| Copyright 2005-2007 All Rights Reserved Charles E. Marunde & FreeRealEstateLaw.com |
| Selling Your Home, Marketing, Negotiating, Drafting for the "For Sale By Owner" Sequim and Port Angeles, Washington |
When selling your home, you cannot afford a
disaster, so this section focuses primarily on helping
you, the home seller, avoid legal nightmares and get
the job done right. We start this section with a true
story.
Peter and Susan (not their real names) came to me because they had a little
problem. They took turns telling me their story and often politely interrupted
each other to clarify or expand on some relevant point. They sold their house
on their own and did the "FSBO thing" as they called it. They had two friends
who did FSBOs, and everything went great for them. They also bought some
material on the Internet on how to sell your own home. Peter and Susan were
both professionals, so they thought they could probably learn how to do
everything. As the story unfolded, their sense of humility and embarrassment
became apparent with their slouching postures and their halting and soft spoken
language.
They had their house on the market for about six months, did many little ads in
the local papers and a couple of Internet classified services. They put up some
signs and a few postings on some area bulletin boards. They spent about
$3,000 to do some cosmetic repairs in and around the house to make it
marketable. They held three open houses, but eventually became
uncomfortable with some of the aggressive questions they got from some of the
visitors, and they didn't like missing Church on Sunday, the best time for open
houses.
They did get three offers. When they got the first offer, they were excited and
figured they had the house sold, because they agreed on the price. But when
they got the written offer, the price was reduced by a substantial credit for new
carpet and remodeling to the upstairs bathroom. The buyers also wanted all
new composition shingles on the roof, and replacement of a section of a curtain
drain. After almost four weeks of going back and forth, and growing tensions,
the deal fell apart. The second offer seemed less exciting, and Peter and
Susan wondered whether the Buyer was even serious, because he was single
and wouldn't talk much about what he did for a job. He ended up offering almost
$18,000 below their asking price, and they could not accept it.
The third offer involved a couple of counteroffers, and the Buyer had several
contingencies, including approval of a loan with only 5% down, the Buyer's
subjective approval of an inspection, and a thorough examination of the septic
system by an expert, which the Buyer demanded Peter and Susan pay. One
week before the designated closing date, the Buyer demanded a credit of
$2,500 at closing for some repair work he said he would "need to make" on the
septic system, although it was not clear what those repairs would be. Peter and
Susan had an accepted offer on their next house, which was three hours away,
and if they didn't close on their sale, they did not close on their new home. That
would create a lot of chaos for them and their children. As Peter and Susan
talked about this, their emotions expressed how stressful all this had been for
them, and the arguments they had at home as a result, which they felt bad
about now. Peter apologized to Susan for how it had gone bad as they paused
in their story telling, and I surmised it was not the first he had apologized to his
wife. Their was clearly still feelings of guilt and sadness over the whole affair.
The reason Peter and Susan hired me to get advice was because the Buyer,
who had been in the home for about a month at that time, was threatening to
sue for misrepresentation and fraud, and told Peter and Susan that his attorney
said he could get the contract rescinded and recover all his attorney's fees
against them. Clearly these folks were stressed. They explained that they did
not have a lot of money to spend on legal fees if this turned into litigation,
because they had bought the new house and traded their old car in for a new
one, and the kids just started school, and their oldest needed orthodontic work.
They also had a past due Veterinarian bill, because their family dog had been
injured on their recent move.
I explored the misrepresentation allegations with them and learned that the
Buyer was claiming that the garage floor was cracking, and the crawl space
under the house had standing water. Apparently, his attorney had also
suggested he could sue for claims based on mold and mildew as a result of the
moisture under the house. There were some other smaller claims that didn't
seem to have any merit at all. Peter and Susan insisted that the concrete floor
always had fine hairline cracks in it, and that they understood that was normal.
They also were adamant that there was never any standing water under the
house as long as they lived there, which was seven years. The Buyer had given
them no proof of any water under the house, but at this point the claims were all
verbal and no lawsuit had yet been filed or served.
I went through the legal analysis and the costs and timelines for that kind of
litigation, and that took most of the hour. I explained much of what is explained
in my retainer agreement and the attachments. In summary, I would have to
have a minimum retainer of $7,500, and the charges would be $175 per hour,
plus costs (depositions, etc.) and expert witness fees. The case could range
from several thousand to $30,000 or more, depending mostly on how the
opposing attorney postured himself, how many motions and pleadings he
generated and so on.
I also explained to Peter and Susan that it was unlikely the Buyer would win, and
it was unlikely he would recover attorney's fees if he did win, but it was all still
possible. I told them, and I still believe this, "You can be absolutely right in the
facts and the law, and a judge can still rule against you." Flip a coin, and those
are your odds. Having tried dozens of cases, I am absolutely convinced that is
true. Unfortunately for all of us who treasure something called the "truth," the
vast majority of judges are simply incapable of discerning the liar from the
honest party. In the courtroom, apparently most judges have not figured out
that the masterful liar will not hesitate to lie under oath and commit perjury
(judges do nothing about perjury in civil cases), and at the same time will
present the most incredibly believable lies, spoken with confidence and with a
sense of humility. Meanwhile, the honest party takes the stand and isn't so
slick, hesitates on answers, because he doesn't make things up, and sometimes
says he doesn't know, because that's the truth. Judges who are rarely experts
in real estate anyway, don't have a foundation of knowledge upon which to base
a solid decision. As I've watched judges over the years in the courtroom, I am
convinced that many judges make up their minds early in the case regardless of
how the facts may ultimately come out.
Peter and Susan asked what most intelligent clients ask. "Well, if the judge
makes a wrong decision, can't we appeal it and get it turned over?" The answer
is yes, but the cost is another $7,500 to $10,000, and if they lost, they would
stand the risk of getting even more attorney's fees awarded against them. An
appeal also takes one to two years, which also means there would be a lot more
stress to deal with.
Peter and Susan left the office grateful for my patience and for my explanations,
but not certain what was going to happen and how they would respond. I heard
months later by email that they settled the case with the Buyer by giving him a
"refund" of $5,000. And life goes on.
disaster, so this section focuses primarily on helping
you, the home seller, avoid legal nightmares and get
the job done right. We start this section with a true
story.
Peter and Susan (not their real names) came to me because they had a little
problem. They took turns telling me their story and often politely interrupted
each other to clarify or expand on some relevant point. They sold their house
on their own and did the "FSBO thing" as they called it. They had two friends
who did FSBOs, and everything went great for them. They also bought some
material on the Internet on how to sell your own home. Peter and Susan were
both professionals, so they thought they could probably learn how to do
everything. As the story unfolded, their sense of humility and embarrassment
became apparent with their slouching postures and their halting and soft spoken
language.
They had their house on the market for about six months, did many little ads in
the local papers and a couple of Internet classified services. They put up some
signs and a few postings on some area bulletin boards. They spent about
$3,000 to do some cosmetic repairs in and around the house to make it
marketable. They held three open houses, but eventually became
uncomfortable with some of the aggressive questions they got from some of the
visitors, and they didn't like missing Church on Sunday, the best time for open
houses.
They did get three offers. When they got the first offer, they were excited and
figured they had the house sold, because they agreed on the price. But when
they got the written offer, the price was reduced by a substantial credit for new
carpet and remodeling to the upstairs bathroom. The buyers also wanted all
new composition shingles on the roof, and replacement of a section of a curtain
drain. After almost four weeks of going back and forth, and growing tensions,
the deal fell apart. The second offer seemed less exciting, and Peter and
Susan wondered whether the Buyer was even serious, because he was single
and wouldn't talk much about what he did for a job. He ended up offering almost
$18,000 below their asking price, and they could not accept it.
The third offer involved a couple of counteroffers, and the Buyer had several
contingencies, including approval of a loan with only 5% down, the Buyer's
subjective approval of an inspection, and a thorough examination of the septic
system by an expert, which the Buyer demanded Peter and Susan pay. One
week before the designated closing date, the Buyer demanded a credit of
$2,500 at closing for some repair work he said he would "need to make" on the
septic system, although it was not clear what those repairs would be. Peter and
Susan had an accepted offer on their next house, which was three hours away,
and if they didn't close on their sale, they did not close on their new home. That
would create a lot of chaos for them and their children. As Peter and Susan
talked about this, their emotions expressed how stressful all this had been for
them, and the arguments they had at home as a result, which they felt bad
about now. Peter apologized to Susan for how it had gone bad as they paused
in their story telling, and I surmised it was not the first he had apologized to his
wife. Their was clearly still feelings of guilt and sadness over the whole affair.
The reason Peter and Susan hired me to get advice was because the Buyer,
who had been in the home for about a month at that time, was threatening to
sue for misrepresentation and fraud, and told Peter and Susan that his attorney
said he could get the contract rescinded and recover all his attorney's fees
against them. Clearly these folks were stressed. They explained that they did
not have a lot of money to spend on legal fees if this turned into litigation,
because they had bought the new house and traded their old car in for a new
one, and the kids just started school, and their oldest needed orthodontic work.
They also had a past due Veterinarian bill, because their family dog had been
injured on their recent move.
I explored the misrepresentation allegations with them and learned that the
Buyer was claiming that the garage floor was cracking, and the crawl space
under the house had standing water. Apparently, his attorney had also
suggested he could sue for claims based on mold and mildew as a result of the
moisture under the house. There were some other smaller claims that didn't
seem to have any merit at all. Peter and Susan insisted that the concrete floor
always had fine hairline cracks in it, and that they understood that was normal.
They also were adamant that there was never any standing water under the
house as long as they lived there, which was seven years. The Buyer had given
them no proof of any water under the house, but at this point the claims were all
verbal and no lawsuit had yet been filed or served.
I went through the legal analysis and the costs and timelines for that kind of
litigation, and that took most of the hour. I explained much of what is explained
in my retainer agreement and the attachments. In summary, I would have to
have a minimum retainer of $7,500, and the charges would be $175 per hour,
plus costs (depositions, etc.) and expert witness fees. The case could range
from several thousand to $30,000 or more, depending mostly on how the
opposing attorney postured himself, how many motions and pleadings he
generated and so on.
I also explained to Peter and Susan that it was unlikely the Buyer would win, and
it was unlikely he would recover attorney's fees if he did win, but it was all still
possible. I told them, and I still believe this, "You can be absolutely right in the
facts and the law, and a judge can still rule against you." Flip a coin, and those
are your odds. Having tried dozens of cases, I am absolutely convinced that is
true. Unfortunately for all of us who treasure something called the "truth," the
vast majority of judges are simply incapable of discerning the liar from the
honest party. In the courtroom, apparently most judges have not figured out
that the masterful liar will not hesitate to lie under oath and commit perjury
(judges do nothing about perjury in civil cases), and at the same time will
present the most incredibly believable lies, spoken with confidence and with a
sense of humility. Meanwhile, the honest party takes the stand and isn't so
slick, hesitates on answers, because he doesn't make things up, and sometimes
says he doesn't know, because that's the truth. Judges who are rarely experts
in real estate anyway, don't have a foundation of knowledge upon which to base
a solid decision. As I've watched judges over the years in the courtroom, I am
convinced that many judges make up their minds early in the case regardless of
how the facts may ultimately come out.
Peter and Susan asked what most intelligent clients ask. "Well, if the judge
makes a wrong decision, can't we appeal it and get it turned over?" The answer
is yes, but the cost is another $7,500 to $10,000, and if they lost, they would
stand the risk of getting even more attorney's fees awarded against them. An
appeal also takes one to two years, which also means there would be a lot more
stress to deal with.
Peter and Susan left the office grateful for my patience and for my explanations,
but not certain what was going to happen and how they would respond. I heard
months later by email that they settled the case with the Buyer by giving him a
"refund" of $5,000. And life goes on.
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| Free Special Report: 9 Deadly Mistakes Sellers Make Written From a Realtor's Perspective |
| For a Seller's Checklist for Staying Out of Serious Legal Trouble, check out this detailed list created by a real estate attorney. |
Do you need an
Attorney? Do you need
a Realtor? Do you
need a CPA? Do you
need an Insurance
Agent? Do you need a
Financial Advisor?
Yes, yes, yes, yes, and
yes. Can you still be a
FSBO? Yes, if you
want to. Just realize
that if you are playing
the part of a profes-
sional, everyone,
including the Judges,
will hold you to the
same standard as a
professional,
regardless of what you
actually did or did not
know.
Attorney? Do you need
a Realtor? Do you
need a CPA? Do you
need an Insurance
Agent? Do you need a
Financial Advisor?
Yes, yes, yes, yes, and
yes. Can you still be a
FSBO? Yes, if you
want to. Just realize
that if you are playing
the part of a profes-
sional, everyone,
including the Judges,
will hold you to the
same standard as a
professional,
regardless of what you
actually did or did not
know.
| How to Sell Your Own Home With Minimum Stress and Maximum Profit |
Dear For-Sale-By-Owner,
I hope all this information is helpful to you. I want to take just a couple of
seconds of your time to explain my motivation. I've spent almost my entire adult
life learning how to sell and buy real estate, a fortune in education to be a real
estate attorney, degrees, etc., and I've spent half my life learning how to market
and sell. As you can see from my profile, I've also handled hundreds of
transactions (maybe it's thousands now) as a Realtor and Real Estate Attorney.
I really want all those years to mean something and be helpful to you. But I also
know that 80% of all For-Sale-By-Owners do end up listing with a real estate
agent. If you do decide to list and you are in the Sequim and Port Angeles areas,
will you consider me as your listing Realtor? I promise you all my knowledge and experience will work for
you, and I promise you absolute honesty and diligence. In other words, I'll do a fantastic job for
you--meaning, I'll get you the best possible price and keep you out of traps for the unwary. The next step, if
you are interested, is to call me. I'll come to your home, and we can talk while you decide if I'm the kind of
person you would like to work with. I look forward to your call and meeting you.
Very truly yours,
Chuck E. Marunde, J.D. (Ret. Real Estate Attorney)
Owner/Broker, Sequim & Port Angeles Real Estate, LLC
(360) 775-54247 or Email Me Here
I hope all this information is helpful to you. I want to take just a couple of
seconds of your time to explain my motivation. I've spent almost my entire adult
life learning how to sell and buy real estate, a fortune in education to be a real
estate attorney, degrees, etc., and I've spent half my life learning how to market
and sell. As you can see from my profile, I've also handled hundreds of
transactions (maybe it's thousands now) as a Realtor and Real Estate Attorney.
I really want all those years to mean something and be helpful to you. But I also
know that 80% of all For-Sale-By-Owners do end up listing with a real estate
agent. If you do decide to list and you are in the Sequim and Port Angeles areas,
will you consider me as your listing Realtor? I promise you all my knowledge and experience will work for
you, and I promise you absolute honesty and diligence. In other words, I'll do a fantastic job for
you--meaning, I'll get you the best possible price and keep you out of traps for the unwary. The next step, if
you are interested, is to call me. I'll come to your home, and we can talk while you decide if I'm the kind of
person you would like to work with. I look forward to your call and meeting you.
Very truly yours,
Chuck E. Marunde, J.D. (Ret. Real Estate Attorney)
Owner/Broker, Sequim & Port Angeles Real Estate, LLC
(360) 775-54247 or Email Me Here
| Your Real Estate Consultant, Chuck Marunde says: |