Blog by Eric Borseth of Borseth Law office.
Frequently asked Questions:
Q; Why have a realtor in the first place?
A: The primary job of a realtor is to find a buyer for the property. A realtor also assists in facilitating financing, the closing, and satisfying any issues related to the sale and transfer of title.
Q: Why not hire a realtor?
A: If you have a Buyer, or if you are selling in a Seller’s market and you think you can find a buyer quickly and easily, then you are completing the primary task of a realtor. Realtors charge a fee of 6-7% of the gross value of the real estate. On a $200,000 home that would be a $14,000 fee. You could save that money by avoiding the realtor.
You will need an attorney to perform the work for the sale of the property. The responsibilities would include the tasks normally performed by a realtor, and the tasks normally performed by your attorney. The attorney would charge between $1,000 and $2,000 depending upon the complexities of the sale. Your other closing costs should remain the same. You are saving approximately $12,000 to do a for sale by owner.
Q: What needs to be done to sell my home?
A: After finding a Buyer you need to prepare a Purchase Agreement. The Purchase Agreement contains the price, conditions of sale, and the plan for closing.
The Seller is required to complete a Seller’s Disclosure Statement as to the condition of the home.
The Seller is required to update the abstract and send it to the Buyer’s attorney/lender for an opinion. The cost of updating the abstract is the seller’s responsibility.
The Seller needs to clear all the issues related to the title and present payoff statements from any mortgages and liens.
If you have a cash sale then the attorney will need to do the closing. If the Buyer is financing the sale then the mortgage company would likely want to do the closing. The closing costs of the seller include the preparation of all the Seller’s documents(Deed, etc) and closing statement, paying off liens and mortgages.
If you would like to discuss representation in a for sale by owner, please contact Borseth Law Office. We would be happy to help you with any or all of the responsibilities for the sale of a house.