For Sale by Owner Lawyer in Wausau: How to buy a FSBO Property
So, you found your dream home and agreed on a purchase price with the Seller, but it is “For Sale by Owner.” That means there is no realtor to guide you and the seller through the transaction, and you’re probably little nervous about writing up an Offer to Purchase on your own. (If you’re not, you should be!)
Our real estate attorneys frequently receive calls from buyers seeking a “for sale by owner lawyer in Wausau.” Most are pleasantly surprised when they find out the relatively low cost of having an attorney prepare the Offer to Purchase, when compared to the higher price they likely would have to pay for the property if a realtor were involved. Attorneys fees for a simple Residential Offer to Purchase typically will run in the hundreds of dollars — as opposed to realtor commissions which run in the thousands of dollars (typically 6% of the purchase price). Many homeowners will increase their listing price to cover part or all of the realtor’s commission if they list the property, in effect passing on this cost to the buyer.
Drafting the Offer to Purchase
Wisconsin’s standard Offer to Purchase form is widely available online. There is no legal requirement that the form be completed by a lawyer or a realtor. In other words, you could do it yourself. But should you? Probably not. An Offer to Purchase is the single most important document in a real estate transaction. The standard printed form is merely a starting point. It generally needs significant changes in order adequately reflect the agreement between the parties, and protect the buyer’s interests. It’s easy to draft an agreement that works when everything goes as planned. It is much more challenging to draft an agreement that protects you when things go wrong. Having your Offer prepared or reviewed by a lawyer is the best way to ensure that your interests are adequately protected. Our Wausau real estate attorneys can prepare or review your Offer for you prior to presenting it to the seller.
After the purchase agreement is signed, it is the seller’s responsibility to procure a title commitment from a title insurance company. This will show the state of the seller’s title to the property, and identify any encumbrances on the title. If you are not familiar with title commitments, an attorney can review the it for you and explain the title exceptions and any encumbrances which appear on the commitment, such as easements, construction liens, judgments, or property disputes. The title commitment does not tell you anything about existing and prospective zoning. Your lawyer can explain whether zoning prohibits any planned use of or improvements to the property.
The closing of a real estate transaction will involve the execution of the deed and mortgage, the payment of the purchase price, and settlement of all of the expenses associated with the transaction. We usually suggest having the seller’s title company handle the closing, as it is much more economical than having a lawyer do it. A closing statement is typically provided to both parties prior to the closing, showing the charges and credits to the buyer and seller. You may want to have your attorney review the closing statement for accuracy. Although we can attend the closing if the client so desires, it generally isn’t necessary to have your attorney present at the closing, particularly if you have had your lawyer review the closing documents in advance.
For Sale by Owner Lawyer in Wausau:
For sale by owner lawyer in Wausau facilitating real estate transactions in north central Wisconsin for more than 25 years. A for sale by owner lawyer in Wausau can assist you with any real estate transaction. Contact a for sale by owner lawyer in Wausau. Call 715.843.6700 to speak with a for sale by owner lawyer in Wausau. Email a for sale by owner lawyer in Wausau.
Eaton John Overbey Jackman, LLP: For Sale by Owner Lawyer in Wausau
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- For Sale by Owner Lawyer in Wausau: How to buy a FSBO Property - February 1, 2018