Pinehurst, North Carolina

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For-Sale-By-Owner

Sellers-Buyers Without Representation

With nearly two decades of real estate experience behind us, we've been involved in numerous real estate transactions, talked with a lot of people and worked with a few sellers, who chose to sell without representation. The reason most sellers choose to go it alone is to save on costs... Meanwhile the fundamental reason most buyers attempt to purchase from an owner is to save on costs. The fact of the matter is that BOTH parties cannot save. And without buyer representation, odds are the buyer will be paying entirely too much for the property, relative to the actual market value of the property. Contact us to further discuss this issue and learn how an Accredited Buyer Representative will protect and promote your best interest every step of the way.

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You've decided to sell your home and your thinking of selling it without professional representation.  So you've done your market analysis, determined a fair and reasonable asking price, worked on your curb appeal, spiffed up the home's interior and handled minor repairs. So now you're ready to let buyers take a look... or are you?  Before you begin your promotional campaign there are a few pitfalls you'll want to avoid and some issues you'll want to be prepared for.

Property Disclosures

Does your state law require that you give potential buyers one or more property disclosures when you sell a home?  

Disclosures typically deal with the condition of the property or facts about its location, such as...

• Age of the home and its components.

• Whether problems exist with any component

• Existence of encroachment or boundary issues.

• If the house is in an airport flight path

• If the house is in a flood zone

• If the house is on earthquake fault

• Other issues relative to your specific location

Don't assume that disclosures are only necessary for homes listed with real estate agents. For sale by owner sellers must usually furnish them, too. Even if a formal disclosure isn't mandatory, you are probably required by law to tell your buyers about known problems, often referred to as material facts, which may affect value and salability. To learn more about seller obligations, contacting the agency that oversees real estate transaction in your area by clicking here.

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If your house was built prior to 1978, federal law requires that you disclose that the home could contain lead based paint and give buyers details about past tests for lead paints. You must also offer buyers the opportunity to do their own lead paint testing. Most people don't perform the tests, but you must furnish them with a lead paint pamphlet, which is available free online from the EPA. Failure to comply with this federal law may result in a $10,000 fine!

Showing the House

Showing the house isn't difficult and confirming that your prospective buyer can really buy, will save you time and frustration.  Here are a few basic showing guidelines to help you accomplish that objective....

• Knowledgeable and experienced real estate professionals will always verify a prospective buyer's pre-approval status and intent before showing any property. While attempting to sell you are forced to contend with many people... Including those who are qualified and those who don't have a chance of qualifying for a mortgage.

• People who know they cannot buy sometimes think that for sale by owner homes offer a better opportunity, because they're hoping to find a seller who will finance the transaction.

• Be prepared, most of the inquiries you'll receive will likely be from real estate agents looking to build their listing inventory by cold calling For Sale By Owners.

• Security risks can be minimized if you're able to identify and qualify your prospective buyers BEFORE giving them access to your property. Ask which lender they're pre-qualified with always insist they show you photo ID and letter of mortgage pre-approval letter BEFORE letting them set foot in your home.

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Qualify a prospective buyers ability to perform before opening your home to them.

Have you been pre-approved by a lender for an amount in this price range?

      TIP - Decide if you are willing to tie up your house until they sell.

Who will provide the contract forms that will be used for an offer to purchase your house, you or the buyer? You can write a contract yourself on a piece of paper, but it probably wouldn't offer much protection for either your or your buyer. The forms you use should be valid for your state's real estate laws and cover issues that are important for your location.

If you aren't contract savvy, always have a real estate attorney review documents before you sign anything. Don't cut corners here; neglecting to get advice from an attorney or other knowledgeable person may cost you more money and aggravation then you can imagine.

Buyer's Down Payment

The real estate purchase contract should spell out what happens to the buyer's deposit money, called earnest money, if the transaction falls and should address the following:

• Under what conditions would the buyer get it back? (Unable to get financing, too many repair issues, etc.)

• Under what conditions would you expect to keep it? (Buyer backs out with no cause)

The deposit money is NOT yours until the house sells or the buyer breaks the contract in such a way that it becomes yours by prior agreement. It must be credited to the buyer's funds on closing day and ideally should be held in someone's trust account until then.

Real estate laws and customs differ in nearly every state, so it's essential that you research and be familiar with state and local laws to make sure you are in compliance with all laws connected with the sale of your home.

Clearly there is much to consider when selling your home... If you find it overwhelming, feel free to contact us to further discuss your concerns... Or better yet, let us protect and promote your interests through professional representation.

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