Over the past few years the local and national housing markets have experienced a struggle not otherwise seen in recent history. The real estate market has subsequently transitioned into an ideal buyer’s market due to greatly decreased median home prices, overly saturated markets, and historically low mortgage rates. Accordingly, many sellers in today’s competitive market are invoking the cost effective approach of placing their home For Sale By Owner (“FSBO”). FSBO can be an effective tool to convert the cost of real estate commissions into a competitive advantage in pricing, renovations/updates to improve marketability, and negotiating leverage with regards to closing costs. Selling a home FSBO can also be a costly mistake for an inexperienced seller without the assistance of knowledgeable professional.
In any real estate transaction (especially FSBO), both buyer and seller should take necessary steps to properly ensure all aspects of the sale are handled appropriately and further ensure that they are protected against potentially expensive surprises, delays and liabilities. If you are handling the transaction on your own, it is important to consider the advantages a lawyer can offer. It would be advisable to consult with an attorney with regards to the following services:
- Review of the abstract and issuance of a title opinion ensuring the property and transaction is free of any and all title issues.
- Draft, review, and/or evaluate offers and purchase agreements to ensure you are properly protected and aware of the terms and conditions contained therein.
- Host and handle the Closing of the transaction, or represent you with regards to the same if it is to be handled by the lending institution's closing agent.
- Draft, review and/or evaluate (along with the filing of) a Real Estate Contract or Lease.
- Draft or review the transfer documents (Deed, Declaration of Value, and Groundwater Hazard Statement).
- Draft or review statutorily required Seller disclosure documents.
These services can be provided at a very reasonable (often times fixed) rate and are an incredible investment to ensure the transaction is free of costly error and liability.