Post # 1
We found a FSBO home that we’d be interested in seeing, but I’m not exactly sure how we proceed from here. We have a time to see it, and it looks good, I just don’t know what’s next if we like it. I guess we consult with a lawyer??? Any advice would be appreciated
Post # 2
You can still have a realtor on your end, the seller just might not pay for it. We looked at a fsbo house and it wouldn’t have been any different for us because they offered to pay for our realtor they just wanted to save money by not getting one on their end.
Post # 3
Laurenplusalex: Well, do you have a realtor? If so, you don’t have to “do” anything. The seller will likely already be in contact with a lawyer, who will draw up a contract, just like a realtor would. Their lawyer will work with your realtor and the process will proceed normally. If you don’t have a realtor, I would recommend calling a lawyer who deals in real estate. Ask around – I bet a family member, friend or colleague can recommend someone, as these things are fairly common.
My parents have sold three properties by owner, and this is how it always worked for them and the people who purchased the properties.
ETA: My parents always recommended the purchaser hiring a lawyer rather than a realtor, because it’s cheaper. Their by the hour rates are usually lower than a realtor’s commission, so if it is a fairly straightforward sale, thats my recommendation.
Post # 4
We have a realtor but she says she wouldn’t be able to guide us through the process and that we’d need a lawyer. So would our lawyer or his lawyer draw up the contract?
Post # 5
I bought my first house FSBO. I printed up a purchase agreement template form online and filled it out (I had a lawyer review it for potential issues). The seller accepted. I set up an inspection and contacted my mortgage broker. They retained a title agency who handled the closing.
Overall, it went very smoothly.
Just make sure that they give you all of the proper disclosure paperwork. Make your offer contingent on an inspection and financing.
Post # 6
ExcitedScaredBee: thanks for the advice!
Post # 7
Laurenplusalex: Depends on your state. In NJ, you’re required to have an attorney for the entire closing process, regardless of FSBO, etc.
EDIT: I’m an attorney in NJ who does residential closings. 🙂
Post # 8
Jewelieee: I’m in NJ, lol. We knew we needed someone for attorney review.
Post # 9
We looked at a couple of FSBOs. The way it works with Realtor fees is that in a regularly listed property, it’s a 6% fee. 3% goes to each side’s Realtor, seller pays all. In a FSBO, the buyer’s realtor gets 4%, since there is no sellers agent. However, a lot of sellers don’t want to pay the fee, so it can be a sticking point in negotiations.
Either way, you would want an attorney. They should have one as well. Don’t cheap out and just say it’s OK to use their attorney for everything if they offer, you want your own.
Otherwise, the offer process is the same – offer contingent on inspection and financing, etc.