The Furnishings Trap
"I was so mad I could just scream!" A REALTOR related to me just the other day. She just lost a sale on a nice Townhouse because the buyer and seller just went loggerheads over some used furniture (The Furnishings). "You sell Real Estate, not furniture - What Happened?" I asked.
Try to avoid this situation. Writing personal property into the contract is troublesome. Firstly, Lenders don't want to see it on a contract even if it is assigned zero value. Better to have the seller and buyer make a deal outside of the Real Estate contract. Better still for the seller to liquidate the furnishings and convey no personal property. Seller's remember what they paid for the furnishings new and they think it is worth much more than the buyers are willing to pay. Of course there are exceptions like condos where moving the furnishings is more difficult. But, writing furnishings into the contract is a trap best avoided. You don't want to lose the sale because the sellers think the buyers and short changing them on furnishings. Simplify your contract.
Terms to know
Material Fact: A piece of information that affects the value of Real Property and is relevant to a person making a decision about the property. As a transaction agent, you must disclose all known facts about a property that affect the value of the property.
Procuring Cause Agent: A Real Estate Agent whose efforts are the cause of an executed sales contract, regardless of who actually writes the contract.
For Sale by Owner
In Florida you don't need a Real Estate License to sell your own property. It's true. Many people try to sell their own home without employing the services of a Professional Real Estate Agent.
The Colby School of Real Estate recommends the use of a professional REALTOR. However, if you don't hire a professional we recommend, strongly, that you hire a Real Estate Attorney to look after your rights.
Care should be exercised with regard to your personal safety. Who are these people wanting to go through your home? Should you require proof that potential buyers can actually qualify for a mortgage? If they are a cash buyer, do you confirm their proof of funds?
REALTORS qualify prospects financially and will screen out the looky-loos and they meet prospects in person before they show your home.
If you agree to pay a commission to any REALTOR that brings a buyer to closing, understand that they will ask you to sign a No Brokerage Relationship disclosure informing you that the brokerage will 1. Account for all funds, 2. Deal Honestly and Fairly, and 3. be obligated to disclose any defect that has a material effect on the value but is not readily observable. Please note that the seller is also obligated to disclose any known defect that is not readily observable.
Pre-Qualified Vs. Pre-Approved buyers. Know the difference. Pre-qualification is quite easy to get but it does NOT confirm employment or income. Pre-Approval is much, much better. Insist on a Pre-Approval before letting anyone in to your home. Don't waste time showing your home if the prospect can't afford it.
Finally, think twice about being a FSBO. Real Estate professionals do dozens of things to keep the transaction on course to closing. They usually sell the house for more money in a faster timeframe.
Please call me if you have any questions about being a FSBO.
Cliff Colby 386-341-9686
Colby School of Real Estate
*Real Estate Advanced Learning
email or call for upcoming classroom schedule