Articles
Buying or Selling Your House Without a Real Estate Broker
By Bruce L. Dorner
Attorney at Law
I have a fair number of clients who have either bought or sold a house without the assistance of a real estate professional. If you ask me how well they did, I’d have to say that less than half of them made it through the process without a lot of heartburn, stress, and financial burdens. However, those who did make it through the maze felt that they saved some money. I’m not sure how much anyone saved as there are many variables in the process.
- First, a good broker is worth his or her fee. If you are going to hire a broker, interview several, obtain references, and put the agreement in writing. As with any legal contract, you would be well advised to have your attorney review the listing agreement before you sign it.
- Second, remember that a broker has a ready pool of buyers and sellers. Part of the service which the broker brings to the table is the increased probability of a quicker sale. However, if you know how to market your house in a competitive fashion, then this may not be a factor for you.
- Third, do you really have any idea of the value of your house when you go to sell it? Do you really know if the house you want to purchase is worth the amount of money shown on the listing sheet? A competent broker can provide a detailed analysis of your house and compare it with other similar properties that have recently sold. I’ve had several do-it-yourself sellers dispose of their property very quickly, but always had a lingering suspicion that they underpriced the property. Sometimes, they think that the value shown on the tax bill is a fair price. Clearly, in the Londonderry area this is not the case!
- Fourth, do you have the time to be around the house when a prospective buyer wants to take a tour or conduct an inspection. Most buyers will make more than one trip before they make an offer. Also, if you are a buyer, how many homes will you have to view to find the right one? A good broker can work with you to define the features and space requirements you need and save you a lot of time driving around at more than $3.00 a gallon for gas.
- Fifth, if you are moving outside the local area, do you have the ability to coordinate both the sale of your present home and the purchase of another? Often a national real estate company has reciprocal agreements among their other offices to help you coordinate both ends of the transaction.
- Sixth, do you know what features in your house need to be cleaned up, painted or changed in order to make the property attractive to a buyer? As an example, when I was shopping for my first house, I worked with a local broker. I went to see a recommended property. I thought that it was in a good location, had the right features, and was priced in my range.
The next day I took my wife to the property. She walked in, saw an ugly green carpet in the living room and said, "this will never do!" The broker and I had to spend a lot of time explaining that the carpet could easily be replaced. She had a difficult time viewing the living room because of this distraction. Yes, we did buy the house and had the carpet replaced before we moved into the property. However, little things like this can easily sour a deal without a professional to offer advice and support. - Seventh, for every real estate transaction there is a need for a written contract. Do you know how to draft the contract? New Hampshire real estate professionals have a very good starting point in their arsenal of documents. However, from an attorney’s standpoint, it covers most, but not all of the issues in purchasing or selling a house. The contract is the single most important document. Please, bring it to your attorney before you sign it. Once you sign it you are locked into the deal.
- Eighth, if you are still in a frame mind to do-it-yourself (DIY), be sure to take into account all of the factors mentioned above. Expect that some out-of-state buyers will want to discuss terms such as escrow agents and closing procedures. Be sure you’re able to explain the differences between New Hampshire real estate conveyance procedures and those of other states. You’d be amazed at how many times I see a DIY agreement subject to the laws of some other state!
- Ninth, be sure you know how to deal with the lending institution. Sometimes finding the right mortgage and getting a fair deal can be quite a chore. If you are on the selling side, you need to make sure that the buyer is well qualified for the mortgage and also that your home will pass bank inspection as to both quality and price. Sometimes it can take a while for a buyer to get all the approvals. Sometimes either the buyer or the house won’t meet the lending institution requirements. During this "sale pending" period, what can you do to protect yourself if the deal can’t be completed?
- Tenth, there are certain expectations on the part of each side of the deal. Is the dining room chandelier part of the deal? Are the drapes in the bedroom staying? Get it all in writing. Under New Hampshire law there may be a need for the seller to disclose known defects or conditions. Don’t hide something that is drastically wrong with the property. You may be required to note any issues regarding radon, lead paint and water deficiencies.
So, if you’re ready to accept the challenge, go for it. Selling your house without a broker can save you quite a bit of money. Hopefully, from the buying side, it saves the buyer some money too. However, like many DIY home repair projects, it can get out of hand if you don’t have the skill set to complete the job.
This article provides general information only. It is not legal advice. You should consult with your own attorney before making any legal decision.
Bruce L. Dorner has served clients throughout southern New Hampshire for more than 25 years. His office is at 80 Nashua Road, Londonderry, NH. He may be reached by phone at (603) 434-2230 or by e-mail at callmylawyer@attglobal.net
