By Jared Koch, Attorney
With prices soaring and houses flying off the market almost as soon as they are listed, many homeowners are interested in selling their home for-sale-by-owner (“FSBO”) without the use of a realtor in order to avoid paying commission on the sale. While this approach can help maximize a homeowner’s profit from the sale of their house, the seller also must navigate a process in which they have little or no experience, often without realizing the potential pitfalls that may arise.
It is important for sellers to take steps to protect their interests in a transaction, and engaging a real estate attorney is an excellent way to do so. Real estate attorneys are experienced in navigating real estate transactions, and they can provide you with the expertise you need, at either an hourly rate or flat fee. So what can you expect when you hire a real estate attorney?
Advertising. When working with a real estate attorney on a home sale, advertising the sale is responsibility of the homeowner. The seller can get an appraisal or use other means to determine a sale price and then works to market the home through a multiple listing service or directly to interested buyers. In this phase of the process, it is your job to coordinate all of the “on the ground” pieces of this process, including showing the home and making the property available for inspections.
Disclosures. There are certain disclosures about the condition of a residence that you are required by law to provide to potential purchasers prior to signing a purchase agreement. Buyers routinely request to review these disclosures prior to making an offer so they are fully informed about the property. Your attorney can provide appropriate forms and advise you on the required disclosures so that the information is available when buyers ask for it. This keeps the negotiation process moving smoothly and helps you avoid any liability for nondisclosure of required information.
Purchase Agreement. A critical piece of the sale of a home is turning an offer into a purchase agreement. Many FSBO sellers use a purchase agreement from the internet or accept a standard form purchase agreement prepared by a buyer’s realtor without a second thought. But these options are likely to disadvantage the seller in the sale of the home or expose the seller to unwanted liability. Although you can easily confirm major items like the purchase price and closing date, every provision in the contract affects your rights and how the transaction will ultimately play out, and it is important to have an experienced professional verify their accuracy.
Your attorney likely has a preferred real estate contract that they have developed over time and can prepare the agreement to ensure that it contains appropriate provisions in your favor. Or if the buyer presents a proposed purchase agreement, your attorney will carefully review its terms to ensure that they are in your best interests and accurately reflect the terms that were informally discussed. A purchase agreement presented by a buyer does not have to be take-it-or-leave-it, and your attorney can help you maximize your leverage in the negotiation to get the best terms possible.
Title Matters. Upon signing a purchase agreement, the seller is typically required to provide title evidence to the buyer. Your attorney can help you identify what title evidence can be provided to satisfy this need. Furthermore, once the buyer’s title company prepares a title commitment for the property, the buyer may object to issues in the title to the property. Real estate attorneys are experienced in resolving title objections and can ensure that they are fixed as efficiently as possible in order to minimize any additional time and expense for your transaction to move forward.
Closing. Finally, your attorney will help you navigate the closing process. The seller’s attorney often drafts the seller’s legal closing documents, including the deed that conveys the property to the buyer, and will analyze the settlement statement to ensure that it accurately reflects the transaction. Your attorney can also be present at closing to answer any last-minute questions that arise and ensure that the closing occurs smoothly.
The real estate attorneys at Blethen Berens are experienced in advising sellers in all phases of the home-selling process. Contact us today to schedule a consultation!
