do i need a lawyer when selling my home without using a realtor

How much does a real estate attorney cost?

Real estate attorneys cost $150–350 per hour, and usually bill in six minute increments. Or, they may charge a flat fee for certain services. Costs...

Should I use a real estate attorney if I'm selling FSBO?

Unless you're an experienced seller, you should hire a real estate attorney to prepare the purchase agreement and other documents when you sell FSB...

How do I find a real estate attorney?

A great real estate agent can refer you to a great real estate attorney. You can also find real estate lawyers through professional organizations l...

What can a real estate attorney do?

A real estate attorney can craft an air-tight contract. Your attorney will draw up contracts that include deadlines for inspections and appraisals, any conditions, caveats and contingencies, and the details of the sale price and closing dates.

How much does a real estate attorney charge per hour?

Average hourly fees for real estate attorneys range between $150 and $350 per hour. For example, if you’re selling a $250,000 home, $15,000 (or 6%) will go to the agent.

Why do sellers use FSBO?

Sellers are often drawn to FSBO because they want to save on agent commission and control the entire process. However, with added control comes responsibility. You’ll need to advertise and market the listing, price it accordingly, and host walk-throughs and open houses.

How much does a FSBO home sell for?

And according to the National Association of Realtors, the typical FSBO home sold for $217,900 compared to the $295,000 that agent-assisted homes sold for in 2018. There are many reasons why FSBO homes usually sell for less: Buyer’s agents out-negotiate FSBO sellers.

What is a cash buyer?

Cash buyers — including iBuyers and house buying companies — are individuals or entities that purchase your home outright, without the need for lender financing. Cash buyers offer sellers convenience and certainty, often at the cost of a higher transaction fee.

What happens if a competing buyer offers you more?

If a competing buyer offers you more, they’ll typically let your home go than raise their price and consequently lower their future profit. If you want to sell your house for cash, ensure you’re selling your home for the most money possible with HomeLight’s Simple Sale platform.

What is a hot seller's market?

In a hot seller’s market, buyers often compete to purchase a home in what’s known in real estate as a bidding war. When this occurs, a seller can win a sale price well above the initial listing price. If you’re selling your home to a cash buyer, on the other hand, you miss out on the opportunity to spark a bidding war .

Why do you need an attorney for real estate?

An attorney helps you protect your investment and assets while ensuring you’re conducting your side of the transaction legally — which can prevent costly missteps. Real estate attorneys are required in many states, but even if you aren’t legally required to use an attorney while selling, it can be a good idea.

What is a real estate attorney?

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the “attorney review”) to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. Selling a home is a complex process ...

How much does a real estate attorney charge?

How much does a real estate attorney cost? How much you’ll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction. Some attorneys charge hourly, ranging from $150 to $350 per hour.

What to do if you inherited a home?

An attorney can help you navigate the complexities. Estate sale: If you inherited the home you’re selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member.

Who hires an inspector to inspect a house?

Inspector: The inspector is hired by the buyer. Their job is to make sure the buyer knows about everything that may need to be repaired on the home. Sellers also sometimes hire an inspector to do a pre-inspection so they can make any necessary repairs before putting the house on the market.

Do you need an attorney for a closing?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include: As a best practice, if the other party in your transaction has a lawyer representing them and supporting their best interests, you should too.

Why do you need an attorney when selling a house?

You’re the heir or executor of a property whose owner is now deceased. You’re selling a house with an uncooperative partner. You have judgments or liens on the property.

Why do I need a real estate attorney?

Reasons to hire a real estate attorney even if it’s optional 1 You’re an out-of-town buyer. 2 You’re buying a property that is a short sale or bank-owned. 3 You’re buying a property that is part of an estate sale. 4 You’re buying a commercial property. 5 You’re buying a property that could potentially have some structural issues. 6 You’re buying a property in a problematic area such as a flood zone or areas with adverse conditions (tornado-prone, radon, toxicity levels, etc.).

What is the education required for real estate agents?

As part of agents’ licensing education, they’re taught and tested on real estate contracts used within their state, many of which also require continuing education courses and/or certifications on subjects such as ethics, buyer’s agency, distressed property sales, and more.

What happens if a buyer doesn't work with a real estate agent?

And if the buyer is not working with a real estate agent, your home might not fall within their search terms and they’ll never see it.

What are the closing costs for a house without a realtor?

Even though you’ll be selling a house without a realtor, there may still be closing costs that include things like title insurance, escrow fees, transfer taxes, recording fees, and home inspections.

What happens if you overpricing your home?

By overpricing your home, you could be losing out on potential buyers. If the buyer is working with a real estate agent, the agent might not bring a potential buyer to the house, thinking that it’s out of their price range.

What percentage of home buyers are millennials?

Today, Millennials (Americans ages 20 to 37) make up over 35% of home-buyers, the largest single group of buyers in today’s market. To market your house to appeal to this younger set of potential home-buyers: 5.

Do you have to pay commission on a house sold without a realtor?

1. Even Though You Are Selling a House Without a Realtor, You Might Still Need to Pay the Buyer’s Agent a Commission. When both the buyer and seller are working with real estate agents, the agents usually split the commission, which is often around 5-7% of the total sale price.

Is a lawyer's fee fixed?

The good news is that a real estate lawyer’s fees are fixed, as opposed to being a percentage of the sale price of the home, and are usually a fraction of those charged by a real estate agent.

Can you refuse to pay a realtor's commission?

These commissions are usually built-in to the closing costs. You may be able to convince the buyer to forego using a realtor and work through the transaction without the assistance of a realtor, or you can simply refuse to pay the buyer’s agent’s commission and force the buyer to pay the commission him-or herself.

When selling a house without a realtor, should you take an offer?

It’s acceptable to counter offer when selling a house without a realtor. You do not have to take an offer you think is too low or unfair.

What does a real estate agent do when selling a house?

In a typical home sale, a real estate agent would: Help you determine a realistic price based on current market trends. If you’re highly organized and determined, you can handle these tasks on your own, but you need the right preparation and knowledge.

Can you price a home with an algorithm?

You can use the Internet and its many tools to give you a starting price, but no algorithm can perfectly price a home. Consider comp sales in your area, repairs, and upgrades the home needs, and the overall condition of the market. Hiring an appraiser can help with this process. Next, you need to prepare the home.

What to do when selling a house without a real estate agent?

If you manage to get through all the steps of selling your home without the help of a real estate agent, make sure that when it comes to closing, you have legal representation. Closing is a legal affair and should be handled by either a closing attorney or a title agent.

Why is it important to sell your home yourself?

It’s important to get yourself organized and be prepared to do a lot of hard work to get your home ready and complete all the steps necessary to close.

Why is finding the correct sales price and marketing the home trickier?

This is not only because finding the correct sales price and marketing the home is trickier, but also because it’s easier to find yourself being victimized by tough negotiating on the part of a buyer’s agent. It’s also essential to do a lot of research about the laws and regulations in your area.

What to do if you don't live in your home?

If you don’t live somewhere where sticking a sign on your front lawn is likely to work, try advertising online, on social media, or hosting an open house. Be careful of your safety if you decide to let strangers into your home. It is important to lock away any valuables.

Why do homes for sale by owner fail to reach their goals?

According to real estate professionals, here are the top reasons that homes for sale by owner fail to reach their goals: The list price of the home was wrong from the start. Not making the home accessible when the buyer’s schedule dictates. The home was not appropriately prepared to sell.

What does it mean to have an agent on your house?

With an agent, your house will be put on the Multiple Listing Service (MLS). Plus, agents provide access to an extensive network. If you don’t have this advantage, you may need to put some thought and effort into how you make your property visible to potential buyers.

Can you have a lawyer draft up a contract for a home purchase?

If you do not want to hire a lawyer to draft up your paperwork, as this can be pricey and may defeat the purpose of selling your own home to maximize profit, it may be possible to have the buyer’s agent draw up contracts such as the purchase agreement.

What happens if my home doesn't sell?

If your home doesn’t sell within a reasonable amount of time, you need to be comfortable pivoting to a new plan. There’s a reason 85% of sellers end up using an agent — successfully selling a home is hard work. If your home sits on the market for too long, the costs you’ll incur paying a listing agent’s commission may be less than the reduced sale price you’ll receive on your stale listing — or carrying two mortgages for an extended period of time.

How long does it take to sell a home?

Note that the average time it takes to sell a home nationally, from listing to closing, is between 65 and 93 days (in 2018), but it also varies based on where you live. So, expect to dedicate a lot of time to the process for at least three months, not including the time it takes to prepare your home for listing.

Why do sellers hire listing agents?

The majority of sellers hire a listing agent because it’s a job that requires skill, dedication, patience and expertise. Most FSBO sellers have full-time jobs, family commitments and other limitations that make it hard to dedicate the time necessary to sell their home for top dollar.

Can I sell my home on Zillow?

With Zillow Offers, instead of finding an agent, listing your home and waiting for a buyer, you can sell directly to Zillow. If your home qualifies, we’ll send you a no-obligation cash offer, and if you need to close quickly, you can schedule a closing date as soon as seven days after accepting the final offer.

Do I need a real estate agent to sell my house?

Do I legally need a real estate agent to sell my house? No, you are not legally required to hire a real estate agent to sell your home. FSBOs are perfectly legal in all 50 states. However, depending on the state where you’re selling, you may be required to hire a real estate attorney to handle the paperwork.

Can I use a discount broker instead of a full service agent?

Instead of hiring a full-service agent, you could engage a discount broker . They usually provide limited services in exchange for a lower rate. For example, for a few hundred dollars, you can have an agent list your home on the local MLS while you do the rest.

Is it easier to FSBO in a sellers market?

It can be easier to FSBO in a sellers market, because homes typically sell faster and closer to asking price, with fewer price cuts. Selling in a buyers market can be more challenging, because it may take longer to get a good offer, and many other listings have a professional agent doing the marketing over the long listing period.

What happens if you don't pay the buyer's agent?

If they negotiate to not pay the buyer’s agent’s commission, that savings could double to $12,000. The truth is they may still have to pay the buyer’s agent, and by not working with an agent of their own, they may miss many of the benefits a seller’s agent brings.

How much does a seller pay to a buyer's agent?

Sellers typically pay 6% of the sale to a seller’s agent, who then splits that commission with the buyer’s agent. By forgoing a REALTOR®, a seller is trying to cut the cost paid to an agent. This cost savings can be significant. On a $200,000 home, they could save $6,000 by not having a seller’s agent. If they negotiate to not pay the buyer’s ...

Why is it important to have paperwork when selling a house?

The Importance Of Paperwork When Selling A Home. Selling a home is a large legal transaction, and with it comes a lot of paperwork. A REALTOR® knows this paperwork like the back of their hand because they deal with it daily. Those who decide to sell a home without a REALTOR® must do a lot of legwork to complete their paperwork accurately ...

What is a deed in real estate?

Deed. Title and deed are terms that are often confused. Where title is your right or ownership of property, a deed is the physical document outlining the property. It describes the property and its boundaries in detail, and it’s used to sign-off ownership to the buyer.

What are the problems you need to disclose to a buyer?

Common problems disclosed include a faulty foundation, leaking roof, problems with HVAC and home appliances, pests or mold and more.

Is selling a home a legal transaction?

Selling a home is a large legal transaction , and with it comes a lot of paperwork. A REALTOR® knows this paperwork like the back of their hand because they deal with it daily.