 REAL ESTATE
LAW Residential Transactions For Sale By Owner
FOR SALE BY OWNER
One of the first questions you need to answer once you have decided to sell your home is whether you should use the services of a realtor or should you attempt to sell the property yourself. A qualified Realtor provides valuable services in marketing your property, however a Realtor will commonly charge from 5% to 6% of the sales price to provide these services. In this time of economic uncertainty, many homeowners are seeking to maximize their largest financial investment by selling their property without using a real estate broker. While Real Estate Brokers do provide a valuable service to their clients, for those individuals who are willing to invest the time and effort into it, selling their home “BY OWNER” can result in substantial savings. Mr. Siebert’s unique background makes him ideal to assist his clients in their attempts to market and sell their homes without the assistance of a real estate broker. If you already have a buyer, or feel confident that you can find a buyer yourself, you might consider trying to sell your property by yourself. This is commonly referred to as Selling by Owner or a For Sale by Owner (FSBO). To successfully Sell by Owner it involves a great deal more work on both the owner’s part and the owner’s attorney’s part. Mr. Siebert has assisted many clients in selling their properties by owner, and can counsel them on what they need to do each step of the way. Obviously, if successful, this can result in significant financial savings for the homeowner, and Mr. Siebert can help you obtain those savings. Are you able to find a buyer for your home, but don’t know how to: - set the price
- prequalify buyers
- negotiate the terms other than price
- prepare the contract
- make sure that the buyers go through with the transaction?
Then Mr. Siebert can advise you on the normal course of business and procedures in negotiating the sale of the home, as well as to prepare all the necessary contracts and documents to transfer your property. So if you are one of those individuals who believes their home or neighborhood will sell itself, or that you will be able to successfully market your home yourself, contact Mr. Siebert to discuss the practical aspects of capitalizing on your marketing efforts. Mr. Siebert’s services in representing Sellers in selling their homes by owner will include all those services provided in a normal Residential Sale but will also include as much or as little additional assistance as the homeowner needs to complete the transaction. While the home selling process can be intimidating, it is not difficult with the help of an experienced real estate lawyer such as Mr. Siebert. While you’ll need to do a little more work when you sell your home yourself, the money you save will make it worth your while.
Additional services may include: | | Assistance in establishing the sales price. Setting the correct asking price is one of the most important factors in selling your home quickly. The best indication of your home’s value is the price others have paid for similar homes in you neighborhood. Factors that affect a home’s value include: | Location -
| Location can be the single greatest factor affecting value. | Competition -
| Buyers compare your property against other properties offered in the market place | Market Condition -
| The current real estate market may reflect either a buyers' or sellers' market | Property Condition -
| The condition of the Property affects the price and speed of the sale. Optimizing physical appearance and preparing in advance for marketing maximizes perceived value.
(SEE TIPS FOR PREPARING YOUR HOME FOR SALE) | | Discuss the practical aspects of marketing and selling your home such as tips in showing your home to prospective buyers. (SEE TIPS FOR PREPARING YOUR HOME FOR SALE)There are several issues to consider before showing your home to a potential purchaser. | Availability –
| Home showings can be inconvenient to your schedule. However, you must be available at the times buyers want to view property. Clear your calendar for evenings and weekends. It is also a good idea to put a message on your answering machine giving a little information about your home and identifying for callers convenient showing times. | Safety –
| Obtain the buyer’s name and phone number prior to the showing. This provides you with some level of security and also provides you with a contact number in the event you need to cancel. When the buyers arrive, have them sign in on a sign in sheet. Set showing times in one-hour intervals and do not conduct showings after 8:00 p.m. Obviously, protect valuables and put any weapons or prescription drugs in a secure location. | Mood –
| Do everything you can to create a pleasant environment for the buyer. Play soft music. Turn on exterior lights and at least one light in every room. Remove pets and signs of pets (food/water dishes.) Create a pleasant aroma in the kitchen (make cookies or bread before the showing) and have the children on their best behavior. | Appearance -
| Clean your home thoroughly. Need we say more? Make it sparkle. Reduce or remove visible clutter as well as hidden clutter (closets and drawers). Tidy up the garage and attic; make sure exterior entrances are free of debris and that the lawn and landscaping are in good shape. | Discuss and prepare necessary disclosure forms. Is it necessary to disclose the leaking roof if it only leaked once, if you repaired it yourself or had it professionally prepared. Mr. Siebert can make sure that you fully comply with the Illinois disclosure laws, while not disclosing unnecessary information that might negatively impact negotiations.
| Assistance in negotiating the contract or multiple contracts. Can you negotiate more than one contract at a time? Can you keep your property on the market with a home sale contingency? Mr. Siebert can assist you in negotiating all the essential terms of the contract to protect your interests in the transaction.
| Who is going to hold the earnest money? How much earnest money is sufficient to protect your interests? Mr. Siebert can advise you as to a practical amount of earnest money, and the earnest money can be held in his state regulated client fund escrow account.
| Do you know how to prequalify your buyer? How can you be confident that the buyer will be financially able to complete the transaction and will not back out of the deal at the last minute under the mortgage contingency clause? Mr. Siebert can provide you with the necessary assistance and contacts to prequalify the potential buyers to make sure they will be able to financially afford your home. Mr. Siebert can provide these and other services to his clients as part of his representation of the seller in a For Sale by Owner Transaction. While it may be a good financial move to sell your home by owner, if you are able, it would be foolish to attempt to do so without the assistance of an experienced real estate attorney such as Mr. Siebert.
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FOR MORE INFORMATION ON THIS SUBJECT OR TO SCHEDULE AN APPOINTMENT WITH MR. SIEBERT TO DISCUSS THIS OR ANY OTHER MATTER CONTACT MR. SIEBERT’S OFFICE. REAL ESTATE LINKS AND ADDITIONAL OUTSIDE RESOURCES TO MATERIALS OF INTEREST ON THIS OR RELATED TOPICS |
