When you want to sell your home, there are numerous avenues you can use. These include selling through a real estate agent, selling to an investor, or making a private sale. A private sale means selling it yourself by listing your home ‘for sale by owner’ (FSBO). The approach has advantages and disadvantages you may want to know before starting the process.
Consulting real estate law lawyers in Ontario can prevent you from making mistakes. The legal experts understand the intricate details and requirements and can protect you from the many risks FSBO sellers face. Besides, they can take care of the legal and financial papers on your behalf, an aspect of real estate transactions that can be rather daunting.
What Are the Benefits of Selling My House Without a Real Estate Agent?
One of the most significant reasons you would want to consider selling your home without a real estate agent is the cost savings. Real estate commissions vary from about 3% to 6% of the home’s selling price and between 2% and 10% for commercial properties. That’s a substantial amount of money that you can save if a real estate agent is not involved.
Another reason is that FSBO homes tend to sell more quickly, probably because there’s no intermediary between the two parties. However, it would be in the best interest of both parties to engage the professional services of real estate litigation lawyers in Thornhill to ensure they don’t overlook any legal aspect of the transaction that would create problems later.
When Should I Consider Selling My House Without a Real Estate Agent?
When selling your house without a real estate agent, you’re likely to underestimate all the moving pieces that go into the process. However, selling without an agent might be right for you if you’re in the following situations:
You Already Have a Buyer
If you have a ready buyer, paying for your home’s listing or having a real estate agent stage the house doesn’t make sense. It could even be better if you have a cash buyer who doesn’t need financing. Cash buyers provide the convenience of a quick sale, although often at a high transaction fee and a lower net profit.
You Have Experience in the Real Estate Industry
If you have sold a property before, you may be familiar with the real estate market in your neighborhood. You can use your experience to close the deal and could be aware of the documents you must prepare for the sale. You’ll therefore feel more confident throughout the sale, especially if you have experience negotiating with buyers.
You Are in a Hot Seller’s Market
If your house is in a high-demand area and few houses are listed for sale, you’re likely to sell your home quickly. You may also attract a buyer at the listed price or above.
Once you decide that selling without a real estate agent is best, ensure you hire real estate litigation lawyers in Thornhill to help you close the deal. They can draft and interpret the endless stack of legal paperwork and contracts.
When Should I Not Sell Without a Real Estate Agent?
Despite the solid reasons and benefits associated with selling your home without a real estate agent, there are situations where this may not be the right option:
- You’re not confident of the selling process: You may need professional guidance in choosing the best offer, setting the most competitive price for your home, and increasing its curb appeal
- You want to make a quick sale: Selling a home can be lengthy and involving. Hiring a real estate agent may be your best option if you’re on a tight deadline.
- You want to make the most out of the sale: While you may cut costs when selling your home without a real estate agent, you may sell for less than you would when dealing with an agent.
Besides, if you’re not careful with the process, you could get sued for flaws or hazards in your home that you don’t disclose and that the buyer discovers later. If such happens, contact an Ontario real estate law lawyer to look into your case.
What Paperwork is Necessary to Sell My House Without an Agent?
One of the roles of a real estate agent is to help you prepare the legal and financial documents involved in the sale. These include the following:
- Initial sales agreement: It outlines the terms and conditions of the home when you first acquired it, allowing you to answer the buyers’ questions.
- Property appraisal: The value of your home may have changed since you acquired it, so get a property appraisal to ensure you list it at the market value and have the relevant value report
- Past utility bills: Showing your utility bills isn’t a requirement, but buyers often want to know about the potential monthly bills.
- Transferable warranties: Any warranties on the appliances in your house will be transferred to the new homeowner, and you need to put the paperwork together
- Property tax receipts: Buyers need to see that payments are up to date. The document gives them insights into the yearly amounts they need to pay once they own the property.
- Homeowners association: If your home is under a Homeowner’s Association, potential buyers should be aware of this. Important information includes the rules and regulations, bylaws, restrictions, and homeowner’s dues.
When you conduct the sale yourself, you can get overwhelmed by the many documents you need to prepare to finalize the transaction. Consider working with Thornhill real estate litigation lawyers to help you complete the transaction by ensuring all the documents capture the correct details.
Seek Legal Guidance with Your Real Estate Deals
You may not want to involve real estate agents when selling your home. However, you may feel stuck with the legal aspects concerning the transaction. If you don’t have prior experience in such transactions, you may need the help of a real estate law expert to oversee the document creation and finalization of the deal. Their input can go a long way in preventing legal disputes.
Ontario real estate law lawyers at our firm can help you as you take this bold step. We can evaluate the sale documents and offer legal advice tailored to your situation. Our priority is to ensure you’re protected and the sale transaction goes through amicably. Contact us to schedule a FREE case evaluation.