of a Serious and Qualified Buyer

Not all buyers are created equal. Here are a few signs that indicate someone is truly serious about buying your home:

1. They have mortgage pre-approval.
A pre-approval letter from a lender shows they’ve already taken the steps to secure financing. This is different from pre-qualification, which is more of an informal estimate.

2. They ask the right questions.
Qualified buyers ask about the home’s condition, recent repairs, property taxes, and HOA fees. If someone seems uninterested in the details, they might just be browsing.

3. They’re available for viewings and follow up.
If a buyer is truly interested, they’ll make time to see the property and won’t ghost you after the first visit.

4. They show financial stability.
A solid buyer should be able to provide proof of funds for the down payment and closing costs.

5. They have realistic expectations.
If someone is making lowball offers or constantly nitpicking minor details, they might not be a serious contender.

Now that you know what to look for, let’s discuss how to properly screen potential buyers.

Step 1: Ask Pre-Screening Questions Early

Before you even schedule a showing, ask a few simple but direct questions. Think of it as a mini-interview to gauge their level of seriousness.

Key Pre-Screening Questions to Ask:

- Are you pre-approved for a mortgage?
- What’s your timeline for moving?
- Have you bought a home before?
- Are you open to sharing proof of funds if necessary?
- Do you have any contingencies, such as selling your current home first?

These questions help you determine whether a buyer is financially ready and motivated to make a purchase.

Step 2: Verify Mortgage Pre-Approval

A buyer might say they’re pre-approved, but you’ll want to see it in writing. Ask for a copy of their pre-approval letter from a reputable lender. Look for:

- The buyer's name
- Loan amount they’ve been approved for
- The lender’s information and verification details

No pre-approval? That’s a red flag. Without it, there's no guarantee they can secure financing.

Step 3: Request Proof of Funds for Down Payment

If your buyer is making an all-cash offer, they should be able to provide proof of funds. This might be a bank statement (with sensitive info redacted) or a letter from their financial institution confirming their ability to cover the purchase costs.

If a buyer hesitates or refuses to provide this, you might be dealing with someone who isn't financially ready.

Step 4: Be Cautious of Scammers

Selling FSBO means dealing directly with buyers, and unfortunately, some scammers prey on unsuspecting sellers. Watch out for these red flags:

- Buyers who rush the process:
If they push to close the deal too quickly without proper background checks, be suspicious.

- Requests for personal or financial information:
Never share sensitive details like your bank info or Social Security number.

- Offers that seem too good to be true:
If a buyer offers full price (or more) without negotiating, it might be a scam.

- Strange payment methods:
Be wary of buyers who want to pay with cashier’s checks or wire transfers from overseas.

Step 5: Require an Earnest Money Deposit

A serious buyer will be willing to put down earnest money—a good-faith deposit that shows they’re committed. This amount is typically 1%–3% of the sale price and is held in escrow.

If a buyer hesitates to provide earnest money, they may not be as serious as they claim.

Step 6: Conduct a Background Check If Necessary

If you have any doubts about a potential buyer, you can request a background check or credit check—especially for investment properties or rent-to-own situations.

This isn’t always necessary, but it adds another layer of security in protecting yourself from unreliable buyers.

Step 7: Work With a Real Estate Attorney

Even if you’re selling FSBO, hiring a real estate attorney for key steps like contract reviews and closing can save you from legal and financial headaches.

An attorney will ensure:
- The sales agreement protects your interests.
- The buyer's financing is legitimate.
- All necessary legal formalities are met.

It’s an extra expense, but one that’s well worth it.

What to Do If a Buyer Doesn’t Qualify

Sometimes, you’ll have to turn down an unqualified buyer. If that happens, here’s how to handle it professionally:

1. Be polite but firm.
Let them know that you can’t proceed without a mortgage pre-approval or proof of funds.

2. Offer alternatives.
If they’re genuinely interested but not ready financially, suggest they work with a lender and return once they’ve secured financing.

3. Keep your home on the market.
Don’t take your listing down until you have solid confirmation that the buyer is qualified.

Final Thoughts

Screening potential buyers for your FSBO home might feel overwhelming, but it’s essential to ensure a smooth and successful sale. By asking the right questions, verifying financial documents, and staying alert for scams, you’ll protect yourself from unnecessary risks.

Remember, selling your home is just as much about finding the right buyer as it is about getting the best price. Take your time, trust your instincts, and don’t hesitate to walk away from a deal that doesn’t feel right.