Selling Your Colorado Home Without an Agent: For Sale By Owner (FSBO)
For many Colorado homeowners, the decision to sell their property is often influenced by a substantial financial factor: the percent of the real estate agent’s commission on the sale. With housing prices skyrocketing, the allure of saving tens of thousands of dollars by opting for For Sale By Owner (FSBO) is irresistible, especially when selling to a familiar buyer or utilizing online platforms such as Zillow. Selling without an agent may seem overwhelming; however, an attorney will ensure a smooth and successful transaction, saving you thousands.
An experienced lawyer can save you a fortune by avoiding costly mistakes. GLO is here to empower Colorado homeowners thinking about selling their homes for free. We’ll give you all the knowledge and legal advice you need to make a smooth, legal, and financially successful sale of your most important asset.
What You Should Know Before Choosing FSBO
If you are selling to a relative, neighbor, tenant, or whatever the personal connection may be, you don’t really need a real estate agent to help you out- the hard part of finding a buyer is already done. In scenarios like this, FSBO is an attractive option, and with legal counsel, comes at a fraction of the cost of an agent. In FSBO transactions, you will be put directly in charge of crucial legal processes: reviewing purchase contracts, abiding to contractual obligations, and traversing financial contingencies that are typically managed by experienced real estate agents. This shift in responsibility makes GLO’s legal guidance not just beneficial but often critical to a successful sale.
Understanding the Colorado Real Estate Commission (CREC) Approved Contract and Required Disclosures
The cornerstone of any residential real estate transaction in Colorado is the Colorado Real Estate Commission (CREC) approved "Contract to Buy and Sell Real Estate." The CREC form itself includes a prominent warning, advising parties to "CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING," emphasizing its complicated nature.
Beyond the contract itself, Colorado law imposes specific seller disclosure requirements. Homeowners are legally obligated to disclose certain known material defects of the property, such as the presence of lead-based paint (if applicable). GLO’s expert guidance will make your sale easy and successful!
How a Lawyer Can Save You Thousands
In addition to the contract and disclosures, FSBO sellers are also responsible for managing several other aspects of the transaction, such as appraisal and financing contingencies. If the appraisal comes in below the agreed-upon purchase price, an "appraisal gap" can emerge, requiring the buyer to cover the difference in cash or renegotiate the sale price. Navigating a buyer's financing challenges and knowing how to protect earnest money is best dealt with by a skillful attorney by your side.
While the title company handles various closing procedures, the FSBO seller must ensure that all contractual obligations are fulfilled, the title is clear, and funds are disbursed accurately. An experienced lawyer can offer valuable guidance as you navigate these responsibilities, facilitating a smooth and successful FSBO transaction.
How GLO Can Help
The legal complexities of selling as a FSBO makes an attorney's guidance essential and cost effective. Selling a $500,000 property with an agent could amount to $12,500-$25,000 going to your broker in commission, but selling the same home FSBO with GLO will amount to the same support, at a fraction of the cost. Using GLO’s expertise and legal guidance will further ensure that you are preventing any legal and financial issues caused by errors when going through the process, which could end up being quite costly.
If you're selling to a friend, family member, or known party, GLO can help you avoid agent fees by preparing and reviewing the Colorado Real Estate Commission (CREC) Contract to Buy and Sell. We tailor every clause to your deal, draft necessary addendums, and ensure your terms are legally enforceable. We guide you through all seller disclosure requirements to reduce post-closing liability and advise on financing contingencies, appraisal gaps, and title coordination for a smooth closing. Even if you hire an agent, GLO can serve as your legal advocate—reviewing offers and protecting your interests throughout the transaction. With GLO, your investment is backed by experienced legal professionals every step of the way.
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GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific signed fee agreements. GLO does not guarantee any results
