Expert: Jessica Bryan - 5/8/2004

Question
Hi Jessica, I have a few questions I would like to ask you.
My wife and I are getting ready to sell our house and we are
going to try and sell it on our own. Would you recomend
getting a real estate lawyer to handle the paper work. Do I
need to have a title company or does the buyers lender
choose the title company. We have been checking the area
around our house and have a very good idea what to list
our house at. By the way we live in Deltona Fl it's between
Orlando and Daytona. We have heard from some friends
that we can put our home in the MLS for a fee. How does
that work, would we have to pay the real estate agent a
percentage or does the buyer pay the agent his fee. I have
fixed the house up planted some new bedding plants we
are also packing up alot of clutter to make the house more
presentable. Should we have the buyers prequalify. Do we
need to take a deposit when an offer is made. What do we
need to do to protect ourselves. can you give us any useful
tips other than what I have listed. Thanks for you time bob
kellmann

Answer
Dear Bob;
When selling a home by yourself, the first thing I like to know is if the Sellers have ever sold a home before.  The reason is there is quite a bit to know about doing this to protect yourself.  I would like to refer you to a chapter in my book: "The Most Often Asked Questions in Real Estate." The particular chapter deals with "For Sale By Owner". I will be happy to send it to you if you provide me with an e-mail address.

To answer your questions:  yes, you can pay some real estate agents to list your home on their MLS for a reduced fee. However, once it is listed, you are announcing to the real estate community that you are going to pay the Buyer's agent a regular fee if they bring you a qualified Buyer. This becomes a contractual obligation on your part. It is a percentage compensation.

You should make sure that before accepting any offer that you have a prequalification letter from the Buyers or their agent.  You should also retain a deposit for the property (an earnest money deposit) that is large enough to assure that the Buyer will not walk away from the deal if there is a change of heart.  

You asked what you need to do to protect yourselves: first, consult with an attorney.  Make sure you are aware of all of the disclosures that must be made to the Buyers.  Have the necessary forms filled out.  Provide copies of restrictive covenants. Have a Seller Disclosure statement.  If the home is older, make sure you provide a disclaimer, a lead paint disclosure, etc.  (all of the things required by law in your state).  Go over the MLS sheet carefully to be sure that everything is accurate...you will be held liable and responsible!

Once you have sold your home, the Buyers will get a closing attorney who will order a title search via a title insurance company.  You will need to have your attorney draw up a deed and lien waiver.  Fees vary for this service but are usually minimal.

Other useful tips would take pages and pages of description.  There are so many things one should know about selling a home. We agents go to school to learn the basics and then take hours and hours of classes each year to keep updated.  As a Broker, I keep informed of all of the trends, changes, standard practices, current market conditions, problems, hot topics, and requirements.  Things change constantly as new laws are enacted, consumer awareness and protection agencies apply more restrictions, and Buyers become more demanding and cautious.  More Sellers are being sued, and there is increasing liability.  This is why it is often difficult to encapsulate all that there is to know when someone wants to sell their home themselves.  However, since knowledge is the key here, please spend some time reading a book or two on the subject (or at least my chapter) before you put your for sale sign up.

Best wishes,
Jessica Bryan
Managing Broker
House to Home Realty Services