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FOR SALE BY OWNER (FSBO)
The Law Firm Of Richard T. McCarthy provides the expertise and personal service needed to assist you in making the purchase or sale of residential real estate simple and painless. Provided here are some basic answers to the most common questions asked during the purchase or sale of a home.
Please feel free to call our office about your real estate needs.
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This is a transaction where a Seller tries to sell his/her home without using a realtor as a listing agent.
It is our experience that vast majority of homes are sold with realtor involvement. Realtors provide maximum market exposure to sellers through their multiple listing system.
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Yes, on occasion this happens. A Buyer's realtor will obtain permission to show the home on behalf of his/her client. The Buyer's realtor will negotiate directly with the Seller on his/her client's behalf. The Buyer's realtor should also negotiate the real estate commission up-front with the Seller.
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The Seller and Buyer negotiate the business terms of the transaction directly with each other (i.e. purchase price, deposit, personal property included/excluded, closing date).
Once the basic business terms have been agreed to, the Seller's attorney will typically then prepare the Contract and send it to the Buyer's attorney for review and comment. The attorneys will work out the agreed contract terms 'prior' to the execution of the Contract by the Seller and Buyer.
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No, because there is no automatic three day attorney review in a FSBO transaction. The Buyer may be locked into unfavorable terms or conditions which his/her attorney can not change. This also applies to a Buyer presenting the Seller with a Contract to sign. In either situation, if you are a client of our firm, please check with our office before signing any Contract.
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The FSBO transaction is handled like any other residential real estate file except the Seller's attorney will also typically prepare the Contract. The attorney's job is to provide legal guidance to his/her client on matters which affect the purchase or sale of the property, help keep the client out of trouble and to insure the contract proceeds smoothly.
In representing a seller, our services typically include review of the Contract Of Sale; amendment to and negotiation of the Contract Of Sale with counsel for the Buyer; review of inspection reports (if applicable); review of Buyer's title binder and title company closing requirements, preparation of the Deed, Affidavit of Exemption (if, applicable), Affidavit of Title, 1099B Tax Form, Non Foreign Affidavit (if, applicable), Corporate Resolution to Sell (if applicable), review of final Closing Statement, attendance at closing, and mailing a package of all closing documents on your behalf.
Our services also include typical file processing telephone calls with you, purchaser's counsel, purchaser's lender and purchaser's title company.
In representing a buyer, our services typically include review of your Contract Of Sale; amendment to and negotiation of the Contract Of Sale with counsel for the Seller; review of inspection requests (if applicable); ordering and review of the title and survey work; monitoring of your mortgage application; preparation of customary closing documents; obtaining mortgage payoff statements from Seller's lender; review of lender closing documents; obtaining amendments and/or endorsements to the title and survey work as required by your lender; attendance at closing; recording of your deed and mortgage, discharge of Seller's mortgage and liens, post closing transmittals to you, your lender, title company, surveyor, tax collector and other vendors. Our services also include normal telephone calls with you, Seller's counsel, title company, surveyor, and your lender.
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Often, a Seller will request a good faith deposit of $500.00 or $1000.00 pending execution of the Contract. If a Buyer is requested to do the same, pay the good faith deposit by check and make the check payable to the Seller's attorney's trust account (example, Richard McCarthy Attorney Trust Account if our office is representing the Seller).
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These transactions can be more difficult. While attorneys principally handle legal issues, realtors typically play a key role in evaluating sales price, handling marketing and logistical issues and helping act as a buffer between the Seller and Buyer. Without realtor involvement, there are more things which the Seller and Buyer must do on their own. Examples of realtor services include helping a Seller determine a sales price, marketing the home for maximum exposure, getting buyer feedback as to pro's/con's of a Seller's home, negotiating the best purchase price on behalf of the Seller, obtain governmental approvals necessary to sell a Seller's home, helping a Buyer evaluate a fair purchase price, negotiating the best purchase price on behalf of the Buyer, assisting a Buyer in completing a mortgage application, arranging for inspections, appraisals, utility changes and walk-throughs. Real estate transactions are detail oriented. If a detail is missed, the closing can get delayed or other problems may arise.
Also, without benefit of an independant realtor researching values, there can be a higher likelihood of a transaction falling through because the property does not appraise at the contract purchase price.
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The closing is typically at the Buyer's attorney's office. The Buyer and Seller will arrange to do a walk-through inspection directly between themselves. The Buyer will arrive at the closing a hour a head of time to sign the mortgage documents. An hour later, the Seller's attorney (with or without the Sellers) will arrive to complete the closing.
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