Thursday, June 15, 2017

Attorney Shannon Wynn: ‘By-Owner’ real estate sellers need protection

FSBO, law, seller, real estate

One article earlier in the Wynn at Law, LLC archives mentioned our current real estate market cycle as being a seller’s market. There’s not much supply, and plenty of demand. Even in a hot seller’s market, there’s a temptation to increase the net price received for the property by offering it For Sale By Owner, or FSBO. (Real estate pros pronounce it ‘fizzboh.’)

Professional realtors have a home-selling advantage by having access to the realty company’s ad money, marketing and presentation resources, and buyers. However, the cost of that advantage is about six percent of the sale. So, FSBO sellers take over the job of the listing agent hoping to pocket that six percent. Many solo sellers do hire professionals to appraise, stage, photograph, video, drone, design flyers, and help them with the paperwork. Some don’t, and just bank on it selling easily because of the market.

Even a realtor-oriented source like Realty Times concedes that a part of a hot market will go FSBO. That website’s tip – and ours – for those sellers is to get a lawyer: “If you have opted to do a realtor-free FSBO transaction this is definitely the time to call an attorney.”

Every real estate transaction requires a deed. It has to be accurate. It has to be on-time. Anyone can access the records at the register of deeds office to pull that off. As much fun as that sounds, can he or she also assure that deed is legally sound? No. Realtor transactions always have an attorney: The title company and lenders insist upon it for that very reason.

Something else to consider: Another way a good attorney has your back when you go solo is by being your surrogate if negotiations get sticky.

Getting a lawyer involved early – as soon as you decide to go it alone – gives the owner an edge by being ready for closing. It provides the peace of mind that comes from having trained eyes look for other factors impacting the closing… before the closing. (See our previous article)

 


*The content and material in this original post is for informational purposes only and does not constitute legal advice.

 

 Photo by Andy Dean, used with permission.

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