Expert: Lisa Webber - 2/28/2010

Question
We want to sell our rental home to the current renters. We are thinking we should get an appraisal so we know the price to ask. Should we get a lawyer to represent us or use something like "Help-U-Sell"--we don't need a real estate agent because we are not listing the house.
Thanks for any insight!

Answer
You could use either a lawyer or a Realtor to help you with the paperwork.  I have on many occasions helped people with contracts, home inspections, home values, etc. when selling and just charged a flat fee.  I have seen attorneys that will charge either a flat fee or a percent of the price of the house.  I don't know how far beyond preparing the paperwork the lawyer will service you.

A Realtor may be the most economical choice, providing you get one that will charge only a flat fee to cover their time, not anything like 5 or 6% (which you might otherwise be charged if they have the job of advertising and marketing, screening buyers, etc.).  

Many Realtors are willing to do a Comparable Market Analysis (like an appraisal) which will get you in the ballpark as far as a fair price to ask, and will assist you with the paperwork. Some Realtors may have more flexibility with this sort of pricing than others.  For example, RE/MAX agents pay a monthly office rental fee in addition to a percentage of their commissions to the company, but they may have more flexibility in fee structure than a national company that has a more traditional "split" program and is required to do a higher percentage regardless of the work involved.

If I were in your position, I would call a good local Realtor and ask what they would charge you for this service and see if you think it's fair.  I'm not sure where you are but I've heard of Realtors helping you with this service for a few hundred dollars on up.  Remember, attorneys will normally charge by the hour for every minute they spend and some charge quite a bit (my attorney is $295 per hour).  

What the Realtor will need to do is pull records of recently sold properties to help you both negotiate price, help the buyer get their loan, get everything coordinated with the title company and get you to closing.  You actually wouldn't need an appraiser at this step if you have a Realtor help with the valuation.  Then when your tenant goes through their loan process, the bank will require an appraisal be done which will be paid for by the buyer.

I hope this helps - feel free to write back with any other questions.  Good luck!