Real Estate Question

**Preston** · 04-25-2009, 06:47 PM

We are considering buying our first home and have been working with a realtor. I recently found a house that is an estate sale, For Sale by Owner (or probably family member in this case). I was wondering what we do in this scenario?

Do we just ask the realtor we've been working with to help us out with it, or what all is involved?

**Firefly7071** · 04-25-2009, 08:15 PM

You can ask your current realtor to help you buy any home regardless if it is a FSBO or listing by a broker. Their first response will be to contact the FSBO's and ask them if they are willing to pay them a 3% "finders fee" the owner may or may not agree. Then the agent can ask for the brokers fees to be paid.

Or you can just contact the owners yourself and hire a real estate attorney to write up the purchase agreement.

Every single thing is negotiable. remember that. and you MUST do a title search to make sure that the title is free and clear or you may be stuck with a nasty bill once you move in.

We have purchased a home that was a FSBO and everything went just fine. You hire the attorney and then everything is signed at a title company. It is the EXACT same process that happens with a broker/agent. I have done both.

**Kazoo** · 04-25-2009, 08:36 PM

First, check your contract with your agent. It often requires that you use him/her even if you find a house on your own. I believe he/she can come after you later if you break that part of the contract.

If you are not required to use your agent, what is your knowledge and comfort level with the real estate process? Do you have family/friends who are familiar with the process?

Your lender will usually take care of some critical tasks (e.g., the title search, the appraisal). The real estate agent is helpful with negotiations, determining a fair price, making sure the sales contract is appropriately worded (e.g., usually you want your offer to be contingent on inspection and you getting your loan), obtaining the seller's disclosure form (where they list anything they know is wrong with the house), giving you details on the neighborhood (if it's new to you) and the property (e.g., what is the zoning in case you ever wanted to make changes), and keeping tabs on the many things that have to happen between signing of the contract and closing date. In essence, he/she is supposed to be looking out for your best interests, although that is not always the case.

There are books and companies that can help with this if you decide not to use your agent. Personally, as a first-time buyer, I would not have gone it alone. But some people do and are fine.

**beks37** · 04-25-2009, 09:21 PM

From my experience with purchases involving FSBO's.....if you don't know a lot about buying a house and what is involved, for sure have your realtor help you. They will make sure you get a fair deal. I was a loan closer and dealt with my fair share of FSBO's. There was one particularly nasty one, but needless to say, it is good to have a realtor help you.

**sabrelvssammy** · 04-26-2009, 08:08 AM

if you think this is the home for you contact an attorney to handle the process for you... they will arrange for everything from the title search and all other documents that are required by your individual states laws...they should also be able to close the loan for you in their office thus avoiding the 'title company and their additional fees)... we have purchased quite a few FSBO's and have found that the attorney route is the cheapest way to go...(we have paid realtors flat fees of $1000 to do all the work) but then you still have to have the loan 'closed' and that is an additional fee... the last FSBO we did last Oct (we were the seller on that one) the attorney fee was $550...(that included everything)....

keep in mind you need a 'real estate attorney'.... attorney's are doctors and they have different areas of expertise...(you wouldn't want a criminal lawyer to close your loan any more than you would want a podiatrist to do brain surgery on you)....

also keep in mind that as you go thru the process any fees that you negotiate to pay and the loan falls thru (unclear title, appraisal, inspections) you will still have to pay for these (but believe me..the sting will go away after awhile if you can save yourself from a bad situation)....

you will also need to go to your banker or loan company and get your pre-approval (if you haven't already)... your attorney will write up an offer and have it presented to the seller and then the negotiations begin....

and as others mentioned here already... ask for the stars & moon in the beginning... we have had sellers say okay right off the bat just to get out from under the property....you can always work backwards as you start negotiating.....

good luck....