Would you like to switch to the accessible version of this site?
Go to accessible site Close modal windowResidential Real Estate for Sale by Owner in Minnesota
Some experts have begun sounding the horn that that the housing market is on the rebound. Some also
say that you can save a substantial amount of money by selling your home yourself. In my humble
opinion, I too believe that the housing market is recovering, but I know for a fact that you can save a
substantial amount of money by selling your home on your own.
“For Sale By Owner” (FSBO) has always been an option for homeowners desiring to sell. Many people
eliminate the possibility before actually exploring what it takes to be a FSBO. In most cases, it takes a
little more effort than selling a home with a realtor, but the results can be thousands of dollars in
savings.
In my 26 plus years of practicing law, nothing has become as apparent to me than the financial
advantage of selling your home yourself. This became even more apparent when a relative had sold his
home, and with the prospect of saving $20,000.00 in sales costs.
Unfortunately, the relative felt obligated to hire his friend, the realtor, and he paid a commission of
almost $20,000.00. The home sold for the asking price on the first day that it was listed to the first party
that looked at it. After getting the necessary signatures on the purchase agreement, the realtor was
neither seen nor heard from until closing to get his commission check.
If you have the time necessary to advertise and to show your home, you can most likely sell your home
without the need to pay a commission of 6% or 7% to a realtor. That’s $6 to $7,000 on the sale of a
$100,000 home or $18 to $21,000 on the sale of a $300,000 home.
What does it take to be a FSBO?
in the area that have sold recently, or for $300 to $500, you can pay to have a certified
appraisal performed.
before the house can be placed on the market. Requirements can differ from municipality to
municipality. These usual require an inspection by a licensed evaluator to disclose any
defects in the home which may or may not require repairs by the seller. Checking with your
municipality will provide you with individual requirements.
your home. There are numerous websites that list properties for minimal costs. A quick
search of the Internet will provide numerous websites tailored for private parties to sell
their own homes. Be careful, as some of these sites often advertise a flat fee, and then add a
percentage as a commission. If you truly want to maximize the savings as a FSBO, you will
only need a website to advertise your home.
comprehend the legal significance of a purchase agreement. It may be the most important
document that many people sign in their lifetime. How often do you sign a document
obligating you to pay another party hundreds of thousands of dollars? Not very often, and
such a document is often drafted by a realtor trained and educated in selling homes, but not
trained or educated regarding the significance of a legal document such as a purchase
agreement. This is where an attorney can provide his or her expertise in preparing the legal
documents which will be determinative of the parties’ rights in the transaction. There are
standard forms which attorneys and realtors utilize, however, within the document, there
are many options to tailor the document to your specific needs.
closing will be dictated by the third party lender. Typically, the seller will be required to
provide signatures on basic deeds and other documents along with the payment of filing
fees and a deed registration tax. All of the seller’s expenditures at a closing will be listed on
a closing statement which will be provided by the closer. Because this is the document that
accounts for the distribution of the sales proceeds, it is recommended that an attorney be
engaged to review this document with the seller before the deal is finalized and keys are
turned over.
This article discusses in general terms the process and requirements for selling a home as a FSBO.
Because every transaction involving the sale of a home is unique, consultation and utilization of an
attorney skilled in the area of residential home sales is always recommended and encouraged.
My experience has been that in a typical residential home sale, the legal fees and costs for the seller are
typically in the $1,500 to $3,500 range. That is substantially less than 6 or 7 percent of the sale price that
is typically paid to a realtor.
If you have any questions or need further information on the possibility of utilizing an attorney for a
FSBO transaction, please feel free to contact John Brandt at the law firm of Merrigan, Brandt, Ostenso,
& Cambre, PA.
John T. Brandt
Merrigan, Brandt, Ostenso & Cambre, PA
Thank you. Your submission has been sent.
25 Ninth Avenue North
Hopkins, Minnesota 55343
Merrigan, Brandt & Ostenso, PA. is located in Hopkins, MN and serves clients in and around Minnetonka, Hopkins, Eden Prairie, Maple Plain, Wayzata, Young America, Minnetonka Beach, Chanhassen, Excelsior, Spring Park, Long Lake, Minneapolis, Carver County and Hennepin County.
Attorney Advertising. This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. [ Site Map ]
See our profiles at Lawyers.com and Martindale.com
Martindale-Hubbell and martindale.com are registered trademarks; AV, BV, AV Preeminent and BV Distinguished are registered certification marks; Lawyers.com and the Martindale-Hubbell Peer Review Rated Icon are service marks; and Martindale-Hubbell Peer Review Ratings are trademarks of MH Sub I, LLC, used under license. Other products and services may be trademarks or registered trademarks of their respective companies. Copyright © 2024 MH Sub I, LLC. All rights reserved.