Facts: Edmond Oklahoma FSBO
Edmond for sale by owner
SO, YOU WANT TO SELL YOUR HOME YOURSELF?
When Larry and Beth decided that the time had come to sell their home, they
asked themselves:
"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, we can
do practically
everything 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.
Any real estate agent can give you an impressive list of reasons why it makes
sense to hire a
professional to help you sell your home, and from a marketing perspective, there
are indeed many
benefits in doing so. An experienced agent can utilize any number of marketing
opportunities
and strategies that the typical "For Sale by Owner" (a.k.a. "FSBO") does not
even know about.
For example, only a professional agent can take advantage of the Multiple
Listing Service,
organized tours, etc. However, there is another reason to seek professional help
in selling your
home; an important reason that you may not have thought about.
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 the 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
Buyer 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 the 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 in most states, there are substantial risks involved when a sellers agrees
to "carry back" a
note from the buyer; risks than can cost you thousands of dollars?
.that your good credit rating could be ruined by your buyer's default, many
months, or even
years, after the buyer "assumes" your loan?
.that a clever buyer may be able to stay in possession of your property for many
months after
he defaults on the contract, and in effect "live for free" at your expense?
.that most buyer complaints involve alleged damages of less then $10,000, yet it
can cost you
thousands in attorney's fees to defend such a claim?
.In short, a lawsuit can ruin your whole day! Even if you know the buyer's
claims are completely
bogus, it can take many months and many thousands of dollars to prove that you
are "innocent."
What's worse, you have no "malpractice" insurance to pay these legal bills; you
will have to
write all those checks yourself. And, of course, you could lose ... and losing a
case like this can
be disastrous. You and the buyer have a contractual relationship, and in many
states, sellers who
lose such suits could find themselves having to pay not only the amount of the
damages awarded
to the buyer, as well as their own attorney's fees, but they may also be ordered
to pay the fees of
the attorney who sued them!
.Experienced, professional real estate agents understand these kinds of risks,
and they can help
you to minimize them in a variety of ways. They devote many hours to training
and educational
programs which emphasize risk reduction, and protecting their client's
interests.
.There are any number of reasons why your buyer may decide to take action
against you
(sometimes, they just don't feel like making the payments any more!). However,
most of these
complaints allege problems relating to the condition of the property, and/or
alleged representations
made to them about the property or the transaction. An experienced agent knows
how to reduce
the risk of these types of complaints, by including, or suggesting that your
attorney include,
effective "AS IS" and other clauses in the contract language, and by providing
for such things as
a professional home inspection, and a home warranty.
.When a problem arises in the transaction, an experienced agent can move swiftly
to "nip it in
the bud". Their thorough understanding of the myriad facets of modern
transactions can help
them to identify the real problem, and then to either solve it themselves, or
seek help calling
upon resources that the typical seller simply does not have access to.
.There is no escaping it; the best way to deal with a complaint is to prevent it
in the first place.
The organized real estate community has spent a lot of time thinking about how
to reduce the
likelihood of claims, and has responded to this threat in a number of ways. For
example, the
standard contract forms that agents in many states use, are chock full of
language which can
help protect you, and reduce your exposure to claims and litigation. If you are
in a state in
which real estate transactions are handled by attorneys, many of the problems
discussed
herein will be minimized, but a top-flight agent can still play a major role in
helping your sale
move toward a smooth closing.
.Of course, I don't mean to scare you with all this! But hey, it IS a jungle out
there. Indeed,
I've only touched on a few potential pitfalls of selling your home on your own.
Take this from
someone who knows: selling your home without professional help is very risky
business
indeed. Yes, it costs money to employ a real estate agent, but if you find the
right one, you
will likely be able to sell your property faster, while at the same time
reducing the chances
that your buyer will come back to haunt you.