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Friend has been interested in buying my home for some time. I (we) am interested in selling.
He has found a lender and we have agreed on price.
Don't want to involve a real estate agent, want to save on costs.
My understanding is that we can have an official sales contract (provided by RE atty., or Title Co.), and have a title company (will use same one that closed this house for me) do all other paperwork, and that's it.
Friend cannot move here until Sept. this year, so, he would like us to stay here, rent free, until then as that helps him. Works for us also, as that gives me time to find something to buy in the State we plan to move to and take our time packing, etc. We will write up a contract for that also, and be responsible for utilities and yard maintenance until then (he would be responsible for any major issues, like water heater blowing, etc.), prop. taxes have already been paid for 2016, and we will prorate for 2017. We will carry renters insurance while we're here, just in case. Such a deal for us!
My advice would be to involve at least one realtor and
negotiate a flat commission, maybe a couple grand.
Here's why:
There's more to a real estate deal than just a contract.
There are disclosures, contingencies, home inspections, etc...
A good realtor will dot all the I's and cross all the T's for you,
and if anything is missed, there can be serious legal ramifications.
Which brings me to my next point:
Doing business deals with friends will likely end the friendship.
You have the right idea and a real estate attorney and the title company will easily be able to handle this kind of transaction. Absolutely no need to involve a real estate agent. My only suggestion is that it may be worth the $500 to get it appraised to make sure you're getting a fair price before contracting.
You have the right idea and a real estate attorney and the title company will easily be able to handle this kind of transaction. Absolutely no need to involve a real estate agent. My only suggestion is that it may be worth the $500 to get it appraised to make sure you're getting a fair price before contracting.
People do FSBO (for sale by owner) ALL THE TIME. No reason to bring in a realtor at this point. And doesn't the mortgage company require an appraisal?
SelwaySasquatch said it right, get a broker that will charge a flat fee $500-2,000 to type up the paperwork and make sure everything is compliant, you miss a disclosure and could liable for tens of thousands, not worth it. If you are knowledgeable with the real estate laws you might be okay, most are not. Don't try to be cheap to have it bite you down the road. I have seen this so many times, even agent have to carry ommission insurance as even the professional don't get everything perfect.
FYI there is a a few slimy attorneys in CA that buy FSBO just to sue them. FSBO don't disclose correctly or miss even one forms open you up to litigation, these slimy firms sue them and will win in most cases knowing up front the intention is to sue them.
People do FSBO (for sale by owner) ALL THE TIME. No reason to bring in a realtor at this point. And doesn't the mortgage company require an appraisal?
My point is that an appraisal may be worthwhile to gauge the value of your house before negotiating a sales price. Mortgage company will require an appraisal for the buyer (if they're getting a mortgage) after it's under contract but that does little for the seller.
FYI there is a a few slimy attorneys in CA that buy FSBO just to sue them. FSBO don't disclose correctly or miss even one forms open you up to litigation, these slimy firms sue them and will win in most cases knowing up front the intention is to sue them.
Wow, this is amazing. The ambulance chasing attorney's sound like they have learned to let the air out of the tires of ambulance now too!
Keep in mind that in a real estate transaction there are separate roles for the Attorney, Title Company, Mortgage company, inspectors, appraisers, and the Realtor(s).
Attorney: Legal contract compliance and to represent the person paying them. Therefore, if you are paying the attorney, your contract will typically be in your best interest and not always in the best interest of the buyer.
Title Company: They are an impartial third party helping to warrant clear title to the property and facilitate the closing. They typically do not write contracts or advise on them.
Mortgage company: this is the buyer's choice and rules are different on property requirements, etc. based on which mortgage company the buyer chooses and the type of loan they are getting.
Inspector: Typically hired by the buyer to provide third party evaluation on the condition of the home. They are not code inspectors, they typically only report what they can see. Some are extremely qualified and detail oriented while others do a very superficial inspection and tell you via disclaimers that they didn't inspect the electrical, plumbing, HVAC, structure or roof since they are not a licensed contractor.
Appraiser: This is typically selected by the buyer's mortgage company who may ask the appraiser to make sure the property meets minimum property standards based on the type of loan the buyer is getting.
Realtor: A good Realtor will be like a manager or director watching over each of the above to help ensure a smooth transaction and helping resolve problems that may come up along the way. If a seller is knowledgeable about all the moving parts in a transaction and have the time to work through them, you don't need to hire a Realtor. If you do hire one, make sure to hire a good one! Many will discount their fees in your situation since you have already found the potential buyer and they won't have to pay to advertise your property or do open houses, etc.
Sounds like the post sale occupancy will be great for you! Make sure to establish clear and concise expectations of how the home will be left when you vacate so they can't come back and claim you now need to replace the carpet or paint, etc.
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