Tips

Tips for Communicating with the Buyer/Seller

• Determine upfront if either the buyer or seller is currently working with a real estate agent or plans to, and if so, that person should communicate with their agent before having any detailed conversations directly between the buyer and seller.
• If the seller has signed an “exclusive right to sell” listing agreement with a real estate agent, that agent will be entitled to a commission even if the buyer and seller work out the details of their own transaction. The buyer should review the text of her “buyer broker agreement” to see what similar terms may apply.
• Do not discuss a final purchase price until you are firm on all of the details of the transaction such as: the timeline of the transaction, who will be paying transaction costs and commissions, will the house be delivered vacant, any significant known disclosure items, etc.
• Before a sale can take place, the seller must provide certain legally required disclosures. If new material facts emerge during the contract contingency period, the buyer can back out of the sale or ask for a discount. Therefore, it is essential that the seller actively disclose all known issues before an agreement to purchase is reached.
• The buyer should disclose if she will require a loan to purchase or will pay all cash. If the buyer is getting a loan, the estimated dollar amount of the loan should be disclosed to the seller.
• It’s a good idea to talk to a professional if you have any questions at any time during the process. You can save a lot of money by buying and selling your own real estate, but it is still a good idea to consult with a licensed agent throughout the process.

Avoid Fraud

• This website does not verify that any home is actually owned by the person who posted the ad or is communicating with any potential buyer. Before a transaction can be initiated, a preliminary title report will need to be drawn from the public records. If you need help with this process, you should contact a real estate professional.
• No money should ever be transacted directly from buyer to seller. All money should go through an established and bonded escrow company that the buyer chooses. Do NOT send money for any reason to a person who has posted an ad on this website.
• Sellers should not assume that a potential buyer on this website has the money or ability to get a mortgage until they have seen verifiable proof of funds and a pre-approval letter from a bank or mortgage broker.

In-Person Tours

A seller will sometimes want to offer an in-person tour of the house if they think the potential buyer seems credible and serious. Before offering an in-person tour, it is important to verify the potential buyer (see below). In fact, it is a good idea to verify the buyer before sharing photos or video of the house that might reveal the actual location (e.g., a video that shows the backyard or a photo of the facade). After a potential buyer is verified, you might still want to hire a real estate agent to conduct the property tour for you. If you choose to conduct the tour yourself, make sure that any valuable items that are easy to steal have been hidden away. It is not a good idea to conduct the tour while you are home alone. Finally, to help avoid liability, all pets should be caged or out of the house for the tour.

How to verify a potential buyer?

To verify a buyer, the seller should ascertain (1) the buyer’s identity, and (2) proof of funds required to actually purchase the home. The seller should ask for a photo of the buyer’s government-issued ID (with the license number blurred out). To verify proof of funds for the portion of the purchase price that will be paid in cash, the seller should ask for a bank or investment statement (with the account number blurred out) or a letter from the person’s banker verifying that he has the required funds held at that institution. The letter should include the banker’s phone number and the seller should call the banker to verify that it is authentic and that the funds exist. Additionally, it’s a good idea to ask the buyer for social media links such as LinkedIn, Facebook and Instagram.