“For Sale By Owner,” often shortened to FSBO, is selling your house without the help of a Real Estate Agent. Instead of hiring an agent to prepare the listing and arrange showings, Homeowners will be responsible for all tasks. This process can also be made easier if they use a Real Estate Attorney. With having a Licensed Attorney on your side, you can be assured that you will be protected throughout the entire selling process.
What are the Pros and Cons of selling a house FSBO in Florida with a Real Estate Attorney?
Although FSBO might seem like a great idea, it’s important to understand that selling your house without a real estate has pros and cons.
For Sale by Owner Pros
Unless you are using low cost-listing services, selling your house with a Real Estate Agent means you pay 6% in commission fees.
Not using an Agent means you can offer your house for less. You have more control since you handle all the showing and negotiation, as well as control the process.
For Sale By Owner Cons
- FSBOs sell the property for less money. For Sale By Owner houses sell for 16% less than agent-sold homes. The seller is also liable. If you misrepresent your house, even if it’s an error, you can end up in trouble.
- FSBOs take longer to sell, 18% of people who sell FSBO end up not trading in their chosen time-frame.
- There is a lot of paperwork. It’s easy to end up trapped in a faulty contract.
- It can be stressful. You need to do all the negotiating, could be scratchy.
Selling a house for Sale By Owner is the right fit if you’re contented negotiating, skilled with filling documents, and would rather trade market prices and selling speed for having control of the process.
The Paperwork and Contracts Required to Sell House Market Prices in Florida
Only 50% of For Sale By Owner deals end up closing, compared to 95% of deals involving real estate agents.
Even worse, you may end up in situations where you prepare your documents inaccurately, and end up facing legal or financial issues.
Its recommended that you make sure that you protect yourself. Using an FR, Florida Real Estate Agents Form, or a Florida Real Estate Agent/Florida Bar (FR/BAR) “AS IS” residential contract to sell your house, FSBO is the smartest way to make sure that you don’t end up in distress. These forms are both drawn and used by real estate experts to ensure the least chance of litigation.
Florida is a “Duty to Disclose” state, meaning that you must disclose known defects of the property that you are selling. You should also consider consulting with a real estate lawyer before using these forms, in case laws and regulations have changed and to ensure they’re filled out correctly.
Make sure your contract includes information on:
- Financing Contingency
- Personal Property
- Closing Date
- Title and Survey
Unless you are absolutely confident that you can accurately use and negotiate the contract, consider listing your home with the guidance of a real Expert.
What is the Cost of Selling a Home FSBO in Florida?
For many people, For Sale By Owner is appealing because it allows them to escape paying the real estate agent commission, which in Florida averages about $13,394! However, commission charges are not the only price you’ll pay in selling a house FSBO.
If you sell your home for an average price of $243,52, you should subsequently expect to pay about $32,877 in selling costs. From sale prep to agent commission to closing costs, selling a house is not cheap!
The biggest expenses in Florida are:
- Lien Search.
- Property Taxes.
- Buyers Closing Costs
- Warranty Fees
- Pest Inspections
- Title and Escrow Charges
In addition, Florida has other special costs associated with selling a home, such as the Documentary Stamp Tax. This tax varies from county to county, but expect to pay an average of $2,000 on a $300,000 house sale.