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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Do You Need a Lawyer for an FSBO Sale in Illinois?
No. Illinois law does not generally require you to hire a lawyer simply because you are selling your home without a real estate agent. But selling FSBO does not eliminate the legal work involved in selling a home. In fact, when there is no listing agent involved, it can become even more important for a seller to understand who is handling the contract, disclosures, title work, closing documents, deadlines and problems that arise between contract and closing. That is where a real estate attorney comes in. FSBO Means “For Sale By Owner,” Not “Do Everything Yourself” Selling FSBO usually means that the homeowner has decided not to use a traditional…
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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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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: The Buyer’s Attorney Is Not There to Protect You
When selling a home privately, one of the most common mistakes a seller can make is assuming that they are protected because “there is already an attorney involved.” That sounds reassuring. It should not be. If the attorney represents the buyer, then the attorney’s job is to protect the buyer. Not the seller. This does not mean the buyer’s attorney is doing anything wrong. Quite the opposite. A good buyer’s attorney should be looking out for the buyer’s interests. That is the purpose of representation. But sellers, especially FSBO sellers, need to understand the difference between an attorney being involved in the transaction and an attorney representing them. Those are…
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FSBO Sellers: Don’t Argue About the Buyer’s Broker Fee. Do the Math.
A seller recently came to me with a concern I expect to hear more often: “I don’t want to pay the buyer’s broker.” That reaction makes sense. If you are selling your home FSBO or through a private sale, one of the main reasons is usually to control costs. You may not want to pay a listing broker. You may not want to pay a buyer’s broker. You may feel like the whole point of selling privately is to avoid giving away part of the deal in commission. Fair enough. But sellers need to be careful. A request for buyer-broker compensation should not automatically become a symbolic fight. In many…
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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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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…
