The short answer – your lawyer. The long answer… So, you found a buyer for your home without using a Realtor. Congratulations. Now someone has to prepare the purchase contract. For many Illinois FSBO sellers, this is the point where the transaction suddenly becomes much more complicated. There is no listing agent preparing paperwork or coordinating an offer. The buyer may have an agent. The buyer may have an attorney. Or the buyer may be unrepresented too. So who actually prepares the contract? The Purchase Contract Is More Than a Price and Closing Date A residential real estate contract determines the legal rights and obligations of both the buyer and…
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Who Holds Earnest Money in a Chicago-Area FSBO Home Sale?
If you are selling your property without a real estate agent, my Free Chicagoland FSBO Starter Kit includes practical information designed to help sellers understand the steps involved in a private home sale. When you sell your home without a real estate agent, the buyer’s earnest money should usually be placed with an agreed escrow holder rather than simply given to the seller. In a Chicago-area FSBO transaction, the escrow holder might be a title company, an attorney, the buyer’s brokerage, or another party identified in the purchase contract. This is one of those details that many FSBO sellers do not think about until they already have a buyer. A…
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Can You Sell a Condo While the Association Is Considering a Special Assessment?
Yes, you can sell a condo while the association is considering a special assessment. However, you should investigate the proposed project and the association’s finances before listing. Even if an assessment has not been formally approved, the issue may affect the asking price, negotiations with the buyer and your expected proceeds at closing. A Special Assessment Does Not Have to Be Final to Affect the Sale Condo owners sometimes assume that a potential assessment does not matter until the board takes a formal vote and establishes the amount. In practice, the problem can affect a sale much earlier. The association may already be: Collecting bids for a new roof Reviewing…
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What Should a Home Seller Do If a Storm Damages the Property Before Closing?
What Should a Home Seller Do If a Storm Damages the Property Before Closing? If a storm hits while a home is under contract, the seller should promptly inspect the property, photograph any damage, prevent the damage from getting worse, notify the seller’s attorney and insurance carrier, and determine the extent of the problem before promising repairs or credits to the buyer. Material new damage may need to be disclosed, and the purchase contract may give the parties specific rights and obligations when the property is damaged before closing. This issue is particularly relevant in the Chicago area after repeated storms have brought destructive winds, hail, flooding and heavy rain.…
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Selling Without a Realtor Does Not Mean Selling Without a Process
Selling a home without a real estate agent can be a reasonable choice in the right circumstances. Some homeowners already have a potential buyer. Others are comfortable marketing the property, arranging showings, and negotiating directly. Some simply want to reduce the commissions and other costs associated with a traditional listing. These can all be legitimate reasons to consider a for-sale-by-owner, or FSBO, transaction. However, removing the listing agent does not remove the work involved in selling a home. It changes who is responsible for performing that work. Before deciding to sell without a realtor, homeowners should understand the responsibilities they will be accepting and determine where they may still need…
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FSBO Sellers: Who Wrote the Contract Matters
Selling your home without a realtor can feel empowering. You find the buyer. You agree on a price. Everyone seems ready to move forward. Then someone sends over a contract. That is the moment many FSBO sellers move too quickly. In a private sale, the buyer, the buyer’s agent, or the buyer’s attorney may provide the purchase contract. That does not automatically mean the contract is unfair. But it does mean the seller should stop and ask a basic question: Does this contract protect me, or does it mostly protect the buyer? The contract is not just paperwork. It is the rulebook for the transaction. The Purchase Price Is Only…
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5 Mistakes FSBO Sellers Make Before They Even List
Many homeowners choose to sell their property without hiring a realtor. Sometimes they already have a buyer in mind. Sometimes they want to avoid paying a commission. Sometimes they simply believe they can handle the process themselves. Selling a home without a realtor can be successful, but many For Sale By Owner (FSBO) transactions encounter problems before the property is ever listed. Here are five common mistakes that can create unnecessary headaches later in the transaction. 1. Pricing the Property Based Solely on Zillow Online valuation tools can provide a useful starting point, but they are not appraisals. Automated valuation models often miss factors that significantly affect value, including: Property…
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Why Closing Dates Get Postponed in Chicagoland Real Estate Sales
A closing date feels final when it is written into the real estate contract. Unfortunately, anyone who has been through enough Chicagoland closings knows the truth: the closing date is often more like a target than a guarantee. Most buyers and sellers assume that once the contract is signed, everyone simply works toward the closing date and the deal closes on time. Sometimes that happens. But in many residential real estate transactions, the closing date gets pushed back because one piece of the process is not ready. That does not always mean the deal is falling apart. But it does mean the parties need to understand what is causing the…
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FSBO Sellers: Finding a Buyer Is Not the Finish Line
FSBO Sellers: Finding a Buyer Is Not the Finish Line For many FSBO sellers, the biggest concern is simple: finding a buyer. That makes sense. If you are selling without a listing agent, you are likely thinking about pricing, photos, showings, online exposure, buyer interest, and whether someone will actually make an offer. But once a buyer appears, many sellers make a dangerous assumption. They assume the hard part is over. In reality, finding the buyer is only the first major step. The transaction still has to make it from contract to closing. That is where many FSBO sellers run into problems. A Signed Contract Is Not the Same Thing…
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FSBO Sellers: The Hard Part Starts After You Find the Buyer
Many homeowners who sell by owner focus on one major goal: finding a buyer. That is understandable. Without a listing agent, the seller may be handling pricing, photos, showings, buyer questions, and negotiations on their own. Getting someone interested in the property can feel like the biggest hurdle. But in many real estate transactions, the hard part starts after the buyer says yes. Finding a buyer is important. Getting the transaction to closing is a different challenge. A Buyer Is Only the Beginning Once a seller has an interested buyer, the transaction moves into a more detailed phase. The parties need a written contract. The contract may go through attorney…
