For Sale By Owner

For Sale By Owner (Source; theprovince.com)

Are you considering selling your own home?  One of the appeals of For Sale By Owner homes for buyer is that perceive value in dealing directly with the sellers.  Part of this appeal bares out by statistics since 28% of the For Sale by Owner homes are under price according to National Association of Realtors.  Below are the top 4 hazards of selling your own home:

1) Valuation:  Do you know how much your house is worth?  Pricing a home is not a trivial part of the challenge of For Sale By Owner transactions specially since finding identical comps sold comp data is a difficult task.  And when you finds comps that are similar in size, age, floor plan, functional utility requires knowledge.   In fact,we have priced homes for banks for resale for the past 10 years and every bank requires different criteria for valuations.

2) Exposure:  Marketing your home without access to MLS could be difficult, but there are other resources such as Craigs List that you could use.  Also, there are rumors that services such as Trulia and Zillow would soon permit owners to list their homes for sale.

3) Disclosures:   Disclosures are the number one source of legal disputes for real estate transactions.  Most home owners are ill prepared to realize what information is “material” and needs to be disclosed.   If you fail to disclose critical material information to your buyers, the transaction could be challenged up to five years where you would be liable to legal costs and damages.

4) Contract Law:  You can check out sites like RocketLawyer or LegalZoom for some ideas on what needs to be included in your real estate purchase contract.  But you have to recognize that these contracts are not considered legal and can easily be challenged in California courts.   In fact, you would be well advised to either retain a California attorney to help you with the purchase contract.

Finally, challenges of selling your own home might appear daunting form a distance, but if you are confidant about pricing.


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