Selling a home without a real estate broker can make sense, especially when you already know the buyer. It also means the work a broker would do falls to you. Here is what to know before you start.
1. You can do it. Colorado does not require a broker to sell real estate. Plenty of homes in the Estes Valley change hands between neighbors, relatives and longtime tenants.
2. Get the deal in writing before anyone moves. A handshake is not a contract. The price, the earnest money, the deadlines and what stays with the house all need to be in a signed written contract.
3. Know what the house is worth. Without a broker, nobody is pricing the home for you. An appraisal is the simplest way to set a fair price, and the buyer’s lender will likely order one anyway.
4. Disclose what you know. Colorado sellers must tell the buyer about problems they know of, and some disclosures are required in every sale (e.g., lead-based paint for homes built before 1978, and whether the home is in an association or special taxing district). Hiding a known problem is the fastest way into a lawsuit.
5. Deadlines matter more than you think. The contract will set dates for the inspection, the title review, the appraisal and the buyer’s loan approval. Miss one, and you may lose a right you were counting on.
6. Use a title company. The title company searches the records for liens and other problems, holds the earnest money, handles the money at closing and records the deed. It is the safest way for both sides to exchange the house for the money.
7. Read the title commitment. Before closing, the title company issues a report listing every lien, easement and exception on the property. On mountain properties in particular, look for access easements, shared driveways and old mining or water rights.
8. Mountain homes raise mountain questions. Wells, septic systems, private roads and short-term rental licenses all deserve a line in the contract. A short-term rental license generally does not transfer to the buyer.
9. The paperwork does not end at signing. You will need the right kind of deed and a transfer declaration for the county, and if you are carrying financing for the buyer, a promissory note and a deed of trust to protect yourself.
10. One attorney or two. An attorney can represent you as the seller, the buyer, or (with both of your written consent) the two of you together. If the buyer is a friend or family member, it is worth talking through which arrangement fits before anything is signed. See For Sale By Owner.
This page is general information, not legal advice. Talk with an attorney before signing a contract to sell your home.
Back to Real Estate · For Sale By Owner · All Practice Areas