Posted by Jayhawk/KS on 3/20/11 8:30pm
Msg #376805

selling own home contract

Does anyone have a copy of a contract for someone sellng their own home? I have a friend selling her own home. She'd like to save that 6% real estate commission fee. I told her I'd check to see if anyone here had a copy of a contract. After that, what else does she need to do? I told get an earnest money check, have the buyer arrange an inspection, and talk to the title company. Does the title company handle the title search? Any help is appreciated. Thanks.

Reply by Les_CO on 3/20/11 8:52pm
Msg #376806

In my opinion…a fools move. Your friend should hire the best, most knowledgeable, professional realtor, or real estate agent that is familiar with her particular neighborhood. A good agent will not only save her money in the long run, they will help, and advise her through the entire process. A good RE agent knows the neighborhood values, the current comps, what the market is, and will produce a qualified buyer. A fsbo (for sale by owner) is usually a basket of problems waiting to happen. If she doesn’t know how/where to get a receipt and option contract, and how to fill it out, she SURE won’t know how to find a good qualified buyer. This is a BIG move, she should have professional help…Professionals are almost always cheaper than doing-it-your-self, and do a better job. If she finds a buyer she should at least hire a real estate attorney to draft the contracts, and represent her. If you want to keep your friend, you should advise her to seek professional guidance, and stay out of it. JMO.

Reply by Janet Heien on 3/20/11 9:24pm
Msg #376808

You can get the purchase form from any real estate office...I have sold a few houses on my own in CA and saved thousands!! But do your research for your state...it can be done.

Reply by Deb_AL on 3/20/11 9:25pm
Msg #376809

I have one that a realtor gave me. I will see if I can find it tomorrow and email it to you. I sold my deceased brother's home and my Mom's home like this and had no problems. Of course, that was about 3 years ago when the market was a little better but definitely would try this route first.

Reply by Deb_AL on 3/20/11 9:28pm
Msg #376810

Also in both cases, the one buyer used a bank and one used a mortage company so they ordered all the inspections, appraisals, etc. I agreed to pay up to 1500 in closing costs as part of the contract and also offered a one year limited home warranty.

Reply by Victoria_NJ on 3/21/11 12:51pm
Msg #376894

www.legalzoom.com - but

make sure that you choose the sales contract that is approved for your specific state.

There are no laws against selling your house yourself. Hopefully your friend has done this before. It might be worth her hiring a real estate review attorney for both the sales and the closing. She'll spend less than whatever she is paying for a Realtor's commission.

She needs to keep in mind that part of the commission a broker earns is put into ADVERTISING. Yes, you can use Craig's List, etc. but she needs to advertise in paid sites/publications as well - it's not always that cheap.

She should also get either a professional appraisal (at her cost) or find a gullible Realtor who will do a property analysis as to what the property is actually worth in today's market.

If the property is pre-foreclosure, then that is an issue to.

I am a licensed Realtor with multi-state experience. Sometimes it just makes more financial sense to sell a house as FSBO than hiring a professional to do it, but by stats and averages, it takes longer and the seller usually either
a) ends up listing with a Realtor anyway
b) sells for less money

Reply by Linda_H/FL on 3/21/11 2:02pm
Msg #376929

FSBO also loses the MLS exposure...

unless, of course, they have a buyer already in the wings.

Reply by MikeC/NY on 3/21/11 9:49pm
Msg #377009

Not necessarily

There are companies like Homepad that will charge about $300 for a 3-month MLS listing. The FSBO gets nothing other than that - usually one photo, a really brief description, and all calls are directed to the FSBO's home phone. No other marketing, no real support, but they're on MLS (as if that alone is going to get their house sold).

Reply by LKT/CA on 3/20/11 9:54pm
Msg #376811

Agree with Les/CO

Selling a home is FAR more than just getting an earnest money deposit and ordering an inspection. Whether represented by an agent or not, a seller is still required by law to convey certain mandatory disclosures in the transaction - and to KNOW what those disclosures are and the timeframe in which this info must be given to the potential buyer. Ignorance of the law is no excuse so your friend is better off letting a professional handle the sale who knows what they're doing. Otherwise, there will be a lawsuit in her future.

The three main factors in real estate used to be "location, location, location". Now, it's "disclosure, disclosure, disclosure. Agent's commission is not etched in stone, it can be negotiated. But remember, she'll get what she pays for. If she doesn't know what she's doing (and it sounds like she doesn't), she should leave this transaction to the professionals or it will end up costing her more than she expected to save.

Reply by Shoshana/AZ on 3/20/11 10:14pm
Msg #376815

A realtor's commission is often negotiable.

6% is a bit high these days. My late mother-in-law's house is for sale in NY. We are paying 3%.
I'd be careful if I were you, contracts might be state specific. You should probably stay out of it. If something went wrong due to your well-meaning advice, you could lose a friend.

Reply by Gavina Franklin on 3/21/11 12:10am
Msg #376817

Re: A realtor's commission is often negotiable.

3% for the listing office and 3% for the selling office? Because if you are paying a total 3% than you are losing too many showing and to many buyers.
In this market commission should be not less than 6%

Reply by Shoshana/AZ on 3/21/11 7:14am
Msg #376825

Re: A realtor's commission is often negotiable.

No 3% total. It all depends upon what a realtor is willing to take.

Reply by Shoshana/AZ on 3/21/11 7:57am
Msg #376827

Actually, the property sold the 1st day. n/m

Reply by Victoria_NJ on 3/21/11 12:58pm
Msg #376896

There is no "set" commission on real estate - it's illegal

Commissions are set by the broker's office only. There may be a market "average", but it is illegal to set rates - it's illegal under the Sherman Anti-Trust law in that 2 brokers from different offices could not agree to 'set' their rates the same in order to lock up a market at that rate.

ALL commissions are negotiable and must be mutually agreed upon by the Broker's office and the Seller.

Reply by Linda_H/FL on 3/21/11 1:52pm
Msg #376924

yes they're negotiable...but the problem with that is

the listing office may agree to a lower commission to get the listing - they now have to find a buyer's agent willing to take the reduced commission too...and many won't.

We paid 7% when we sold the lot here in FL in 2006 and paid 5.5% on the sale of our home in CT; people who sold our house to us here in FL paid 7%...

Location, location, location...

Reply by Linda_H/FL on 3/21/11 5:39am
Msg #376823

Agree with everyone...this is not something to be

taken lightly - non-disclosure CAN come back to bite the seller later (yes, savvy buyers DO hold them to it) and various stipulations and contingencies need to be included.
Although well-intentioned, the use of an out-of-state Purchase and Sale Agreement (or contract) is very dangerous.

If your friend is determined to sell on their own, I'd suggest your friend contact their attorney to get a form contract from them - at least then they'll get a state-specific form to use and, if the attorney is feeling generous, will give some tips on what disclosures need to be made and how to set contingency dates.

My strongest recommendation is convince your friend to go to a realtor.

Reply by Julie/MI on 3/21/11 6:33am
Msg #376824

sold all mine by owner; forms state specific

Since I had some background, I was confident in sellings all my properties by owner, but it's not for everyone.

You may get some help if a local title company has a For Sale By Owner (FSBO) kit or some lawyers will help you will the paperwork for under $1000. Preapproved prospects are the best not just prequalified, and watch your earnest money, that it complies with your state's laws, and don't spend it before closing or you could be in huge trouble. In my state the seller pays the title insurance for the buyer, but your state's norms may be different.

Reply by Lee/AR on 3/21/11 7:37am
Msg #376826

R.E. forms--and laws, often serious compliance issues and who-knows-what-else are as state-specific and quirky as notary laws. As an old r.e. broker, I've seen many a fsbo wind up overwhelmed by the paperwork and then go to an attorney--only to end up paying nearly as much as if they'd worked with a broker. Julie/MI had the best idea if your friend persists in the concept.

Reply by Jayhawk/KS on 3/21/11 9:37pm
Msg #377006

I already told her to contact her attorney. I just got back home from her home at the other end of the state. She has previously sold a home on her own, so she's been down this road before, but couldn't remember exactly the scenerio. I told her, I had no clue, and would offer no advise to the matter, but would ask here, because there were knowledgeable people. When I don't know, I don't say. I am willing to admit, I DON'T KNOW!!!!! Not my area of expertise!!!!!!!!!! Thanks for all the comments.

I know when we sold our last house, we renegotiated the contract with the real estate agent since they royally screwed things up including having 2 open houses with the wrong addresses in the newspaper, allowing the borrowers to move things in to our home prior to signing papers, and a few other things. I was ready to call the cops and have their things thrown out on the street when I found the garage full and things in the basement when we went over 2 nights before closing!!!!!!!!!!!!! It took all all my husband's convincing and negotiating on the part of myself and the realtors to keep me from seeing her in court to reduce her fee by 50% after that stunt. I told her I'd be more than happy to pass on how she handled things. She finally said, how about if I cut my commission in half. I said, I guess that will work as HUSH MONEY!!!!!!!!!!!!!!!!

Reply by BrendaTx on 3/21/11 9:03am
Msg #376830

In Tx the approved RE forms are online.

However, I tell any friends who want to attempt this alone that I feel they should call a local title company and tell them what they need to do. The title company will sort of walk them through it.

Reply by Ali/IL on 3/21/11 10:47am
Msg #376839

Re: In Tx the approved RE forms are online.

I used to sell real estate. I know that realtors look at what commission is being paid and may skip your house. For the one that sold in one day well, that happens sometimes but, not all the time.That borrowers may have been already looking for a long time.
Some realtors will give you a sales contract if you ask for one with the condition that if it doesn't sell you will give them the listing.
There are disclosure that are included so you must become familiarized with them. Also, make sure you find a good lender to send them to. Realize that there may be lookers coming through the house that have no intention of buying.Then there are advertising fees etc.
In the long run a realtor is necessary.