For Sale by Owner: How to Avoid Costly Mistakes?

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By Rochford Law Posted on March 9, 2020 at 7:00 AM

Avoiding the retention of a real estate agent is an increasingly popular way for people to save money when selling a home. This is what’s referred to as For Sale By Owner (FSBO). Listing your home, setting up showings, and accepting an offer doesn’t always require the help of a real estate agent.

These aspects of the sale can be navigated with a little research. However, there are intricacies that can occasionally come up during the sales process that can have a large impact on the seller’s overall profit.

FSBOs can be successful. They can save a seller a lot of money by avoiding the real estate agent’s commission. However, mindful avoidance of some pitfalls, and obtaining the assistance of a real estate attorney during the closing process can help avoid costly mistakes.

Here are some things to look out for as you attempt to sell your own home.

Speaking With Buyers

You’ve probably spent a lot of time in your home over the years. You’ve made alterations. A lot of work has been put into every aspect of the home. You’ve watched your family grow and the walls might mean more to you than something that holds up the roof.

But now you’re a salesperson. You need to speak to buyers from the point of view of trying to convince them to buy your home from the perspective of a buyer rather than a homeowner. Separating these two mindsets can make it easier to handle the transaction in a business-like manner.

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Using Trustworthy Services 

Real estate agents will often know professionals they trust and frequently use. Appraisers and home inspectors aren’t all the same. It’s in everybody’s best interest to find the best professionals that can be found to perform these very important duties.

Missing something during these very important phases of the home selling process can lead to costly unforeseen repairs or even the disintegration of the deal. Pay very close attention to what is being done during the inspections of your home and avoid surprises down the road.

More Time on the Market Can Mean Less Profit

Real estate agents have their own websites and networks that can help a home to sell much faster than one without this support. FSBOs are all on their own when it comes to getting the word out about a home. Be sure your listings are detailed and thorough to attract as much attention as quickly as you can.

Take comprehensive pictures of your home. Provide measurements and details about size and layout. Include neighborhood details that potential buyers might find appealing.

Don’t Waste Your Time 

Open houses draw a lot of attention from people that don’t have any intention of purchasing a home. The best way to avoid showing your home to nosy neighbors or people who simply like to look at homes is to ask for a prequalification letter from a reputable lender.

This extra step demonstrates to sellers that the potential buyer is serious about viewing the home. Taking time to show your home to uninterested parties is not only a waste of time, it draws your attention away from attracting serious buyers.

Research Contingencies

Contingencies are items within a contract that can nullify the contract if unfulfilled. These items aren’t widely known so they should be researched and fully understood before going the FSBO route. These contingencies often include financing, appraisal, title, and inspection.

Failure to adequately address and complete each of these contingencies could lead to the deal falling apart. At that point, the seller would have to start the whole process over, which could lead to spending more money.

Stay on Top of Financing

A real estate attorney can be called in to assist with the intricate financing aspects of the closing process. The lender often wants to examine the title search. The lender also usually orders the appraisal. These factors can be difficult to navigate without the prerequisite knowledge and experience a real estate attorney like John Rochford can offer.

However, these are crucial issues that need to be addressed properly.

Use Adequate Contracts

Tennessee real estate contracts are available for anyone to download on the internet for free. However, these transactions often include a number of specific points and needs to be addressed.

Signing a form contract without the help of a real estate attorney can leave the seller underrepresented. This is a very large transaction. Individualized contracts will appropriately protect the legal interests of the seller and buyer.

Call An Experienced Real Estate Attorney

FSBOs can make it through the sales process without the help of a real estate agent. But continuing through closing with the help of a real estate attorney is highly ill-advised. The experts at Rochford Law & Real Estate Title help homeowners navigate the complicated process of selling their homes every day.

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Topics: Real Estate Lawyers, Real Estate Nashville, Selling Real Estate