The Risks of For Sale By Owner

 


Mortgage Loan

Do you have a working relationship with various lenders who can assure you that the prospective buyer qualifies for a mortgage loan? Do you know how to apply qualifying ratios?

 

Signs

When a "For Sale By Owner" sign goes up and is then replaced by a real estate company's sign, it has a negative connotation: "Why couldn't the owner sell his house?"

 

Appointments

Intracoastal Realty has agents on duty seven days a week. As the seller, are you this accessible?

 

Inspections

Do you know what inspections are required and how to set them up?

Do you know who the most knowledgeable and reputable inspectors are?

Do you have time to attend inspections? This can take two to three hours.

Do you know where to send the reports?

Do you feel comfortable negotiating the settlement of repair costs? Who is responsible for paying for what? How much of this is truly negotiable, particularly when it relates to what the lending institution requires?

 

Disclosures

Do you know what disclosures to make?

Are you familiar with lead based paint?  What about underground storage tanks?

 

Attorney

Do you have a professional relationship with a real estate attorney? Both the listing and selling agent must stay in constant contact with the closing attorney. As the owner/seller, you must act as both the listing and selling agent.

 

Walk-Through

Prudent buyers will do a "walk-through with their agent just before closing to insure the house is in the condition they expect. Are you, as the owner/seller, comfortable with last minute demands, etc.?

 

A Real Estate Agent Works For, And Will Earn Their Commission

The easiest part of selling a home is signing the Offer to Purchase. The real work and expertise is involved in the time between the signing of the Offer and the actual closing of the sale. Do you have the time, and more importantly, the knowledge, to handle all that is entailed in these proceeding