Updated October 2026. Smarter methods for one part of selling by owner that trips people up: checking the buyer and keeping the deal together until closing. CFPB, NAR and HUD pages read October 30, 2026.
The smartest method when selling a house by owner is to check the buyer before you check the price. In 2026, that means three things: a real preapproval letter or proof of funds, earnest money held by a title company, and a written calendar of contract deadlines. NAR counted 27% all-cash sales in September 2026, so ask every buyer how they’re paying.
Jump to: 🪜 Screen buyers · 💲 Read the letter · 🤝 Earnest money · ⏱️ Deadlines · ❓ FAQ
Key takeaways
- A prequalification and a preapproval are not the same. Per the CFPB, lenders issue preapprovals only on verified information, and neither one is a final loan offer.
- Cash buyers made up 27% of sales in September 2026 (NAR). Ask them for a recent bank or brokerage statement, not a screenshot.
- Earnest money should sit with a neutral third party, such as a title company, not in your personal account.
- A missed deadline can sink a deal. Put every date in one calendar the day you sign.
Other guides on our blog cover the scripts for calls and showings. If you want words to say, read how to sell by owner with confidence. This one is about checking. Who is this buyer, can they pay, and what keeps them on track?
How do I screen buyers before a showing?
A short screen saves you hours. Before you book a visit, ask for three things by text or email.
- Full name and phone number.
- How they plan to pay: loan, cash, or sale of another home.
- A preapproval letter or proof of funds, if they’re ready to make an offer.
Be friendly about it. Serious buyers expect the question. Someone who won’t give a last name for a visit to your living room isn’t someone you need to host. If they have an agent, the agent will usually send the paperwork for them.
Fair housing rules apply to you, too. Ask every buyer the same questions, in the same order, and don’t ask about family, religion, or where they’re from. The rules are on the U.S. Department of Housing and Urban Development site.
How do I read a preapproval letter or proof of funds?
Start with the word at the top. The Consumer Financial Protection Bureau explains that a prequalification can rest on what the buyer told the lender, while a preapproval is based on verified information. Both state an amount. Neither is a final loan offer.
Then check five details.
- Date. A letter from three months ago may not reflect today’s rates or the buyer’s job.
- Amount. It should cover the offer price minus the down payment, with room to spare.
- Loan type. FHA, VA, conventional or other. FHA and VA appraisals look at condition, so a home that needs work may face repair requests.
- Lender contact. Call the loan officer and confirm the letter is real. Many will confirm it, with the buyer’s permission.
- Conditions. Look for lines like “subject to sale of current home”. That changes your risk.
For cash, ask for a recent statement showing enough money, with account numbers blacked out. The name on the account should match the buyer or their company. A letter from a “private lender” you can’t find online isn’t proof of funds.
How much earnest money should I ask for, and who holds it?
The CFPB describes earnest money as a deposit a buyer pays to show good faith once the contract is signed. It’s held by the seller or a third party, such as a title company. If the sale closes, it can go toward the buyer’s closing costs or down payment. If the buyer walks away for a reason the contract doesn’t allow, it may go to the seller.
Custom varies by area, so ask a local title company what’s normal. A deposit that’s tiny next to the price tells you something about commitment. Ask for it within a few days of signing, and write that deadline in the contract.
Don’t hold it yourself. A neutral escrow holder protects both sides and avoids an argument if the deal ends. In Florida and Texas, Beycome Title can hold the deposit and run the closing; Michigan, Ohio, Illinois and Indiana are added starting November 2, 2026. For the buyer’s view of deposits, see earnest money explained.
Which contract deadlines should I track?
Plenty of by-owner deals wobble not on price but on a date nobody watched. On signing day, make a one-page calendar with these lines.
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Buy a home →| Deadline | What happens | What you do |
|---|---|---|
| Earnest money due | Buyer delivers the deposit | Ask the title company to confirm receipt |
| Inspection period ends | Buyer asks for repairs or walks away | Answer repair requests in writing |
| Loan application and appraisal | Lender orders the appraisal | Make the home easy to access |
| Financing contingency ends | Buyer confirms the loan or cancels | Ask for written loan approval |
| Closing Disclosure | Buyer gets it at least 3 business days before closing (CFPB) | Review your own settlement statement |
| Closing | Deed and money change hands | Bring ID; confirm wire details by phone |
Your contract may use other names, and your state may have its own forms. Our stage-by-stage paperwork timeline shows which document lands when. If a question goes beyond the forms, the Nolo legal information site has plain-English articles, and a local real estate attorney can review your deal.
What if the appraisal comes in low?
Plan for it before it happens. A low appraisal means the lender won’t lend on the full price. You have three usual choices: lower the price, ask the buyer to cover the gap in cash, or meet in the middle. Some buyers add an appraisal gap clause up front, which tells you how much they’d cover.
Your best defense is a price based on real recent sales. If you priced from comps, send the appraiser a short list of them with addresses and sale dates. Stay polite and factual. Appraisers work for the lender, not for you or the buyer.
Where can I get help without giving up control?
You can handle all of this alone. Many sellers want a second pair of eyes on the offers, though. A flat fee MLS listing puts your home on the major home search sites and the MLS, which brings agent-represented buyers with lender letters already in hand. Basic is $99, Enhanced $399, with $0 due to Beycome at closing.
On Basic and Enhanced, Artur AI helps you compare offers and draft counters. With Concierge, $999 until November 2, 2026 (list price $1,399), an expert negotiates with you, always on your side, and checks the buyer’s paperwork with you. You still decide on every offer. We’ve helped 22,000+ homeowners save over $225 million, with a home sold every 30 minutes (Beycome internal data, October 2026).
Haven’t listed yet? Start with the listing package to build first. Then come back to this page when the first offer arrives.
Selling a house by owner: questions about buyers and deals
Can I ask a buyer for a preapproval before a showing?
Yes. Ask every buyer the same way, so you treat everyone equally. Many sellers ask for it before a second visit or with any offer.
Is a prequalification letter good enough?
It’s a start, not proof. The CFPB notes a preapproval rests on verified information. Ask for one, and call the lender to confirm it.
Who should hold the earnest money when I sell by owner?
A neutral third party, such as a title company or closing attorney. Holding it yourself invites disputes if the deal ends.
What proof of funds should a cash buyer show?
A recent bank or brokerage statement in the buyer’s name, showing enough money to close. Account numbers can be hidden.
What happens if the buyer misses a deadline?
It depends on the contract. Some deadlines let you cancel, others need a written notice first. Read the default section, and ask an attorney if you’re unsure.
How do I avoid wire fraud at closing?
Never trust wire instructions sent by email alone. Call your title company at a number you found yourself and confirm them by voice.
Prices as of October 2026: Basic $99, Enhanced $399, Concierge $999 until November 2, 2026 (list price $1,399); from November 2, 2026, Concierge is $1,399 and Basic is $129 in California and Illinois. “$0 at closing” means no Beycome fee at closing; other closing costs, taxes and title fees still apply. Beycome lists in 17 states and DC.
Beycome Title: Florida and Texas today; Michigan, Ohio, Illinois and Indiana starting November 2, 2026. General information, not legal advice; contract forms and deadlines vary by state.
Sources
- CFPB, Prequalification vs preapproval letter, read October 30, 2026.
- CFPB, Mortgage key terms: earnest money, read October 30, 2026.
- CFPB, What is a Closing Disclosure?, read October 30, 2026.
- NAR, Existing-Home Sales, September 2026, read October 30, 2026.
- Beycome, listing package features, October 2026.
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