What Pitfalls Might a FSBO Encounter? - Part 3   
by John Occhi, Hemet CA REALTOR®     
Hemet CA Real Estate     

This is the third article in a several part series on the potential pitfalls that a For Sale by Owner (FSBO) is likely to encounter when selling their Hemet FSBO real estate on their own.  First we talked about setting the right price for the Hemet CA Real Estate, so that money was not left on the table and to make sure the market would not reject it as overpriced.  Then there was a discussion on marketing real estate for sale in Hemet and why a Hemet REALTOR® had very distinct advantages over the FSBO seller.

Obviously, not every FSBO seller will encounter all of these pitfalls and there are those that when they do encounter them will have a game plan in place and move forward as if nothing has happened - although I am certain that is the minority of sellers who opt to sell their Hemet CA home for sale on their own.

In Hemet California there are a number of legal requirements that the seller must comply with in order to have a legal transaction.  The worse case scenario is not that the contract unravels, but that the buyer takes possession and then sues the seller for any number of issues that were done wrong or just not properly disclosed.  Not because the seller is a bad person and tried to be devious, but because the seller just did not know what he was doing when it came to protecting himself by using a legally binding and enforceable document and going through the local and customary procedures.


LEGALLY BINDING CONTRACT

One of the most difficult and frustrating aspect of selling a home without a professional REALTOR® will surface if and when an offer actually comes in - especially if it comes from an individual who like he FSBO seller is not represented by a REALTOR®.

Often the parties go to a local stationary store to buy a form packet.  The problem is that more often than not they are worthless documents.  Typically they are designed for very general purposes and are generally not specific to any particular local area.

In addition to not having legally biding forms available, the FSBO seller typically will not be up to date on local disclosure requirements.  A FSBO seller probably does not know about Radon Gas, Lead Paint, Natural Hazards or any of the other disclosures that must be adhered to in the Hemet CA real estate market.  Of course these are considered to be the basics to a Hemet Realtor.

Many times a FSBO seller will rely on a local attorney who specializes in real estate (expensive).  However, every attorney I know typically is not available on the weekends, which happens to be when most offers to purchase Hemet CA Real Estate take place.

So what should a FSBO seller do?

Let's assume the contract is prepared.  How much good faith earnest money deposit should be collected?  Who will hold it?  What happens if the buyer decides to back out?  What happens if the buyer cannot complete he transaction?

Then there are the inspection requirements.  Do you know who traditionally pays for what? Do you know a highly recommended inspector? What type of Title report/policy do you need?  Which Title company will you use?  Why?

When we come back, we will be looking at the different contingencies that a seller s almost guaranteed to have to deal with and what the best way is.

Until next time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR%$
www.JohnOcchi.Com