Penny wise, pound foolish

Earlier this week, I had an opportunity to use this venerable English expresssion. I received a call from FSBO sellers who had received multiple offers on their home. Each offer contained an escalation clause, although they all contained different terms (as they used different forms). I explained to the sellers that they really would benefit from legal representation, as they might not appreciate the differences between the terms of the various offers. Moreover, escalation clauses can be difficult to interpret and, if misinterpreted, a seller will lose money. I told the sellers that I would represent them in the matter and protect their interests for my standard flat fee of $750. They called back and asked if I would charge less if they decided to forgo my review of the three offers. I indicated that I would do so, but that they were missing the point, as the purchase and sale agreement is the most important part of the deal. Moreover, because of the escalation clauses and differing terms, they really would benefit from legal representation. They did not call back. I hope they got the best price possible and the most advantageous contractual terms, but I will probably never know. Regardless, given that their house was undoubtedly selling for hundreds of thousands of dollars, they risked a much greater loss by saving the $750. I guess if you like to gamble...

Of course, don't just take my word on it -- many, many people strongly recommend you hire an attorney when you are an FSBO seller: the Seattle Times, About.com, and the University of Nebraska, to name a few.