The rise of FSBO advertising has almost created a new industry, including ancillary industries like those that sell for sale by owner documents kits. But the problem with the new industry like the old one is that, it thrives by causing inconvenience and misery to the client rather than provide any service. Here are the top five reasons why for sale by owner documents can put you into trouble:
- Complicated: The documentation for a real estate transaction is very complicated as clearly stated on many for sale by owner help forums themselves. Additionally, if you were to tweak a few words here and there, which an untrained eye would not even notice, the meaning of the agreement may completely change. Hence it is dangerous to be purchasing these kits and further modifying them yourself.
- Irreversible: A significant feature of for sale by owner documents is that anything which is stated in it is irreversible. Once you put your signatures on it, you are supposed to mean everything which is written on that document. Any flaw is thus irreversible. You have no option but to be cent percent accurate all the time.
- Unique: To make things worse, each transaction is bound to be unique in one way or another. It is pointless to use readymade format and make changes. Since you are not qualified to do so, you may put yourself in legal hassles which may cost you several times more than what you intended to save.
- Huge Implications: As stated above, the payoffs if you pull it off successfully are negligible but there can be staggering ramifications in case you cannot. Why would you want to indulge in something where the probable outcome is failure and that too with huge implications? Isn’t it better to hire specialists at such times?
- State Specific: Most so-called experts who have prepared the documents and are selling it online do not have copies which sell in compliance with each of the state laws. If they were to do so, they would have 50 variations of each document and therefore at least a thousand different documents. But most have only 15-20 on their sites. They are guiding you towards ignoring state laws, but you will be at your own peril when you face the consequences.
Do Not Reinvent The Wheel:
The real problem here is to understand the available alternatives. The average person believes that there are only two ways to sell a property. Either through an expensive agent or by themselves. Why can’t you hire an inexpensive agent instead of becoming half an attorney preparing for sale by owner documents?
Well, you can and the solution is pretty simple and straightforward – opt for “no frills” realtors. They charge you a flat fee and handle the for sale by owner documents and other related matters. Their charges are much lower than the 6-7% that you thought were the only option. Of course, they are experts and will have full legal liability for anything they do on your behalf, unlike some fly-by-night internet sellers.