Chris explains why in this Seller’s Market it sometimes makes sense to sell without a Realtor, and then gives detail on the process from the Seller’s side of the transaction.
What’s a Fizbo Anyway?
FSBO stands for “For Sale By Owner” and it’s very popular right now. When selling their home, most people usually think they need to list it with a Realtor. While Realtors can provide a great service, you simply may not need all the services they provide – and you may not want to pay their 6-7% fee either. For a $250,000 house, a 7% commission is $17,500!
That fee can be well deserved by a Realtor who finds a buyer in a tough market, but in a Seller’s Market, home sellers may not need the marketing services of a Realtor. They commonly find their own buyer — pretty quickly too, sometimes!
Help! I Found a Buyer, But I Don’t Know What To Do Next.
This is where a real estate attorney comes in. It may feel like the hard work is done once you find a buyer, but it’s actually just beginning! After finding a buyer, someone needs to draw up the Purchase Agreement (also called the “Offer” or “Purchase and Sale Contract”). If neither side has a Realtor, an attorney can draft one for you. In fact, having a legal professional draft your Purchase Agreement will ensure it’s done correctly and in your best interest.
After that Purchase Agreement is signed, there is still a lot to do to get ready for the closing. In Iowa, that list can include the following:
- The Seller Disclosure Statement (should be signed with or before the Purchase Agreement)
- Lead Based Paint Disclosure Form (if house is built before 1978)
- Home Inspection
- Radon Inspection
- Wood Destroying Pest Inspection
- Abstract Update and Delivery to Buyer’s Attorney
- Title Opinion or Title Commitment
- Form 1099-S
- Time of Transfer Inspection for Septic Systems
- Preparing the signing the Tax Proration Agreement
- Preparing and signing Deed, Declaration of Value and Groundwater Hazard Statement
- Holding and delivering earnest money
- Delivering all documents to the closer
- Reviewing and correcting any errors on the HUD/Closing Disclosure
Full article here: http://langpaullaw.com/how-to-sell-your-home-fsbo/