FSBO Archives - Wynn at Law, LLC

Selling Real Estate in Wisconsin: For Sale by Owner

wynnatlaw — Tue, 15 Mar 2022 20:20:33 +0000

In recent years, it has become common for homeowners to bypass brokers and real estate agents when selling their homes. Why? As a homeowner, you save thousands of dollars worth of commission when you take brokers out of the equation. So FSBO may be a good approach; however, you’ll take on all tasks that a listing agent does in the selling process. The “for sale by owner” also known as FSBO selling process can be complex, and if you don’t have the appropriate expertise, you may end up closing a bad deal. To ensure you eradicate the broker and these complex practices, you may need to hire a lawyer to take you through the entire process. Attorney Shannon Wynn from Wynn at Law, LLC is an experienced Wisconsin FSBO real estate attorney and can give you legal advice so that you feel confident throughout your FSBO process.

What Does FSBO (For Sale by Owner) Mean?

FSBO means that you’re selling your home without involving a real estate agent. In this case, you’ll handle all selling processes and transactions. These processes vary from showing the house to drafting paperwork for the negotiations. Moreover, you may be wondering what the selling process is like for sale by owner situations. It is transparent and straightforward when you follow the right path. The main reason for using FSBO is to save money. So why should you consider this aspect? A real estate agent takes a commission based on a percentage of the sales price. Depending on the agreement, a listing agent may take somewhere between 3% to 6% of the sales price as commission. So, if your home is worth millions, you can calculate and see how much the listing agent would take. Using FSBO gives you the power to control the entire sale process; however, you may need to hire a real estate lawyer to help you successfully sell the property. A lawyer ensures that you understand the legal obligations of selling your home. The best thing is that a lawyer won’t cost you a percentage of the sales price, and you’ll have peace of mind knowing that everything is correct. Better yet, a lawyer can help you avoid legal issues that can cost you more money or time in the selling process while still helping you get a fair deal for your property.

What Are the Steps in An FSBO Process?

There are some vital steps that you must follow to make sure you close the deal successfully. It will help if you position yourself professionally to attract customers looking for a property like yours. Here are the steps that you should follow in FSBO processes.

Analyze Pros and Cons of The Entire Process

Selling a house can be the largest financial transaction of your entire life. You don’t want to mess it up with the wrong approach. Look at the coin from both sides and not just how much money you’ll save. Are you prepared to show your house yourself? How will you market your home? Do you feel comfortable talking directly to potential buyers?

Make Some Fundamental Home Improvements to Boost the Value of The House

Getting your house ready is an essential aspect. Make sure you fix the interior and exterior to make your home attractive. The home improvements can help you to attract more potential serious buyers. Also, it would be best to make these repairs and upgrades early enough to post photos of the updates you have made. As a result, you may get additional money for your home.

Set A Favorable Price

Setting the sales price calls for you to do thorough research on various platforms. For example, you need to know the closest sales prices near your home, also known as comparable sales or “comps”. In addition, to avoid over or underpricing, you will need to know where your home falls in the market and consider the age, condition, and location of your home compared with recent sales.

Hire a Real Estate Lawyer

This is one of the essential aspects of FSBO. Hire Attorney Shannon Wynn of Wynn at Law, LLC, who will draft residential sale agreements and walk you through the sales process. In addition, she will help you avoid omissions and errors that can have legal liabilities during or after the sale. Attorney Shannon Wynn at Lake Geneva, Wisconsin-based firm Wynn at Law, LLC will ensure that the FSBO is transparent for you and that your deal is done correctly.

Carry Out a Thorough Marketing Campaign for Your Home

Place your home on real estate sales websites and notify your neighbors and friends of the house being for sale. Make sure the content you place online is accurate and enticing. In addition, make sure you put out yard signs so those who travel past know that the house is for sale.

Show Your Home to Interested Parties

Try your best to show your house to as many interested people as possible. For example, if you have COVID-19 concerns or have children and pets, you can give potential buyers a live video tour of your home. You can also host open houses so more people can visit the home at one time.

Review Paperwork with Your Lawyer and Initiate Negotiation

Review the purchase contract with a trusted and professional real estate lawyer like Attorney Shannon Wynn and negotiate accordingly.

Close your Sale

Do you need a lawyer to close on a house sale? Yes, you should have one. An attorney will help you order title work, draft the deed, and will review the closing documents, such as the closing statement, with you. Having a lawyer in your corner will help to make this transition as smooth as possible. Selling a home is no small feat and Attorney Shannon Wynn understands that.

Why Hiring an FSBO Lawyer Is Beneficial

When you sell your home via FSBO, you save on paying a listing agent or broker. Nonetheless, you’re left to handle complex tasks that involve preparing an offer to purchase or counteroffer, showing your home to potential buyers, ordering title insurance, and closing the transaction. One omission, error, or mistake can lead to legal liabilities, and that’s why it’s recommended that you hire a local and experienced real estate attorney.

Here is why you should hire a real estate lawyer:

Complex Paperwork Handling

You’ll notice that selling a home has a lot of complex paperwork with legal jargon that would take a significant amount of time for an average person to understand. The legal aspects of home sales can complicate the For Sale By Owner process in Wisconsin. Attorney Shannon Wynn can help you untangle every detail in the paperwork and make sure that you comply with the law.

Preparation Of the Contract

You may have prepared an offer to purchase before, but have you done one without the help of a real estate agent? There are fundamental aspects that must be incorporated into the agreement. For that reason, you need to hire a credible attorney that helps you formulate a contract that protects your interests.

The Attorney Takes Your Interest as a Priority

Unlike real estate agents or brokers who rely on commissions when your property is sold, lawyers rely on the time they spend on your home sale to get paid. As a result, attorney fees are often far less expensive than real estate commissions. An attorney’s sole job is to protect your interests.

A Lawyer Helps You Manage All Parties Involved

An attorney can help you communicate with the various parties involved during the sale process. These parties may include the buyers, inspection companies, lenders, contractors, and appraisers.

Let Wynn at Law, LLC Help You Sell Your Home

Selling your home via for sale by owner in Wisconsin is one strategy for selling your home. FSBO helps you eliminate the listing agent and potentially save you thousands of dollars in commission. While FSBO may be the best option for maximizing profit on your sale, the entire process is complex. You need to know the process inside-and-out or hire an attorney to represent you. A lawyer protects your interests and helps you avoid legal liabilities. At Wynn At Law, LLC, we can help you with your FSBO in Wisconsin. For inquiries, contact us today at (262) 725-0175 or visit www.wynnatlaw.com. Wynn at Law, LLC has offices in Delavan, Lake Geneva, and Salem Lakes and serves all of Southeastern Wisconsin.

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A Wisconsin Lawyer’s Guide to FSBO Real Estate Transactions

wynnatlaw — Tue, 23 Feb 2021 13:50:29 +0000

What is FSBO (For Sale By Owner)?

FSBO (For Sale By Owner) refers to the process of selling one’s home without the help of a real estate agent or broker. With the rise of house listing websites and new tools to aid FSBO sellers, this cost-effective method has become more accessible to the average homeowner.

Eliminating a real estate agent may increase profit from your house’s sale. However, going the FSBO route means more work for the seller. FSBO sellers must take on the responsibilities of listing a property, marketing it, hosting open houses, and negotiating with interested buyers.

Why hire an FSBO Lawyer?

Real estate law is complex and ever-changing. Hiring a FSBO lawyer mitigates the risks associated with real estate transactions while saving time and frustration. Yet, the most significant benefit of an FSBO lawyer is that they can prevent potentially expensive complications that could derail or delay a sale.

What can an FSBO Lawyer do for sellers?

Negotiate purchase and sale agreements with buyers.
Draft contracts, purchase agreements, and closing documents in accordance with federal, state, and local laws.
Offer counsel in the event of a dispute with a buyer.
Tailor legal advice to the seller’s unique situation and help sellers to foresee potential problems.
If anything at closing goes awry, such as the buyer backing out or an issue with your title insurance, a lawyer will be on your side to assist and protect your home sale.
Without a real estate lawyer, FSBO sellers need to arrange for title insurance, preparing the deed, and scheduling the closing.

What does a real estate lawyer do for an FSBO buyer?

Buying a home is a significant investment and a milestone in the life of many buyers. Real estate lawyers handle the often-overwhelming amount of paperwork involved in a real estate purchase. FSBO buyers can be confident that when a FSBO lawyer is involved in a deal, the transaction will be free of scams, unfavorable terms, and legal obstacles.

Assist FSBO buyers with writing and revising an Offer to Purchase as well as any needed counteroffers.
A FSBO lawyer can negotiate on your behalf during the purchase process.
Review documents and contracts for red flags and potential problems.
Make certain that sellers are following all federal, state, and local laws.
Eliminate the risk of potentially costly errors in documents and contracts.
Help buyers with construction, zoning, and association questions.
Wisconsin real estate lawyers can review the property’s title to ensure that there are no liens or easements.

Do I need a lawyer for a Wisconsin FSBO real estate sale?

The State of Wisconsin does not legally require sellers to have a lawyer for their FSBO real estate transaction. However, 21 U.S. states and the District of Columbia have deemed it lawfully necessary for all FSBO sellers to employ a lawyer during the real estate closing process.

Frequently Asked Questions

When should a seller hire a real estate lawyer?

Selling a home is complex, and the potential legal pitfalls can be difficult to foresee. For first-time sellers, a FSBO lawyer should be considered an essential part of the selling process from start to finish. Some experienced FSBO sellers wait to bring in a lawyer until a problem arises, such as a dispute with a buyer or uncertainty about a contract’s terms. Getting a lawyer involved early – as soon as you decide to go it alone – gives the seller an edge throughout the process.

How much does a Wisconsin FSBO lawyer cost?

The cost of a Wisconsin FSBO lawyer may vary, and the price depends on several factors. To determine the cost of an FSBO lawyer for your situation, call Wynn at Law, LLC at 262-725-0175.

How do I sell my home without a real estate agent?

Selling a home without a real estate agent is a great way to save on costs while maintaining freedom and control throughout the selling process. Successful FSBO sellers typically follow these six steps:

Retain a Wisconsin FSBO lawyer.
Research the local housing market and view other properties for sale in the area.
Prepare your home for pictures, open houses, tours, and showings.
Set the asking price for your house and list the property for sale on Zillow, FSBO.com, and Trulia.
Show your home to interested buyers.
Negotiate and accept the best offer.

What is the difference between a real estate lawyer and a real estate agent?

Real estate agents are not attorneys. Real estate agents cannot provide legal advice on contracts or other legal aspects of the transaction process. Agents cannot interpret title work or draft conveyance documents like a deed. Conversely, real estate lawyers can provide legal counsel, draft legal documents, and ensure that the transaction follows local, state, and federal regulations. Generally, a real estate agent is paid a commission based upon the sales price at closing and a real estate attorney is paid a set hourly rate.

Do the FSBO buyer and seller both need a real estate lawyer?

Hiring a lawyer to protect your rights, money, and real estate transaction is the common sense thing for both FSBO parties. It is highly recommended that both buyers and sellers have a lawyer during FSBO real estate transactions. A real estate lawyer cannot represent both parties in a transaction, as it would be a conflict of interest. A buyer’s lawyer protects the buyer and ensures that the sale meets all legal requirements. The FSBO seller’s lawyer maximizes the seller’s interests and ensures the transaction follows a lawful process for the deed’s transfer.

Wynn at Law, LLC’s Real Estate Closing Checklist For Buyers

Wynn at Law, LLC’s Real Estate Closing Checklist For Sellers

Contact Wynn at Law, LLC for all FSBO Transactions

If you are selling your home FSBO (For Sale By Owner) or buying a home FSBO, you need a knowledgeable real estate lawyer to protect your interests in the transaction.

Wynn at Law, LLC will ensure your FSBO sale is completed lawfully and works diligently to provide the best outcome for our clients. If you plan to buy or sell a home FSBO, contact our real estate lawyers to assist you every step of the way. Our knowledgeable FSBO lawyers are active members of the Wisconsin Realtors Association and will work with you to get the highest return on your house’s sale. Wynn at Law, LLC has law offices located in Salem, Lake Geneva, and Delavan, Wisconsin. Contact us at 262-725-0175 to schedule an appointment today.

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The real estate transaction, Part I: The property title

wynnatlaw — Thu, 18 Jul 2019 17:05:19 +0000

When a legal issue arises out of a real estate transaction, it often involves the title. Wynn at Law, LLC won’t let you go to closing without a title in good order or “clean title”, regardless of whether you’re the seller or the buyer about to get the title.

Backtracking a little bit… the title is also called the deed. It’s proof of ownership of and right to sell a piece of property. Just like the title to your car. The bank holds the car title until you pay off your car loan, then transfers the title to you when you pay off the car. In property, however, a title is going to have a much longer history than a car that might be junked in 10 years or less. And that’s how some common title issues arise.

Liens can scuttle a transaction

Liens against the property prevent a property owner from having a ‘clean’ title. A property owner has to ‘cure’ or fix the title before selling rights to the house, building, or land. If there is a first or second mortgage on the property, the bank is a lienholder, but not always the only one. The courts can put a lien on a property as a result of litigation, such as being sued for back taxes or other civil judgments, usually past-due credit or medical bills. Homeowner associations can put a lien on the property if the association dues aren’t paid, too.

Wynn at Law, LLC reivews the title before you get to the closing table to ensure there aren’t liens. We also check to see if the person who owns the house is actually the seller. Common sense says you can’t sell something you don’t own. In some real estate deals, this might not be the case. For example, the owner of a family home might have it held in a trust, or put into a limited liability company, to protect it from creditors (liens). Our title review reveals this as well.

It runs in the family

One thing that can arise with a property that has been in the family for years is that the title could have passed informally – handed down – without a legal recording of the change and chain of custody. We can see that with summer homes that have remained in families for generations, and farms/farmland that also has stayed within the family for years after the original owner passed away.

Additional, and more rare, problems that arise are that a title is not accurately prepared and/or filed following a divorce decree or a bank neglects to satisfy a mortgage once it’s paid off. Nobody needs any of these sorts of headaches during what is, for most, the largest financial transaction of a lifetime. That’s why you really need an experienced real estate attorney.

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Flipping real estate advice

wynnatlaw — Thu, 03 Aug 2017 11:30:00 +0000

Wynn at Law LLC has noticed a recent resurgence of real estate ‘flipping.’ Late-night cable and radio stations are again saturated with ads touting the wild income potential of acquiring and liquidating the same piece of property within the shortest possible time frame. Flipping is legal – as long as it’s done on the up and up.

Before the housing collapse a decade ago, some curbs were put in place to deter flipping. The FHA sets the rules by which most lenders follow: Having 3.5 percent as a down payment for example. In 2005, the FHA required additional inspections and safeguards taken on mortgages applied for on properties that have been owned for less than 180 days, and outright forbidding the approval of mortgages on properties owned for less than 90 days. Those rules were relaxed in 2010 following the real estate market bust wiping out $7 trillion in property value.

More importantly, that lost value represented the largest investment loss for many families… and did not involve as many people flipping houses. With that in mind, most lenders still adhere to the 90-day guideline.

If you’re buying a flipped home, there are still numerous loopholes and unregulated areas that an unethical or inattentive flipper can exploit when flipping a house. It still remains up to the buyer and his or her attorney to perform all the necessary due diligence before buying. If the property is to be purchased with an FHA-backed loan, a flipped home may require more time to purchase because of the additional documentation required of the seller.

If you’re interested in flipping, avoid the late-night infomercials blaring about how you can flip a home without putting in a dime of your own. Banks have extremely tight restrictions to watch for fraud. It’s best to have cash on hand for this highly speculative form of investment: Cash you’re able to part with (and potentially not recoup) for at least 90 days. A quickly-flipped home requires documentation on renovations, as well as additional appraisals, to justify a much higher resale price if the deal involves an FHA-insured loan. The average flipping time from purchase to resale is just over 106 days, according to market monitor RealtyTrac. Know this as well: Some properties have to become rentals before the flipper is able to get from the market what he or she thinks is the ‘value’ of the property. Are you prepared, legally, to become a landlord?

In the case of flipping, it’s the old adage at play whether you’re buying a flipped home or flipping one yourself… If it sounds too good to be true, it probably is. Get a real estate attorney.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

Photo by Victor Zastolskiy, used with permission.

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Flood damage and selling a property

wynnatlaw — Thu, 20 Jul 2017 11:30:00 +0000

The record-setting flooding we saw in Walworth, Racine, and Kenosha counties brings to mind an important disclosure topic for real estate transactions… but first, our thoughts and hearts at Wynn at Law, LLC go out to everyone impacted by the flooding. We hope things return to normal for all of you as quickly as possible.

In some of our earlier articles we’ve talked about real estate disclosures. Flood damage is one of those things that must be disclosed by the seller before the transaction. Specifically, the form asks if the property owner was ‘aware’ of ‘any’ past flooding. It’s difficult for anyone to not be ‘aware’ of the current flooding, the worst in history. The issue is the word ‘any.’ If a seller knew of flooding back in 2008, it has to be disclosed. If the sellers know the property flooded in 1973 – another historic flood event in our area – even if the homeowner didn’t live there, it has to be disclosed.

Past transactions on the real estate can identify flooding disclosures that happened before the current one.

Sellers should fully explain the circumstances behind any flooding damage and give as much accurate detail as possible. If it only happened once, say so. If it only happened in the record-smashing deluge we just went through, say so. Most importantly, in the disclosure, you can be very specific about the cleanup and repairs you made, as well as any steps you took to (hopefully) prevent the next massive downpour from causing the same damage this downpour created.

If a property was on the market before the rivers overflowed, the previous disclosure from before the flood might be inaccurate. In that case, the disclosure should be amended.

Both the buyer’s and seller’s attorney (and their real estate agents, too) have legal responsibilities related to the disclosure form. As fiduciaries, they are bound to advise their clients with entire openness. This requirement applies even if the seller just doesn’t want to disclose the current flooding because, ‘It was once in a lifetime and will never happen again and this will sabotage my sale or selling price.’

Does a buyer have to abort plans to buy a house just because it is or was ever in a flood? Of course not. Flooding in an extraordinary event like the one we’ve just seen does not mean the property will flood in every storm. If this storm tells us anything, it’s that even extraordinary records can fall.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

Photo by Scott Stevens, used with permission.

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Enlist an ally in a seller’s real estate market

wynnatlaw — Thu, 09 Mar 2017 12:30:00 +0000

Wynn at Law, LLC is frequently on the lookout for its clients when it comes to their two largest investments: The retirement nest egg, and the family home. We’ll talk about the nest egg, wills, estates, and wealth transfer several times in the coming weeks. However, this week I’ve noticed how low real estate inventory is in southeast Wisconsin, so let’s cover what that means for the legal rights of buyers and sellers.

Low inventory means it is a seller’s market and that’s excellent news if you have a property to market. Typically bidding favors you: It’s supply and demand. However, deals can still be found for buyers in the market today. The key on either side of the transaction is an effective attorney, and here are five reasons why.

1) Offers need speedy attention during a low-inventory cycle. No buyer should make one, no seller should accept one, without a legal review. Real estate agents all know attorneys for this reason. (Did you know you can choose your own instead?) Without an experienced real estate attorney in a buyer’s corner, it gives time for other buyers to enter the bidding.

2) Home sellers are more inclined to go For Sale By Owner (FSBO) when the inventory is light. Their theory is that real estate agents add value when there is a glut of homes on the market. In my opinion, the theory is a little over-simplified, but to each, their own. A buyer’s attorney makes sure the transaction represents the buyer’s best interests… the FSBO seller’s attorney ensures the seller’s rights are protected in the face of mortgage lenders and the legal transfer of the deed.

3) A seller’s market often triggers buyers to take on properties as-is or with minimal improvement in order to beat other buyers to the table. Wynn at Law, LLC sees several lake properties a year that fall into this category in buyer’s markets, too. A buyer’s attorney makes sure the client doesn’t get in over his or her legal head.

4) Time is a recurring theme here. The attorneys coordinate the closing to encompass every detail in one sitting. A missing deed or inspection will impact the mortgage which will impact the deal.

Know how many initials and signatures are involved in the transaction? Dozens. All are binding. It seems monotonous. It can also seem threatening. Attorneys add value by taking emotion out of a big investment and scrutinizing every detail, which saves time, money… or both in a seller’s market.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.

Photo by Alex Raths, used with permission.

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