Many people assume that they have to have real estate agent to sell their home in Iowa, but that simply is not true. Individuals can sell their own home and save thousands of dollars on real estate fees. However, selling a home is complicated, and if you make a mistake, then it can end up creating problems and costing more money in the long run. Having an attorney involved in the process gives you the best of both worlds—you can save money and ensure that you will not have legal issues down the road.
How Much Does a Real Estate Agent Really Cost?
When you work with a real estate agent, you will likely complete a contract called a “listing agreement.” This arrangement will give the agent the right to market and ultimately sell your home on your behalf. It generally provides that real estate agent the right to work with you exclusively.
You pay a commission for this service. The fee will generally range between 5% and 7%. That means that if your home is going to sell for $100,000, then the charge will be between $5,000 and $7,000 for the real estate agent’s services. That commission usually pays for both your agent and the buyer’s agent.
How Can an Attorney Help with the Sales Process?
Many states require that you use a lawyer to help with real estate transactions. That is not the case in Iowa. However, having an attorney to oversee the process can be extremely beneficial.
Making Legally Necessary Disclosures
Iowa law requires that sellers make specific disclosures regarding their home when they sell. These include particular information about the property, such as major repairs, foundation issues, or pest problems. Older properties must also comply with disclosure requirements regarding lead-based paint and other similar hazards. An attorney can help you make these required disclosures so you comply with Iowa law.
The Purchase Agreement
Perhaps the most complicated part of the sale, however, are the contracts required to complete the purchase. To start the sale process, a potential buyer will make a written offer. Then, you, as the seller, will decide whether you want to accept, reject, or provide a counter offer. Once you accept an offer, you create a binding purchase agreement. The purchase agreement contains all of the need-to-know information about the transaction, including:
- The price
- Contingencies
- Financing terms
- Closing date
- Provisions for dispute resolution
It is important that this document be just right—having just one or two errors can lead to disputes and, in some cases, litigation.
Closing the Sale
Closing the sale requires that you finalize and execute all of the documents involved and ensure that funds are correctly exchanged. We recommend buyer and seller each have independent legal representation during the closing process, as it is vital that all of the paperwork be just right before this final process starts.
A lawyer can help you with all of these complicated aspects of the sale process, often for a fraction of the cost. Learn more by contacting Danilson Law, PLC.
