by The JavaScript Source
In the world of Real Estate, houses for sell by the owner are known as FSBO’s (pronounced as fisbo’s.). Why do we have a page for FISBO’s?
One of the most complex and significant financial events in peoples’ lives is the purchase or sale of a home or investment property. Because of this complexity and significance, people typically seek the help of real estate brokers and sales agents when buying or selling real estate.
Home owners attempt to sell their own homes to avoid the cost of Real Estate commissions. While that may be laudable, it seriously opens the owner to law suits for years into the future. Certainly, if you required surgery, you would prefer having a Board qualified surgeon, and not your local barber. The surgeon is highly trained, and works under certification of State and National agencies. Your surgeon is ethically committed to providing you the best of his or her professional abilities.
That is also true of your REALTOR®. Notice that circle with the “R” inside? That means your agent is a member o;f the National Association of Realtors, and to be a member of the NAR, the agent MUST be licensed by the Department of Real Estate of the State of California.
Real estate brokers and sales agents have a thorough knowledge of the real estate market in their communities. They know which neighborhoods will best fit clients’ needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers.
Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent’s sale of the property. Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers during which the details of the transactions are agreed upon and the new owners take possession of the property. A broker may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do. Brokers supervise agents who may have many of the same job duties. Brokers also supervise their own offices, advertise properties, and handle other business matters. Some combine other types of work, such as selling insurance or practicing law, with their real estate business.
Besides making sales, agents and brokers must have properties to sell. Consequently, they spend a significant amount of time obtaining listings—agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Once the property is sold, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission.
Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the region’s transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client’s particular requirements.
Before showing residential properties to potential buyers, agents meet with them to get a feeling for the type of home the buyers would like. In this prequalifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract which states that the agent will be the only one to show houses to buyers. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. With a computer, buyers can view interior and exterior images or floor plans without leaving the real estate office.
Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the area’s low crime rate, and the proximity to schools and shopping centers. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their client’s instructions carefully and may have to present counteroffers in order to get the best possible price.
Once both parties have signed the contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. For example, the agent must make sure that the mandated and agreed-upon inspections, including that of the home and termite and radon inspections, take place. Also, if the seller agrees to any repairs, the broker or agent must see that they are made. Increasingly, brokers and agents are handling environmental problems as well, by making sure that the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls. While loan officers, attorneys, or other persons handle many details, the agent must ensure that they are carried out.
Most of the following forms are required by law when selling your home and are not covered by the escrow company . The main purpose of this page is to prevent you from being sued by not making the proper disclosures .
Agency Relationship (as required by civil code) Disclosure regarding Real Estate Chapter 2 of title 9 of part 4 of division 3 of the civil code(2079.13, 2079.14, 2079.15, 2079.16, 2079.17, 2079.18, 2079.19, 2079.20, 2079.21,2079.21, 2079.22, 2079.23, 2079.24.)
Residential (counter) receipt for deposit. (Form CO-14)
Real Estate Transfer Disclosure Statement. (California Civil Code 1102, ET Seq.) Other statutes requiring disclosures depending on the details of the particular real estate transaction (for example : special study zone and purchase money liens on residential property).
Substituted Disclosure : Disclosures that will be made in connection with the real estate transfer, and inspection reports that will be completed pursuant to the contract of sale or receipt for deposit, also any additional inspection reports or disclosures that the TDS requires.
Smoke Detector Statement : As required by California State and Health and safety code 13113.8 (b) California law
Water Heater Bracing, Anchoring, or Strapping Statement : As required by California law. (Health and Safety Code 19211)
Lead-Based Paint and Hazard Disclosure . (form FLD-11) Sellers obligation under 42 U.S. C. 4852d
Natural Hazard Zone Disclosure : (Done by escrow normal charge $75.00)
VA and FHA Amendments. (formVA-FHA-11)
Roof Cert. (form only, Delivered to lender, sellers verification)
Environmental Hazards Guides and Earthquake Booklet. (Asbestos, Formaldehyde, Lead, Radon etc)
Data Base Disclosure ( Regarding Registered Sex Offenders) This is a data base of the location of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code.
One of the most complex and significant financial events in peoples’ lives is the purchase or sale of a home or investment property. Because of this complexity and significance, people typically seek the help of real estate brokers and sales agents when buying or selling real estate.
Home owners attempt to sell their own homes to avoid the cost of Real Estate commissions. While that may be laudable, it seriously opens the owner to law suits for years into the future. Certainly, if you required surgery, you would prefer having a Board qualified surgeon, and not your local barber. The surgeon is highly trained, and works under certification of State and National agencies. Your surgeon is ethically committed to providing you the best of his or her professional abilities.
That is also true of your REALTOR®. Notice that circle with the “R” inside? That means your agent is a member o;f the National Association of Realtors, and to be a member of the NAR, the agent MUST be licensed by the Department of Real Estate of the State of California.
Real estate brokers and sales agents have a thorough knowledge of the real estate market in their communities. They know which neighborhoods will best fit clients’ needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers.
Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent’s sale of the property. Brokers are independent businesspeople who sell real estate owned by others; they also may rent or manage properties for a fee. When selling real estate, brokers arrange for title searches and for meetings between buyers and sellers during which the details of the transactions are agreed upon and the new owners take possession of the property. A broker may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do. Brokers supervise agents who may have many of the same job duties. Brokers also supervise their own offices, advertise properties, and handle other business matters. Some combine other types of work, such as selling insurance or practicing law, with their real estate business.
Besides making sales, agents and brokers must have properties to sell. Consequently, they spend a significant amount of time obtaining listings—agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Once the property is sold, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission.
Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell or lease industrial properties must know about the region’s transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client’s particular requirements.
Before showing residential properties to potential buyers, agents meet with them to get a feeling for the type of home the buyers would like. In this prequalifying phase, the agent determines how much the buyers can afford to spend. In addition, the agent and the buyer usually sign a loyalty contract which states that the agent will be the only one to show houses to buyers. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. With a computer, buyers can view interior and exterior images or floor plans without leaving the real estate office.
Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the area’s low crime rate, and the proximity to schools and shopping centers. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must follow their client’s instructions carefully and may have to present counteroffers in order to get the best possible price.
Once both parties have signed the contract, the real estate broker or agent must make sure that all special terms of the contract are met before the closing date. For example, the agent must make sure that the mandated and agreed-
Most of the following forms are required by law when selling your home and are not covered by the escrow company . The main purpose of this page is to prevent you from being sued by not making the proper disclosures .
Agency Relationship (as required by civil code) Disclosure regarding Real Estate Chapter 2 of title 9 of part 4 of division 3 of the civil code(2079.13, 2079.14, 2079.15, 2079.16, 2079.17, 2079.18, 2079.19, 2079.20, 2079.21,2079.21, 2079.22, 2079.23, 2079.24.)
Residential (counter) receipt for deposit. (Form CO-
Real Estate Transfer Disclosure Statement. (California Civil Code 1102, ET Seq.) Other statutes requiring disclosures depending on the details of the particular real estate transaction (for example : special study zone and purchase money liens on residential property).
Substituted Disclosure : Disclosures that will be made in connection with the real estate transfer, and inspection reports that will be completed pursuant to the contract of sale or receipt for deposit, also any additional inspection reports or disclosures that the TDS requires.
Smoke Detector Statement : As required by California State and Health and safety code 13113.8 (b) California law
Water Heater Bracing, Anchoring, or Strapping Statement : As required by California law. (Health and Safety Code 19211)
Lead-
Natural Hazard Zone Disclosure : (Done by escrow normal charge $75.00)
VA and FHA Amendments. (formVA-
Roof Cert. (form only, Delivered to lender, sellers verification)
Environmental Hazards Guides and Earthquake Booklet. (Asbestos, Formaldehyde, Lead, Radon etc)
Data Base Disclosure ( Regarding Registered Sex Offenders) This is a data base of the location of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code.
PROTECT YOURSELF!
Call 805.934.3369 for professional assistance in selling your home.