For sale by owner: some considerations

In today’s hot Colorado real estate market, more homeowners are seeking to avoid broker fees by selling their homes on their own. Handling the sale yourself can result in a large reward, but it requires careful planning.

In order to sell your home successfully, you will probably need to prepare it for sale and list it with the appropriate real estate listing services. Resources exist to help you with marketing your home.

Selling a home also involves legal considerations. If neither the seller nor the buyer engages a real estate broker, the parties will either have to prepare a purchase and sale contract themselves, or hire a lawyer to prepare or review a contract.

The Colorado Real Estate Commission has approved a set of standard forms, including a residential purchase and sale contract, disclosure documents, and closing forms. These standard forms are useful, and can help streamline a sale. Using the Commission approved forms, instead of another form (such as a different one found on the web) has other advantages. Title companies and courts in Colorado are familiar with these standard forms, and they are accessible online.

However, selling a property involves a variety of issues that cannot be addressed simply by filling in the commission-approved forms. Depending on the circumstances, it may be in the seller’s best interest to modify or add to the terms of the standard contract. A seller will also need to carefully consider provisions involving earnest money, inspection and title objections, title insurance, financing, and seller disclosures, among other issues.

Given the variety and relative complexity of issues that can arise in a real estate transaction, it is generally advisable to engage an attorney to prepare or review the transaction documents. Doing so may help a seller avoid unexpected complications.

The attorneys at Karsh Fulton Gabler Joseph PC are experienced in a wide range of real estate matters and can assist you in the sale or purchase of a home or commercial property. Please feel free to contact us at (303) 759-9669.