About Private House Sales

When a property owner decides to sell a house, one option is for the owner to handle the entire transaction, without using a real estate agent. A contract is involved, so it is important that the owner read and understand the contract before sitting down with the buyer. Some state Realtor associations use standard contracts, specific for that state, or the seller can write his own or hire an attorney to write the contract. To protect yourself, learn as much as possible about the process and the contract you intend to use.

Identification

Selling a private house or residential property can be done by the property owner or with the help of a real estate professional. If an owner decides to sell his house without the assistance of a real estate professional, he must familiarize himself with the process and obtain a sales contract to use during the transaction. It will also be the owner's responsibility to prepare the property for sale, cover the expense of marketing and make full disclosures to protect himself from possible lawsuits.

Features

There are many standard steps in selling a house by owner. First the house must be prepared, which includes cleaning, making minor repairs and staging to best show the property. The next step is marketing the property to attract potential buyers. The seller should contact a local title company and try to obtain a copy of a standard sales contract to use when a buyer makes an offer. The seller should be prepared to allow the buyer to inspect the property during an inspection period. It is important to verify the buyer is qualified. Depending on the state of the transaction, a title company should prepare a certificate of title and handle the transaction. The seller should be prepared to purchase title insurance for the buyer.

Considerations

Selling a house by owner does not mean the seller should withhold vital information from the potential buyer. It is in the best interest of the seller to make a full, written disclosure of the property, addressing any defects or repairs. The disclosure should be acknowledged and signed by the buyer. Failure to do this could result in future lawsuits. Sellers should also consider purchasing a home warranty for the seller. If something goes wrong within the first year, the insurance will pay for specific repairs.

Geography

Real estate laws vary from state to state. Some states require that an attorney participate in the transaction. Other states, like Arizona, do not require an attorney be part of the process. Before selling a house without the assistance of a real estate professional, determine what your state requires for facilitating a transfer of title. One way to do this is to contact a local title company. Some title companies offer "For sale by owner" booklets.

Warning

There are many advantages to using a qualified real estate professional as opposed to selling by owner. When pricing the property, professionals are better trained and have current data for comparables. Typically, the professional handles the marketing, advertising expense, showing the property, the contract and negotiation, and oversees the transfer of ownership process. During a slow housing market, with an excess of inventory, a homeowner is better served using a qualified agent.