If you are contemplating either selling your home without representation or buying a home with the guidance of even a real estate agent, be sure to understand your competencies and limitations.
Sellers
Sellers in for-sale-by-owner transactions must follow all legal guidelines and good business sense to:
- Properly value their home or property
- Understand their local real estate market
- Properly promote and set up marketing for the property
- Negotiate documents with proper terms and deadlines
- Arrange for proper management of escrow funds
- Project manage all inspections
- Secure or enable the buyers to secure a title company
- Manage all details related to their move and relocation.
Buyers
Buyers in FSBO transactions must:
- Understand the real estate market in their target area
- Negotiate fair price, terms, and deadlines
- Sign a contract that is accepted by their mortgage and insurance companies
- Ensure funds provided for escrow are secure
- Coordinate all inspections and appraisals in accordance to contract timelines
- Secure proper insurance coverages as required by their lender
- Secure title insurance as needed
- Ensure all documentation needed by their lender is reviewed in time for closing
- Accept or pick a title company
- Manage all details related to their move and relocation
A real estate attorney can support many of these critical parts of the process to ensure that your interests are protected and that you have a successful closing. Discovering that you signed away important inspection rights or agreed to pay thousands more than the property is worth can turn a stressful transaction into a nightmare.