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Unread 2016-03-17, 12:28 PM   #1
Protege94
 
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Default Buying a house that is FSBO

Does anyone have any experience with this? My wife and I are going to look at one tomorrow and I am unsure how I feel about the whole FSBO.

From what I have read online it seems like a lot of work as multiple sites suggest hiring a real estate attorney to write up a contract and then creating a trust account for the escrow money.

Has anyone bought a FSBO? How smooth was it? Did you hire an attorney?
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Unread 2016-03-17, 12:36 PM   #2
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Realtors aren't law experts, they pull contracts from community realtor sites like KCRAR. FSBO sellers can pull those exact same contracts and use them as well.

If you have a buyers agent, they will point out any obvious mistakes the FSBO sellers made. If not, and you aren't comfortable with the contract agreements or think there is something off, pay Johnny Bravo his fees to review.

His fees will undoubtably be cheaper than what you lose out on based on buyer's agent fees. Buyers agents work out agreements with FSBO sellers to get a commission. Even though the seller is paying it, it's ultimately going to impact the seller's willigness to negotiate. If you ask for 3% less (typical buyers agent commission), the seller gets the same amount as if you paid them full price...so it's no skin off their back, but you save thousands.
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Unread 2016-03-17, 12:39 PM   #3
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Originally Posted by Protege94 View Post
Does anyone have any experience with this? My wife and I are going to look at one tomorrow and I am unsure how I feel about the whole FSBO.

From what I have read online it seems like a lot of work as multiple sites suggest hiring a real estate attorney to write up a contract and then creating a trust account for the escrow money.

Has anyone bought a FSBO? How smooth was it? Did you hire an attorney?
I had a terrible experience. The guy completely tried to be Mr. real estate agent and I ended up walking because of it. In my opinion, part of the appeal dealing directly with the seller is that that you discuss and negotiate casually. He refused to even talk about numbers until I wrote out a $1000 earnest money check. Wouldn't even let me know if I was in the ballpark on my offer, which I stated to him and he refused to address.

Looking back on it, I think he intended on locking my money down which would make me more likely to try to make a deal on his terms.

This was about 3 years ago and I believe he still lives there.
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Unread 2016-03-17, 02:37 PM   #4
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I sold my previous home FSBO & I'm getting ready to list our current house the same way. I'm a loan officer so I deal with purchase contracts all day long & can do the negotiating myself. The key is I'm aware I would normally be paying both commission's to the agents so I save myself some money & it helps with negotiating the final purchase price or including items in the home for the buyer. It's actually a very easy process if you know what you are doing. If you are buying a home just hire an agent because the seller will be paying the cost of the agent anyway.
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Unread 2016-03-17, 02:41 PM   #5
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I sold my previous home FSBO & I'm getting ready to list our current house the same way. I'm a loan officer so I deal with purchase contracts all day long & can do the negotiating myself. The key is I'm aware I would normally be paying both commission's to the agents so I save myself some money & it helps with negotiating the final purchase price or including items in the home for the buyer. It's actually a very easy process if you know what you are doing. If you are buying a home just hire an agent because the seller will be paying the cost of the agent anyway.
I convinced my builder to reduce the price of the home 3% since I was unrepresented and it was the same amount of money to him regardless and he agreed when he (based on feedback from others in the neighborhood) was a stickler on price and never moved.

I hear people saying the seller pays the agent, but the seller can be convinced to reduce their price based on being unrepresented from my personal experience.
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Unread 2016-03-17, 05:13 PM   #6
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So Im assuming it would be the buyers responsibility to draft and present a contract for purchase?

I have found information that suggest its the buyers responsibility and others say its the sellers responsibility and that the buyer should have it reviewed.
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Unread 2016-03-17, 06:31 PM   #7
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So Im assuming it would be the buyers responsibility to draft and present a contract for purchase?

I have found information that suggest its the buyers responsibility and others say its the sellers responsibility and that the buyer should have it reviewed.
When I sold fsbo my buyer emailed me high level offer and then we created the contract together.
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Unread 2016-03-18, 09:56 AM   #8
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Here is a blank purchase contract you can use & it's pretty straight forward. Counter what they are offering & see where they sit. Once you negotiate back & fourth & come up with a final purchase price finalize a new one & have there agent review it.

http://www.realtyassociation.com/fil...eagreement.pdf
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Unread 2016-03-18, 12:12 PM   #9
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Just went though this last year. Like others have stated, a FSBO experience can be much more personal and relaxed. If the sellers are willing to do a FSBO, it tells me they are open to communication. Communication is the key in this situation. As soon as someone gets their feelings hurt it can all go south very quickly.

When we bought our place we wrote our contract with the sellers and used a basic association of realtors template. Multiple versions were created and sent back and forth until we were both happy with the contract. If we had issues we met and talked them out. The earnest money/title insurance/closing was done through Security First.

I would advise having a realtor or lawyer (any friends in the business?) look over the documents before you sign the contract just for another set of eyes. At the end of the day this is a business transaction so make sure your butt is covered.
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Unread 2016-03-21, 08:18 PM   #10
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I ended up negotiating with the seller and we currently have a contract on the house.

It ended up being pretty easy and office depot actually sells FSBO packets that have all the documents you need for $10 (contract, lead disclosure, sellers disclosure, etc).
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Unread 2016-03-27, 11:00 PM   #11
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That's how we bought our house. I might still have the offer/ contract letter if you want to see them?
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Unread 2016-03-30, 01:05 PM   #12
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That's how we bought our house. I might still have the offer/ contract letter if you want to see them?
We ended up buying a packet of all the contracts/disclosure forms from Office Depot for $10.


We are closing on the house in less than a month and seller agreed to fix ALL issues that came up in the inspection.
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Unread 2016-03-30, 01:29 PM   #13
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Wow, nice! Congrats, hope it continues to go smoothly.
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Unread 2016-03-30, 07:08 PM   #14
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Wow, nice! Congrats, hope it continues to go smoothly.
Thanks! We ended up going with a 15 year note and got what I can tell is a great interest rate.

We had the inspection last Saturday, gave the seller the detailed report on Monday afternoon and on Tuesday he already had 2 appointments set up for Thursday fix the issues.

Im going to miss my downtown loft though, thats one thing that sucks.
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