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for sale by owner help

Posted by Tracik3 (My Page) on
Wed, Nov 21, 12 at 21:41

We are selling our house our selves. We have someone that is interested. Dh knows the person, he used to work with him. We are in the negotiating stage right now. My question is what do we do now? lol When do we get an appraisal? Who pays for it? When do we get a inspection and who pays for that? I know we need a title company to do most of the work but when do we go to them? What forms do I need now? This is stressing me out!! Please, help!! Thanks so much!


Follow-Up Postings:

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RE: for sale by owner help

Buyers lender would order the appraisal and generally the buyer pays for it unless somehow it is part of negotiated closing costs. Inspection is up to the buyer if they want one and they pay for it.

You'll need to create a contract that both sellers and buyers agree to and sign. This should spell lout all the terms of the sale and any requests, deposits, dates, conveying items, title insurance etc. and who pays for it. In my area the sellers generally pays for the title insurance. I would suggest a real estate attorney to create the contract.


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RE: for sale by owner help

Do you have a real estate lawyer lined up yet? If not, go find one ASAP. They can draft the sales contract, do the title work, and advise you on disclosures needed (actually you should have already filled out a disclosure, so get the form from them, complete it, and give it to the buyer).

Once you've reached a verbal agreement on the terms, communicate them to your respective lawyers and have one of them draft up a purchase agreement. Buyers will typically have contingencies for inspection and financing, where they can back out if the inspection turns up something they don't like or they can't get a loan. You need to have time limits on both, like inspection within a week and closing no later than 45 days or something.

The ball is then in the buyer's court to make everything happen. Their lender will make the paperwork happen relating to the loan, which are the appraisal, title search, etc. The buyer needs to make the inspection happen on their own. Your lawyer can coordinate the title work on your end, which entails tracking down the abstract and getting it to the buyer's lawyer.


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RE: for sale by owner help

This may not be true in all places, but there is a title company where I live that helps for sale by owners through the process. They can provide the forms you need.

One of the first things you need to do is find the sales disclosure form for your state. Most states require sellers to fill out a form that details any known defects for a property. Do a google search for your state and sales disclosure. Provide this to the buyer.

Who orders the title work can vary from state to state.

You really need a real estate attorney asap to help you through this process based upon the questions you're asking here. Real estate laws vary and you should not trust anonymous posters on the internet to guide you through this process. They can provide general answers, but the specific will depend upon your location.


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RE: for sale by owner help

There is too much variance in local laws and customs to have anyone on the net advise you in anything more than general terms. The "next step" is to find your own local expert. Probably a real estate lawyer.


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RE: for sale by owner help

DO hire an attorney who specializes and is experienced in residential real estate transactions. Do that ASAP.

Do NOT sign any document, contract..etc. before it is reviewed and approved by your real estate attorney. Be cautious when giving out any information.


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RE: for sale by owner help

We were in your situation 10 years ago. We sold our first house by owner to a friend and were sort of blindly pulled along in the process by their lender. We just agreed to a price/terms, and then their lender gave us everything, a little at a time. Seems like we were constantly meeting to drop off/hand back paperwork that they needed. I wouldn't recommend doing that, just because THEY were the ones in control, and we never really knew what was going on.

This time, we tried FSBO (didn't work, but regardless) and we had a Real Estate Attorney lined up. It was going to cost us less than $500 to have all the proper paperwork taken care of. This is the route I recommend. You can just look up lawyers specializing in Real Estate in your area and call a couple of them up to see what their process is. I don't even think the lawyer himself was going to meet with us- his secretary just said to call them up and tell them the terms we agreed on, they'd draw the paperwork up, we'd pick up the paperwork, everyone would sign and then we'd be "official". I'm sure it wouldn't have been THAT smooth, but it sure sounded like it wouldn't be a pain at all.

Good luck!


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RE: for sale by owner help

kelhuck: it really can be that smooth. We sold a house FSBO earlier this year, and it worked just about as you described.


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RE: for sale by owner help

I live in Louisiana. I don't know if that matters.

Ok, so what does a title company do? Because I was told we only needed a title company and that they had their own attorney.

We have not done a disclosure yet. I will look one up. He hasn't even came right out and said he wants the house. He is using USAA trying to see what he is approved for right now. He did text dh and say ok, just for kicks what if I paid this would you be will to do this.....dh basically told him yes and we haven't heard back.

We paid for a MLS number and have the house listed on line. A waste of $400. We have not got one single call. At work the other day I was talking to a customer that is an agent. I told him we had it listed and was willing to pay 3% commission, why hasn't anyone showed it? He said around here too many realtors have gotten burned with the sellers not paying the commission after the sale.


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RE: for sale by owner help

Can you provide the MLS info? This forum can give good suggestions about your pictures and text on MLS.

Many buyers look on MLS themselves, so it isn't necessarily that agents are ignoring you. Something in the listing itself may be causing potential buyers to move on.


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RE: for sale by owner help

Yes, title companies often employ an attorney, or many in my area are owned by lawyers. The attorney employed by a title company is looking out for the interests of the title company--NOT you. That attorney is not your attorney. Title companies in this area have buyers and sellers sign something that indicates they do not represent the buyer or seller.

With all of these very basic questions about selling it's pretty evident you really, really need some professional advice or you need to find a way to quickly get up to speed on real estate sales in your state and location. While people here can offer advice, real estate sales and laws vary from state to state and even different areas within a state may have some particular laws that differ.


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RE: for sale by owner help

I think you need some help to protect yourself and there are many here with excellent advice. Lawyer-- yes And it is my understanding that a Title company will search and make sure there are no liens etc and give the buyer a clean title.
If he is not paying cash, this is a whole new field because you don't know what his loan company will require. Please get some legal advice, and since you have not told us what you want for a price and what he is willing to pay. Also do you and your husband agree on the price.


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You do not have a legal contract yet. There has been nothing in writing. And it sounds as though everything is contingent upon financing, which hasn't even been explored yet.

You're jumping the gun in thinking you even have a sale. These days, right up until closing, you may NOT.

With your experience level, you need an agent. You have more questions about the process than a real estate lawyer will want to deal with. They will want to write up the contract, not steer you through the process and negotiate on your behalf. That isn't their role. That is an agent's role.

FSBO only works if you are an experienced seller. You are not.


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RE: for sale by owner help

With your experience level, you need an agent. You have more questions about the process than a real estate lawyer will want to deal with. They will want to write up the contract, not steer you through the process and negotiate on your behalf. That isn't their role. That is an agent's role.

I disagree, an attorney may handle all of this, one doesn't know unless one asks an RE attorney.


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RE: for sale by owner help

I never said I had a sale......

Thanks for the advice!


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RE: for sale by owner help

Here is the listing ID # 115014

Any advice to what I need to change? Thanks!


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RE: for sale by owner help

This one ... ?

Here is a link that might be useful: house for sale


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RE: for sale by owner help

You highlight the master bath in the description, but you don't have a picture of it. In general, I don't think you have enough pictures.


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I agree that there are a lack of pictures. There is absolutely nothing in the description or the photos that would compel me to call about this house. I know houses should be neutral before listing, but this one has nothing to catch the eye of a buyer based upon these photos. It needs some personality or something to make me want to look more. Also on one site the fireplace photo is sideways.

You need some color like a nice bright bowl of fruit on the counter instead of the many appliances, some pillows on the couch or some colorful throws. The kitchen could use a small rug. When I see only exterior photos and so few interior photos I "wonder" what's wrong with the house. If this is what you paid for, then you are right: you wasted your money.


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Maybe some additional pictures of the bathrooms/bedrooms and a bit more of outside--area and what kind of neighborhood. If you are taking these yourself, take several of each, put them on a table and pick out the best then post them.
Good luck


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RE: for sale by owner help

Ok, thanks! Dh said he thought we needed more photos. I will check into it and see how much it costs to add more.


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