Linda Kay -The Barefoot Realtor: FSBO: A PAPERWORK NIGHTMARE

FSBO: A PAPERWORK NIGHTMARE - A LAWSUIT JUST WAITING TO HAPPEN!

FOR SALE BY OWNER! Let's face it, I have always been one to think I 'know it all'. (I know, I hate people like that, too!) But when a homeowner decides he knows enough about selling his own home without representation from a professional, here come the lawsuits. I mean, purchase contracts and all the disclosures are quite a bit of CONTRACT LAW. (Ya, I watched all those lawyer shows in the 90's.) The homeowner in trying to save a few bucks could actually end up spending all that and more in court after the paperwork was not properly completed, he FORGOT to disclose something, etc.

Mimi, in this blog below sums it up pretty well. Thanks MIMI!

Via Mimi Foster - Colorado Springs Realtor (EPIC Real Estate Group Real Estate Colorado Springs):

FSBO: Paperwork nightmare
As a long-time real estate professional, I certainly understand people’s desire to try to sell their home as an Unrepresented Seller, also known as a FSBO.
Having spoken with scores of them, I not only have a keen understanding of what motivates them, I also see clearly that there are things that FSBOs don’t consider when they embark on what appears to be an easy journey to try to save the cost of a commission.
So over the course of the past dozen years or so, I have put together a 25 page booklet that shares some of this information that a FSBO may not have considered. I not only give them tips on preparing their home to its best advantage, but I also point out some dangers and headaches that they may encounter along the way.  I offer them the ability to call me to ask questions that they might have as they go thru this process (within reason, of course), understanding that very few will make it to the closing table without the assistance of a Realtor.
The following is a list of a few items of PAPERWORK that the FSBO will have to deal with in his/her journey as an Unrepresented Seller:
Figure out a reasonable price

Take pictures and design and print brochures

Write ads (that will rank on Google)

Figure out where to publish ads

List of completed repairs you’ve done on your home

Verify HOA fees and all CC & Rs

Order twelve months of utility bills

Provide HOW? Which company?

Follow up on showings

Supply reasonable comparables

Negotiate offer and options with Buyer

Make sure Buyer is financially qualified

Write binding Contract

Write Seller’s Property Disclosure

Write Lead-Based Paint Disclosure

Prepare Counterproposal

Find a Title Company

Deliver Contract to Title Company

Document and Deposit Earnest Money

Order Title

Get Title to Buyer

Order mortgage payoff

Negotiate Notice of Unsatisfactory Conditions

Get repair estimates

Meet inspection resolution deadline

Send receipts to Buyer/Agent

Develop closing cost estimates

Order an appraisal

Track appraisal

Check appraisal for any conditions for closing

Continue to check with lender on loan progress

Resolve any Title disputes

Schedule closing

Make sure Closer has all necessary documents

Review HUDs

When do you have to be out?

What if it doesn’t close?

Do you continue to show house?

Can you take another offer?

Legal Liability for paperwork errors

This is just the tip of the iceberg.  Could this be part of the reason that less than 3% of closings are FSBO ?
Please feel free to add to this list in the Comment section below.

FSBO: Paperwork nightmare was written by Mimi Foster

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Selling homes throughout Colorado Springs, Old Colorado City,
Manitou Springs and surrounding areas with a
Specialty in Victorian and Vintage Homes in
Downtown Colorado Springs