FSBO or Realtor

For Sale By Owner or Realtor?????

There was a For Sale By Owner sign seen in a yard recently and it read: "We shoot every third Real Estate Agent that stops here, and the second one just left".


"Why do we need a real estate agent? After all, an agent will charge thousands of dollars to sell even an average home, and that commission comes right off the top! Heck, with the Internet and all, we can do practically everything that an agent would do, so why should we pay out all that money?" Many home sellers have similar thoughts, and because so much money is at stake, these questions deserve some serious thought.In today's world, the sale of real property is not just a marketing exercise; there are many legal issues involved which can create liability in the sellers. Of all the things you want and expect from selling your home, a lawsuit is probably not one of them.Unfortunately, residential transactions have seen an alarming increase in the number of claims and lawsuits. Of these claims, the majority are filed against sellers, by their buyers. Home sellers who think they can "go it alone" might want to seriously ponder the observations of a lawyer who has defended many sellers and real estate agents against claims made by "the Buyers from Hell." In most states, the process by which title to real property is transferred is rather complicated, and the typical home seller is not familiar with the many legal issues that can and do arise, even in a fairly simple transaction. Important decisions must be made concerning contract terms, escrow matters, transfer of title, apportionment of costs and any number of other matters. Also, bear in mind that a simple missing word, or a mistake in grammar can create a dispute which, in turn, can give rise to a lawsuit. Aside from the problem of drafting the contract language itself, sellers can face other dangers as well. For example, did you know:

That buyers who look for "FSBOs" usually offer 6-10% below the price of comparable properties because they know you are not paying a commission?

That there are substantial risks involved when a seller agrees to "carry back" a note from the buyer; risks that can cost you thousands of dollars?

That your good credit rating can be ruined by your buyer's default, many months, or even years, after that buyer "assumes" your loan?

That a clever buyer can stay in possession of your property for many months after he defaults on the contract, and in effect "live for free" at your expense?

So, please take the time and think about what the safest and most cost effective way to sell your home might be.

Until next time.......Happy Trails. Danicia