Real Estate Question

[explorer2001]

We were out to dinner with friends last night and they mentioned they were house hunting. They are basically looking for our house. We've been trying to figure out when/how to sell. My H wants a shop at the new house and there isn't space for it here.

Mortgage is close to break even because I bought before the real estate crash 10 years ago at the top of the market. We were expecting to need to save up for the reator fees, but since we might be able to sell to a friend that means no finding a buyer, staging, marketing, etc.

What should we consider if we sell but don't need a realtor? Is there a good way to find an attorney for just the contract? What should we be looking for? We want to do it right, but why pay commission for work they didn't have to do?

This is someone I've known since I was 12. A good enought friend that he's helped with various projects on the house over the years. He knows the area, the house, etc. It's still early in the process for both of us. They are applying to get preapproved for a VA loan and make sure they can afford it. So we know there are still plenty of steps to take along the way before anything is final.

Anything else to consider? Thoughts? Stories to share? Research directions?

[thatgirl2478]

Just know that the process is highly emotional as well as a business transaction. How are you going to feel when they come at you with a list of things the inspector found that aren't necessarily wrong but maybe should be addressed? I know both times we sold, our buyers were ridiculous with their demands (seriously - one buyer wanted us to run electricity to the garage that had never had it and run HVAC ducts to the attic that similarly had never had them. Another wanted us to relocate the gas fireplace valve through the front face of the brick fireplace because it was 'too far' from the fire place and replace the limestone capstone on the chimney because it had some small cracks in the 60 year old cap).

Yeah you can find a lawyer to take care of all the contract stuff - but be aware that it may not go super smooth.

[just]

A friend of mind did this with another one of her friend. Hired a lawyer to draw up the agreements, and it went absolutely fine. The buyers knew the house, so didn't ask for anything ridiculous, although did ask for one important change highlighted. They ended up splitting the cost. They came in at the same ball-park price which was important, and both decided to split the savings on the lack of agents.

I think thatgirl2478, makes a good point, but I wouldn't shy away from it just because of that.

[ellipses84]

Be aware of the specific requirements of a VA loan, regarding the condition of the house and the appraisal. I would be a little nervous that something could go wrong that would strain the friendship, but people do it all the time.

[Deleted]

explorer2001, in the interest of maintaining the friendship, I'd suggest foregoing the savings from not getting a realtor. Plus, because I generally tend to be risk-averse and time-pressed, I'd prefer to have a professional own the transaction for me.

YMMV.

How cool that this could work out - it's like a matchmaker, matchmarker made you a match!

[mrs.jacinthe]

Disclaimer: I'm a realtor.

Personally, I'd hire a realtor here. Not because you need marketing and photos and all that, but because realtors have E&O insurance and knowledge of the forms and such that are needed, as well as experience completing them and running interference. It would certainly protect you.

If I were doing this as a realtor - where there is a definite buyer, no need to market, and a dual-representation sort of thing, I'd be willing to cut my commission somewhat, which would save you money. If you have a realtor you would have used to sell, I'd ask them about the possibility of cutting their commission in this scenario.

[badgergrl]

We used a lawyer in a very similar scenario. Depending on where you live- this will probably be $150-$300 per hour. For us our total lawyer bil was $750 vs 6% of 200k or 12k.

I would not in any way sign a realtor agreement in this case. A real estate lawyer can handle title, transfer, contract, etc.

[ashsummer]

Hire a real estate lawyer! Here is why:

[OG Jo]

There was an "episode" (I don't know what else to call it?) on Young House Love's podcast on selling by owner and some tips and tricks. You might look that up for a quick overview. They did recommend at a minimum hiring a real estate attorney.

[ohyouknow]

I sold myself. I don't see any reason to use a real estate agent in a case like this. Just use a real estate attorney for the contract. I actually did my own contract based on a $30 packet I bought from Office Max but I'm an attorney (not real estate though).

[my3boyz]

This question is kind of area dependent. In New Jersey/New York Real estate attorneys are used for all deals even with Realtors involved. So I'm guessing it's not that hard to find them. In my area we don't really use real estate attorneys, we use settlement agents/title companies. So there really aren't many real estate attorneys because there's no demand. As a Realtor I would do a deal like this for half the usual fee. Keep in mind, you're not going to save as much as you think you will because the buyers will also expect to get that savings passed on to them.

[L]

I've bought without realtors (4 times) & am in the process of selling (3 properties to an investor) FSBO. When we bought we used a RE attorney to review docs, selling we are just using a title company. It's saved us so much money and we've gotten some great deals.