Why You Should Hire Real Estate Attorneys Specializing in FSBO Properties

Florida has one of the nation’s largest and most vibrant markets for real estate that is “for sale by owner,” better known as FSBO Properties. This means the property is being sold directly by the seller without the representation or assistance of a real estate agent or broker. The main benefit to the seller is that they do not have to pay a real estate commission, thereby saving between 3 and 6 percent on the sales proceeds.

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. That is why Jurado & Farshchian real estate attorneys specialize in providing services geared specifically to these types of transactions.

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 Properties

However, 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.

Why You Should Hire Jurado & Farshchian, PL Real Estate Attorneys

Whether you are selling FSBO properties or buying them, it pays to have a trustworthy real estate attorney on your side who understands the many challenges and risks that come with this type of transaction. We have helped home buyers, investors, and sellers of all backgrounds successfully close on FSBO properties with minimal risk, delay, and cost.

Forgoing experienced and sound legal guidance to save money will increase your chances of something going wrong, or will lead to costlier problems down the road. We know how to protect our clients’ interests regardless of which side of the transaction they are, and we are familiar enough with FSBO properties to know exactly what to look for and how to address it.

Before buying or selling your FSBO property, contact me directly at 305-921-0440 or email me at Romy@jflawfirm.com to learn how we can help.

Read more at Why You Should Hire Real Estate Attorneys Specializing in FSBO Properties