In the current housing market, some sellers may decide to put their home up for sale by owner. There are several benefits, including control over the process and retaining more of the proceeds of the sale. However, there are some risks that sellers should be aware of as well.
Sale process
Before putting the home up for sale, homeowners usually repair and clean the inside and may update their landscaping. They may also look at comparable homes or work with a professional appraiser to determine the offer price, then list the property online or put a for sale sign in the yard.
Sellers will need to have their deed, property tax records and other relevant information prepared and be willing to review potential buyers. Some sellers require that a buyer has pre-qualified financing before showing the buyer the home. The seller may decide to schedule showing appointments or have an open house.
Once a buyer makes an offer, the seller must decide if they want to negotiate the price and accept any buyer contingencies. After an offer is accepted, the buyer may request another appraisal and a home inspection, then the closing can happen.
Common challenges
Without a real estate agent, a seller may have fewer opportunities to attract buyers because they do not have access to the Multiple Listing Service or other contacts. Also, a seller who is unfamiliar with the legal requirements for the sale could be out of compliance with state and local regulations.
They may also have a harder time negotiating successfully with a buyer, there may be safety and security concerns with showing the home to an unknown person, and the process can be time consuming.
If a seller needs help with this type of real estate transaction or another aspect of real estate law, there is assistance available.
