F.A.Q.s (and Answers) from Owners Selling Their Home

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By Rochford Law Posted on February 7, 2020 at 7:00 AM
 

Selling your home is a big decision. The intricacies often leads to sellers seeking out the assistance of a real estate agent to guide them through the process. However, a more adventurous homeowner might elect to sell their property by themselves and enlist a residential real estate attorney for any questions along the way.

For Sale By Owner (FSBO) properties can be a very lucrative direction to take. Real estate agents cost money, after all. We’ve compiled some frequently asked questions regarding the process of selling your own property.

What Are the Differences in the Process for Commercial and Residential Sales by Owner?

As the question implies, a similarity is shared in the way of each process eschewing the services of a real estate agent. Beyond that, there are quite a few differences. There are some Tennessee laws that apply only to residential sales, such as the Residential Property Condition Act.

There is paperwork required for residential sales that isn’t required for commercial sales.

Buyers in the commercial market typically spend a lot more time performing their due diligence of the property — this includes examining the property itself, the zoning, inspections, and so on.

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How Successful Are FSBOs Compared to Those That Use a Real Estate Agent?

In the end, FSBOs are just as successful as those that start out with a real estate agent. We say this because an FSBO can always enlist the assistance of a real estate agent at any point in the process. The only thing a seller has to lose is a little bit of time.

Put your property on the market without a real estate agent and see if you find any interest. The final check after the sale is much larger when you don’t use a real estate agent.

What Contingencies Are in Real Estate Contracts?

Contingencies are predetermined criteria that need to be met to complete the sale. They are in place to protect both the buyer and the seller. There are normally four contingencies for a residential purchase and sale agreement.

1. Financing

 Can you secure financing?

2. Appraisal

Is the property worth the price?

3. Title

Does the property have any liens or judgments on it?

4. Inspection

Does the home have any major problems?

Where Can a Buyer Find a Real Estate Contract?

There are plenty of free contract templates on the internet. However, not all of these contracts cover everything that should be covered. Do you have any unique factors to your property or sale?

These transactions are quite large and very important. You want to be sure your contract fulfills the necessary criteria. There is a standard purchase and sale agreement available on the Rochford Law & Real Estate Title website. Contact an experienced residential real estate attorney for customized attention and advice.

What Could Delay a Sale After an Offer Is Accepted?

The most common reason for delays is financing, but there are numerous possible reasons for a delayed sale. Busy appraisers that can’t get to the property can push back the closing date. Discovery of issues during the inspection such as termites can push the closing date back as well.

There is often a string of necessities to close on a specific date. And if the buyer is selling their own property at the same time, the ability to adhere to a strict timeline becomes more difficult. Any delay in the buyer’s home closing could delay the other closing date as well.

Is It Possible to Hire a Real Estate Agent Halfway Through a Transaction?

Yes! However, splitting the ultimate price of your property sale with a real estate agent can take a sizable amount of money out of your end.

It should be known that real estate agents representing both the buyer and the seller occasionally work out deals regarding a split of the commission. For this reason, you should always let the agent on the other side of the transaction know if you make a change in your decision to enlist the help of an agent.

Is There Anything Unique to Tennessee in These Transactions?

Every state is a little different when it comes to laws, customs, and practices for real estate closings. One example is the differing foreclosure processes between Kentucky and Tennessee. 

Kentucky is what’s known as a “Mortgage State” while Tennessee is a “Deed of Trust State.” A lawsuit is required for a lender to foreclose on real estate in Kentucky. But in Tennessee, a lender can foreclose on a property after simply sending a letter to the homeowner after they’ve stopped making payments on their mortgage. All they have to do is send a written notice before they proceed to sell the property.

How Is Rochford Law Real Estate & Title Better Suited to Help FSBOs?

John Rochford has been practicing law in Nashville for 22 years, and has owned his own title agency for 16 years. This experience has informed many successful transactions throughout the years. Contact Rochford Law & Real Estate Title for an experienced residential real estate litigation attorney in Nashville.

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PHONE: 615.269.7676

Topics: Real Estate Nashville, Selling Real Estate, Tennessee Real Estate Law, Closing Process