Tag Archives: Boston Cambridge Brookline

FSBO – For Sale By Owner

16 Nov

Metro®Boston, Publication Date: November 15, 2011
By AttorneyGeorge Warshaw

It’s tempting, very tempting.

Sell your home yourself and save the broker’s commission. But is it a false savings?

While people often underestimate the value of a good realtor, nonetheless, some homeowners have sold their homes successfully.

There are two parts of the FSBO process: marketing and legal.

Marketing involves finding a buyer and enticing your buyer to make an offer. Legal is about what’s needed to complete the sale.

MARKETING. You have to know how to price your home. Pricing requires research, time, and going to open houses. That can give you a false sense of price if you only look at properties that haven’t sold; i.e. they’re priced too high.

You may list your property on FSBO websites, Craig’s List, etc., but you’ve limited your market.

No broker is going to bring a client to see a FSBO and many potential buyers are leery of FSBO sales.

Try another approach! Don’t try to save all the commission, just try to save half.

Act as your own real estate agent. Hold an open house. Send out announcements to local brokerages that you’ll cooperate with brokers and pay a buyer’s broker fee of xx%. 

It may be a smart “savings” compromise.

Next week read the legal components of a FSBO.

© 2011 George Warshaw. All Right Reserved.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.  

Legal Advice: Laws, and court decisionsinterpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neitherintended as legal advice nor shall establish an attorney-client relationship.

Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.

Should You Rent Your Condo?

26 Jul

Metro®Boston, Publication Date: July 20, 2011
Expanded Content

By Attorney George Warshaw

Consider, for a moment, a significant asset that you already own; one that could generate a stream of revenue well into the future – your condo. 

Rather than sell your condo to buy a new home, would you rent it instead? There are numerous possible benefits. 

The key is to get your interest rate as low as possible today while you are still living in the condominium. By doing so, you place yourself in the best position to generate future “positive cash flow”; one that will allow the rent to cover your mortgage, taxes and condo fees.

With interest rates at distress levels, now is the perfect moment to plan for the future. As an owner-occupant your rate will be lower than what would otherwise be available after you move.

Given the vagaries of the stock and bond markets, the prospective lack of a sufficient future social security payment – at an age when you might actually enjoy it, real estate is a reliable extra revenue source.

If you decide to rent your condo rather than sell it, keep one important thing in mind: if you plan to refinance shortly before you move and rent, the standard Fannie Mae mortgage form used with owner-occupied loans requires the homeowner to live in the condo for 12 months after signing.  Make your plans well in advance.

So be a smart condo owner – plan now for the future, and get the benefit of rents paying your mortgage. 

© 2011 George Warshaw. All rights reserved.

__________

George Warshaw is a real estate attorney and legal author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship. Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.

Problems in Margaritaville

30 Apr

Metro® Boston, Publication Date: February 2, 2011

By Attorney George Warshaw 

Recently, the Boston Globe ran a story on nightmares that people can experience in owning a condo in a small building. The gist of the story is that one miserable owner can make everyone’s life a living hell. 

While it doesn’t happen often, it happens often enough to require your attention as a buyer. 

So how can you ferret out a problem situation before you buy? These answers are not perfect; but perhaps this will help. 

Oddly enough, the first thing to do is ask. Ask the seller and especially the property manager (or one of the condo trustees) if everyone gets along, and about conflict and complaints. Inquire whether there has been any past litigation or mediation in the last three years. 

As a buyer, it’s important to review the minutes of meetings of the unit owners and condo trustees. Conflict will often be evident – or gleaned – from the notes of the meetings. View at least 3 years’ worth of meeting minutes.

Look over the budget carefully. Have there been any expenditures for legal fees in the last three years?

If you find yourself as an owner in one of these situations, it may be best to bring matters to mediation or arbitration and get them resolved – sooner rather than later! © 2011 George Warshaw. 

The foregoing is not intended as legal advice. Consult an attorney to see how or if the foregoing applies to you.

Attorney George Warshaw represents buyers and sellers of homes, condos and investment properties and prepares wills and trusts for inheriting real estate. George welcomes new clients and questions at  george.warshaw@warshawlaw.com.