I found a potential buyer for my home without the assistance of a real estate company. Do I need.....?

Question

to use one now for the contract and the coordinating of the closing or do I need to get a lawyer? One real estate company wants to charge a 1% "management fee" to handle all the transactions involving the sale. This would cost me about $3,650 dollars. Is it worth paying all that money? How do for sale by owner handle this?

Another fact is that I live about 2 1/2 hours away from the property.

Answer 1

Congratulations on your potential buyer!

Being a Realtor, I would advise you to allow a Realtor to represent you with the intricacies of the contract. The 1% fee is very reasonable, considering the seller's agent will usually yield 3% for their efforts. This will really save you money and more importantly the stress; given that you're a distance from the property. You might suggest that the buyer pay 1/2 of the 3650.00.

A Realtor can arrange everything for you, via the title company, to be faxed, emailed, overnighted, whatever the case may be and ensure you are protected as well as the buyer for any present or future issues that may arise. Often times, states have strict laws regarding disclosures that not all for sale by owner contracts fulfill. Protect yourself please.

Unless you need an attorney in your state to conduct the transaction, why hire one and add an additional expense?

The title company bears no legal responsibility, as the respondent below has suggested. They are a neutral party, as disclosed in all of their disclosures that makes no warranties or guarantees; that simply ensure that the title is free and clear and marketable, holds earnest money deposits in a neutral account and ensures that the title to the property is conveyed in which the "contract" states it should be.

The Realtor should suffice and accomplish your goal of a stress free closing & peace of mind.

Best of luck to you!

I agree wholeheartedly with Teran_Realtor!



Please consider this: the person(s) that are here, completely violating the guidelines of Yahoo! with regards to personal advertising, offering advice & hoping you'll email or contact them for their own agenda - getting a deal. Demonstrating poor professional ethics, and ignoring the guidelines of this forum is arrogant.

Imagine them in their everyday practices!

This conduct is what makes an industry look bad.

I cringe..............and continue to report the blatant "free advertising" methods

Answer 2

GRAB IT - GRAB IT - GRAB IT: This is about as good as it gets. A lawyer will want $2,000 or more, and will run into additional expenses that you will get stuck with.

You have been given a good deal. Real Estate sale and purchase is usually 6% of the sale contract, with the seller and buyer splitting 50/50. So let the buyer pay half of this expense.

Answer 3

You don't need an agent or an attorney. Do some research on the web or get a book. You'll have to do some leg work, but it will save you some money. You may want to consult a real estate attorney to see what they would charge for an hour or two of time. It would probably be less than the real estate attorney.

Answer 4

We have sold and purchase several houses/land by owners. You can either go through the real estate company or what we always do is use our title company they will write up the contract and close the deal right there and they do all the title work as well as hold the earnest money till closing which lays all the legal responsibility on their shoulder not ours.

Answer 5

If you feel comfortable negotiating on your own behalf then just call a Real Estate lawyer and explain the situation to them (perferably one that lives near the property). They won't charge nearly that much to draw up the docs for you - but get a figure upfront.

Answer 6

One percent is a great deal. And besides, then you'll have a Realtor practicing real estate WITH a license, not a title agent or a loan officer practicing real estate WITHOUT a license. If you do find a loan officer to be your real estate agent for you, ask them if they can represent you in court too - maybe they'll be willing to practice law without a license, or prescribe medications for you..... some of these answers really surprise me!

Answer 7

The person that is doing the buyers mortgage should be able to do all the necessary paper work. I do For Sale By Owner Transactions all the time, and I do all the necessary paperwork, plus the title company does their part too.

YOUR MORTGAGE BROKER WILL HELP YOU & THE SELLER FROM START TO FINISH, TO CLOSE YOUR LOAN. THE PERSON YOU ARE WORKING WITH, WILL ORDER TITLE, ANY SURVEY’S NEEDED, INSPECTIONS IF NEEDED, ORDER PAYOFFS ON SUBJECT PROPERTY IF THERE IS A MORTGAGE ON THE PROPERTY.

When your buyer goes to get qualified, he/she needs to ask the Mortgage Broker / Bank of they do all the paperwork involved to ordering the inspections, etc. They should.

The purchase agreement you can get online (for free), or e-mail me and I can send you one via e-mail.

Also, Cost associated with the buyers loan. They will need to pay for the appraisal up front (when it being done). They will need to pay for The Home Owners Insurance Coverage for 1 YEAR . The seller (yoiu) can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, flood cert, broker fee, etc can be paid for by the seller. With your loan amount being high, you would not need to pay up to 6 percent (ok), that is for states that have a lower home value (homes in the 60,000 - 80,000 range) and ppl need the closing cost help.


Have your "buyers" talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

By the way, a loan application is called a 1003, and they will issue the buyer a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell them and you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out

Any questions, feel free in contacting me thru here.

Good luck to you.

Answer 8

Please note, it is always advisable to have a real estate professional look over your agreements BEFORE you sign.

If you are looking to close, go through a title company and they will coordinate everything according to what's required by law - title searches, making sure the agreements are signed, etc. Just make sure you have your purchase agreement signed and disclosures. Search for these forms an Office Depot or online for your state.

Answer 9

If they'll do everything for 1% its worth it. Depending on the state your in there are bunches of disclosure documents to fill out and if you can get it all done for $3600 GFI. If you want check with a title company to see if they can do that type of work or can recommend someone. Maybe you can get it for less.

Answer 10

I recommend that you be on the safe side and use the real estate co. to avoid any problems down the road, especially if you are out of town.