For sale by owner? Anyone with experience?

posted 3 years ago in Home
Post # 3
Member
10490 posts
Sugar Beekeeper
  • Wedding: January 2011

@Tbblount:  The house we bought was comfree.  It was just written into the offer that they had to pay our realtor x amount (and not the $1 or whatever it was they had put on the MLS info).

Post # 4
Member
1312 posts
Bumble bee
  • Wedding: May 2014 - NH

You need a realtor or a lawyer…first thing is first though, look at the house on your own and then get an inspection if you’re interested or sign inspection pending paperwork.  One big thing…you need to make sure the title is clear and that there are no outstanding water bills, gas bills, etc. on the property that might affect you.  Two days after we moved in we got a notice that the water was going to be shut off since the last owner didn’t pay, and we didn’t have it in writing that they were liable for it.  Ugh.

Post # 5
Member
11772 posts
Sugar Beekeeper
  • Wedding: May 2013

I wouldn’t use a realtor at all!

I’d put in an offer (if you like the house), and if she accepts and the house passes all the inspections, get a lawyer to help you at the closing.

I’ve never used a realtor!

Post # 6
Member
1021 posts
Bumble bee
  • Wedding: January 2010

@Tbblount:  Do you have any contract signed with your realtor? If so, you will need to include them on the transaction and the commission structure would be negotiated with the sellers when you put in an offer. If you don’t have anything signed with your realtor, because you found the house on your own, you can legally put in an offer without them, but morally, it’s a gray area. They have been working for you these past few months and some may feel that they deserve to be compensated for their time and effort. However, since they did not find this particular house for you, its not required.

If you decide to move forward on your own, use a lawyer to review all paperwork. You can get a template for a puechase agreeent online and negotiate directly with the seller. Its really not that complicated.

Post # 8
Member
223 posts
Helper bee

@Tbblount:  You will need a lawyer anyway (in addition to your realtor) to draw up the contracts at closing. Generally, in my area commission is 4 percent (2% to the seller’s agent and 2% to the buyer’s agent) if your agent does not own her own company she will have to split the commission and walks away with 1%.

My mother is an agent and recently came across a similar situation. She was working with a buyer and spent alot of her time showing homes to this person. The buyer found a FSBO home priced at 370, because of the situation, the seller was willing to reduce his price to 366 (370 less the 1% commission my mom would have gotten) and the buyer agreed to pay my mom her commission (the difference between asking and close price). This saved the seller from paying the additional 3% in closing costs he would have had to otherwise pay.

I would feel bad not paying my realtor commission in this situation and not going through them as she/he has spent a ton of time with you doing research and showing you homes over the past two months. But this could also be because I know first hand from my mom who generally feels connected with her buyer’s how it feels to be on the other side of this things!

Post # 9
Member
1021 posts
Bumble bee
  • Wedding: January 2010

@Tbblount:  Some states require a lawyer to draw up closing documents and some don’t. Some quick internet research can let you know what your state’s requirements are. However, even if one is not required, if you choose to not use a realtor, I would HIGHLY recommend using one just to make sure that you cover all basis. There are a lot of little bits and pieces involved in real estate transactions and you want to make sure nothing is left open ended.

Depending on the cost of the house, it could save you thousands of dollars to retain a lawyer for a few hours of contract work vs. paying a realtor commission. You just have to weigh all options and pick the best choice for you.

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