FSBO - Getting The Offer Down On Paper
There’s no such thing as a handshake deal in real estate. Make sure you have something in writing before they leave the house.
You have all the necessary documents ready thanks to your preparation with the lawyer. You’ve discussed the price and negotiated what stays. Now you can ask what down payment they have ready or when they think it will be ready.
Walk them through the contract, explaining to them as your lawyer did for you. Fill in any subjects (you will review this information under the chapter on legal information) and discuss the deposit.
Never take cash for a deposit. Have the buyer make the check out to your lawyer which will be deposited into an escrow account. This will assure them that you will not have access to their money until the contract is settled. If the contract falls through, the lawyer will refund the money or give back the original check.
The deposit is to ensure the purchaser’s intention to go through with the contract. Taking a deposit is not required legally, but if it’s in the contract the buyer must provide it. You will have a lawyer to assist you if anyone backs out, but obviously that is not your first choice.
How Much Should the Deposit Be?
By asking for a substantial deposit – anywhere from 3-5% – you will not be running the risk of the buyer giving into ‘cold feet’ or opting to forgo the deposit and start proceedings on another home. Unfortunately some people don’t find a problem with staking claims on more than one property while searching for the best one. The deposit isn’t a legal requirement so any amount will do.
If the purchaser cannot give you the full deposit at the time of signing, you can agree to accept several hundred dollars and include a clause which states that the deposit will be increased to a specified amount within 24 hours (or whatever you have decided). This will allow for the purchaser to make financing arrangements before placing the full deposit. If you feel the reason is sound, take the offer. You may not get a better one.
Obviously the buyer does not want their money tied up in case the financing doesn’t come through. If it doesn’t work out they will need the money to place an offer on another property but you shouldn’t give them too much time or they may back out for any reason.
Avoid These Loopholes When Selling Your House
So, you’ve found a buyer, you’ve got your deposit – here’s a few thoughts to keep in mind:
If the possession date is close to the end of your mortgage term, try to coincide it to avoid paying penalties on an early payout.
Make certain that the buyer is clear on what stays with the house and what goes with you. Anything fixed (including light fixtures, drapery rods and doorknobs) is part of the home. If you don’t want to sell them then you should consider changing the fixture ...
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Having An Open House To Sell Your Home
It’s time to open your home to the masses.
The most common day to choose for an open house is Sunday. Sunday is relaxed, the errands are done and people can see the home during the day. It is an excellent time to find people in a buying mood.
Put an announcement in the paper earlier in the week, as well as Saturday and Sunday. Your ad might read as follows:
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Legal Aspects Of FSBO
Selling and buying homes requires legal paperwork. Writing contracts to sell your home is tricky business and you do need a lawyer to help you. Find one by asking for recommendations from family or friends or by looking for one in the phone book. Ask for a consultation before deciding.
What to Know About Your Lawyer
Ask questions. Often you can have a free consultation before deciding on a lawyer. Be sure that they can accept evening and weekend calls. Find out the cos ...
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