For sale by owner expereinces, anyone?

posted 3 years ago in Home
Post # 2
Member
3280 posts
Sugar bee
  • Wedding: June 2014

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
Member
2131 posts
Buzzing bee
  • Wedding: June 2015

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.

  • This reply was modified 2 years, 7 months ago by  annb9.
Post # 5
Member
1021 posts
Bumble bee
  • Wedding: January 2010

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 # 7
Member
1312 posts
Bumble bee
  • Wedding: March 2015

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. 🙂

  • This reply was modified 2 years, 7 months ago by  .
Post # 9
Member
2368 posts
Buzzing bee
  • Wedding: June 2014

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.

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