Selling Your Property: “For Sale By Owner”?
Why Pay Huge Real Estate Commissions?
Many home owners and real estate investors prefer to try and sell their properties on their own, prior to enlisting an expensive real estate agent, charging a large percentage of the sale price. The problem they run into is not having an advocate on their side to prepare contracts and closing documents (deeds, deeds of trust, promissory notes, etc.) and to supervise the closing process on their behalf.
Why Hire an Attorney?
Hiring an attorney to supervise the sale and prepare the necessary legal documents will ensure that you are protecting your rights and interests and that the transaction is handled properly.
In addition, as your attorney, I can review closing settlement statements, and other loan documents to ensure that your interests are protected and that the deal is structured exactly the way you anticipated, with no last minute surprises.
Aren’t Attorney’s Fees Expensive?
No. Hiring an attorney for a real estate sale transaction, rather than hiring a real estate agent, can actually be significantly cheaper (see example below). The real estate agent is charging you fees for advertising and for time showing the property to prospective buyers. If you are doing your own advertising (yard signs, newspaper ads, etc.) you are bringing in your buyer, not the agent. Additionally, if you are willing to show the property, the agent is not really rendering any service to you above listing the property on the MLS and handling the legal paperwork. Why trust a real estate agent to handle your legal work?
What are the Fees; What Do I Get?
My fees for real estate transaction representation start at $500. This fee includes negotiation of the sale price on your behalf, preparation and signing of the Sale Contract, any additional riders, and your disclosure statements, and supervising the closing process on your behalf (reviewing the closing settlement statement prior to closing). In addition, for a small additional fee (approximately $50-$100 per document), I can prepare any sale documents required, such as General Warranty Deeds, Quit Claim Deeds, Deeds of Trust, or Promissory Notes. These are documents that the Title Company generally charges you much more for preparation.
What about MLS Listing?
You still have the option of listing your property on the MLS. I can assist you in listing your property on the MLS so that other real estate agents are trying to sell your property for you. Realistically, most homes are sold by the Buyer’s agent, anyway, by people looking to buy your property. A seller’s agent may simply list the property on the MLS and wait for someone to call. As long as you’re willing to take those calls and show your property, you can get the same benefits with your own listing.
EXAMPLE REAL ESTATE SALE
With Real Estate Agent(s)
Listing Sale Price: $100,000
Real Estate Agent(s)
Commission of 6%* - $6,000
(*Either Buyer’s Agent or Seller’s Agent or combined)
Total Sale Proceeds: $ 94,000
(less closing costs & expenses)
Hiring an Attorney
Listing Sale Price: $100,000
Buyer’s Agent
Commission 0-3%: - $3,000 (max)
Legal Fees: - $500
MLS Listing (optional) - $700
Total Sale Proceeds:
$95,800 to $99,500
(less closing costs & expenses)
By hiring an Attorney you walk away with an additional
$1,800 to $5,500
You save even more on a higher sales price, because my fees are not based on a percentage of the sale.
Contact me, a dedicated Saint Louis County Real Estate Attorney.
