NA Private sale of house - advice?

Let'sgoflying!

Let'sgoflying!

Touchdown! Greaser!
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Dave Taylor
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Family member is selling residential home in Texas without realtor assistance.
Is retaining an attorney.
Has a friend lined up as a buyer.
Will not be financing.

Advice?
Gotchas?
Must dos?

What is the general process?
 
He has a lawyer and has a buyer. Wouldn't the lawyer be able to answer all of those questions?
 
Sounds like they've got it figured out...we sold our last house without a realtor. The buyer had an attorney draw up the closing papers, and we just signed on the line.
 
There are lots of real estate offices that will do a paperwork only transaction for a flat fee. Commissions are paid for the listing, showing, marketing, negotiations, ect...but if you have all that already lined up they will still do the paperwork push which will be a must for a lot less money.

Brad Z said:
He has a lawyer and has a buyer. Wouldn't the lawyer be able to answer all of those questions?
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Unless they are specifically a residential real estate lawyer, there are a lot of I's that need to be dotted and t's that need to be crossed for everything to be 100% legal and legit in title transfer.
 
The lawyer will handle it, that's why you hire one instead of just going DIY.
 
Get an appraisal. Set a price. Qualify the buyer(you have a right to know his financials). Negotiate the deal. Hire a Title Company to do the closing. Get paid in secure funds, wire transfer or Bank Check....
 
My mother did that, plus financing. Her lawyer did all the work. Only thing she did wrong was grossly undervalue the property IMO. I think a real estate agent would have gotten her more money. But the transaction itself was smooth.
 
Shawn said:
There are lots of real estate offices that will do a paperwork only transaction for a flat fee. Commissions are paid for the listing, showing, marketing, negotiations, ect...but if you have all that already lined up they will still do the paperwork push which will be a must for a lot less money.



Unless they are specifically a residential real estate lawyer, there are a lot of I's that need to be dotted and t's that need to be crossed for everything to be 100% legal and legit in title transfer.
Click to expand...
Absolutely 100% correct. I'd have a realtor also.
 
Good title company will handle the deal. Title company office (in Texas) will be owned by counsel.

Purchaser protected by having title insurance. Seller, by getting money.

Realtors are great, but if the place is sold already, why cut 6% from the proceeds?
 
Do it just as formally as if it weren't a friend. It would suck to lose a friend over a misunderstanding.
 
Real estate brokers are not lawyers. They can facilitate finding a buyer and grease some of the issues, you still likely need a real estate lawyer. In some areas of the country it is common for the lawyer to do the actual closing himself as well as arranging title insurance. In other places, a quasi-legal title or escrow service is common. Even then, they tend to retain a lawyer as there are some things that require it. Of course, more often than not the buyer is arranging the title/escrow so it behooves you to make sure you have a lawyer representing YOU.

REALTOR and Real Estate Agent/Broker are not synonymous terms. REALTOR is a trademark and it signifies the person using it is a member of the NAR.

In this situation, I can't see how a real estate agent helps the seller at all.
 
Selling is the easy part. Only advice I'd offer is to make sure what was agreed to for selling price is in line with the real value.

Any real estate attorney worth a plug nickel can handle this transaction.

The drama comes when a mortgage company get involved.
 
Shawn said:
Unless they are specifically a residential real estate lawyer, there are a lot of I's that need to be dotted and t's that need to be crossed for everything to be 100% legal and legit in title transfer.
Click to expand...

I have found that the title company folks are the ones who ensure that all the minutiae are adhered to.
 
weilke said:
I have found that the title company folks are the ones who ensure that all the minutiae are adhered to.
Click to expand...
And they employ lawyers too. I spend an hour with the title company lawyer getting ready for the closing on my most recent sale.
 
Mason said:
Title insurance, lot survey, building inspection, escrow company.
Click to expand...
been there done it....and the buyer had that. In my case the buyer was financing and that made the transaction much easier.
 
flyingron said:
And they employ lawyers too. I spend an hour with the title company lawyer getting ready for the closing on my most recent sale.
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All this varies by state. Most of the title companies around here (MD) seem to be owned by lawyers. The title chains go back to colonial times and can get a bit messy. In a 'newer' state like ND it's usually pretty simple and most abstracts go back to railroad grant or homestead patent within 3 or 4 transactions.
 
Thanks everybody!
The (chronological) plan:

-ensure price reflects the current local market
-buyer gets appraisal or broker's opinion at their cost
-agree upon a price
-line up a Seller's attorney familiar with real estate transactions and having an escrow company [paid for by seller]
-seller finalizes mortgage with lender
-lender specifies requirements such as a survey and an inspection (thinking of denying a radon inspection, btw - heard too many horror stories)
[these are paid for by buyer]
-once survey & inspection are successfully completed, buyer transfers agreed upon amount into escrow account.
-attorney locates a title co.
-buyer may want title insurance
-closing costs are split?
-closing documents signed by both
-30 days to get out
-cancel or transfer utilities
-notify tax office, get refund?
-leave insurance on for a month past closing
-advise buyer to NOT report sales price to state! (non disclosure state)
-leave little hints around about the bodies buried in the back yard, the toxic waste under the carport.
 
Don't forget to leave a few large bones in the garden for the dog to dig up.....
 
weilke said:
All this varies by state. Most of the title companies around here (MD) seem to be owned by lawyers. The title chains go back to colonial times and can get a bit messy. In a 'newer' state like ND it's usually pretty simple and most abstracts go back to railroad grant or homestead patent within 3 or 4 transactions.
Click to expand...
The title office here is not OWNED by lawyer. They have lots of specialized agents but they do employ some staff lawyers to handle things that require that.
 
If you can get an ala-carte realtor for less than what a lawyer would charge, why wouldn't you go that route? Real-estate laws for their given state are their forte and Realtors work under the supervision of Brokers, and, Realtors and Brokers have annual training requirements that keep them up to date on laws, at least, in the states my wife has been a Broker. So, you think you have your property sold, and the buyer backes out at the last minute. They can't do that, you say, we have a purchase agreement, or contract. State law has offer/acceptance time constraints that if not followed can make the contract null and void.
 
Real-estate laws for their given state are their forte
Click to expand...
Actually not. Most are ignorant of actual law. Getting signatures on contracts, greasing financing and inspections, etc.. and lots of logistaical stuff, but they typically don't know too much of the law and are legally enjoined from offering any such advice.

Glenn, again a REALTOR is a member of the NAR. The term is not synonymous with agent. REALTOR can be applied to both agents and their brokerage.
 
I had a bad experience, once, using an attorney. He didn't file some paperwork that Realtors take care of. I believe it's like "license" and "certificate" people use the two synonymously, and at this point, what does it matter...
 
I am being fed home prices which have this website shown on the top of each page, as if a printout from the site.
http://www.navicamls.net/

There is a factsheet on each home, and prices are marked as: "Sold Price $XYZ,000".

Just wondering how such info could be valid.
a) it's a non-disclosure state
b) would buyers/sellers be likely to give realtors permission to release this info?
 
SCCutler said:
Good title company will handle the deal. Title company office (in Texas) will be owned by counsel.

Purchaser protected by having title insurance. Seller, by getting money.

Realtors are great, but if the place is sold already, why cut 6% from the proceeds?
Click to expand...
All of this. The lawyer will do a better job than a realtor on the contract (realtors are prohibited from doing anything other than filling out the form) and the title company will handle the paperwork (if you're counting on your realtor to do the filings, you're already screwed).

A realtor could run comps for you, but heck, Zillow will do it for free, and a professional appraisal is only $400-500 around here.
 
Title co, attorney are lined up.
Wondering about comps.
Zillow has all homes along the street at 80K, or 25% lower than Chase so online calculators don't seem too useful.
Will be looking at a realtor for comps. (And then, fend off offers to take over the sale for us.)
Still wondering about the reported Sold Prices reported by MLS in post 25.
 
Let'sgoflying! said:
Thanks everybody!
The (chronological) plan:

-ensure price reflects the current local market
-buyer gets appraisal or broker's opinion at their cost
-agree upon a price
-line up a Seller's attorney familiar with real estate transactions and having an escrow company [paid for by seller]
-seller finalizes mortgage with lender
-lender specifies requirements such as a survey and an inspection (thinking of denying a radon inspection, btw - heard too many horror stories)
[these are paid for by buyer]
-once survey & inspection are successfully completed, buyer transfers agreed upon amount into escrow account.
-attorney locates a title co.
-buyer may want title insurance
-closing costs are split?
-closing documents signed by both
-30 days to get out
-cancel or transfer utilities
-notify tax office, get refund?
-leave insurance on for a month past closing
-advise buyer to NOT report sales price to state! (non disclosure state)
-leave little hints around about the bodies buried in the back yard, the toxic waste under the carport.
Click to expand...

Usually the title company would be closer to the beginning. They can handle the escrow, and the title insurance and recording requirements will drive a lot of the process and take a bit of time. Usually earnest money is put in escrow before an inspect and survey, with a right to cancel. They can also handle the survey. If there's going to be a mortgage, the bank will get its own appraisal. Who pays closing costs is negotiable, just like everything else. Possession is usually at closing, but leasebacks are not uncommon.
 
Let'sgoflying! said:
Title co, attorney are lined up.
Wondering about comps.
Zillow has all homes along the street at 80K, or 25% lower than Chase so online calculators don't seem too useful.
Will be looking at a realtor for comps. (And then, fend off offers to take over the sale for us.)
Still wondering about the reported Sold Prices reported by MLS in post 25.
Click to expand...
The realtors report the sales prices to MLS as they are usually required to do. MLS wouldn't be very useful otherwise.
 
Lindberg said:
A realtor could run comps for you, but heck, Zillow will do it for free, and a professional appraisal is only $400-500 around here.
Click to expand...

I have found appraisals to be near useless. Currently arguing with the bank about a garbage appraisal that used homes 500sf smaller and located at the far end of the county. Dodd Frank has turned appraisals into a commodity and the appraisers often come from out of state and have no clue about the local market.

There is something called a 'certified brokers opinion' (or something to that effect). One of those provided by a broker local to the property is going to be more valuable than an appraisal from a Dodd Frank castrated appraiser.
 
If you dont have a realtor, you don't need a lawyer. You need a Title Company and a Sales Contract.

Anyone know where to get a stock Real Estate Sales contract, Specific Performance Contract, these days?
 
flyingron said:
And they employ lawyers too. I spend an hour with the title company lawyer getting ready for the closing on my most recent sale.
Click to expand...
I sold my house around 1993 without a realtor. I paid the title company lawyer to admin the contract. It was only a few hundred extra.
I was fortunate - the buyer had good credit and no trouble getting a loan.
 
coloradobluesky said:
If you dont have a realtor, you don't need a lawyer. You need a Title Company and a Sales Contract.

Anyone know where to get a stock Real Estate Sales contract, Specific Performance Contract, these days?
Click to expand...

Go talk to your title company. Many times they will have the forms you need. Sometimes in PDF format, you just fill in the blank's.

And early step in the process is to visit the title company. They will sometimes save you from spending time visiting other people.


Sent from my iPhone using Tapatalk
 
flyingron said:
Actually not.

Glenn, again a REALTOR is a member of the NAR. The term is not synonymous with agent. REALTOR can be applied to both agents and their brokerage.
Click to expand...


Nobody but their mom really cares about the distinction between "realtor" and real estate agent.

The terms can be used interchangeable, and the only one that gets upset is the one who is the member of realtor.

They both can have the same skill levels, the same expertise, and they both can screw up a deal. Some of them are good, some of them are bad.




Sent from my iPhone using Tapatalk
 
JoseCuervo said:
Nobody but their mom really cares about the distinction between "realtor" and real estate agent.
The terms can be used interchangeable, and the only one that gets upset is the one who is the member of realtor.
Click to expand...
Did you actually read the post I was responding to?
 
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