FSBO-need some realty good advice

[Mephisto]

want to sell my house fsbo and got a buyer interested and want to know if i can sell without attorney. any real estate agents or real estate attorney that can walk me through it.

seems like you just fill out a disclosure form (which I got online already), have them fill out a purchase agreement, find an abstract/title company who goes to closing with you.

what can go wrong? if i get an attorney, what'll he/she charge? thanks if anyone can help.

-------------------------
"I saw what the governor makes. That's like four hands of blackjack."
-- Charles Barkley on why he wasn't seriously considering becoming the Governor of Alabama

 

[Franky Wright]

want to sell my house fsbo and got a buyer interested and want to know if i can sell without attorney. what can go wrong?

:scared
You have got to be kidding? :cursin:

Mephisto,
Im not going to go back and look at how many posts you have here (oh, ok only 70), but just do yourself a favor and search the past posts like this one, and you will have all your answers as to what can go wrong.
GL,
Franky

 

[Mephisto]

Mephisto,Im not going to go back and look at how many posts you have here,

Not incredibly hard to find, currently 71.
--------------

OK I'll search, but I think selling FSBO isn't the risk that buying is. Anybody else?

 

[BahamaMama]

Mephisto, i both bought and sold my house in MN with no attorney or RE agent.... luckily on the buying end, it all turned out okay, and i wasn't worried about it at all on the selling end. just make sure to include the words *as is* in any agreements

was a little worried as a buyer, but lived there for 12 years with no major problems other than straight line wind damage to a tree , made a profit even selling it as an AS IS STEAL 12 years later, and finally moved back to heaven with no regrets about not dealing with outsiders involved in the sale other than a closing company.

 

[Mephisto]

Bahama Mama, thanks for your insight. the buyer is made completely aware of house condition, he spent 3 hrs in house 2 days ago and says he'll make an offer imminently.

when i bought the house 4 yrs ago i kept every friggin' document there was and i can't figure out where something can go wrong. (course that's what i said about my last 6 team parlay). definitely don't need a RE agent, just can't figure out what an attorney's going to add and don't have a clue what one's worth for such a simple issue.

 

[BahamaMama]

like i said Mep.... i can see where an attorney could come into play as a buyer, i can't see needing one as a seller as long as you make SURE the words *as is* are included in the PA (i think i put them in there about 50 times since i sold as a rehab for about 80K under taxed value) although i knew of one MAJOR problem i didn't disclose....that is why i overdid the as is thing..LOL the way it turned out, i was very happy with the price i got and they were very happy with the price they paid....(until they go to try and sell it of course )

 

[Mephisto]

thanks again, i'm going to go talk to the abstract/title company about this tomorrow. will be interesting to see what they say.

 

[pug]

edit

 

[BahamaMama]

pug, would you mind listing the things that could go wrong for a seller??


(other than an attorney having a harder time paying back their student loan)

 

[Mephisto]

Yes, what can go wrong? Seriously, i'm not financing this, he's cutting me a check. how can it cost me if there's complete disclosure? I don't have a problem using one if there's a compelling reason but I don't see it.

 

[BahamaMama]

Mep, make sure to take the *AS IS* advice, i see that as very important as a seller, that way they have no recourse if something you didn't even KNOW about goes wrong right away.

 

[Mephisto]

do yourself a favor and search the past posts like this one, and you will have all your answers as to what can go wrong.

still searching......................

 

[lowell]

well this might could happen... you go and buy another home or sign lease for rental. you move out and the guy not close. make sure you have enough earnest money and make sure the loan is approved. trust me... things can wrong with or without realtor.

 

[Mephisto]

Thanks Lowell. Actually not going to look for a new house til entire transaction is completed (have a vacation home we're going to temporarily hang out in while searching for new home in a new city). The headache would be moving a lot of shlt into storage and if closing fell through have to move it back and eat the costs and time of all that but guess that's why earnest money is importatnt.

When i purchased $1,000 was earnest which looking back seems like a very low amount, thinking more like $3,000. wonder how i could know for sure the loan is approved prior to closing, don't they give you a "committment letter" or something like that?

Lowell, are you in this line of work? is there any compelling advantage to hiring an attorney, and is $500 about right as pug mentioned which sounds about right to me?

 

[Mephisto]

Bahama Mama, was looking at all the shlt I had signed 4 yrs ago and on closing date (when they shove 20 different forms in front of you and say 'sign here') one form i signed was called Inspection and Acceptance of Property where there was a clause that said...

As of this date, we the undersigned buyers, have inspected the above-mentioned property and do hereby accept it in "as is" condition.

And it also stated...

We further agree that the Sellers will have no further responsibility for the condition and/or maintenance of this property and its equipment after the date of closing of this transaction.

That should perhaps take care of the 'as is' clause that you brought up.

 

[lowell]

Thanks Lowell. Actually not going to look for a new house til entire transaction is completed (have a vacation home we're going to temporarily hang out in while searching for new home in a new city). The headache would be moving a lot of shlt into storage and if closing fell through have to move it back and eat the costs and time of all that but guess that's why earnest money is importatnt.

When i purchased $1,000 was earnest which looking back seems like a very low amount, thinking more like $3,000. wonder how i could know for sure the loan is approved prior to closing, don't they give you a "committment letter" or something like that?

Lowell, are you in this line of work? is there any compelling advantage to hiring an attorney, and is $500 about right as pug mentioned which sounds about right to me?

been selling homes for over 20 years. feel free to get my email from jack and email the contract. you can whit eout buyers name if you like. i will go over it for you and give you my thought. a loan committment letter is not always binding. other issues are getting inspections and appraissals done. who will hold earnest?

 

[Mephisto]

Thank you Lowell, just spent an hour with abstract/title company getting information. If and when i get a purchase agreement i'll consider taking you up on your generous offer. Thanks again.

 

[lowell]

how did you price the home? some fsbos say they are going to add the 6 percent to the price they want if they give it to a realtor. things are worth what they are worth, meaning if a home is worth 100k you cannot say it's worth 106k because remax is selling it. a smart buyer will either subtract all or a portion of what commission would be in making their offer. i believe studies show about 70 percent fsbos will work in first few weeks or they have a good chance to become shop worn. good luck

 

[Mephisto]

I priced the house at 17.5% higher than what it appraised for 4 yrs ago, plus added 14 K for an outbuilding (horse stables) and road leading to it that i added to the property. Fortunately for me potential buyer supposedly liked outbuilding though i can't be sure he liked it 14 K worth.

Two houses very close by sold recently for 20% higher than what they were purchased for 4-6 yrs ago (i know this because they are friends of mine, though their houses weren't appraised as high as mine), and they both used realtors.

Anyway, then I told potential buyer that 6% of that amount was what he was saving me so cut that in half and subtracted that from what i started with.

 

[lowell]

if you like the price do it. you may or may not be leaving money on the table. if i were doing fsbo i would market it for 2 weeks and then take offers so i had it exposed to whole market place. but a bird in the hand...