Home Sale by Owner
Selling your home is a complicated procedure with contractual requirements and options as well as Federal, State and IRS requlations. For the flat charge of $625.00, regardless of the sales price of your home or if contract for deed, you can be sure of experienced, legal guidance from start to finish. Here is what you get for that fee:

initial conference with you to obtain information, discuss options, explain the sale process and prepare the Illinois Property Disclosure Form and Radon Disclosure Form, Federal Lead Paint Disclosure Form and the Real Estate Contract conformed to your sale, assistance with arranging inspections and payoff letters on your mortgage, preparation of any amendments to the contract, working with buyer's lender and attorney, preparation of all seller required documents including the deed, review and explanation of all pre-closing documents, attendance at closing with review of all documents, Post closing followup including complying with IRS 1099 issuance if needed.
You pay a $250 retainer with the final $375 paid at closing of your sale. If you do eventually list your home with a realtor the $250 paid can be used to represent you on the sale.


YOU CAN DO IT BUT GET SOME EXPERT HELP.

Steps in Selling Your Home
1. Preparing your house for sale. Cosmetic changes and a thorough cleaning can go far in creating a favorable first impression to buyers. Prepare the outside of your home to attract passerbys. Consider what would attract you if you first saw your home and what would put you off? Fix the minor problems such as leaking faucets.

2. Setting the price. Finding the right price is difficult for owners. But the following can help:
-Find recent sales in your immediate area of similar homes. With an address you can learn the sales price from the county offices.
-Compare advertised homes in similar areas to your home.
-Order an appraisal from a certified appraiser. Let them know this is for purposes of a sale by owner. A certified appraiser can be found in the phone book.
When you do decide on a price leave yourself some room to negotiate.

3. Finding the buyer. Get an attractive for sale sign with your phone in large enough print to be seen from the street. Post notices on boards at work and neighborhood spots. Tell your friends, neighbors and relatives. Advertise. Have your own open house. Make a fact sheet on the house to hand out. Use the internet. Type in HOME SALE BY OWNER or similiar search words and you will be directed to web pages of interest that advertise home sales by owners

4. The serious buyer. Make sure an interested buyer is serious and capable of financing the purchase. A binding real estate contract with earnest money that spells out all aspects of the sale ensures this. The contract can be complicated with many options. Most self-help boiler plate forms are hazardous and only confuse the buyer and fail to cover all needed terms. The owner must also comply with Illinois law on the Real Property Disclosure Act, the Radon Disclosure Act and Federal law on Lead paint disclosure.

5. The buyers turn. Once you have the contract, the buyer will begin the financing or loan process unless you are lucky enough to find the rare buyer who pays cash. The buyer takes the contract to a lender who begins the credit process. Once the buyer has approved credit then the following steps are taken:
-An appraisal inspection is arranged by the lender. If the loan is an FHA or VA loan there may be repairs to be done at the owners expense with a follow up inspection.
-A termite inspection is ordered and treatment made if necessary
-Title insurance is ordered. Title insurance guarantees the buyer that they are receiving good title and the lender that their mortgage is protected from title defects. The title insurance may reveal steps that need to be taken to clear title.
-There may be other inspections required by the contract such as whole house, well and septic
-There may be amendments or extensions needed to the original contract
-An attorney will prepare the transfer of title papers which includes the deed, state and county revenue form. Certain cities have requirements that have to be met. For example the City of Peoria has their own transfer charge for sale and requires a zoning inspection for other than single family homes.
-The owner requests a written payoff from any lender that has a mortgage on the house.

6. The closing. This is where it all comes together. Owner and buyer gather around a table with the closer who will present and obtain signatures on the transfer papers and new mortgage papers and record at the Recorder of Deeds. A HUD statement sets forth all the figures and costs of the sale. This will show you your net profit from the sale. This is when you get your check.


CONGRATULATIONS ON THE SALE!

Standard Closing Cost In Central Illinois
The owner customarily pays the following estimated closing costs:

Title insurance: This amount depends on the sales price. A rule of thumb is $180 for first $10,000 of sales price and $3 per $1,000 thereafter. You can get a discount for a recent prior title policy and larger sale amount. An example for a $50,000 home is $180 plus $120 = $300.
County revenue stamps: This is figured at $0.25 per $500.00 of sales price.
State revenue stamps: This is figured at $0.50 per $500.00 of sales price.
City of Peoria transfer charge: This is figured at $2.50 per $1000.00 sales price.
City of Peoria zoning inspection certificate: This is needed for other than single family homes. The application charge is $95.00.
Termite treatment: If the termite inspection reveals infestation the owner pays for treatment. This can be expensive for a whole house. An estimate from a termite company will be needed but can be up to $2000 for a medium size home.
Realtor commission: customarily 7% of purchase price.
Real estate taxes: the owner pays all real estate taxes up to possession date. A credit off the sales price is given for unbilled taxes on a per diem basis.
Assessments: the owner pays all outstanding assessment for improvements such as sidewalks.
Attorney fees: the owner pays own attorney fees. Attorneys should not represent both buyer and seller. Figure around $625 for sale by owner or $550 if you have a realtor involved.
Buyer assistance: owners can assist the buyer with points and closing charges or repairs required by the lender. This is optional.
Courier and wire charges: express charges for payoffs of mortgages and return of documents are charged at up to $25 per express and wire of funds.
Payoff Requests: Many lenders will charge $20 or more for a written payoff request of your current mortgage(s) and more for a quick response.


The buyer customarily pays the following estimated closing costs:

Appraisal: Around $250.00
Termite Inspection: Around $50 to $100.
Inspections: Well, whole house, septic are paid for by buyer. Well and septic are around $100 or less each and whole house around $250 and more.
Lender charges: This varies greatly and includes credit report, underwriting, points and commitment fees.
Lenders title insurance: Around $128.
Closing charge: Around $175.
Recording fee: Around $100.
Attorney fees: This amount varies but is generally less than owners fee. Figure $550.
Courier and Wire charges: Express charges for return of documents are charged at up to $25 per express and wire of funds. Some lenders charge more for wire of funds.

REMEMBER THESE COSTS ARE ESTIMATES

Wills and Probate, Power of Attorneys
The purpose of a Will is to designate who is to receive your property on death, appoint your executor and make other special provisions for your children or charities. The Will preparation process includes a conference on estate planning with a discussion of inheritance taxes and ways to avoid probate. The charge for a single Will is $125 or a Will each for a husband and wife at $100 each. Probate is the procedure for the orderly adminstratiion of your estate, the payment of all debts and the passing of the property to the persons or charities you wanted. Probate is charged at an hourly rate and not as a per centage of the estate. An estimate can be provided after a review of the work needed. The two main power of attorneys in Illinois are the Health Care Power of Attorney and the Durable Power of Attorney. The Health Care Power of Attorney allows someone you have appointed to make health care decisions for you if you are unable to make your own decisions. The Durable Power of Attorney allows someone to take legal action on your behalf such as writing checks or selling real estate. The power of attorneys avoid the need for a guardianship in case of disability. The charge is $75 for each power of attorney.


Trusts
Trusts may be established while living to avoid probate at death, to provide for control over funds, to help avoid inheritance tax and to provide management of funds. The trust may be a separte document or be part of a Will to take effect at death. The cost for a separate trust document starts at $450 and may be more depending on time involved. A trust contained in a Will increases the standard Will cost of $125 to $250 and more depending on time involved.

Unemployment Claims
Attorney Patrick T. Chambers has 15 years experience in unemployment benefit claims and has participated in over 500 unemployment claim hearings, representing both employers and claimants (the former employee) and is the author of the 1996 information book Illinois Employer's Handbook on Unemployment Claims.

Other legal areas
While Patrick T. Chambers concentrates his practice in the above areas he is able to review and handle other areas of law or to make referrals to experience attorneys in those areas.

Real Estate Title Insurance and Closings
Attorney Patrick T. Chambers has more than 25 years experience in reviewing and writing title insurance - a necessity for sale of real estate and mortgages. He is an agent for Attorneys Title Guaranty Fund, rated A-prime unsurpassed for finanical stability and a commercial rating of strongly recommended by Demotech Inc. which evaluates liability insurance pools in the United States (6/2001).

Title insurance costs are based on the sales price or mortgage refinance price. Discounts are available for prior recent title insurance policies, especially prior ATG policies, and larger amount policies. Please call for an exact charge but for a rough estimate figure $180 for the first $10,000 of coverage and $3.00 for every $1,000 thereafter.

Representing Seller and/or Buyer with a Realtor
If you have a realtor involved, he or she will prepare the real estate contract (subject to review by your attorney) and work with the parties towards closing, relieving the attorney of some legwork. You still benefit from legal advice. To represent the seller from start to finish is a charge of $550 and to represent the buyer from start to finish is $500.