Why You Should Hire Real Estate Attorneys Specializing in FSBO Properties
Thanks to the widespread availability of standard forms for real estate transactions, selling FSBO Properties is easier and more common than ever, albeit not without potential drawbacks for both the buyer and seller.
What makes FSBO Properties so Appealing?Both buyers and sellers alike may find this sort of transaction appealing, especially if they have experience dealing with real estate and are comfortable with taking on all the responsibilities of a professional. Aside from saving money, there is a perception that fewer people being involved will make things go smoother and more quickly. Moreover, if the property is enticing enough, you may feel inclined to go forward with the transaction if the payoff seems worth it in the end.
The Potential Risks and Shortcomings of FSBO PropertiesHowever, there are some potential risks involved with foregoing the services of a real estate professional, even if you otherwise feel confident and savvy about real estate transactions. The real estate industry exists for a reason, given that there are numerous practical, financial, and regulatory matters that must be accounted for prior to closing. The following are just some of the risks that come with FSBO Properties, which we are equipped to look out for and protect against.
Scams and Fraud -- Florida real estate transactions require a formal or written contract, and it is not uncommon for buyers who fall in love with a property to trust the seller on their word alone, only to be defrauded out of their initial deposit or the property entirely (especially if the seller is not someone you know or are acquainted with). Other scams include fraudulent paperwork (such as appraisals and deeds), asking for personal information that is not required, and purchases through a fictitious third party.
Full Liability - Taking on all the responsibilities of the transactions means that the seller is singularly responsible for anything that goes wrong. If you as the seller make any sort of mistake along the way - misstating the price, neglecting to mention an issue with the property, not having your title documents in order, etc. - you will be exposing yourself to liability.
Daunting Paperwork - A lot of documents go into a real estate closing, and even the savviest and most experienced seller or buyer will be hard-pressed to properly prepare them all. In fact, a 2015 report by the National Association of Realtors (NAR) found that difficulty understanding paperwork was a leading cause of delays or cancellations in FSBO transactions.
Lack of Protection - Without a real estate expert to look out for your interests, either party is more likely to make an error or miss something crucial that can delay or derail the closing. On their own, standard forms are often ill-suited to protect against disputes or issues that may arise in a transaction, especially since no two real estate closings are alike. According to NAR, nearly one out of five FSBO properties are unable to sell within their planned timeframe due to such delays.
These are just a few of the issues you may face in an FSBO transaction. That is where our attorneys come in.