For-Sale-By-Owner

WITHOUT REPRESENTATION

For nearly two decades we have served the needs of buyers and sellers of residential and some commercial properties. Over the years we learned that though circumstances and properties often vary, the primary reason sellers sometimes choose to sell by owner, is to save money. We found it interesting to note, the primary reason buyers are interested in purchasing a property from the owner, without a REALTOR is to save money.  Do you see the problem?  The fact is BOTH parties want to save money, but clearly both cannot.

We have served as buyer agents and represented buyers who have purchased from a seller, who was without representation (FSBO). And though those types of transactions typically involve more work for the buyers agent, both buyer and seller are better off, since the potential for error is significantly reduced.  We've found that most sellers overprice their properties for two reasons...

• Emotionally attached to the property.

• Unfamiliar with current property values and market statistics

The point is: unless the property appraises for no less then the sales price, they cannot obtain financing and the transaction will not close, unless the buyer is paying cash and not very bright. Both parties benefit through the time saved and expertise a real estate professional can bring to the transaction. Contact us for more information and to to learn about Accredited Buyer Representation.

You've decided to sell your home and your thinking of selling it without professional representation.  You've completed your analysis of the market, determined a fair and reasonable asking price, worked on your curb appeal, spiffed up the home's interior and handled minor repairs and now It's Showtime!... Are you really prepared? Before you launch your promotional campaign there are a few pitfalls you'll want to avoid altogether and some issues you'll want to really be prepared for.

DISCLOSURES

Does your state law require that you provide potential buyers one or more property disclosures when selling a home?

Seller Property Disclosures typically address the condition of the property and facts about it's location and items such as...

• Age of the home and its components.

• Whether problems exist with any component or system.

• Existence of encroachment or boundary issues.

• If the house is located in an airport flight path.

• If the house is located in a flood zone.

• If the house is  located on earthquake fault.

• If the house is located in a flood plain.

• If there are any Owners Association issues.

• Other known issues relevant to specific location.

• Existence of lawsuits, foreclosure, bankruptcy, judgments, tax liens and assessments.

• Existence of environmental hazards i.e. lead based paint, asbestos, radon and etc.

• Room additions and structural changes.

• Building code and zoning ordnance violations.

• Commercial or industrial nuisances.

Don't assume that disclosures are only necessary for homes listed with real estate agents. For sale by owner sellers must usually furnish them, too. Even if a formal disclosure isn't mandatory, you are probably required by law to tell your buyers about known problems, often referred to as material facts, which may affect value and salability. To learn more about seller obligations, contacting the agency that oversees real estate transaction in your area by clicking here.

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If your house was built prior to 1978, federal law requires that you disclose that the home could contain lead based paint and give buyers details about past tests for lead paints. You must also offer buyers the opportunity to do their own lead paint testing. Most people don't perform the tests, but you must furnish them with a lead paint pamphlet, which is available free online from the EPA. Failure to comply with this federal law may result in a $10,000 fine!

SHOWINGS

Showing the house isn't difficult and confirming that your prospective buyer can really buy, will save you time and frustration.  Here are a few basic showing guidelines to help you accomplish that objective....

• Knowledgeable and experienced real estate professionals usually conduct a preliminary interview to verify a prospective buyer's identity, pre-approval status and intent before agreeing to work with them and show a property. While attempting to sell you are forced to contend with many people... Including those who are qualified and those who don't have a chance of qualifying for a mortgage. Nevertheless there are inexperienced agents who don't, so if an agent contacts you to "bring a buyer through" we suggest you ask them if the person they want to bring through has signed a Buyer Broker Contract. 

• People who know they cannot buy sometimes think that for sale by owner homes offer a better opportunity, because they're hoping to find a seller who will finance the transaction.

• Be prepared, most of the inquiries you'll receive will likely be from real estate agents looking to build their listing inventory by cold calling For Sale By Owners.

• Security risks can be minimized if you're able to identify and qualify your prospective buyers BEFORE giving them access to your property. Ask which lender they're pre-qualified with always insist they show you photo ID and letter of mortgage pre-approval letter BEFORE letting them set foot in your home.

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Have you been pre-approved by a local lender for a mortgage in this price range?

      TIP - Are you are willing to tie up your house until they sell.

Who will provide the contract forms that will be used for an offer to purchase your house, you or the buyer? You can write a contract yourself on a piece of paper, but it probably wouldn't offer much protection for either your or your buyer. The forms you use should be valid for your state's real estate laws and cover issues that are important for your location.

If you aren't contract savvy, always have a real estate attorney review documents before you sign anything. Don't cut corners here; neglecting to get advice from an attorney or other knowledgeable person may cost you more money and aggravation then you can imagine.

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DOWN PAYMENT

The real estate purchase contract should spell out what happens to the buyer's deposit money, called earnest money, if the transaction falls and should address the following:

• Under what conditions would the buyer get it back? (Unable to get financing, too many repair issues, etc.)

• Under what conditions would you expect to keep it? (Buyer backs out with no cause)

The deposit money is NOT yours until the house sells or the buyer breaks the contract in such a way that it becomes yours by prior agreement. It must be credited to the buyer's funds on closing day and ideally should be held in someone's trust account until then.

Real estate laws and customs differ in nearly every state, so it's essential that you research and be familiar with state and local laws to make sure you are in compliance with all laws connected with the sale of your home.

Clearly there is much to consider when selling your home... If you find it overwhelming, feel free to contact us to further discuss your concerns... Or better yet, let us protect and promote your interests through professional representation. View Our Client Testimonials

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