Expert: Jessica Bryan - 6/17/2004

Question
Hello, I have a co-worker that wants to sell a home in Warsaw, Missouri. He already has a buyer that will pay cash. He is interested in selling without using a realtor, and would like to know how that is done. What types of forms and legalities will he need to consider? I suggested that he utilize a lawyer or selling agent. Any ideas?  

Answer
Dear Scott;
Your co-worker needs to use standard contract forms (he can purchase these at a stationer's) and should probably run everything by an attorney before signing anything. He will also need to be aware of the standard disclosures required by law. There are various seller disclosure statements used around the country. A Seller's agent is an outstanding resource but since he already has a buyer, he might try offering a small fee to an agent to assist him. (Assist to Sell or Help you Sell are two for sale by owner companies that might advise your co-worker on what he will need.) I don't usually recommend doing a sale alone unless the seller is well versed in all of the updates and new laws. There is quite a bit to know and it changes on a yearly basis. This is why we, brokers and agents are required to take updates every single year. The standard contract is usually only about 2 pages long, but the addendums, contingencies, disclosures, and disclaimers can add up to a lot more pages in the contract. If his home is older, he needs to disclose the possible presence of lead paint. If there is a possibility of Radon it needs to be tested. If there have been repairs done they need to be disclosed. If there have been inspections that showed any material fact, this too must be disclosed. In addition, there are new issues such as mold, toxic substances, and even insurance issues that can cause a sale to fall apart. If the Buyer is uninsurable, or if the house is uninsurable because of two or more claims within 5 years, then that needs to be handled in the verbiage of the contract as well. Inspection issues need to be covered to protect the seller. Buyer qualification, confirmation of funds, and timely closing is all part of the new information that is in the form of addendums. You can see why it is important to consult with a professional.
I hope this answered your question.
Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services