Understanding the Risks in a “For Sale by Owner” Real Estate Purchase

Wheaton, IL real estate attorneysThere are a number of reasons that you may want to purchase a home that is being sold by the owner. It could be that the property has everything you have been looking for, or it could simply be a desire to complete an expedient purchase. Whatever the case, there are some risks that you should be aware of, and some factors you should consider, when purchasing a “for sale by owner” (FSBO) property. These risks and factors – and how you can effectively manage them – could prove to be crucial. 

You May Have to Do Some Leg Work

Real estate agents are paid (and trained) to address many details for both the buyer and the seller. A FSBO owner, though interested in selling their property, does not have the same knowledge or experience, which means they may fail to provide you with important information. This oversight may not necessarily be intentional, but it is something you should be aware of. Furthermore, FSBO owners may lack the organizational skills needed to complete paperwork in a timely manner.

Be prepared for possible delays and never agree to anything until you have done your homework. At the very least, this should include an investigation on any previous insurance claims filed on the home, a market analysis of the area, research on zoning details and specific details of the property, and an experienced real estate attorney who can protect your interests by examining the contract and other details of the transaction.

Managing Your Escrow

When you purchase a home through a real estate agent, the escrow that goes toward your down payment is sent to a bank or other neutral entity. Buyers and sellers do not have to “do” anything extra to ensure this payment is secure. In a FSBO transaction, far too many prospective buyers make the mistake of giving the owner the escrow amount. This can result in all kinds of legal issues. Avoid this pitfall by searching for a neutral third-party who is willing to hold the earnest deposit until the process is complete.

Inspections and Contracts

When it comes to possible missteps in a FSBO transaction, there are two major ones that buyers often make: failing to effectively vet the home inspector and not hiring an attorney to review the contract. In a best case scenario, these two mistakes could cost you thousands of dollars in repairs or in remedying legal details surrounding the purchase. Worst-case scenarios are frightening and can include everything from learning that the home you purchased has a major issue (electrical problems, severe water damage, black mold, etc.) to finding out that there are years’ worth of back taxes owed on the property. Do not become victim to these circumstances! Hire a thorough inspector that will check every nook and cranny, and always contact a real estate attorney before signing a contract.

Work With a DuPage County Residential Real Estate Lawyer

At Stock, Carlson & Duff LLC, we protect the interests of our clients in FSBO real estate transactions. Able to provide knowledge, experience, and skilled assistance in areas pertaining to contracts, home inspections, zoning issues, and more, we are prepared to help you effectively and efficiently navigate the details of your real estate purchase. For more information, contact our Wheaton, IL real estate attorneys today. Call 630-665-2500.

Source:

https://www.thebalance.com/buying-for-sale-by-owner-1798295

House-Flipping in Illinois – Where Are the Hottest Spots to Invest?

DuPage County real estate lawyersHouse-flipping has become somewhat of a trend in the United States – and for good reason. Financing options are more plentiful and far easier to obtain than they once were, and the housing market is finally starting to recover from the Great Recession. However, not all areas are profitable for investors. The following information can help point you into some of the hottest communities to flip in, and it provides you with details on what a seasoned real estate attorney can do to protect your investment portfolio and financial future. 

Chicago and Surrounding Cook County Areas

Of all the areas in Illinois, the most promising for flippers can be found in Chicago and the surrounding areas in Cook County. Experts say that investors are seeing as much as a 97.7 percent ROI, which is much higher than most areas in the nation. To break that down into dollar terms, the average purchase price for flipped houses is at about $88,500. Those houses have sold for an average of $175,000. While that is a decline of about 2 percent from last year (and thereby suggestive that opportunity in the market is slowly diminishing), homes can still be purchased at a deep discount in the area. 

Other Areas of Interest in Illinois

Most areas in Illinois continue to have a higher ROI than the national average. However, some areas throughout the state are more profitable than others. Lake County is one of the areas where investors are seeing the lowest ROI (47.8 percent). It also has a lower ROI than the national average. Yet investors are still making profits in this area – mostly because the savvy ones know you have to take the housing market block-by-block. Take the time to research the area. Know what houses are selling for in the neighborhood where you are thinking of buying, and analyze the trends for that specific area. 

Contact Our DuPage County Real Estate Lawyers for Assistance

While hiring a professional can cut into your bottom line on an investment, there are times when that added expense is worth the cost. The assistance of a seasoned real estate attorney is a prime example. Able to help with everything from performing your due diligence to negotiating better contracts, the right attorney could potentially save you thousands on your next deal. 

Stock, Carlson & Duff LLC is backed by more than 40 years of legal experience. Our skilled DuPage County real estate lawyers will work hard to ensure you get the best ROI on your next transaction. Schedule your personalized consultation to get started. Call 630-665-2500.

Source:

http://www.chicagotribune.com/business/ct-house-flipping-chicago-0602-biz-20160601-story.html

 

Using Social Media to Grow Your Commercial Real Estate Business

Illinois commercial real estate attorneysGrowing a commercial real estate business is no easy task, and the more saturated the market gets, the more difficult promoting your business becomes. To stay in the competition, real estate investors are encouraged to utilize today's more powerful marketing tool: social media. Learn more in the following sections, and discover how a commercial real estate attorney can help protect your business from the most commonly experienced issues in the market.

Why Use Social Media?

Social media use has grown exponentially over the last several years. It is where consumers connect with friends and family. It is also where they gain information regarding where they should spend and invest their money. On the one hand, this is a positive thing, as it gives consumers more choices, but it can also make it difficult for smaller, start-up businesses to attract the kind of attention they need to grow.

Social Media Strategies for Growing Your Business

While much of your social media strategy will be based on the clientele you are serving and the unique aspects of your business, one can turn to some of the most successful commercial real estate accounts to gain some insight on using social media in an effective way. For example, one New York agency uses a consistent theme; they focus on posting high-quality photos of businesses, people, and neighborhoods that are of interest to their consumers on Instagram. Theoretically (and most likely), this attracts new tenants to their buildings.

In other words, to develop a successful and tailored social media plan, you will want to first consider what may be most important to your clients. What are their needs, and how do you meet them? Then focus on using a strategy that pulls them in. Business owners are also discouraged from posting political views, rants, and other statuses that paint them in a negative light. It is also recommended that commercial real estate investors use memes, motivational quotes, and other content that is not related to their business sparingly.

How an Attorney Can Help You Grow Your Business

Social media can attract new clientele, but new clients are only a positive thing when you are adequately prepared. Furthermore, commercial real estate investors need quality protection from the common issues that arise in the industry, such as zoning problems and delays in development. It is in this area that Stock, Carlson & Duff LLC can assist. Dedicated and experienced, our Wheaton commercial real estate lawyers prioritize the growth and future of your commercial real estate business. Call 630-665-2500 and schedule your personalized consultation to get started today.

Source:

https://www.forbes.com/sites/forbesrealestatecouncil/2017/12/27/ten-tips-from-the-top-commercial-real-estate-accounts-on-instagram/#a0cffbc72052