How to Have a Successful FSBO (For Sale by Owner)
Sale of a home directly by the seller to a buyer without a real estate agent is called a For Sale By Owner, or FSBO (“fizz-bow”). The advantage to the seller of selling their own home is that they can avoid paying a sales commission to the listing agent when the home sells. This could be a savings of between 2 to 6% of the sales price.
The disadvantage of this type of transaction is that seller is responsible for all of the steps needed to sell the home. Sellers who are inexperienced in the process of buying and selling a home are unaware of all of the steps involved in a successful home sale including but not limited to pricing, marketing, disclosures and contract deadlines and terms.
FSBO sellers must have proper contracts and be aware of the disclosure laws regarding their property’s condition. If a seller does not properly disclosure of defective conditions of the property, there is significant exposure to the possibility of an expensive lawsuit if the buyer claims that material property conditions were not disclosed prior to the close of escrow.
Many sellers who have not been through the process of buying and selling a home before are not fully aware of all that is involved in selling a home successfully. Errors in pricing, marketing, legal compliance or paperwork can have significant financial and legal consequences to a seller.
FSBO Advise from a Skilled Real Estate Attorney is Vital
A compromise is to hire a real estate attorney to help with the transaction and the documents. A FSBO scenario is one of the few situations where it is typically more cost-effective to hire a real estate attorney then to use a real estate agent and pay a commission. However, a real estate attorney does not list and show property to prospective buyers. The seller will be responsible for marketing their own property and getting prospective buyers. We can help your transaction progress smoothly without the fear of important steps falling through the cracks. Contact the Law Offices of Lisa D. Wills at (925) 463-9000 or send an email.
Lisa Wills of the Law Offices of Lisa D. Wills is a skilled real estate attorney in Pleasanton, San Ramon, Dublin, Livermore, Danville, Castro Valley and Hayward, CA. Please contact Lisa Wills by email at the Law Offices of Lisa D. Wills or call (925) 463-9000.