How To: ‘For Sale By Owner'
Below are a few key items to consider when selling your home “for sale by owner” in Nebraska. Please contact a McGrath North real estate attorney for more information.
Seller Property Condition Disclosure Statement
Nebraska law requires home sellers to provide potential buyers with a completed and signed Seller Property Condition Disclosure Statement (the “SPCD”) before a buyer enters into a purchase agreement to purchase the home. The SPCD covers a range of items, including the condition of appliances, HVAC systems, and the house’s structural conditions. The seller needs to complete the SPCD to the best of his or her knowledge. A copy of the SPCD can be found on the Nebraska Real Estate Commission website.
The Offer
Once you receive an offer, you may accept, reject or counteroffer. Remember that if you make any change to the buyer’s offer, it will be considered a counteroffer (in other words, a rejection of the buyer’s offer). You will not be able to accept the buyer’s initial offer once you present the counteroffer to the buyer.
Buyers will often include contingencies in their offers. Some contingencies include the purchase being subject to the buyer obtaining financing or the property appraising for at least the amount of the purchase price in the offer. These contingencies protect the buyer. Consider requiring potential buyers to submit a preapproval letter from their lender with their offer if they will need a loan to purchase the home. The preapproval letter will state the amount the lender is willing to loan to buyer, along with other terms of the loan. While a preapproval is not binding on the lender, it is a good indication that the offer will be less likely to fall through due to the buyer’s failure to obtain a loan.
Note that under Nebraska law, married partners both have an ownership interest in their primary residence, even if one partner is not the title owner of record. Due to this, both married partners must sign any documents pertaining to the sale of their home (purchase agreement, deed, etc.).
The Purchase Agreement and Closing
If a potential buyer is using a real estate agent, the buyer will likely submit their offer using the agent’s form purchase agreement. If a potential buyer is not using a real estate agent, a residential purchase agreement will need to be drafted by a real estate attorney. The purchase agreement should specify the title company that will perform a title search and help facilitate closing. The title company will hold the earnest money deposit, prepare draft closing documents for review, and specify any requirements that need to be fulfilled before closing (such as the release of a mortgage on your home). A real estate attorney will review and help address any title matters affecting your property.
A real estate attorney can help throughout the process of selling or purchasing a home, including drafting the purchase agreement, reviewing offers, and reviewing and revising closing documents. Contact McGrath North’s real estate team for more information and guidance on selling or purchasing a home.
